Disposed

Vijay Kumar v. Vs Government of Karnataka

Karnataka HC15 Dec 2021WP/18132/2021

Case brief

AI extract

What is this about?

In this PIL, members of a cooperative society alleged fund siphoning by office bearers. The High Court held that the matter fell within the Registrar's mandate under Section 70 for disputes touching society management and was not maintainable as a writ petition at that stage, directing the petitioners to appeal to the Registrar instead.

What did the court decide?

The writ petition was dismissed with a direction to file a fresh complaint with the Registrar of Co-operative Societies within ten days. Pending interlocutory applications were also disposed of.

Vijay Kumar v Vs Government of Karnataka — Cooperative Societies | Karnataka HC (2021)

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15^TH DAY OF DECEMBER, 2021

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PRESENT

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THE HON’BLE MR. RITU RAJ AWASTHI, CHIEF JUSTICE AND

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THE HON’BLE MR.JUSTICE SACHIN SHANKAR MAGADUM

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WRIT PETITION NO.18132 OF 2021 (CS-RES-PIL)

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BETWEEN:

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VIJAY KUMAR V MEMBER OF BEL HOUSE BUILDING SOCIETY LTD AGED ABOUT 52 YEARS S/O VENUGOPAL R/AT HOUSE NO.NA 419 BEL COLONY NEAR GANESH TEMPLE JALAHALLI POST BENGALURU-560 013

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MERAJ PATEL MEMBER OF BEL HOUSE BUILDING SOCIETY LTD AGED ABOUT 40 YEARS S/O NABIPATE R/AT NO.10, 1^ST CROSS EMARALD LAYOUT RK HEDGE NAGAR SHIVARAMKARANTH NAGAR POST BENGALURU-560 077

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PRAMOD UPPIN MEMBER OF BEL HOUSE BUILDING SOCIETY LTD AGED ABOUT 38 YEARS

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S/O GURUBASAPPA R/AT FLAT NO.S-05, 2^ND FLOOR SHRISTI ANMOL APARTMENTS SIDDESWARA LAYOUT NEAR THINDLU CIRCLE BENGALURU-560 097

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MAHESH M R MEMBER OF BEL HOUSE BUILDING SOCIETY LTD AGED ABOUT 32 YEARS S/O RANGASWAMY R/AT HOUSE NO.205 SREE SAYI NILAYA 1^ST MAIN, 1^ST CROSS MUNESWARASWAMY LAYOUT 4^TH BLOCK DODDABOMMASANDRA VIDYARANYAPURA PO BENGALURU-560097

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SUMITRA MEMBER OF BEL HOUSE BUILDING SOCIETY LTD AGED ABOUT 44 YEARS D/O T SRIDHAR R/AT HOUSE NO.B144, BEL COLONY JALAHALLI POST BENGALURU-560013

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... PETITIONERS

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(BY SMT. B.V.VIDYULATHA, ADVOCATE)

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AND:

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GOVERNMENT OF KARNATAKA VIDHANA SOUDHA DR AMBEDKAR VEEDHI BENGALURU-560001 BY ITS CHIEF SECRETARY

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GOVERNMENT OF KARNATAKA COOPERATIVE DEPARTMENT

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KARNATAKA GOVERNMENT SECRETARIAT

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ROOM NO.610, 3^RD GATE 6^TH FLOOR, M S BUILDING DR AMBEDKAR VEEDHI BENGALURU-560001 BY ITS SECRETARY

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REGISTRAR OF CO-OPERATIVE SOCIETIES NO.01, ALI ASKAR ROAD

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NEAR RAJ BHAVAN, VASANTHNAGAR

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BENGALURU-560 052

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JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES BENGALURU REGION SAHAKARA SOUDA, NO.143 3^RD FLOOR, 3^RD MAIN ROAD, 8^TH CROSS MARGOSA ROAD, MALLESWARAM BENGALURU-560003

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BHARAT ELECTRONICS EMPLOYEE CO-OPERATIVE HOUSE BUILDING SOCIETY LIMITED (BEECHBSL) 1^ST FLOOR, BE CO OPERATIVE SOCIETY LTD JALAHALLI POST, BENGALURU-560013

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BY ITS CHIEF EXECUTIVE OFFICER

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SRI PANDURANG D GARG RETIRED JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES

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BENGALURU REGION NO.2241, ANJANE, 4^TH A CROSS HAMPINAGARA, VIJAYANAGAR II STAGE

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BENGALURU-560040

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... RESPONDENTS

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(BY SMT. VANI H, AGA)

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THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING A DIRECTION FOR THOROUGH INVESTIGATION INTO THE ILLEGALITIES AND IRREGULARITIES COMMITTEED BY OFFICE BEARERS OF THE 5^TH RESPONDENT-SOCIETY BY SIPHONING OFF THE FUNDS COLLECTED FROM ITS MEMBERS AND ETC.,

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THIS PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, CHIEF JUSTICE MADE THE FOLLOWING:

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ORDER

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The Public Interest Litigation is filed seeking the following reliefs:-

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"a) Issue a writ of mandamus or any other similar writ or direction for thorough investigation into the illegalities and irregularities committed by office bearers of the 5^th respondent-Society by siphoning off the funds collected from its members.

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b) Issue a writ of mandamus or any other similar writ or order or direction directing the 5^th respondent-Society to mandatorily call for tenders following the procedure contemplated under Karnataka Transparency in Public Procurements Act, 1999 and its bye-laws before entering into any contract for developing layouts or otherwise.

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c) Issue a writ of mandamus or any other similar writ or direction directing respondent Nos.1 to 4 to initiate all proceeding available under provisions of Karnataka Cooperative Societies Act, 1959 against the office bearers of the 5^th respondent-Society for violating its bye-laws, the provisions of Karnataka Transparency in Public Procurements Act, 1999 and orders issued by the 1^st and 2^nd respondents.

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d) Issue a writ of mandamus or any other similar writ or order or direction directing respondent No.1 to initiate both Departmental enquiry as well Criminal prosecutions against the 6^th respondent, Sri.Pandurang D Garg, Retired Joint Registrar Co-operative Societies under the provision of Karnataka Lokayukta Act and Prevention of Corruption Act, 1988.

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e) Issue a writ of mandamus or any other similar writ or direction directing the

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respondent Nos.1 to 4 to recover the loss caused to funds of the 5^th respondent-Society due to the illegal acts of the office bearers of the 5^th respondent-Society.

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f) Issue a writ of mandamus or any other similar writ or order or direction to the 1^st respondent to initiate Forensic Audit of the accounts of the 5^th respondent-Society.

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g) Pass such other writ or order or direction that this Hon'ble Court may deem fit in the facts and circumstances of the case, and in the interest of justice and equity."

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Learned counsel for the petitioners has drawn the attention of the Court towards the provisions of Section 64 of the Karnataka Co-operative Societies Act, 1959 (for short, 'Act, 1959') in order to assert that the writ petition preferred by the petitioners is fully maintainable and the matter cannot be relegated to the Registrar under Section 70 of the Act, 1959.

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We have perused the provisions of Section 70 of the Act, 1959 which is reproduced as under:-

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"70. Disputes which may be referred to Registrar for decision.-

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(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 cooperative society arises,—

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(a) among members, past members and persons claiming through members, past members and deceased members, or

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(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

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(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

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(d) between the society and any other co-operative society, 1[or a credit agency]

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such dispute shall be referred to the Registrar for decision and [no civil or labour or revenue court or Industrial Tribunal] shall have jurisdiction to entertain any suit or other proceeding in respect of such dispute.

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(2) For the purposes of sub-section (1), the following shall be deemed to be disputes touching the constitution, management or the business of a cooperative society, namely:—

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(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;

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(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 the principal debtor, as a result of the

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default of the principal debtor whether such debt or demand is admitted or not;

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(c) any dispute arising in connection with the election of a President, Vicepresident, Chairman, Vice-chairman, Secretary, Treasurer or Member of Committee of the society.

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(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)]

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(e) a claim by a co-operative society for any deficiency caused in the assets of the cooperative 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.

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(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.

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(4) x x x x

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(5) x x x x "

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Perusal of provisions under Section 70 of the

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Act, 1959 clearly stipulates any dispute touching the

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constitution, management, or the business of a co-operative society arising among members, past members and persons claiming through members, past members and deceased members, or 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 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 between the society and any other co-operative society shall be referred to the Registrar for decision.

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In the given facts and circumstances, the petitioners cannot be relegated to avail the remedy under Section 70 of the Act, 1959.

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Learned counsel for the petitioners submits that the petitioners do not have any personal interest. They have raised the grievance regarding the illegalities and irregularities committed by office bearers of respondent No.5-Society by siphoning off the funds collected from its

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members. In this regard, several complaints have been made to the Registrar of Co-operative Societiesrespondent No.3 and to the Joint Registrar of Co-operative Societies-respondent No.4. However, none of the complaint copies annexed from Annexure-A to A16 have been looked into nor considered till date. It is submitted that under Section 64 of the Act, 1959, the Registrar on his own motion may hold an inquiry against a Co-operative Society regarding its functioning.

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We have considered the submissions of learned counsel for the petitioners and gone through the records.

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We are of the considered view that the

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grievance of the petitioners is required to be looked into by respondent No.3 as expeditiously as possible. We therefore, dispose of the writ petition at this stage with the observations that the petitioners may file a fresh complaint to respondent No.3 regarding the grievance as set out in the writ petition within a period of 10 days from today. In case any such complaint or representation is preferred by the petitioners along with the copy of this order, respondent No.3 shall consider and pass appropriate orders in accordance with law. Respondent No.3 may grant an

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10 -

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opportunity of hearing to the petitioners before disposing of the complaints.

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The pending interlocutory applications does not survive for consideration and is accordingly disposed of.

Sd-

CHIEF JUSTICE

SdJUDGE

KPS

Vijay Kumar v. Vs Government of Karnataka

Case brief

What is this about?

What did the court decide?

Vijay Kumar v. Vs Government of Karnataka

Case brief

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What did the court decide?

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