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2025 Supreme(Online)(KAR) 12035
KARNATAKA HIGH COURT
JUSTICE, J
The Petitioner – Appellant
Versus
The Registrar of Cooperative Societies – Respondent
Writ Petition No. 16270/2024 | Writ Appeal No. 1598/2024
For the Appellants/Petitioners: Sri Pruthvi Wodeyar
For the Respondents: Sri Sameer Sharma
The Registrar's discretion to initiate an inquiry under the Karnataka Cooperative Societies Act is valid even on a complaint from a single member, ensuring necessary opportunities for the society to present its case. The petition challenging the inquiry is rendered non-maintainable without proper authorization.
Headnote:(A) Karnataka Cooperative Societies Act, 1959 - Sections 64 and 65 - Inquiry directed by the Registrar based on complaint by one member - Legality of initiating an inquiry without requisition from required members questioned - Inquiry deemed a fact-finding exercise - Society afforded opportunities to present documents - Court determined no breach of principles of natural justice, with the order to conduct an inquiry upheld. (Paras 11, 13.1, 13.10, 14.8)
(B) Authority of Registrar - Application of mind necessary before initiating inquiry under Section 64 - Efficacy of single-member complaints noted - Court confirmed discretion of Registrar to act on complaints regardless of member count, provided sufficient basis exists. (Paras 13.12, 14.10)
(C) Legal representation - Validity of petition filed by Society Secretary without Board authorization challenged - Requirement of Board resolution emphasized, deeming petition non-maintainable. (Paras 16.4)
| Table of Content |
|---|
| 1. petitioner seeks certiorari and reliefs. (Para 1 , 2) |
| 2. background of complaints and inquiries conducted. (Para 3 , 4 , 5 , 6 , 7) |
| 3. petitioner's arguments against the legality of the order. (Para 8) |
| 4. respondent's defense of the inquiry process. (Para 9) |
| 5. court's observations and findings on the inquiry process. (Para 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17) |
| 6. court dismisses the petition, directing further inquiry. (Para 18) |
CAV ORDER
1. The Petitioner is before this Court seeking for the following reliefs:
a. Issue a writ in the nature of certiorari quashing the order dated 21.9.2024 in No. OTS-1/357/HOT/2023- 24 passed by the 3rd Respondent vide Annexure-H.
b. Grant such other relief as deems fit in the circumstances of case and allow the writ petition with cost in the interest of justice and equity.
2. The Petitioner claims to be a Society registered under the Karnataka Cooperative Societies Act, 1959 [‘KCS Act’ for short], with the object to promote the economic interest of its members and to encourage self-help from their income. The Petitioner society gives loans to its members as also allots sites in the layout formed by the soceity, and it consists of nearly 6312 members.
3. On 26.02.2024, one of the members, Mr.Deepak K, filed a complaint with the Respondent No.2- Registrar of Cooperative Societies, making certain allegations as regards the formation of layouts at Bannikoppa village, Ramanagara taluk, Kenchanapura village and Hejjala village. The allegations were made that the Society has made payments to developers against the interest of the Society. The representation having been received, Respondent No.3-Addl. Registrar directed Respondent No.4-Deputy Registrar Cooperative Societies (hereinafter referred to as DRCS for brevity), to hold an enquiry into the allegations and submit a report within one month.
4. Pursuant thereto, DRCS issued notice on 19.04.2023 calling upon the Petitioner to be present on 30.04.2024 at 11 am to submit relevant documents, the Petitioner had submitted its written submission and documents on 27.06.2024.
5. In the meanwhile, the Complainant before the enquiry could be conducted by DRCS approached this Court in W.P. No.16270/2024. This court vide order dated 1.07.2024, in the said writ petition, directed Respondent No.2 to consider whether an enquiry under Sections 64 and 65 of the Act is required to be conducted in accordance with law on the basis of the complaint given by the Petitioner therein/Respondent No.6 herein. The said order had been challenged by the Petitioner by filing a Writ Appeal in W.A. No.1598/2024 [Judicial Department Multi-purpose Co- operative Society -v- The Registrar of Co- operative Societies and others]
6. Pursuant to the aforesaid order dated 1.07.2024, DRCS issued a notice dated 12.07.2024 calling upon the Petitioner to submit records within three days. The complainant appeared before DRCS and submitted the order passed by this Court and requested DRCS to take action against the Petitioner-Society as per Section 30 (2)(iv) and 30(2)(v) of the Act. One more notice came to be issued by DRCS on 6.08.2024 calling upon the Petitioner-Society to submit its explanation along with documents. The Petitioner submitted its reply on 6.08.2024 alleging that DRCS, without hearing the Petitioner and without holding an enquiry or inspection, has submitted a report to Respondent No.3 on 31.08.2024.
7. Respondent No.3 vide order dated 21.09.2024 directed Respondent No.5-Asst. Registrar of Cooperative Societies (Hereinafter referred to ARCS for brevity) to hold an enquiry under Section 64 of the Act and submit a report within six months. It is challenging the said order that the Petitioner-Society is before this Court.
8. Sri.Pruthvi Wodeyar, learned counsel appearing for the Petitioner -Society would submit that,
8.1. The impugned order dated 21.09.2024 is completely illegal, arbitrary and contrary to law. There is no independent application of mind by Respondent
