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2024 Supreme(Kar) 614

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
SURAJ GOVINDARAJ, J.
Ombatthugulli Milk Producers Co-Operative Society Ltd, By Its President Ramareddy, S/o. Venkatareddy and Ors. - Petitioners
Versus
The State Of Karnataka, Department Of Co-Operation and Ors. – Respondents
Writ Petition No.33522 Of 2024 (CS-RES)
Decided On : 10-12-2024

Advocates Appeared:
For the Petitioners:Sri. Mr. Rajgopal, Senior Advocate for Sri. H.N. Basavaraju, Adv.
For the Respondents: Sri. Prathima Honnapura., AGA Along With Sri. Yogesh D Nayak., AGA, Sri. Jayakumar S. Patil., Sr. Adv. for Sri. Devi Prasad Sheety.

Members of a cooperative society must be given an opportunity to voice objections to proposed amendments to bye-laws, ensuring procedural fairness in governance.

Headnote:(A) Karnataka Co-operative Societies Act, 1959 - Section 12 - Amendment of bye-laws - Petitioners challenged the order of the Joint Registrar for not allowing them to submit objections to proposed amendments to the bye-laws of the Federal Cooperative Society - The court held that the petitioners must be given an opportunity to voice their objections before any amendments are finalized. (Paras 1-21)

(B) Procedure for Amendment - The court emphasized that the administrator must convene a General Meeting to discuss proposed amendments, ensuring members' rights to participate are upheld. (Paras 20-22)

Facts of the case:
Petitioners, primary societies affiliated with a Federal Cooperative Society, challenged the registrar's order for amendments to the bye-laws without their input, claiming deprivation of their rights.

Findings of Court:
The court found that the procedure for convening a General Meeting was not followed, thus quashing the registrar's order and directing the administrator to issue notices for a meeting.

Issues: Whether the petitioners are entitled to submit objections to the proposed amendments under Section 12 of the Act.

Ratio Decidendi: The court ruled that the failure to convene a General Meeting deprived the petitioners of their rights, necessitating their opportunity to participate in the amendment process.

Result: Writ petition partly allowed; the registrar's order quashed and a General Meeting ordered.

ORDER :

(Suraj Govindaraj, J.)

1. Petitioners are before this Court seeking for the following reliefs:

    “Wherefore the petitioner most respectfully prays this Hon’ble Court be pleased to:

    a. Issue a writ in the nature of certiorari or any other writ to quash the order passed by the 2nd respondent that in Joint Registrar Co-operative Societies, Bangalore Division, Bangalore dated 29.11.2024 in No. JRB/AMD SECTION 12(6)/2024-25/08 as per Annexure-E.

    b. Issue a writ in the nature of mandamus or any other writ to restore the order of the 2nd respondent to the stage of issuing notice and convening General Body by the 3rd Respondent Administrator in terms of the order under Section 12(5) of the Act as passed by the 2nd Respondent dated 29.10.2024 in number JRB/AMD/SECTION 12(5)/02/2024-25 as per Annexure-D.

    c. Issue any appropriate writ, order or direction as this Hon’ble Court deems fit and proper in the fact and circumstances of the case and allow this writ petition in the ends of justice and equity.”

2. The petitioners claim to be the primary societies affiliated with respondent No.3 - Kolar District Cooperation Milk Producers Union, Kolar. Registrar of Cooperative Societies vide communication dated 29.10.2024 at Annexure-D issued under Sub-section (5) Section 12 of the Karnataka Co-operative Societies Act, 1959 (hereinafter referred as to ‘Act’) called upon respondent Nos.3 / 4 to effect certain amendments to the bye-laws for the reason that earlier there was a single federal society for the unified District of Kolar, on the district of Kolar being bifurcated there are two separate Federal Societies formed for Chikkaballapur and Kolar districts.

3. Respondent No.3 being the Federal Society for Kolar District, all taluks more particularly the taluk known as KGF not being represented by the Federal Society vide the said communication dated 29.10.2024 at Annexure-D, the registrar called upon the Federal Cooperative Society to carryout the amendment to the bye-laws. The amendment not having been carried out within a period of thirty days as prescribed under Sub-section (5) Section 12 of the Act, vide order dated 29.11.2024 under Sub-section (6) of Section 12 of the Act the registrar issued a certificate of amendment. The notice under Sub-section (5) Section 12 of the Act and the order under Sub-section (6) Section 12 of the Act are challenged in the present proceedings.

4. The submission of learned Senior counsel Sri. MR. Rajgopal, learned counsel appearing for the petitioners is that any amendment which is carried out to the bye-laws of the Federal Cooperative Society would have bearing and impact on the members of the Federal Cooperative Society that is the petitioners herein and it is therefore, required for the petitioners to be given an opportunity to submit any objections that they may have to the amendment proposed by the Registrar.

5. No meeting having been held in terms of Sub-section (5) Section 12 of the Act when the members could have made known their opinion and or grievance as regard the proposed amendment, the petitioners have been deprived of this opportunity and as such on account of default on the part of the administrator of respondent No.3 the registrar has passed an order under Sub-section (6) Section 12 of the Act. Therefore, it is the petitioners who being effected by the amendment are required to be given an opportunity to make their submissions as regards the proposed amendment.

6. Learned Senior counsel Sri. Jayakumar S Patil, appearing for respondent Nos.3 and 4 which are one and the same in as much as respondent No.3 is the Federal Society represented by the administrator, respondent No.4 is the very same Federal Society represented by it’s managing director submits that the bifurcation of the earlier Federal society having been made for Chikkaballapur and Kolar districts. The amendment which has been suggested by the Registrar is for equal representation of all the talukas in the new society formed namely respondent

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