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N THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 16040 OF 2025 (CS-RES)
BETWEEN MUNIREDDY REDDY S/O LATE APPAYANNA AGE 69 YEARS SRI HARINIVAS VISHVANATHAPURA, AREKERE POST, YELAHANKA TALUK BENGALURU-561203 …. PETITIONER (BY SRI. JAYAKUMAR S. PATIL., ADVOCATE FOR SRI. DEVIPRASAD SHETTY., ADVOCATE)
AND
1. REGISTRAR OF CO OPERATIVE SOCIETIES NO. 1, ALI AAKER ROAD, INFANTRY ROAD, Digitally signed BENGALURU-560001.
by SHWETHA RAGHAVENDRA Location: HIGH 2. KARNATAKA RAJYA SOUHARDA SAMYUKTHA COURT OF SAHAKARI NIYAMITHA KARNATAKA SOUHARDA SAHAKARI SOUDHA, 1ST BLOCK, BETWEEN 17TH AND 18TH CROSS RAJAJINAGAR, BENGALURU-560010 REPRESENTED BY ITS MANAGING DIRECTOR
3. MAHAYOGI VEMANA SOURDHA PATINA SAHAKARI SANGHA NIYAMITHA NO. 784, VEMANA SOUDHA
8TH A CROSS, LION SEVA BHAVANA ROAD YELAHANKA NEW TOWN BENGALURU560064 REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER.
(RESPONDENT NO. 2 AND 3 IS REGISTERED UNDER THE K ARNATAKA SOUHARDHA SAHAKARI ACT 1997)
4. SAMPANGI REDDY R S/O RAMAIAH AGED ABOUT 50 YEARS R/O NO. 38/1, SHIVATEJ, KAKOLU ROAD, VENUGOPALA SWAMY LAYOUT, NEAR SVIT ENGINEERING COLLEGE, R AJANUKUNTE, BENGALURU-560064
5. M.N. REDDY S/O MUNISWAMY REDDY AGED ABOUT 55 YEARS R/O NO. 45, 3RD B MAIN ROAD, 4TH CROSS, 3RD BLOCK, KALYAN NAGAR, BENGALURU 560043
6. BABU REDDY S/O B.H KRISHNA REDDY AGE 50 YEARS R/O NO. 111, AMMANA MANE, PATEL HANUMANTHARAYAPPA ROAD, BYRATHI. BENGALURU-560077, RESPONDENT NO. 4 TO 6 ARE DIRECTORS OF MAHAYOGI VEMANA SOURDHA PATINA SAHAKARI SANGHA NIYAMITHA, BENGALURU.
…. RESPONDENTS (BY SRI. YOGESH D. NAIK., AGA FOR R1;
SRI. VINAY VENUGOPAL., ADVOCATE FOR R4 TO R6;
SRI. A. DEVARAJA., ADVOCATE FOR R2;
SRI. DEEPAK NAROJI., ADVOCATE FOR R3)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT IN THE NATURE OF CERTIORARI QUASHING THE ORDER PASSED BY THE r2 DATED 30.12.2023 IN COMPLAINT NO. SAM.SA-145/NI/BGU-
0132/2023-24 PRODUCED AT ANNEXURE-K AND ETC.
THIS WRIT PETITION COMING ON FOR ORDERS AND HAVING BEEN RESERVED FOR ORDERS ON 25.07.2025, THIS DAY, THE COURT PRONOUNCED THE FOLLOWING:
CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 16040 OF 2025 (CS-RES)
BETWEEN MUNIREDDY REDDY S/O LATE APPAYANNA AGE 69 YEARS SRI HARINIVAS VISHVANATHAPURA, AREKERE POST, YELAHANKA TALUK BENGALURU-561203 …. PETITIONER (BY SRI. JAYAKUMAR S. PATIL., ADVOCATE FOR SRI. DEVIPRASAD SHETTY., ADVOCATE)
AND
11. REGISTRAR OF CO OPERATIVE SOCIETIES NO. 1, ALI AAKER ROAD, INFANTRY ROAD, Digitally signed BENGALURU-560001.
by SHWETHA RAGHAVENDRA Location: HIGH 2. KARNATAKA RAJYA SOUHARDA SAMYUKTHA COURT OF SAHAKARI NIYAMITHA KARNATAKA SOUHARDA SAHAKARI SOUDHA, 1ST BLOCK, BETWEEN 17TH AND 18TH CROSS RAJAJINAGAR, BENGALURU-560010 REPRESENTED BY ITS MANAGING DIRECTOR
3. MAHAYOGI VEMANA SOURDHA PATINA SAHAKARI SANGHA NIYAMITHA NO. 784, VEMANA SOUDHA
8TH A CROSS, LION SEVA BHAVANA ROAD YELAHANKA NEW TOWN BENGALURU560064 REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER.
(RESPONDENT NO. 2 AND 3 IS REGISTERED UNDER THE K ARNATAKA SOUHARDHA SAHAKARI ACT 1997)
4. SAMPANGI REDDY R S/O RAMAIAH AGED ABOUT 50 YEARS R/O NO. 38/1, SHIVATEJ, KAKOLU ROAD, VENUGOPALA SWAMY LAYOUT, NEAR SVIT ENGINEERING COLLEGE, R AJANUKUNTE, BENGALURU-560064
5. M.N. REDDY S/O MUNISWAMY REDDY AGED ABOUT 55 YEARS R/O NO. 45, 3RD B MAIN ROAD, 4TH CROSS, 3RD BLOCK, KALYAN NAGAR, BENGALURU 560043
6. BABU REDDY S/O B.H KRISHNA REDDY AGE 50 YEARS R/O NO. 111, AMMANA MANE, PATEL HANUMANTHARAYAPPA ROAD, BYRATHI. BENGALURU-560077, RESPONDENT NO. 4 TO 6 ARE DIRECTORS OF MAHAYOGI VEMANA SOURDHA PATINA SAHAKARI SANGHA NIYAMITHA, BENGALURU.
…. RESPONDENTS (BY SRI. YOGESH D. NAIK., AGA FOR R1;
SRI. VINAY VENUGOPAL., ADVOCATE FOR R4 TO R6;
SRI. A. DEVARAJA., ADVOCATE FOR R2;
SRI. DEEPAK NAROJI., ADVOCATE FOR R3)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT IN THE NATURE OF CERTIORARI QUASHING THE ORDER PASSED BY THE r2 DATED 30.12.2023 IN COMPLAINT NO. SAM.SA-145/NI/BGU-
0132/2023-24 PRODUCED AT ANNEXURE-K AND ETC.
THIS WRIT PETITION COMING ON FOR ORDERS AND HAVING BEEN RESERVED FOR ORDERS ON 25.07.2025, THIS DAY, THE COURT PRONOUNCED THE FOLLOWING:
CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ
CAV ORDER
1. The Petitioner is before this Court seeking for the following reliefs:
i. Issue a writ in the nature of certiorari quashing the order passed by the R2 dated 30.12.2023 in complaint No. SAM.SA-145/Ni/BGU-0132/2023-24 produced at Annexure-K.
ii. Issue a writ in the nature of certiorari quashing the order passed on 06.05.2025 in Appeal No. RCS:DAP:D1:17:2023-24 by the R1 produced as Annexure-P.
iii. Pass such other writ, order or direction that this Hon’ble Court deems fit under the circumstances of the case.
2. Petitioner claims to be a director of Respondent No.3-Primary Society, Respondents No.4 to 6 were other directors had filed a complaint before Respondent No.1-Registrar of Co-operative Societies seeking for disqualification of the Petitioner on the ground that the Petitioner had stood as surety for a mortgage loan obtained by one Mr.Ravishankar Reddy, who had defaulted in repaying the loan amount. In furtherance of which, a notice was issued to the Petitioner on 18.05.2023 followed by another notice on 11.08.2023 by Respondent No.3-Co-operative Society.
3. The Petitioner initially had sought for time and later furnished a detailed reply, alleging that the said reply has not been considered and without consideration an order has been passed disqualifying the Petitioner from the directorship of respondent No.3-Co- operative Society and also contesting in any election of the Co-operative Society for a period of two years on 30.12.2023 by respondent No.2 which has been confirmed by respondent No.1-Registrar of Co-operative Societies on a appeal. It is in that background, that the Petitioner is before this Court challenging both the said orders.
4. The submission of Sri.Jayakumar S.Patil., learned Senior Counsel appearing for the Petitioner is that;
4.1. One Mr.Ravishankar Reddy having membership No.323 had obtained a long-term loan of Rs.45 lakhs from respondent No.3, towards which the Petitioner stood as surety at the request of Mr.Ravishankar Reddy, on the ground that Mr.Ravishankar Reddy was in the lookout for surety and until then as a stop gap arrangement, the Petitioner was to stand as surety.
4.2. When Mr.Ravishankar Reddy did not bring a new surety and had also become irregular in making payment of loan instalments. The Petitioner wanted to retire as a surety and in terms of Rule 5 (3) of the Business Rules of the Co-operative Society, which permitted the surety to retire by giving due notice to the principal borrower, such a notice had been given by the Petitioner.
4.3. The notice was placed before the Board Meeting of respondent No.3 on 17.02.2023 in pursuance of which a resolution dated 06.03.2023 was passed and notices were issued to Mr.Ravishankar Reddy to make available a fresh surety on account of the Petitioner having retired as a surety.
4.4. The retirement letter dated 14.11.2022 of the Petitioner having been placed before the Board meeting held on 17.02.2023, 14 Directors being present, the said Resolution was passed by majority with only Respondents No.4 and 6 opposing the same.
4.5. The Resolution having been passed, the Petitioner is no longer the surety and as such if there is any default on part of Mr.Ravishankar Reddy, the Petitioner, no longer being surety, is not responsible and therefore could not be disqualified. It was the duty and obligation on the part of Mr.Ravishankar Reddy to substitute the surety, once the Petitioner has categorically indicated that he would no longer wish to continue as a surety, the default is solely on part of Mr.Ravishankar Reddy; the Petitioner cannot be held responsible for the same.
4.6. On the retirement of the Petitioner as surety, the Society has raised a dispute under Section 70 of the Karnataka Co-operative Societies Act, 1959, in Dispute No.48 of 2023-24 where notice has been issued to the said Mr.Ravishankar Reddy. All these factors have been brought to the notice of Respondent No.2. It was required for Respondent No.2 to have considered this in the right pers
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