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2025 Supreme(Kar) 632

IN THE HIGH COURT OF KARNATAKA AT BENGALURU 
SURAJ GOVINDARAJ, J.
Lokesh B.N. S/o Late Narasaiah - Appellant
Versus
The Milk Producers Co-Operative Society Ltd. - Respondent
Writ Petition No. 12180 of 2025
Decided On : 06-06-2025

Advocates:
Advocate Appeared:
For the Appellant : Adinarayan
For the Respondents: Yogesh D. Naik, Varnakara Reddy K.B.

Resignation letters submitted under the Karnataka Co-operative Societies Act, 1959 cannot be withdrawn after 15 days; hence, any claims based on late withdrawals are not sustainable.

Headnote:(A) Karnataka Co-operative Societies Act, 1959 - Sections 29-B and 31(1) - Resignation of board members - The petitioner's claim to set aside the order appointing a Special Officer is untenable as resignations submitted under Section 29-B cannot be withdrawn after 15 days and thus were accepted. (Paras 9.1, 9.4, 10.1, 10.6)

(B) Litigation - Frivolous claims - Imposition of costs for vexatious litigation is necessary to deter abuse of court process. (Paras 11.2)

Facts of the case:
The petitioner, elected President of the society, challenged the appointment of a Special Officer following the resignation of several Directors, claiming some had retracted their resignations due to fraud in obtaining them.

Findings of Court:
Petitioner had no locus standi to contest the alleged withdrawal of resignations as he did not submit a resignation himself; hence, the petition was dismissed with costs imposed for frivolous litigation.

Issues: Whether a resignation can be withdrawn after 15 days as per Section 29-B, and whether the President could contest the Special Officer's appointment based on alleged withdrawals by Directors.

Ratio Decidendi: Resignations take effect after 15 days unless withdrawn in that timeframe; a President cannot claim to contest based on directors' resignations not submitted or accepted.

Result: Petition dismissed with costs of Rs.10,000/- imposed.

Table of Content
1. petitioner's request for relief and background. (Para 1 , 2)
2. arguments regarding resignation status. (Para 3)
3. responses concerning resignation withdrawal limitations. (Para 4 , 5)
4. court's determination of legal points. (Para 6 , 7)
5. legal interpretation of resignation withdrawal under the kcs act. (Para 8)
6. final ruling and imposition of costs. (Para 9 , 10 , 11)

ORDER :

1. The petitioner is before this Court seeking for the following reliefs:

1.1. Issue a writ of certiorari to quash the order passed by the 3rd respondent abolition of the elected body and appointing a 2nd respondent as a special officer in the 1st respondent society on 11.04.2025 which is produced as Annx-A.

1.2. Issue any other writ or order or directions as this Hon'ble deems fit to grant in the facts and circumstances of the case including costs, in the interest of justice and equity.

2. The petitioner claims to be elected to the post of Director of the 1st respondent-society in the election conducted on 6.8.2023. Thereafter, the petitioner was elected to the post of President in the election conducted by the office bearers on 19.8.2023. The Board of Directors of the 1st respondent-society comprising of 12 members. On 25.3.2025, seven members were stated to have submitted their resignation. In pursuance of which, there being no quorum, a Special Officer was appointed, which has been challenged by the Petitioner in this petition.

3. Sri.Adinarayan, learned counsel for petitioner submitted that:

3.1. All the seven Directors have not resigned inasmuch as two of the Directors have sought for withdrawal of their resignation and in this regard, he has filed a memo enclosing the withdrawal letters of Gavirangaiah and Gangaiah, which were submitted on 28.04.2025.

3.2. Earlier resignation of Gavirangaiah and Gangaiah was obtained by fraud by the Secretary, the Secretary has drafted letters on blank papers and obtained signature of Gavirangaiah and Gangaiah by fraud for the purpose of submitting the resignation.

3.3. All the resignations are verbatim the same and written in the same handwriting and therefore, resignation letters cannot be believed.

3.4. If the withdrawal letters of resignation dated 28.04.2025 are accepted, then there would be only five resignations leaving seven continuing Directors, which will form a quorum, not requiring the appointment of a Special Officer.

4. Learned counsel for Respondent No.1 – society would submit that initially resignation having been submitted on 25.3.2025, the alleged withdrawal letters were submitted on 28.4.2025, which is beyond the period of 15 days prescribed under Section 29-B of the KARNATAKA CO-OPERATIVE SOCIETIES ACT , 1959 (hereinafter referred to as ‘the KCS Act’). The withdrawal is not permissible after 15 days. The resignation having been acted upon, there being no quorum, the appointment of Special Officer is proper.

5. The above submission is reiterated by the learned AGA to submit that once there is no quorum, Special Officer has to be appointed in terms of Section 31(1) of the KCS Act.

6. Heard Sri Adinarayan, learned counsel for petitioner; Sri Varnakara Reddy K.B., learned counsel for Respondent No.1; and Sri Yogesh D. Naik, learned AGA for Respondent Nos.2 and 3 and perused the records.

7. The points that would arise for consideration in the present matter are:

1) Whether the resignation submitted under Section 29-B of the Act can be withdrawn beyond the period of 15 days as prescribed therein?

2) Whether a President of the Co- operative Society, who had not submitted the resignation letter, by relying on the alleged withdrawal of the resignation of the two other Directors, who are not before this Court, seek for setting aside of the order of appointment of the Special Officer?

3) What order?

8. I answer the above points as under:-

9. Answer to Point No.1: Whether the resignation submitted under Section 29-B of the Act can be withdrawn beyond the period of 15 days as prescribed therein?

9.1. Secti

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