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
| 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
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.
Directors of a co-operative society are disqualified from voting and continuing in office if they admit to not fulfilling minimum service requirements as per the society's bylaws.
The appointment of an administrator does not equate to the supersession of a Board, and actions taken prior to such appointment remain valid; votes cast under these circumstances must be counted, sub....
The main legal point established in the judgment is that the by-law no.44(5) was not inconsistent with the provisions of the Maharashtra Cooperative Societies Act, 1960, and the petitioner had alread....
Court emphasized compliance with statutory provisions regarding the appointment and tenure of management in cooperative societies.
The court ruled that decisions lacking reasoned justification and not adhering to natural justice principles are arbitrary, warranting annulment and re-evaluation of the case.
The term of a cooperative society's managing committee cannot be extended beyond its statutory period despite external delays affecting elections.
The President's presence was not essential in the special meeting for a motion of no confidence, and the calculation of majority was clarified by the court.
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