Writ Petition No. 6692 of 2025 · The High Court
Case Details
- 1 - NC: 2025:KHC:9713 WP No. 6692 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 6692 OF 2025 (CS-RES) BETWEEN: 1. M/S. CMR SQUARE
Legal Reasoning
BUILDERS AND PROMOTERS AT NO. 4, 3RD FLOOR, SIRUR PARK ROAD, MALLESHWARAM BENGALURU 560003 REPRESENTED BY ITS PROPRIETOR MR. VINOD KUMAR 2. MR. VINOD KUMAR S/O LATE C. MUNIRAJU AGED ABOUT 47 YEARS MANAGING DIRECTOR/PROPRIETOR OF M/S CMR SQUARE, BUILDERS AND PROMOTERS AT NO. 14, 1ST A CROSS, AGB LAYOUT, 3RD STAGE, MAHALAKSHMI LAYOUT, BENGALURU 560086 Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA (BY SRI. ADITYA D., ADVOCATE FOR SMT. AKSHATA SHARMA., ADVOCATE) AND: …PETITIONERS 1. M/S. BSNL EMPLOYEES WELFARE HOUSE BUILDING CO-OPERATIVE SOCIETY LTD., REGISTERED UNDER KARNATAKA COOPERATIVE SOCIETIES ACT, 1959 HAVING ITS REGISTERED OFFICE AT NO. 19 (NEW NO. 23), 10TH CROSS, 1ST FLOOR, SAMPIGE ROAD, MALLESHWARAM, BANGALORE 560003 REPRESENTED BY ITS VICE PRESIDENT - 2 - NC: 2025:KHC:9713 WP No. 6692 of 2025 2. THE REGISTRAR OF CO-OPERATIVE SOCIETIES NO. 1, ALI ASKAR ROAD, NEAR RAJ BHAVAN BENGALURU 560052 (V/O/DATED 07.13.25 NOTICE TO R1 D/W SRI. YOGESH D.NAIK., AGA FOR R2) …RESPONDENTS THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OR AN ORDER IN THE NATURE OF CERTIORARI TO SET ASIDE THE PETITION PREFERRED BY THE RESPONDENT NO. 1 UNDER SECTION 70 OF THE KARNATAKA CO-OPERATIVE SOCIETIES ACT, 1959 AS DISPUTE NO. AANI (VA AND E)/D-2/NMD/05/2024-25 BEFORE THE RESPONDENT NO. 2 PRODUCED AT ANNEXURE-A AND ETC. THIS WRIT PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE SURAJ GOVINDARAJ ORAL ORDER 1. Learned AGA is directed to accept notice for respondent No.2. Notice to respondent No.1 is dispensed with, in view of the order proposed to be passed. 2. The petitioners are before this Court seeking for the following reliefs: i. To issue a writ or an order in the nature of certiorari to set aside the petitioner preferred by the R1 under Section 70 of the Karnataka Co- operative Societies Act, 1959 as Dispute No. Aani (va & the Respondent NO.2 produced at Annexure-A; e)/D-2/NMD/05/2024-25 before - 3 - NC: 2025:KHC:9713 WP No. 6692 of 2025 ii. Notice of Pre-order proceedings under Section 103 (1) of the Karnataka Co-operative Societies Act, 1959, through which the Respondent No.1 has sought for attachment/liquidation of the Private property of the petitioner produced at Annexure- A1; iii. Pass such other appropriate orders on the facts and circumstances of the case together with costs of this petition in the interest of justice and equity. 3. The respondent had raised a dispute under Section 70 of the Karnataka Co-operative Societies Act, 1959 as regards the formation of the layout as regards which petitioner had been appointed as a Contractor/Developer. The contention of the petitioner is that the petitioner is not a member of the Co-operative Society but only a Developer. Therefore, a dispute could not be raised under Section 70 of the Karnataka Co-operative Societies Act, 1959. It is in that background that the petitioner is before this Court seeking for the aforesaid reliefs. 4. Section 70 of the Karnataka Co-operative Societies Act, 1959 reads as under; - 4 - NC: 2025:KHC:9713 WP No. 6692 of 2025 70. Disputes which may be referred to Registrar for decision. (1)Notwithstanding anything contained in any law for the time being in force, if any dispute touching the constitution, management, or the business of a co- operative society arises,- (a)among members, past members and persons through members, past members and claiming deceased members, or (b)between a member, past member or person claiming through a member, past member or deceased member and the society, its committee or any officer, agent or employee of the society, or (c)between the society or its committee and any past committee, any officer, agent or employee, or any past officer, past agent or past employee or the nominee, heirs, or legal representatives of any deceased officer, deceased agent, or deceased employee of the society, or (d)between the society and any other co- operative society, [or a credit agency] [Inserted by Act 2 of 1975 w.e.f. 17.07.1975.]such dispute shall be referred to the Registrar for decision and [no civil or Industrial labour Tribunal] [Substituted by Act 2 of 2000 w.e.f. 20.06.2000 by notification. Text of the notification is at end of the Act.] shall have jurisdiction to entertain any suit or other proceeding in respect of such dispute. revenue court or or (2)For the purposes of sub-section (1), the following shall be deemed the constitution, management or the business of a co- operative society, namely:- to be disputes touching (a)a claim by the society for any debt or demand due to it from a member or the nominee, heirs or legal representatives of a deceased member, whether such debt or demand be admitted or not; (b)a claim by a surety against the principal debtor where the society has recovered from the surety any amount in respect of any debt or demand due to it from - 5 - NC: 2025:KHC:9713 WP No. 6692 of 2025 the principal debtor, as a result of the default of the principal debtor whether such debt or demand is admitted or not; (c)any dispute arising in connection with the election of a President, Vice-president, Chairman, Vice- chairman, Secretary, Treasurer or Member of Committee of the society. (d)[ any dispute between a co-operative society and its employees or past employees or heirs or legal representatives of a deceased employee, including a dispute regarding the terms of employment, working conditions and disciplinary action taken by a co- operative society [notwithstanding anything contrary contained in the Industrial Disputes Act, 1947 (Central Act 14 of 1947)] [Inserted by Act 2 of 2000 w.e.f. 20.06.2000.];(e)a claim by a co-operative society for any deficiency caused in the assets of the co-operative society by a member, past member, deceased member or deceased officer, past agent or deceased agent or by any servant, past servant or deceased servant or by its committee, past or present whether such loss be admitted or not.] (3)If any question arises whether a dispute referred to the Registrar under this section is a dispute touching the constitution, management or the business of a co- operative society, the decision thereon of the Registrar shall be final and shall not be called in question in any court. 5. It is not in dispute that it is the property of the Society which has been agreed to be developed by the petitioner under an agreement entered into with the Society. It is also not in dispute that upon such development the sites which are to be formed were - 6 - NC: 2025:KHC:9713 WP No. 6692 of 2025 to be allotted to the members of the Respondent No.1-Society. 6. Thus, in effect, it is the property of the society which is the subject matter of the agreement and any dispute relating to that property which was to be allotted to the members of the Society, in my considered opinion would come within the meaning of Sub-section (1) Section 70 of the Karnataka Co- operative Societies Act, 1959. 7. In that view of the matter, the above petition contending that a dispute could not be raised against the Developer would not be sustainable, the petition stands dismissed at the stage of admission. Reserving liberty to the petitioner to agitate all defenses before respondent No.2. SD/- (SURAJ GOVINDARAJ) JUDGE SR/List No.: 1 Sl No.: 14