Writ Petition No. 140 of 2025 · The High Court
Case Details
- 1 - NC: 2025:KHC:770 WP No. 140 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MRS JUSTICE K.S. HEMALEKHA WRIT PETITION NO.140 OF 2025 (CS-EL/M) BETWEEN: KHAMBADAKONE RAITHARA SEVA SAHAKARI SANGHA LTD., UPPUNDA, BYNDOOR TALUK, UDUPI DISTRICT-572101 REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER MR. VISHNU PAI AGED ABOUT 39 YEARS, S/O. RAMMOHAN PAI (PETITIONER SOCIETY IS REGISTERED UNDER CO-OPERATIVE SOCIETIES ACT, 1959). ... PETITIONER (BY SRI D.R. RAVISHANKAR, SENIOR ADVOCATE FOR SRI K. PRASANNA SHETTY, ADVOCATE) AND: Digitally signed by YAMUNA K L Location: HIGH COURT OF KARNATAKA 1. THE STATE OF KARNATAKA DEPARTMENT OF CO-OPERATION M.S. BUILDING, DR. B.R. AMBEDKAR VEEDHI BANGALORE-560001. REP. BY ITS PRINCIPAL SECRETARY. 2. THE STATE CO-OPERATIVE ELECTION AUTHORITY 3RD FLOOR, T.T.M.C. ‘A’ BLOCK, BANGALORE-560027. REP. BY ITS SECRETARY. 3. THE DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETIES/ DISTRICT ELECTION OFFICER, UDUPI. RAJATHADRI “A” BLOCK, 1ST FLOOR DISTRICT ADMINISTRATION OFFICE BUILDING MANIPAL, UDUPI DISTRICT-576104. - 2 - NC: 2025:KHC:770 WP No. 140 of 2025 4. RETURNING OFFICER KHAMBADAKONE RAITHARA SEVA SAHAKARI SANGA (R), UPPUNDA, BAINDOOR TALUK, UDUPI DISTRICT-576219.
Legal Reasoning
5. SRI H. VIJAY SHETTY S/O. NARAYANA SHETTY AGED ABOUT 60 YEARS, 1-6 C, MAHIMA MANDARA NILAYA, MOODA HERANJAL, HERANJAL, BYNDOOR TALUK, UDUPI DISTRICT-576219. 6. SMT. GOWRI DEVADIGA W/O. CHANDRASHEKAR DEVADIGA, AGED ABOUT 50 YEARS, HADIMANE, BYNDOOR TALUK, UDUPI DISTRICT-576219. 7. SRI SHEKAR POOJARI S/O. VENKYA POOJARY, AGED ABOUT 41 YEARS, SADINAYANA, KOLIGAMANTAPA, UPPUNDA, BYNDOOR TALUK, UDUPI DISTRICT-576219. 8. SMT. LAKSHMI G. POOJARI W/O. GOVINDA POOJARI, AGED ABOUT 55 YEARS, SAI NILAYA, NAIKANAKATTE, KAREGAL POST, BYNDOOR TALUK, UDUPI DISTRICT-576219. ... RESPONDENTS (BY SRI T.L. KIRAN KUMAR, ADVOCATE FOR R-2; SRI YOGESH D. NAIK, AGA FOR R-1, R-3 AND R-4; SMT. YASHODHARA HEGDE, ADVOCATE FOR R-6; SRI G.S. KANNUR, SENIOR ADVOCATE FOR SRI MAHESH KIRAN SHETTY, ADVOCATE FOR R-7; V/O. DATED 09/01/2025 NOTICE TO R-5 & R-8 DISPENSED WITH) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE ORDER DATED 04.01.2025 IN APPLICATION NO.3/2024-25 PASSED BY THE RESPONDENT NO.3 HEREIN (ANNEXURE-A); DIRECTION TO REJECT - 3 - NC: 2025:KHC:770 WP No. 140 of 2025 THE NOMINATION FILED BY THE RESPONDENT NOS.6 AND 7 HEREIN AND QUASH THE FINAL LIST OF CONTESTED CANDIDATES DATED 05.01.2025 IN SO FAR AS RESPONDENT NOS.6 AND 7 HEREIN i.e. SHEKAR POOJAR SL.NO.23 AND GOWRI POOJARI SL.NO.30 ISSUED BY THE RESPONDENT NO.4 HEREIN (ANNEXURE-F) AND ETC. THIS WRIT PETITION COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MRS JUSTICE K.S. HEMALEKHA ORAL ORDER Petitioner has called in question the order dated 04.01.2025 in Application No.3/2024-2025 passed by the Deputy Registrar of Co-Operative Societies-respondent No.3, wherein, respondent No.3 passed an interim order in the application filed by respondent Nos.5 to 8 regarding the stay of the approval of amended Byelaw No.47 passed by ARCS, Kundapur in respect of the petitioner-society and directed the Returning Officer to accept the nomination papers of respondent Nos.6 and 7 herein. 2. Heard Sri D.R. Ravishankar, learned senior counsel for the petitioner, learned Additional Government Advocate for respondent Nos.1, 3, 4 and Sri G.S. Kannur, learned senior counsel along with Sri Mahesh Kiran Shetty, - 4 - NC: 2025:KHC:770 WP No. 140 of 2025 learned counsel for respondent No.7, Smt. Yashodhara Hegde, learned counsel for respondent No.6 and perused the material on record. 3. Sri D.R. Ravishankar, learned senior counsel for the petitioner would mainly contend that the Byelaws of the petitioner-Society came to be amended vide order of the ARCS, Kundapur on 15.09.2018 and the said amendment was already placed before the Board of the petitioner- Society and the Board had accepted the same by passing a resolution dated 19.09.2018, the acceptance of amendment was way back in the year 2018 and now the respondent Nos.5 to 8 have challenged the amendment of Byelaw No.47 after the lapse of six years. Further it is submitted that after the amended Byelaw No.47 one election for managing committee was held in the year 2019 and respondent Nos.5, 6 and 8 have participated in the said election. That the impugned order passed by respondent No.3 staying the ByeLaw No.47 dated 15.09.2018 and directed the Returning Officer, - 5 - NC: 2025:KHC:770 WP No. 140 of 2025 respondent No.4 herein to accept the nomination filed by respondent Nos.5 to 8 is totally illegal and the said action of respondent No.3 herein is not only illegal but also contrary to the earlier endorsement dated 19.12.2024. 4. Per contra, Sri G.S. Pannur, learned Senior counsel appearing along with Sri Mahesh Kiran Shetty, learned counsel for respondent No.7 and Sri Yashodhara Hegde, learned counsel for respondent No.6 submits that the amendment of Byelaw No.47, the right to contest the election is restricted to the ‘A’ category member, who have availed the benefit of Normal Credit Statement (NCS), the benefit which is provided to the members and that the NCS is only a scheme wherein the minimum loan is provided to each member in collaboration with the Central Bank. It is further submitted that the NCS is a form wherein the intending borrower is required to furnish the total land holdings, the extent and nature of the land holdings in the prescribed form and the said form will be forwarded by the Society to the Central Bank which after - 6 - NC: 2025:KHC:770 WP No. 140 of 2025 satisfaction grants the loan to the member. It is submitted that the amendment of ByeLaw No.47 is totally in contravention of the Act since the Act provides for the right to vote to a member who have availed the minimum service or benefits. It is further stated that the NCS can be treated as a benefit whereas holding a SB account, Fixed Deposit, general law can be treated as a minimum service and that the Society in order to control the management of the Society has illegally amended the Byelaws, to suit their convenience and exclude the maximum participation of the members. It is further submitted that the respondent No.7 has withdrawn his nomination from General Category and contested for OBC ‘A’ category which is Sl.No.38 at Annexure ‘F’ and there are only two candidates from the OCB ‘A’ category, which is evident from ballot papers and in respect of OBC ‘A’ category, the respondent No.7 and one Mohan P---- are the only two candidates and if at all the elections are stayed, the election in respect of the OBC ‘A’ category is virtually declared without elections and submits that - 7 - NC: 2025:KHC:770 WP No. 140 of 2025 directive measures to be granted to the respondent No.7. It is submitted that the amended ByeLaw No.47 is illegal, which has been rightly interfered by the Deputy Registrar of Co-Operative Society and permitted the respondents No.5 to 8 to contest and right to vote, which is in the administrative reasons. 5. Having heard the learned counsel for the parties, the point that arises for consideration is, “Whether the interim order granted by the Deputy Registrar of Co-Operative Society- respondent No.3 at Annexure ‘A in the present facts and circumstances’ warrants interference by this Court ?” 6. The undisputed fact is that the Byelaw No.47 of the petitioner - Society came to be amended by the order of the ARCS, Kundapur dated 15.09.2018. The board of the petitioner-Society proposed for the amendment of the Byelaws and invoked Byelaw No.47 wherein it is stated that the board of the Society consists of 12 members, out of which 11 Directors should have registered in the NCS - 8 - NC: 2025:KHC:770 WP No. 140 of 2025 (Normal Credit Statement) through the District Central Co- Operative Bank, the condition precedent was the member who had taken or availed the facility of NCS of the petitioner-Society through the District Co-Operative Bank prior to 12 months from the date of election is only entitled to be the Director of the petitioner-Society. 7. The proposed amendment was placed before the Annual Board Meeting on 19.09.2018 and the Board accepted the same by passing a resolution on 19.09.2018. It is pertinent to note that after the amendment of Byelaw No.47, one election for the managing committee was held in the year 2019 and respondent Nos.5, 6 and 8 have participated in the said election, now after the lapse of six years, respondent Nos.5 to 8 have preferred the appeal, and respondent No.3 heard the appeal and after the calendar of events were issued the ByeLaw No.47 was stayed and directed the respondent herein to accept the nomination filed by respondent Nos.5 to 8. The staying of amendment of Byelaw No.47 and permitting the petitioner - 9 - NC: 2025:KHC:770 WP No. 140 of 2025 herein to file nomination and the nomination to be accepted by the Returning Officer, respondent No.5, is contrary to the settled preposition of law and this Court deems it appropriate to set aside the order of the Deputy Registrar of Co-Operative Society and this Court pass the following - (i) (ii)
Decision
ORDER The Writ Petition is allowed. The impugned order dated 04.01.2025 on I.A.Nos.1 and 2 in Application No.3/2024- 2025 passed by respondent No.3 the DRCS is hereby set aside. Consequently, the further nominations of respondent Nos.6 and 7 cannot be accepted and it is made clear that the elections scheduled on 12.01.2025 would be subject to the result of the final outcome of the Application No.3/2024-2025 pending on the file of respondent No.3. - 10 - NC: 2025:KHC:770 WP No. 140 of 2025 (iii) This Court has not expressed any merits or demerits of the amendment of ByeLaw No.47 and even on the limitation. (iv) It is made clear that in the event a favourable order is passed in favour of the respondent Nos.5 to 8, the petitioner would not claim any equity. (v) All contentions are kept open. Sd/- ________________________ JUSTICE K.S. HEMALEKHA MBM,YKL List No.: 1 Sl No.: 33