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2023 Supreme(Online)(KAR) 19976
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WA No. 100031 of 2023
IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
DATED THIS THE 17TH DAY OF JANUARY, 2023
PRESENT
THE HON'BLE MR JUSTICE K.SOMASHEKAR
AND
THE HON'BLE MR JUSTICE UMESH M ADIGA
WRIT APPEAL NO. 100031 OF 2023 (CS-RES)
BETWEEN
1.
SHRI.RAVINDRA S/O BASAVANNI HANJI
THE CHAIRMAN,
YAMAKANAMARDI URBAN CO-OPRATIVE
CREDIT SOCIETY LTD. YAMAKANMARDI
AGE :49, OCC: BUSINESS
R/O YAMAKANMARDI,
TQ: HUKKERI DIST:BELAGAVI-591246
2.
SHRI.SIDAGOUDA S/O PARESH YADAWADI
THE VICE CHAIRMAN,
YAMAKANAMARDI URBAN CO-OPRATIVE
CREDIT SOCIETY LTD. YAMAKANMARDI
AGE :68, OCC: BUSINESS
R/O YAMAKANMARDI,
TQ: HUKKERI DIST:BELAGAVI-591246
3.
SHRI.VISHWANATH S/O MALLAPPA GADI
THE DIRECTOR,
YAMAKANAMARDI URBAN CO-OPRATIVE
CREDIT SOCIETY LTD. YAMAKANMARDI
AGE :49 OCC: BUSINESS
R/O YAMAKANMARDI,
TQ: HUKKERI DIST:BELAGAVI-591246
4.
SHRI.IRANNA S/O BASAPPA KUDACHI
THE DIRECTOR,
YAMAKANAMARDI URBAN CO-OPRATIVE
CREDIT SOCIETY LTD. YAMAKANMARDI
AGE :56, OCC: BUSINESS
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WA No. 100031 of 2023
R/O HATTARGI, TQ: HUKKERI
DIST:BELAGAVI-591243
5.
SHRI.CHANDRASHEKAR S/O KALLAPPA CHAPANI
THE DIRECTOR,
YAMAKANAMARDI URBAN CO-OPRATIVE
CREDIT SOCIETY LTD. YAMAKANMARDI
AGE :58, OCC: BUSINESS
R/O : AT/P ANANDPUR (HATTARGI),
TQ: HUKKERI DIST:BELAGAVI-591243
6.
SHRI.KRISHNAPPA S/O GOPALAPPA ATTIMARAD
THE DIRECTOR,
YAMAKANAMARDI URBAN CO-OPRATIVE
CREDIT SOCIETY LTD. YAMAKANMARDI
AGE :62, OCC: BUSINESS
R/O YAMAKANMARDI,
TQ: HUKKERI DIST:BELAGAVI-591246
7.
SHRI.LOKAPPA S/O BBASAVANNI KOTABAGI
THE DIRECTOR,
YAMAKANAMARDI URBAN CO-OPRATIVE
CREDIT SOCIETY LTD. YAMAKANMARDI
AGE :67, OCC: AGRICULTURE
R/O NOGINAL ,TQ: HUKKERI DIST:BELAGAVI-591309
8.
SHRI.DURADUNDI S/O NINGAPPA JAKATI
THE DIRECTOR,
YAMAKANAMARDI URBAN CO-OPRATIVE
CREDIT SOCIETY LTD. YAMAKANMARDI
AGE :46, OCC: BUSINESS
R/O YAMAKANMARDI,
TQ: HUKKERI DIST:BELAGAVI-591246
9.
SHRI.VEERBHADRA S/O SSATYAPPA JINARALI
THE DIRECTOR,
YAMAKANAMARDI URBAN CO-OPRATIVE
CREDIT SOCIETY LTD. YAMAKANMARDI
AGE :64, OCC: AGRICULTURE
R/O YAMAKANMARDI-R.C,
TQ: HUKKERI DIST:BELAGAVI-591246
10. SHRI. KEMPANNA S/O KALLAPPA PATIL
THE DIRECTOR,
YAMAKANAMARDI URBAN CO-OPRATIVE
CREDIT SOCIETY LTD. YAMAKANMARDI
MOHANKUMAR
B SHELAR
Digitally signed by
MOHANKUMAR B
SHELAR
Date: 2023.01.28
10:59:56 +0530
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WA No. 100031 of 2023
AGE :52, OCC: AGRICULTURE
R/O GUDAGANATTI, POST: YAMAKANMARDI,
TQ: HUKKERI DIST:BELAGAVI-591246
11. SMT. POOJA W/O RAVINDRA HANJI
THE DIRECTOR,
YAMAKANAMARDI URBAN CO-OPRATIVE
CREDIT SOCIETY LTD. YAMAKANMARDI
AGE :42, OCC: BUSINESS
R/O YAMAKANMARDI,
TQ: HUKKERI DIST:BELAGAVI-591246
12. SMT. SUNITA W/O KUSHALSINGH RAJPUT
THE DIRECTOR,
YAMAKANAMARDI URBAN CO-OPRATIVE
CREDIT SOCIETY LTD. YAMAKANMARDI
AGE :33, OCC: BUSINESS
R/O YAMAKANMARDI,
TQ: HUKKERI DIST:BELAGAVI-591246
13. SHRI. MARUTI S/O AMATI HARIJAN
THE DIRECTOR,
YAMAKANAMARDI URBAN CO-OPRATIVE
CREDIT SOCIETY LTD. YAMAKANMARDI
AGE :49, OCC: BUSINESS
R/O GUDAGANATTI, POST: YAMAKANMARD,
TQ: HUKKERI DIST:BELAGAVI-591246
14. THE CHIEF EXECUTIVE OFFICER
YAMAKANAMARDI URBAN CO-OPRATIVE
CREDIT SOCIETY LTD. YAMAKANMARDI
AGE :39OCC: SERVICE
R/O YAMAKANMARDI,
TQ: HUKKERI DIST:BELAGAVI-591246
……APPELLANTS
(BY SRI. PRASHANT F. GOUDAR, ADVOCATE)
AND:
1.
THE STATE OF KARNATAKA
REPRESENTED BY THE SECRETARY
CO-OPRATIVE DEPARTMENT
M.S. BUILDING, BENGALURU-01
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WA No. 100031 of 2023
2.
THE REGISTRAR, CO-OPRATIVE SOCIETIES,
NO.1 ALI ASKAR ROAD, BENGALURU-52
3.
THE JOINT REGISTRAR, CO-OPRATIVE SOCIETIES
OFFICE OF THE REGISTRAR OF CO-OPERATIVE
SOCIETIES, (URBAN BANKS CELL)
NO.1 ALI ASKAR ROAD, BENGALURU-52
4.
THE ENQUIRY OFFICER/ASSISTANT REGISTRAR,
CO-OPRATIVE SOCIETIES, BELAGAVI,
OFFICE AT: CO-OPRATIVE ADMISTRATIVE BUILDING ,
OPP- KHB HERITAGE, JAKKERI HOND,
BELAGAVI.- 590006.
5.
SHRI. SHIVASHANKAR
S/O. SHIVAPUTRA ZUTTI
AGE: 48 YEARS, OCC: BUSINESS
R/O. YAMAKANMARDI,
TQ: HUKKERI, DIST.BELGAVI.
… RESPONDENTS
(BY SRI.PRAVEEN K.UPPAR, HCGP FOR R1 TO R4,
SRI.MADANMOHAN M.KHANNUR, ADV. FOR C/R5)
THIS APPEAL IS FILED U/S.4 OF KARNATAKA HIGH COURT
ACT, 1961, PRAYING THIS HON BLE COURT TO SET ASIDE THE
ORDER DATED 03.01.2023 PASSED BY THE LEARNED SINGLE JUDGE
OF THIS HON’BLE COURT IN W.P.NO.105427/2022, WITHOUT
APPRECIATING THE FACT DISPOSING THE WRIT PETITION FILED BY
THE APPELLANTS/ PETITIONERS BY ALLOWING THIS APPEAL.
THIS APPEAL COMING ON FOR PRELIMINARY HEARING THIS
DAY, K.SOMASHEKAR J., DELIVERED THE FOLLOWING:
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WA No. 100031 of 2023
This is an intra-court appeal challenging the order passed
by the learned Single Judge in W.P.No.105427/2022 (CS-RES)
dated
03.01.2023,
urging
various
grounds.
Whereas
respondent No.3 without issuing any order on compliance
report filed by the appellants/petitioners, unnecessarily to
cause some inconvenience issued notice under Section 29C of
the Karnataka Co-operative Societies, Act, 1959 (hereinafter
referred to as ‘the Act’ for short).
Heard the learned counsel Sri.Prashant F.Goudar for
the appellants who is appearing through video conference and
also
learned
counsel
Sri.Madanmohan
M.Khannur
for
respondent No.5, who is present before the court physically.
Keeping in view the submission made by the learned counsel
for the appellants, it is deemed appropriate to refer Section
29C of the Act for the purpose of reference and also for the
purpose of understanding the intendment of that provision.
“29C.
Disqualification for
membership of the
board.- (1) No person shall be eligible for being elected
or appointed or continued as a member of the [board of
any co-operative society] if,—
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(a) he is in default to that society or any other co-
operative society in respect of any dues from him as
borrower;]
(b) he is interested directly or indirectly in any contract
made with such co-operative society or in the sale or
purchase made by such co-operative society privately or
in auction or in any contract or transaction of the
cooperative
society
(other
than
investment
and
borrowing) involving financial interests in that contract,
sale, purchase or transaction;
(c) he [XXX] 2 carries] on a business of the kind carried
on by such co-operative society or by a co-operative
society of which such co-operative society is a member;
[XXX]
(d) he is employed as legal practitioner on behalf of such
co-operative society or accepts employment as legal
practitioner against such cooperative society;
(e) he is a paid employee [other than the chief
executive] of such cooperative society or of its financing
bank;.
[x x x]
(f) he is a near relation of a paid employee of such co-
operative society.
[Explanation.—For the purpose of 2 [this clause 4 [XXX]
‘near relation’ means,—
(i) husband, wife and unmarried daughter;
(ii) father, mother, undivided son, undivided brother and
unmarried sister; and
(iii) such other relations as may be prescribed to be a
near relation.
[x x x] 3 ]
[(g) he was a paid employee of a co-operative society
and was dismissed, removed or compulsorily retired
from service of a co-operative society;
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(h) he is disqualified to be a member of the society or to
vote as such member;
(i) he has been convicted for an offence punishable
under section 153A or section 171-E or section 171-F or
sub-section (2) or sub-section (3) of section 505 of the
Penal Code, 1860 (Central Act 45 of 1860) or under
section 39J or clause (b) of sub-section (2) of section
39K of this Act, unless a period of six years has elapsed
from the date of such conviction;
(j) he has been convicted by a Court in India for any
offence and sentenced to imprisonment for a term of not
less than two years, unless a period of five years has
elapsed from the date of his release;
(k) he is found guilty of corrupt practice within the
meaning of section 39C unless a period of six years has
elapsed from the date on which he was found guilty;
(l) he has failed to remit to any co-operative society any
amount (other than a loan) retained by him in
contravention of the provisions of this Act, rules or bye-
laws;
(m) he is a representative of a co-operative society
which is in default to a financing bank or to any co-
operative society in respect of any dues by the co-
operative society which he represents, for a continuous
period of one year:
Provided that the disqualification under this clause for
being continued as a member of the board shall apply to
a co-operative society which has defaulted in payment of
an amount exceeding thirty percent of such dues;
(n) h
