Sri. Gaddam Vilas Reddy v. 1. The State of Telangana

Counsel for the l)etitioner : SRI MAHESH MAMINDLA !91nsel for the ltespondent Nos.1 & 2 : Gp FOR COOpERlr.l.tON, SC FOR KARIMNAGAR COOPERATIVE URBAN BANK LIMITED Counsel for the t{espondent No.3 : SRt K.VASUDEVA REDt),y W.P.NO:3030 I AF 2025 Between: 1 l.(,Bgtq Shekar, S/o Narsaiah, aged 60 years, occ. pre;idenr, R/o H.No.1-3- 'b'rlJr, .1 18/36, Jay_anthi Towers, Ear trro.SOt , padmashati ii*"t, " Karimnagar District - S05 001. OIJ Sadaran Street, Karimnaga, iSOS OOi . 287, Jyothirragar, Karimnalar - s}b 215. 120, Kapuwada, Karimnagar - 555 00j '

2. D.Vedadri, 3/o Lingadri, aged 55 years, Occ . Vice pres clent, R/o H.No.2-10- 3- S.Prasad, S;/o Bheemaiah, aged_60- yt-.ars, Occ . Direclc r, R/o H.No.3_3-1 59, 4. B.Saikrishn;1, S/o Rajesham, aged 46 years, Occ. Dir3ctor, R/o H.No.5_4_ 5. A.Kumar, S;/o Ramulu, ^aged 56 years, Occ Dire:tor, R/o H.No.1_5_ 6 DSampath, S/o Ram Reddy, aged 49 years, occ. Direct,r, Rr/o H.No.2-10- 7. lt/.Kranthi, Si/o Kanakaiah,^1S^e! 45 years, Occ. Drrecto.. R/o H.No.2_2_130, B. K.Ravi, S/o Rada Kishtaiah, aged 60 years, Occ . Directcr R/o H.No.7_3_1 55, Dharmapuri Road, Jagtiyal. 9. B.Kishan, Slo Seetharamr!: 55911lAl1l1, Road No.1, Gayathrinagir, Xjrimnagar _ 50:; C01. 995, Bhagyzrnagar, Karimnalar - SOS OO2. Boyawada, l(arimnagar - 50t001 . _a999 60 years, Occ . Directrr R7o H.No.6_1_99, Ashoknagar. Karimnagar - 505 b01. .10.V.Jyothi, W/o Narender, aged 75 years, Occ . Director, Fl/o H.No.4-4-90, Tilak' Road, Karimnagar - 505 00'l .

11.T.Bhaskar, S/o Mallaiah, aged 75 years, Occ Director, R/o H.No-4-5-77, Fathepura, Karimnagar - 505 001.

12.Tada Veera Reddy, S/o Laxman Reddy, aged 63 years, occ Director, H.No.2-10-829/6, Jyothinagar, Karimnagar - 5!5 001

13.E.Laxman Raju, S/o Sathyanarayana Raju, aged 63 years, occ lncharge Member, R/o H.No.7-2-2522, 2-6-1881A, Kali Road, Irilankammathota, Karimnagar - 505 001.

14. MD. Simioddin, S/o Md. Safiuddin, aged 66 years, Occ . lncharge Member, R/o H.No.5-5-'1 , Gunj Street, Jagtial - 505 327.

15.Vaze Ahmed, S/o Lal lt/ohmmad, aged 60 years, Occ. lncharge [Vember, Rl/o H.No.1-1-49, Shashab Street, Karimnagar - 505 00'1 . .....PETITIONERS AND 'I . The State of Telangana, rep. by its Principal Secretary, Agriculture and Cooperation Department, Dr.B.R.Ambedkar Secretariat Building, Secretariat, Hyderabad.

2. The Commissioner, Cooperative Societies and Registrar of Co-op Societies, at 3rd floor, Gruha Kalpa Buildings, tvl.J.Road, Nampalty, Hyderabad. 3. The District Cooperative Officer / Joint Registrar, Cooperative Societies, Karimnagar, Karimnagar District.

4. The Karimnagar Cooperative Urban Bank Limited, Karimnagar, 2-6-17911 , Urban Bank Building, Karimnagar, rep. by its Chief Executive Officer.

5. The Person- lncharge, The Karimnagar Co-operative Urban Bank Ltd., Door No.2-6-194, Urban Bank Building, Karimnagar District - 505 001 . .....RESPONDENTS Petition Under Article 226 of lhe Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a writ or order or direction, especially one in the nature of Writ of Mandamus. i) declare the proceeding Ref- No.22612025, dt.08-08-2025 issued by the 5th respondent and the proceeding RC No.2589/2025-Elections, the dt.19-09- 2025 issued by the 3rd respondent, as illegal and arbitrary and set aside the same. l.A.NO:'f OF 2025 Petition Under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the proceeding Ref . No-226/202{i, dt.08-08-2025 issued by the 5th respondent and the proceeding RC No.258925-Elections, ,l:.1S-09-2025 issued" by the 3rd respor dent, pending disposal of the above writ pe itiln. Counsel for the l)etitioners : SRI P.SRINIVASA RAO Counsel for the llespondent Nos.1 to 3 : Gp FOd'COOPER qTlON, SC FOR KARIMNAGAR COOPERATIVE URBAN BANK LIMITED Counsel for the Respondent No.4 : SRI K.VASUDEVA REDt)Y Counsel for the Respondent No.5 :- The Court made ihe following COMMON ORDER 7 THE HONOURABLE SMT JUSTICE T.MADHAVI DEVI W.P.Nos.2s985AND30309 0F 2o.2s ORDER: W-I.Nq.2EpCq s"f ?Sasj In this nrit peti[ion, thc pctitioner rs seeking a writ of mandamus declaring Lhe .iclion ol the rcspondent No.2 in not approving the cancellation of mcmberships of respondent No.3/Karimnagar Coopcrutir (] Urban Bank Limited approved by its resolution dated O4.0g.202.i, as illegal and arbitrary and consequently to set asidc thc s:rrnr: and direct the respondent No.2 to approve and implcmcrrL tirt,- canccllation ol memberships o[ respondent No.3 and (o subrniL thc final voter list after excluding the terminatecl rner-n be rs from thc list rn accordance with law and the Memo rlated 1g.0g.202S issued by the petitioner here in and [o p.tss sur:h o( he_,r order or orders in the interest ofju sticc. W.P.No.3 o3()9 of 2025: This writ petition is lllcci b-r rhe peLitioners herein, whose membership has been terminated by the petitioner in W.P. No.25985 ot 2O2S vidc pnrcccclings dared O4.OS.2O2S and, 08.08.2025 issued by the rc.sporrcient No_5 and the proceedings clated 19.09.2025 issued b_v rlrc rcspondcnt No.3 as illegal, 2 .r arbitrary and consequently to set aside the samc ;trld to pass such other orcler or orders in the interest ofjusLice

2. Lcarned counsel for both the parties rr:i-crntcd thc sr rhmissions made in Lheir respe ctive writ affidavjl \

3. Heard the Learned Gove rnment Plcrl:lcr lbr Co- operation as we 1l as the learned standing counsel 'l | )llclarillg lof Karimnzrgirr Cooperative Urban Bank Limited'

4. This Court hnds that on an earlicr orr 'rsiorl' a \\'rit filc'd fl one o[ thc petition in W.P.No-21549 of 2O25 was members of the Karimnagar Cooperative seeking a direction to the official rcspondents Lo ' Ll:t 'lcl1on on Urban lJrnk Limilcd, theletter.addressedbytheJointRegistrarl-ljl.O1)pCl.:tti\.t' Societies, Karimnagar District, on the irregularit it- r; comuitLed by the Manage ment Committee of the sr )'ri(lLY in thc mainlene ncc o[ suspense ancl ledger accounts I rrl thrs Court haddire:tedtherespondentNo'3thereini'e.,I,I()/Cl]airmatl, Karimnalar Cooperative Urban Bank Limited' " tokc action thcreon in accordance with iarv within a pcriocl ol four r'r'eeks from the date of receipt of a copy of the order irtt:1 pul-suant to the said order, the petltioncr in W P No 25985 'r- 2025' in Lhe capacity of the PIC/Chairman, has initrated ':tioti :Lnd hers 3 issued a show cause notice d:ltccl Og.O7 .2O2J, to which thc petitioncr and others have submittcd thr:ir explanations on 22.O7.2025, 30.O7.2025 ancl some other clarcs. lt is noticcd that one of the petitioners had requestecl to lurnish the copics of records vide lette r daLcd 2.i.O7 .202.5 ro makc his further submissions. u,hile others subrlittecl that they are not responsible for the alleged irregularities mclltioncd in the show cause notices. Thcreafter, thc rcsponclcnts appears to have conducted a Gcncral Bod-r.Mt,t.ring orr Oll.(Jg.2025 and passed a resolution on O4.O8.2025 [or ccssarl ir.rrr ol. tlrc mcmbcrship of the petitioners and the consequential ltrocccdins:s datccl 0U.0g.202S have also beer-r issued. In vie,,r.thcrcol, thc rcspondcllt No.S has addressed a lctte r lo thc rcsponclcnt No.2 to urpprove the cessation of memberships. How.ever, rhc rcspondcnt No.2 has observed that the action for cess:rtion ol mcmbershrp has not been taken in accordance u,rth larr. ancl thcrclbre, the said rcsolutions cannot be appror,,c<1. Tlrcrc:rltcr, thc pcLitioner in W.P.No.25985 ot 2025, addrcsscd a lcLrcr darcd t9.Oil.2025 to the Commissioner for Coopcr.lti(r,, t, look lnLo the matter and direct the District_ Co-opcrativc Ol.fict,r, K:r rirnnagar, Lo .rpprove lhe letters of the petitioner darcd 04.0g.2025 and others and cancel the membcrships of thc persors mcn ti.ncd therein a.d 1 4 in responsc thereto' the District Co-opera ' ' I(arimrraga -, r'iclc procecdings datcd 25 08 20'25 h r:' hclcl LhttL the action Can]lOt bc appror,cd aS propcr proct:rlrllC lt:ts ttrlL been follov'ecl' Challenging thc same ' the W P No:l:i'r85 o[ 2021r ( )llitt t ' has been I led

5. Challengrng the lcttcr o[ Lhe rcsponclt r t \o 5' drltt d 08.08 2025, scekrng canccllatiot't oI thc mcmllr r'ttip ol tht' petitloner r arlcl also thc procccdings dated 19 09 'l )' 5 issLtcd lrr thc tespondent No 3' rt'hereundcr the liniii r tL rs ltst trrts publishcc rr ittrout irrcluding thc namcs oI thc 11 1 liotrcrs' tht' petitionels havc challenged beforc this Cottrl irr \\ 'P No'ilO30() ol 2025 b. III vieu'of abovc rival contentions zll'(l r)11 llcrttsill of malerial on record, this Court finds that thc rl l ctirrn rll t his onlv Lo lirkc il(rtlon lll Courl irr W P No 21549 of 2025 \ ras rL't1t ttrr'tl 1o ilt ac:cordattcc s'ith la"r' and thcrcfore' iI actton u':tr' of membe rship of any pcr .'on fi-rlm thc taken f,lr clessatlon society, the respondcnts have to follow duc proc( ss of lil\\. prcscritrecl r.tnder Section 23(i) of thc Telang:i 1'1 ('r'r'pet-irtivt' Socie tit s Act Evidently' thc petitioner in W P Nr ' 59x5 r '[ 2u25' r,vho is thr: rcsponclent No 5 i r-r W P'No 3O30(l r I 2O2 r' l-ras t-rot 5 lbllou,ed thc said procedure ancl as unilaterally decided to propose canccllation of the membership of the petitioners in W.P.No.30309 ol 2O2S and therefore, the resolurion for ccssation of membership of the petitioners cannor be sustained. This Court therefore, sets aside the procceclings datcd 08.08.2025 and 19.09.2O25 and also rhe rcsolution ol rhe ()cneral l3ocly Mceting datcd 04.0g.2025 bl.hotding tht: same as illcgal and arbitrary and as ir.r violation of principlcs ol natural justice. 'lhe rcspondcnts are hou,ever, at libert\, [o procecd in urccordancc with law, if they intend to take atction under Section 23 ol the 1'clangana Co-operative Societics Act.

7. tloth the u,rit petrtions are accordingl_r, disposecl ol 'i'here shall be no order as to costs.

8. Misccllaneous pctitions, if anv pcnding in these u'rit pctitions, shall stand closcd. \r //TRUE COPY// SDI AHMED ABDULLAH KHAN ASSISTANT REGISTRAR ,//2 SECTIOl( OFFICER To \

4. 5 The Principal Secretary, Co-operative Dept. Secretariat, State of Telangana at Hyderabad. The Joint Registrar / District Co-operative Officer, Karimnagar District, Telangana. The Chief Executive Officer, Karimnagar Co-operative Urban Bank Ltd, Karimnagar Karimnagar District, Telangana. The Principal Secretary, Agriculture and Cooperation Department, Dr.B.R.Ambedkar Secretariat Building, Secretariat, State of Telangana at Hyderabad. The Commissioner, Cooperative Societies and Registrar of Co-op Societies, at 3rd floor, Gruha Kalpa Buildings, tvl.J.Road, Nampally, Hyderabad. b. 7 SA

6. The Distnct Cooperative Officer / Joint Registrar, Coope'ative Societies, Karimnagar, Karimnagar District.

7. The Perso r- lncharge, The Karimnagar Co-operative Urran Bank Ltd., Door No,2-6-19r., Urban Bank Building, Karimnagar District - ;{15 001 .

8. Two CCs t r GP FOR COOPERATION, High Court for tl^€, State of Telangana at Hyderab ad. [OUT]

9. Qne CC to SRI IVAHESH I\4AMINDLA, Advocate (OPUC ) 10. One CC to SRI P SRINIVASA RAO, Advocate [OPUC] '1 1. One CC to SRI K.VASUDEVA REDDY, Advocate (OPUI)) 1 2. Two CD Crrpies HIGH COUIIT DATED:1 411012025 C.C. TODAY 3 A. rI' (] u) 1q N: \\ '!-, ,x f -$b -'t} cr) ,i/ r5 ) COMMON ()RDER WP.Nos.25985 AND 30309 of 2025 DISPOSIN(; OF BOTH THE WRIT PETITIONS WITHOUT I]OSTS. b 1 1 \ ,,1 \ \9