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2025 Supreme(Kar) 894
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
SURAJ GOVINDARAJ, J.
Kamaganahalli Milk Producers Women's Cooperative Society Ltd. - Appellant
Versus
The State of Karnataka - Respondent
Writ Petition Nos. 21521, 22271, 23570 of 2024
Decided On : 02-05-2025
Important Points
Subject
Administrative Law - Co-operative Societies Governance
Act Referred
KARNATAKA CO-OPERATIVE SOCIETIES ACT: S.106, S.12, S.12(1), S.12(2)(2)(a), S.12(3), S.12(5), S.28(a)(2), S.29(g)(4)(j)
CONSTITUTION OF INDIA: Art.19, Art.19(1)(c), Art.19(1)(g), Art.226, Art.227
Headnote
Facts of the case:
The petitions challenged the Registrar's orders rejecting amendments aimed at adjusting board representation following the formation of new talukas, asserting the resolution was properly passed in a general meeting but faced procedural objections regarding notification. (Paras 4-5, 8)
Findings of Court:
The court emphasized the need for compliance with necessary procedures in amending the by-laws, confirming the legality of the Registrar’s decision based on the non-compliance with statutory requirements. (Paras 36, 39)
Issues: The main questions included the validity of the Registrar's rejection of amendments, whether the petitioners provided proper notice as per rules, and the right of cooperative societies to govern their internal structures without undue interference. (Paras 2-3, 9)
Ratio Decidendi: The court ruled the Registrar acted within authority, emphasizing the necessity for cooperative societies to follow statutory requirements when amending bylaws, maintaining oversight of financial management by ensuring compliance with cooperative principles. (Paras 34-35, 37)
Result: Writ petitions dismissed, upholding the Registrar's directions regarding amendments and procedural compliance. (Para 39)
Advocate Appeared:
For the Appellants : Jayakumar S. Patil, Devi Prasad Shetty
For the Respondents: Prathima Honnapura, Yogesh D. Naik, K.S. Kalleshappa, Subramanya R.
ORDER :
1. The Petitioner in W.P. No. 21521/2024 is before this Court seeking for the following reliefs:
(1) Issue a writ of certiorari or any other writ or order, quashing the order issued by the R2 dated 20.02.2024 in no. JRB/Thiddupadi-2/26/2023-24 produced as Annexure-D.
(2) Issue a writ of certiorari or any other writ or order, quashing the order issued by the R2 dated 03.08.2024 in No. JRB/Thiddupadi- 2/12(5) Nirdeshana/2024-25 produced as Annexure-F.
(3) Issue a writ in the nature of certiorari quashing the amended/corrigendum order dated 05.08.2024 passed by the respondent no.2 in No. JRB/Thiddupadi-2/12(5) Nirdeshana/2024-25 is herewith produced as Annexure-G.
(4) Grant such other relief/s as this Hon’ble Court deems fit in the facts and circumstances of the case in the interest of justice.
2. The Petitioner in WP No.22271/2024 is before this Court seeking for the following reliefs:
(1) Issue a writ of certiorari to quash the orders passed by the 2nd Respondent Joint Registrar of Co-operative Societies Bengaluru region Bengaluru in No. JRB/Tiddupadi-2/26/2023-24 dated 20.02.2024 as per Annexure-J and order dated 03.08.2024 passed by the 2nd respondent in No. JRB/Thiddupadi-2/12(5) Nirdeshana/2024-2 as per Annexure-K.
(2) Issue a writ in the nature of mandamus directing respondent No.2 to accord approval to the amended bye-laws, submitted by the R3 Respondent Bank in view of Sec.12(3) of the Act, as per proposal forwarded to the R2 vide letter in No.KDDCCB/YOD & AA/9286/2023 dated 07.11.2023/5-12-2023 as per Annexure-C.
(3) Issue any appropriate writ, order or direction as this Hon’ble Court deems fit in the facts and circumstances of the case in the interest of justice and equity.
3. The Petitioners in WP No.2370/2024 are before this Court seeking for the following reliefs:
1. Issue an appropriate writ, order or direction in the nature of Mandamus directing the R3 and R3 to consider the representation dated 15.07.2024 and 07.08.2024 vide Annexure-A, B and L, made by the petitioner societies, and further incorporate the amendment to the 4th Respondent byelaw 9(A), and thereafter hold elections to the 4th Respondent Executive Body by providing representation to the Chelur and Manchenahalli taluks in the 4th Respondent Executive Bodies, Board of Directors, in the interest of justice and equity.
2. Grant such other relief/s as this Hon’ble Court deems fit in the facts and circumstances of the case.
Facts in W.P.No.21521/2024:
4. The Petitioner claims to be a registered Primary Milk Producer Co-operative Society under the provisions of the KARNATAKA CO-OPERATIVE SOCIETIES ACT , 1959 (for short ‘KCS Act’) and the KARNATAKA CO-OPERATIVE SOCIETIES RULES , 1960 (for short, ‘KCS Rules’). The Petitioner claims to be operating within the jurisdiction of the Kolar-Chikkaballapura District Central Co-operative Bank Limited that is the 3rd Respondent herein. The Petitioner claims to be represented by the Director with the Board of Directors having authorized the Director to file the above petition.
5. The 3rd Respondent - Kolar- Chikkaballapura District Central Co-operative Bank Limited (hereinafter referred to as ‘DCC Bank’) is a Federal Co-operative Society operating in the Districts of Kolar and Chikkaballapura. The DCC Bank functions with the assistance provided by the National Bank for Agriculture and Rural Development (NABARD), which is routed through the Apex Society in the State Level called the Karnataka State Co-operative Apex Bank (Apex Bank). The Apex Bank distributing the funds to the DCC Bank, which operates at the district level, which in turn distributes the financial assistance to Taluka Agricultural Societies and Primary Societies at the Taluka or Gram Panchayat level.
6. In the present case, the composition of the 3rd Respondent - DCC Bank is stated to be 21 Directors which includes one Government nominee, a nominee of the Apex Bank and the jurisdictional Joint Registrar of Co-operative Societies (JRCS). It is stated that the ca
