Allowed

Mrs. Shambhavi Shetty v. Mrs. Rita Barboza

Karnataka HC11 Jul 2023WP/10236/2023

Case brief

AI extract

What is this about?

In this writ petition under Article 226, the Court held that under Section 17(2-A) of the Karnataka Co-operative Societies Act, a member joining a second society later must be disqualified from the later society, not the earlier one. Consequently, the Court quashed the disqualification order against the petitioner from Kallamundkur society and modified it.

What did the court decide?

The impugned order quashing the petitioner's membership in the earlier society was modified to disqualify her from the later society and she was permitted to withdraw her appeal.

Mrs. Shambhavi Shetty Vs Mrs. Rita Barboza — Cooperative Societies | Karnataka HC (2023)

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NC: 2023:KHC:23902 WP No. 10236 of 2023

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 11^TH DAY OF JULY, 2023

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BEFORE

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THE HON'BLE MR JUSTICE R DEVDAS

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WRIT PETITION NO. 10236 OF 2023 (CS-RES)

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BETWEEN:

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MRS. SHAMBHAVI SHETTY W/O SHIVARAMA SHETTY, AGED ABOUT 60 YEARS, R/AT KAKKARJAL HOUSE, NIDDODI POST AND VILLAGE, MANGALORE TAULK-574227.

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…PETITIONER

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(BY SRI. SHARATH P.H., ADVOCATE FOR SRI. SACHIN B S., ADVOCATE)

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AND:

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Digitally signed by JUANITA THEJESWINI Location: HIGH COURT OF KARNATAKA

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MRS. RITA BARBOZA W/O ANDRO BARBOZA, AGED ABOUT 59 YEARS, R/AT KAIDABETTU HOUSE, BVANANGADI POST KALAMUNDKUR, MANGALORE TALUK-574227.

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THE RETURNING OFFICER KALLAMUNDKUR VYAVASAYA SEVA, SHAHAKARI SANGH (R), KALLAMUNDKUR, MANGALORE TALUK-574227.

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NC: 2023:KHC:23902 WP No. 10236 of 2023

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CHIEF EXECUTIVE OFFICER KALLAMUNDKUR VYAVASAYA SEVA, SAHAKARI SANGH (R), KALLAMUNDKUR,

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MANGALORE TAULK-574227.

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CHIEF EXECUTIVE OFFICER KINNIGOLI VYAVASAYA SEVA, SHAKARI SANGHA AT KINNIGOLI, MANAGORE TALUK-574227

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ASSISTANT REGISTRAR OF COOPERATIVE SOCIETIES MANGALORE SUB-DIVISION, MANGAORE-575001.

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…RESPONDENTS

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(BY SRI. VENKATESH SOMAREDDI, ADVOCATE FOR R1 SMT. A.R. SHARADAMBA, AGA FOR R5)

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THIS WRIT PETITION IS FILED UNDER ARTICLE 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER DTD 18.08.2022 IN APPEAL NO. 104/2022 ON THE FILE OF THE KARNATAKA APPELLATE TRIBUNAL AT BENGALURU VIDE ANNEXURE-A TO THE EXTENT OF DECLINING TO GRANT AN INTERIM ORDER OF STAY OR NON- CONSIDERATION OF APPLICATION FILED BY THE PETITIONER SEEKING STAY OF THE ORDER DTD 15.02.2022 PASSED BY THE R-5 INDISPUTE 328/2019-20 AS PER ANNX-E AND ETC.

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THIS WRIT PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:

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3 - NC: 2023:KHC:23902 WP No. 10236 of 2023

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ORDER

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R.DEVDAS J., (ORAL):

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The petitioner is aggrieved by the impugned order dated 15.02.2022 passed by the respondent-Assistant Registrar of Co-operative Societies (hereinafter referred to as ‘the ARCS’, for short) at Annexure-B and non-granting of interim relief at the hands of the Karnataka Appellate Tribunal (hereinafter referred to as ‘the KAT’, for short), before whom an appeal has been preferred by the petitioner in Appeal No.104/2022.

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Proceedings were initiated against the petitioner for violations of the provisions contained in sub-section (2-A) of Section 17 of the Karnataka Co-operative Societies Act, 1959 (hereinafter referred to as ‘the Act’ for short). The provision was substituted w.e.f., 07.10.2021. In terms of the said provision, a person cannot be a member in two or more co-operative societies carrying on similar business. In terms of the said provision, if any person is a member of two or more such co-operative

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4 - NC: 2023:KHC:23902 WP No. 10236 of 2023

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society, then from the date of commencement of the said provision, within 90 days he/she should have opted to discontinue in other societies and retaining membership in one society only. However, the ARCS has disqualified the petitioner from respondent No.3 society i.e., Kallamundkur Vyavasaya Seva Sahakari Sangha (R), which was a society where the petitioner had become a member prior to obtaining a membership at respondent No.4-society. Therefore, learned Counsel for the petitioner submits that since the provision itself makes it clear that if he/she fails

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to elect any one of the society in terms of the new provisions then such a person will be disqualified in the society where he/she was later admitted. In that view of the matter, learned Counsel submits that since the petitioner was inducted as a member in respondent No.4society subsequent to her being member in respondent No.3-society, she should have been disqualified from respondent No.4-society and not in respondent No.3 society.

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5 - NC: 2023:KHC:23902 WP No. 10236 of 2023

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Accepting the submission of the learned Counsel for the petitioner, this Court is convinced that since the provision itself makes it clear that the membership obtained subsequently in any other society was required to be cancelled and on the admitted fact that the petitioner had become a member of respondent No.3-society much prior to her becoming a member of respondent No.4society, the ARCS was required to disqualify the petitioner from respondent No.4-society and not from respondent No.3-society.

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In the light of the findings made hereinabove, this Court would proceed to modify the order dated 15.02.2022 passed by the ARCS, at Annexure-B, as disqualifying the petitioner from respondent No.4-society, while she shall continue as member of respondent No.3society. The petitioner is permitted to withdraw the appeal filed before the KAT.

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With these directions, this writ petition stands disposed of.

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NC: 2023:KHC:23902 WP No. 10236 of 2023

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Pending I.As., if any, stand disposed of.

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Sd/JUDGE

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Mrs. Shambhavi Shetty v. Mrs. Rita Barboza

Case brief

What is this about?

What did the court decide?

Mrs. Shambhavi Shetty v. Mrs. Rita Barboza

Case brief

What is this about?

What did the court decide?

What the court decided

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