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2025 Supreme(Kar) 985

IN THE HIGH COURT OF KARNATAKA AT DHARWAD
Suraj Govindaraj, J.
Shirhatti Taluk Agricultural Produce Marketing Co-Operative Niyamit - Petitioner
Versus
The State Of Karnataka Represented By Its Joint Secretary, Department Of Co-Operative and ors.- Respondents
Writ Petition No. 106655 of 2025 (CS-RES)
Decided On : 16-09-2025

Advocates Appeared:
For the Petitioner:Sri. Jagdish Patil, Advocate
For the Respondent:Sri. Ramesh B. Chigari, Aga, Sri Pranav U. Badagi, Advocate, Sri R.H. Angadi, Advocate

The court established that applicants for cooperative society membership are deemed members if no action is taken within two months, and emphasized only the Chief Executive Officer can represent the society in legal matters.

Headnote:(A) Karnataka Cooperative Societies Act, 1959 - Section 16(4) and Section 29G(4)(j) - Membership and admission process - Court ruled that upon expiry of two months without action, applicants are deemed members. Appeals filed by non-authorized persons were deemed improper. (Paras 9.1, 10.1)

(B) The right to members' admission - Court emphasized that the Chief Executive Officer must represent the society in legal matters. (Paras 10.1, 10.2)

Facts of the case:
Petitioner challenged the DRCS orders admitting certain applicants who were not formally rejected within the statutory period, asserting they were not represented correctly.

Findings of Court:
Respondents are deemed members based on statutory provisions as membership acceptance was not communicated timely.

Issues: The main issues were whether deemed membership arises and the validity of appeal by unauthorized representatives.

Ratio Decidendi: Court identified a statutory deeming provision for membership and invalidated appeals not filed by the CEO.

Result: Petition dismissed. Respondents recognized as members.

Table of Content
1. petitioner seeks writ quashing orders. (Para 1 , 2)
2. arguments on appeal maintainability and membership rights. (Para 3 , 5)
3. court identifies legal points for consideration. (Para 6 , 7)
4. court dismisses petition with orders for membership recognition. (Para 11 , 12)

ORDER :

Suraj Govindaraj, J.

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

I. Issue a writ in the nature of certiorari quashing the order dated 25/08/2025 bearing No. DR/GDG/Appeal-01/2025-26/546 passed by the 4th respondent vide Annexure-D with respect to the petitioners in the interest of justice and equity.

II. Issue a writ in the nature of certiorari quashing the order dated 25/08/2025 bearing No. DR/GDG/Appeal-01/2025-26/543 passed by the 4th respondent vide Annexure-D1 with respect to the petitioners in the interest of justice and equity.

III. Issue a writ in the nature of certiorari quashing the order dated 25/08/2025 bearing No. DR/GDG/Appeal-01/2025-26/547 passed by the 4th respondent vide Annexure-D2 with respect to the petitioners in the interest of justice and equity IV. Issue such other writ or give such other direction and pass such other order as this Hon’ble Court deems fit and proper in the facts and circumstances of the cases.

2. Respondents No.5, 6 and 7 through their respective Chief Executive Officer have made an application to become a member of the Petitioner on 26.04.2024. No action has been taken on the said application. On 1.07.2024, the Petitioner had informed Respondent No.5 that the application has been rejected. Thereafter, Respondent No. 5 filed an appeal before Respondent No. 4, the Deputy Registrar of the Co-operative Societies [DRCS], which came to be allowed vide Order Dated 25.08.2025. It is challenging the same, the Petitioner is before this Court.

3. The submission of Sri.Jagdish Patil, learned counsel for the Petitioner is that

3.1. though the application for membership had been filed by the respective Chief Executive Officers, the appeal in respect of Respondent No.5 had been filed by its Chairman, Respondent No.6 by its Director, Respondent No.7 by Member, and in terms of Section 29G(4-J) it is only the Chief Executive Officer who can sue and be sued on behalf of the cooperative societies. As such, the appeal filed by the Chairman, Director and Member before the DRCS was not maintainable.

3.2. It is challenging the same, the petitioner had approached this Court by contending that the DRCS ought not to have exercised jurisdiction in the appeals since the appeals were not filed by proper persons and on that basis, the interim orders had been granted.

4. Notice having been issued, respondents have entered appearance. Vakalathnama on part of Respondent No.5, 6 and 7 has been filed by the Chief Executive Officer, which is taken on record.

5. The submission of Sri.Pranav U.Badagi the learned counsel for Respondents is that

5.1. In terms of Subsection (4) of Section 16 , if a co-operative society within two months from the date of the application for admission having been delivered, does not either admit or refuse to admit any such person as a member and send a written communication of such admission or refusal to the applicant before the period, then there is a deeming provision, deeming the admission of the applicant as a member of the co-operative society.

5.2. In the present case application having been filed on 26.04.2024, the period of two months expired on 25.06.2024 and as such, by midnight of 25.06.2024, Respondents No.5, 6 and 7 are deemed to be members of the petitioner-society. In that background, he submits that only a formal application was filed before the DRCS for issuance of membership certificate, etc., so that Respondents No. 5, 6 and 7 could exercise membership rights, which they could not, even though they are deemed to be members of Petitioner-Society without such certificates being issued. Hence, he submits that the order passed by the DRCS is proper and correct, taking

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