The Registrar cannot direct the deletion of a Gram Panchayat from a co-operative society's operational area, affirming multiple PACS can coexist in the same area, promoting autonomy as per the KCS Act.

ORDER :

SURAJ GOVINDARAJ, J.

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

i. Issue a writ of appropriate nature to declare that Section 12(5)(6) the KARNATAKA CO-OPERATIVE SOCIETIES ACT in ultra vires and in violation of Article 19(1)(G) and Article 43-B of The Constitution of India .

ii. Issue any writ of certiorari quashing the impugned directions bearing Sani No.43:RSR:GRN:12(5):PR:2023-24 dated 29.11.2023 passed by the Respondent no.4 vide Annexure-A and

iii. Permit the Respondent No.5 society to continue to function in its existing area of operation as per its Bye-laws; and

iv. Grant such other relief as may be deemed fit to grant under the circumstances of the case in the interest of equity and justice.

2. Learned counsel for the Petitioner at the outset submits that he would not press for prayer (i) above, as such prayer (i) is deleted.

3. The Petitioners claim to be directors of Respondent No.5-Primary Agriculture Credit Co-operative Society (hereinafter for brevity referred to as a “PACS”) which has been registered under the provisions of the KARNATAKA CO-OPERATIVE SOCIETIES ACT , 1959 (hereinafter for brevity referred to as “KCS Act”). The Society is engaged in the business of acceptance of various types of deposits, providing credit facilities to its members, supplying of fertilisers, manure, agriculture implements, ration items, etc. In terms of the by-laws of the Society, the Society only functions and carries on business with its members, a non-member cannot deal with the Society.

4. Respondent No.2-the Registrar of Co-operative Societies (hereinafter for brevity referred to as “the Registrar”) issued a circular on 12.05.2017 directing the Gram Panchayat to take steps to form a separate PACS in each of the Gram Panchayats where there is no PACS, on the basis of the said circular the Additional Registrar of Co-operative Societies, in a meeting held on 03.08.2023 decided to form a new PSCS for Bechanahalli Gram Panchayat, in pursuance of which the Assistant Registrar of Co-operative Societies (hereinafter for brevity referred to as “ARCS”) issued a direction on 29.11.2023, under Sub-section (5) of Section 12 of the KCS Act directing the Society to delete Bechanahalli Gram Panchayat from its area of operation within 15 days so as to enable the formation of a new PACS in Bechanahalli.

5. The Society submitted a representation on 28.12.2023 stating that in order to comply with the directions, the Society would have to call for a Special General Meeting which would take some time and therefore requested the ARCS not to implement the direction until such time.

6. In the meanwhile, the villagers of Bechanahalli and certain other members of the Society had addressed a letter on 29.12.2023 to the ARCS, requesting the ARCS not to implement the directions and not to form a new PACS in Bechanahalli which has also not been considered by Respondent No.4. It is in that background, that the Petitioners are before this Court seeking for the aforesaid relief.

7. Sri.Jayakumar S. Patil, learned Senior Counsel appearing for the Petitioner would submits that;

7.1. The impugned direction dated 29.11.2023 is stated to have been issued in pursuance of a circular dated 12.05.2017 issued by the Registrar, thereafter the Registrars having kept quiet