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2025 Supreme(Kar) 2331

IN THE HIGH COURT OF KARNATAKA AT DHARWAD
M. NAGAPRASANNA, J.
Padmavati Grameenabhivruddhi – Appellant
Versus
The State of Karnataka – Respondent 
Writ Petition No. 101477 of 2025
Decided On : 02-12-2025

Advocates Appeared:
For the Appellant : Sajid Ahmed Goodwala
For the Respondents: Nandini Somapur, Girish Yadawad

The court emphasized that inquiries under Section 25 must reflect the Registrar's independent reasoning, not merely follow complaints from less than 1/3rd of society members.

Headnote:(A) Karnataka Societies Registration Act, 1960 - Section 25 - The petitioner requests to quash the Registrar's order on grounds of inadequate quorum for complaints. The court clarifies that the Registrar may hold inquiries based on complaints but must apply their mind when acting on their own motion. This necessitates independent reasoning rather than mere procedural compliance with complaints from non-members. (Paras 2, 6, 20)

(B) Jurisdiction of Registrar - The court established that the Registrar's powers under Section 25 include initiating inquiries without minimum quorum when independently justifiable. A comprehensive application of mind is requisite in exercising these powers, enabling intervention from members even if less than 1/3rd of society members raise complaints. The court affirmed judicial precedent clarifying distinctions in discretionary and mandatory inquiries. (Paras 4, 5, 16)

Facts of the case:
The petitioner disputes an inquiry instituted by the Registrar under Section 25, arguing the complainants lack standing as society members, claiming less than the required quorum for complaints.

Findings of Court:
The court held that the Registrar observed procedures correctly, having provided independent verification of the need for an inquiry, legitimizing the inquiry despite the composition of compliant members.

Issues: The primary question assessed was whether the Registrar can initiate inquiries solely based on complaints from non-members or less than requisite quorum.

Ratio Decidendi: The court emphasized the need for the Registrar to employ discretion and deliberate while acting on information received from any source, affirming that less than 1/3rd complaints do not preclude action. However, it must reflect an independent assessment of the cases.

Result: Petition dismissed.

Table of Content
1. petitioner's challenge based on complaint legitimacy. (Para 1 , 2)
2. emphasis on registrar's independent reasoning in inquiries. (Para 3 , 5)
3. registrar's discretion clarified regarding complaint basis. (Para 4)
4. final decision on petition dismissal due to lack of substantial grounds. (Para 6)

ORDER :

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

“a. Issue a writ in nature of Certiorari quashing the Impugned Order Bearing No.Kra.DRL/SOR/Vicharane/06/2024-25 dated 06/02/2025 issued by the 3rd respondent vide Annexure- E, in the interest of justice and equity.

b. Issue such other reliefs as this Hon’ble Court deems fit in the circumstances of the case.”

2. The solitary contention of the learned counsel appearing for the petitioner is that the complainants, who have sought to register a complaint before the Registrar for an enquiry under Section 25 of the Karnataka Societies Registration Act, 1960 (hereinafter referred to as ‘the Act’ for short), are neither the members of the society nor there is 1/3rd quorum for having registered the complaint, as is necessary under Section 25 of the Act. Section 25 reads as follows:

25. Enquiry by the Registrar—

(1) The Registrar may on his own motion and shall on the application of the majority of the members of the governing body or of not less than one-third of the members of the society, hold an enquiry or direct some person authorised by him by order in writing in accordance with the rules made in this behalf to hold an enquiry into the constitution, working and financial condition of a registered society.

(2) The Registrar or the person authorised by him under Sub-Section (1) shall have the following powers, namely,—

(a) he shall, at all reasonable times, have free access to the books, accounts, documents, securities, cash and other properties belonging to or in the custody of the society and may summon any person in possession or responsible for the custody of any such books, accounts, documents securities, cash or other properties to produce the same at any place at the headquarters of the society or any branch thereof;

(b) he may summon any person who, he has reason to believe, has knowledge of any of the affairs of the society to appear before him at any place at the headquarters of the society or any branch thereof and may examine such person on oath;

(c)(i) he may, notwithstanding anything contained in this Act or in any rule or regulation prescribing the period of notice for a general meeting of the society, require the governing body of the society to call a general meeting at such time and place at the headquarters of the society or any branch thereof and to determine such matters as may be directed by him. If the governing body of the society refuses or fails to call a meeting, he shall have power to call it himself;

(ii) any meeting called under sub-clause (i) shall have all the powers of a general meeting called under the rules or regulations of the society and its proceedings shall be regulated by such rules or regulations;

(iii) when an enquiry is made under this section, the Registrar shall communicate the result of the enquiry to the society concerned.” (Emphasis supplied)

Section 25 of the Act mandates that proceedings shall be initiated, if not suo motu, at the hands of the Registrar, by a complaint by 1/3rd of the members of the society. Therefore, the interim order was granted in the case at hand.

3. Learned counsel for respondent Nos.4 to 9, Sri. Girish Yadawad, submits that, in identical circumstances, the Co-ordinate Bench at Kalaburagi, in Writ Petition No.201552 of 2023, disposed on 09.06.2023, has held as follows:

“… … …

7. The short question that arises for consideration in the present matter is whether the Registrar of Societies under Section 25 of the Act, can initiate an enquiry based on complaint received by him or his powers are restricted to only three circumstances: namely (i) suo moto; (ii) complaint by majority of the govern

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