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.

ORDER :

M.G.UMA, J.

The petitioners have approached this Court seeking to issue a writ in the nature of certiorari to quash the order dated 11.07.2025 passed by respondent No.2 produced as per Annexure-E and the orders dated 30.09.2025 and 13.10.2025 passed by respondent No.1 produced as per Annexures-N and P respectively.

2. Brief facts of the case are that, the petitioners are the elected Directors of respondent No.3 - Society elected in the election that was held on 01.09.2018. The petitioners were re-elected again in the election that was held on 27.08.2023. It is contended that during 2018, respondent No.2 has passed an order disqualifying the petitioners along with other Directors of the Board for a period of 5 years as per order dated 29.04.2019 passed under Section 29 -C of Karnataka Co- operative Societies Act (for short 'the KCS Act'). The said order was challenged before this Court by filing writ petition raising the contentions that Section 29 -C could not have been invoked against all the members of the Board. Writ Petition Nos.49716- 49725 of 2019 came to be allowed vide order dated 29.04.2019 and 24.06.2019 giving liberty to respondent No.2 to issue fresh Show Cause Notice to the Directors and to initiate fresh proceedings. Accordingly, respondent No.2 issued fresh Show Cause Notice to all the Directors including the petitioners. Pursuant to the same, the order Annexure-B dated 21.06.2021 came to be passed.

3. Being aggrieved by the same, Writ Petition No.19269 of 2021 came to be filed by the petitioner therein. The said writ petition was allowed again remanding the matter to respondent No.2 for fresh consideration. The said order is produced as per Annexure-C. Respondent No.2 took up the matter for consideration again. However, without hearing the petitioners, an order dated 11.07.2025 came to be passed disqualifying the petitioners from respondent No.3 -Society for a period of 5 years acting under Section 29 -C(8) (b)(c) and (d) of KCS Act, which is produced as per Annexure-E.

4. In the meantime, the Registrar has passed the order as per Annexures-F and F1 dated 30.10.2019 imposing penalty on M/s Sri Byraveshwara Enterprises. A criminal proceedings is also initiated invoking Sections 420 , 468, 471 read with Section 34 of IPC . The order as per Annexure-L came to be passed by allowing IA.1. Being aggrieved by the orders Annexures-E and L, the petitioners have filed Writ Petition No.25737 of 2025. The said writ petition came to be allowed directing respondent No.1 to dispose off the appeal in a time bound manner. Now respondent No1 passed order dated 30.09.2025 and 13.10.2025 produced as per Annexures-N and P respectively. Being aggrieved by the same, the petitioners are before this Court.

5. Heard Sri. Jaykumar S. Patil, learned senior advocate for Sri. Deviprasad Shetty, learned counsel for the petitioners and Sri. Yogesh D. Naik, learned Additional Government Advocate for respondent Nos.1 and 2, Sri.Kethan Kumar, learned counsel for respondent No.3 and Sri. S.Rajashekar, learned counsel for Sri. M.R.Hiremathad, learned counsel for respondent No.4. Perused the materials on record.

6. Learned senior advocate for the petitioners contended that the charges that were raised against the petitioners and other members of the Board, which was existing then disclose that the same are against the collective decision taken by the Board. None of the charges refer to any of the actions taken by the petitioners individually as member of the Board. Under such circumstances, Section 29 -C of the KCS Act cannot be invoked. He pla