IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26^TH DAY OF NOVEMBER, 2025 PRESENT THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE AND THE HON'BLE MR. JUSTICE C.M. POONACHA WRIT APPEAL NO. 1081 OF 2024 (CS-RES)

BETWEEN:

1. KARNATAKA STATE COLLEGE LECTURERS AND SCHOOL TEACHERS HOUSE BUILDING COOPERATIVE SOCIETY LTD NO 55/1, 3^RD CROSS, GURUKULA LAYOUT J.P. NAGAR, KUPPULRU MYSURU - 570 031 BY ITS PRESIDENT MAHADEVASWAMY S/O LATE M. SHIVAPPA AGED 53 YEARS …APPELLANT Digitally (BY SRI DEVI PRASAD SHETTY, ADVOCATE)

signed by SUMATHY KANNAN AND:

Location:

High Court 1. STATE OF KARNATAKA of Karnataka DEPARTMENT OF CO-OPERATION M.S. BUILDING, AMBEDKAR VEEDI BANGALORE - 560 001 REPRESENTED BY ITS PRINCIPAL SECRETARY

2. REGISTRAR OF CO-OPERATIVE SOCIETIES DEPARTMENT TO CO-OPERATION OFFICE OF THE REGISTRAR OF CO-OPERATIVE SOCIETIES No.1, ALI ASKER ROAD BANGALORE - 560 052

3. ADDITIONAL REGISTRAR OF CO-OPERATIVE SOCIETIES (H & M) DEPARTMENT OF CO-OPERATION OFFICE OF THE REGISTRAR OF CO-OPERATIVE SOCIETIES No.1, ALI ASKER ROAD BANGALORE - 560 052

4. THE DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETIES CIRCLE 1, BENGALURU DISTRICT SAHAKARA SOUDHA, MARGOSA ROAD MALLESHWARAM BENGALURU - 560 001 …RESPONDENTS (BY SMT. NAMITHA MAHESH, AGA FOR R-1 TO 4, SRI VINOD PRASAD, ADVOCATE FOR IMPLEADING APPLICANT IN I.A. No.3/2024, SRI PRAJWAL M. BHARADWAJ, ADVOCATE FOR SRI S. KALYAN BASAVARAJ, ADVOCATE FOR IMPLEADING APPLICANT IN I.A. No.4/2024)

THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE KARNATAKA HIGH COURT ACT PRAYING TO ALLOW THE TOP NOTED APPEAL BY SETTING ASIDE THE ORDER DATED

01.02.2024 PASSED IN W.P.No.8588/2021.

THIS APPEAL, COMING ON FOR PRELIMINARY HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE and HON'BLE MR. JUSTICE C.M. POONACHA

ORAL JUDGMENT

(PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE)

1. The appellant has filed the present appeal impugning a common order dated 01.02.2024 passed by the learned Single Judge of this Court in a set of three petitions [Writ Petition No.15330/2023 (CS-RES) C/w. Writ Petition No.7314/2021 (CS-

RES) and Writ Petition No.8588/2021 (CS-RES)].

2. The appellant is essentially aggrieved by the impugned order insofar as it relates to W.P.No.8588/2021. The said petition was filed by the appellant impugning an order dated 15.04.2021 passed by the Additional Registrar of Co-operative Societies (Respondent No. 3).

3. In terms of the said order, an inquiry under Section 64 of the Karnataka Co-operative Societies Act, 1959 [hereafter 'the Act'] was directed in respect to certain reference points regarding the allegations of mis-appropriation. We consider it apposite to reproduce the operative part of the said order in extenso:

"ORDER I, A.C.Diwakar, KCS, Addl. Registrar of Cooperative Societies (Housing and others) while exercising powers conferred under Section 64(1) of Karnataka Cooperative Societies Act 1959 do hereby appoint Sri.P.Shashidhar, Deputy Registrar of Cooperative Societies, 1st Circle, Bangalore Urban District, Bangalore as enquiry officer to undertake statutory enquiry under section 64 of Karnataka Cooperative Act 1959 by forming the following enquiry points on the alleged misappropriation said to be taken place at "Karnataka State College Lecturers and School Teachers House Building Cooperative Society Ltd"

Enquiry points:-

1) In 2015 during the term of office of Mr. M. S. Mahadevaswamy, the president of the society, as a legal opinion, about the misappropriation of funds of Rs.1,35,150/- in the society by creating a receipt without the original receipt of the lawyer.

2. The contractor was assigned to do the site development works on turnkey basis, the contractors and layout guards were carrying out the layout work, and again the society generated receipts for the said works and spent Rs.1,52,750/- unauthorizedly on the society.

3. Regarding the unauthorized expenditure and misuse of Rs.9.36,430/- as per the audit report for the year 2016-17, no action has been t