IN THE HIGH COURT OF KARNATAKA AT BENGALURU
ASHOK S. KINAGI, J.
C. Ramaiah, S/o. Chikkanna – Petitioner
Versus
The State Of Karnataka, Department Of Co-Operation, Rep By Its Principal Secretary and Ors. – Respondents
Writ Petition No. 20370 of 2022 (CS-RES)
Decided On : 07-01-2026
| Table of Content |
|---|
| 1. petitioner's challenge to disqualification order. (Para 1 , 2 , 3) |
| 2. overview of proceedings and counsel submissions. (Para 4 , 7) |
| 3. arguments regarding the lack of reasoning in orders. (Para 5 , 6 , 8) |
| 4. writ petition allowed; orders quashed. (Para 9) |
ORDER :
ASHOK S. KINAGI, J.
The petitioner has filed this petition seeking the following reliefs:
1) Issue a writ in the nature of certiorari quashing Annexure-C, JRB/DAAVAA/29-C/05/2020-2021, the orders dated 07.04.2021, passed by the 3rd respondent and orders dated 26.08.2022 passed in Appeal No.AANI(VA. & E)/D-2/DAP/11/2021- 22, by the respondent No.2, as per Annexure-D; and
2) pass such other incidental or consequential relief as the circumstances of the case warrants in the ends of the justice.
2. Brief facts, leading rise to the filing of this writ petition are as follows :
The previous term of the Board of Management to respondent No.5 Karnataka Government Class D Employees House Building Co-operative Society having come to an end on 25.01.2020, and new elections have been conducted for the period from 25.01.2020 to 24.01.2025. A new Board came to be constituted by 13 directors and assumed charge as Board of Directors and the petitioner was elected as President of the said Society. Respondent No.3 by exercising suo-motu powers under Section 29(c)(8) of the Karnataka Co-operative Societies Act, 1959 (for short ‘the Act of 1959’) initiated proceedings by issuing a notice calling upon the petitioner to submit an explanation. Respondent No.3 by merely recording the charges and objections submitted by the petitioner and Secretary of the Society, without assigning any reasons, passed an order on 07.04.2021, disqualifying the petitioner from continuing as a member of the board or as the director under Section 29(c) of the Act of 1959. The petitioner, aggrieved by the order dated 07.04.2021, preferred an appeal before respondent No.2. Respondent No.2, vide order dated 26.08.2022, dismissed the appeal confirming the order passed by respondent No.3. Hence, this writ petition.
3. The respondents filed a statement of objections, contending that the petitioner being the President of the Society, has misused his official capacity, and caused a serious loss to the Society. Hence, respondent No.3 has rightly passed an order under Section 29C of the Act of 1959. Hence, on these grounds, prays to dismiss the writ petition.
4. Heard the learned counsel for the petitioner and also the learned AGA for the respondents.
5. Learned counsel for the petitioner submits that though respondent No.3 has initiated a suo-motu proceedings under Section 29C of the Act of 1959, by issuing a show cause notice to the petitioner. The petitioner replied to the show cause notice. Respondent No.3 without considering the contents of the reply, has passed an impugned order under Section 29C of the Act of 1959, disqualifying the petitioner from the board. He submits that respondent No.3 has not assigned any detailed reasons while passing the impugned order. He submits that the said impugned order is without application of mind. Respondent No.2, without considering the said aspect, upheld the order passed by respondent No.3 by passing an impugned order. Hence, on these grounds, he prays to allow the writ petition.
6. Per contra, learned AGA submits that respondent No.3 considered the entire evidence on record and considered the reply submitted by the petitioner and passed the impugned order. He submits that the impugned order passed by respondent No.3 is in accordance with Provisions of Act of 1959. He also submits that the appellate authority re-appreciated the entire material on record, and dismissed the appeal. He submits that the impugned orders vide Annexures C and D are just and proper, and do not call for any interference at the hands of this court. Hence, on these grounds, he prays to dismiss the writ petition.
7. Perused the records and considered the submissions of the learned counsel for the partie
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.
Section 29-C of the Karnataka Co-operative Societies Act applies to individual misconduct, not collective board decisions; thus, disqualifying directors for collective actions is improper.
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.
A member of a co-operative society remains disqualified for defaulting on dues at the time of election, even if the dues are cleared subsequently.
The main legal point established in the judgment is that an order under Section 76B(2) of the Gujarat Co-operative Societies Act, 1961 cannot be passed without first issuing a notice for breach of Se....
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