The High Court allowed the writ petition, quashing an order that restrained the petitioner society from allotting housing sites during an administrative enquiry regarding the board's prior actions.
The impugned order dated 10.04.2023 passed by the Joint Registrar is quashed and set aside.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
NC: 2023:KHC:25766 WP No. 11911 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 25TH DAY OF JULY, 2023
BEFORE
THE HON'BLE MR JUSTICE R DEVDAS
WRIT PETITION NO. 11911 OF 2023 (CS-RES)
BETWEEN:
Digitally signed by JUANITA THEJESWINI Location: HIGH COURT OF KARNATAKA
THE KARNATAKA GOVERNMENT CLASS-D EMPLOYEES HOUSING BUILDING CO-OPERATIVE SOCIETY LTD., UNDER KARNATAKA CO OPERATIVE SOCIETIES ACT NO 11/3, 2ND FLOOR, KURUBURA SANGHA BUILDING NEW BLOCK, KANAKADASA CIRCLE, IST MAIN ROAD, GANDHINAGAR, BENGALURU - 560009 BY INCHARGE - SECRETARY S.T. GOVARDHAN S/O THIMMARAJU AGED ABOUT 58 YEARS. …PETITIONER
(BY SRI. D.R. RAVISHANKAR, SR. COUNSEL FOR SRI. SARAVANA S., ADVOCATE)
AND:
REPT BY ITS PRINCIPAL SECRETARY.
NC: 2023:KHC:25766 WP No. 11911 of 2023
THE JOINT REGISTRAR OF CO OPERATIVE SOCIETIES, BANGALORE REGION, NO.14, 3RD FLOOR, SAHAKARA SOUDHA 8TH CROSS, MARGOSA ROAD, MALLESHWARAM BENGALURU -560003.
…RESPONDENTS
(BY SMT. A.R.SHARADAMBA, AGA FOR R1 TO R3; R4 SERVED-UNREPRESENTED)
THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE PROCEEDINGS OF THE R-3 JOINT REGISTRAR OF COOPERATIVE SOCIETIES, BANGALORE, IN NO.JRB/GRUHA/ DHOORU/04/2021-22 ORDER DTD 10.04.2023 IN ITS ENTIRETY AS PER ANNX-G AND ETC.
THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER
R.DEVDAS J., (ORAL):
The petitioner-society is aggrieved of the impugned order dated 10.04.2023 at Annexure-G passed by the 4th respondent-Joint Registrar of Co-operative Societies, Bangalore Region (hereinafter referred to as ‘the JRCS’, for short).
petitioner submits that after the writ petition was filed a memo dated 19.07.2023 has been filed to show as to the nature of enquiry pending before the 4th respondent-JRCS. Learned Senior Counsel submits that there were three layouts formed by the petitioner-society, one at Yarappanahalli, second at Lingadheeranahalli and third at Donnenahalli. Insofar as Yarappanahalli layout is concerned, there were 3003 sites formed and 2563 sites have already been allotted and registered in favour of the members. 175 sites have been allotted prior to 2018 and they are pending for registration. 265 sites are in dispute and they have not been allotted to any member. Insofar as Lingadheeranahalli layout is concerned, there were 3059 sites formed and all the 3059 sites were allotted and registered. In respect of Donnenahalli layout is concerned, 128 sites were formed and 109 sites have already been allotted and registered. Only 19 sites remain to be allotted and registered. At this juncture, the JRCS has been issuing directions in the pending enquiry taken
up under Section 64 of the Karnataka Co-operative Societies Act, 1959 (hereinafter referred to as ‘the Act’, for short).
such directions were issued not to allot or register the remaining sites. Such an order was passed on 16.08.2021. However, by order dated 31.01.2022 at Annexure-D, the said directions were recalled and the petitioner-society was permitted to allot and register the sites having regard to the seniority of the members. Strangely, once again by order dated 24.02.2022, directions are issued by the JRCS not to allot or register the sites. Again the said order was vacated by order dated 21.05.2022. Now again, the impugned order dated 10.04.2023 at Annexure-G has been passed directing the society not to allot or register the sites.
15.06.2022, wherein the 4th respondent-JRCS has made a communication to the petitioner-society that he has received a complaint from a member by name Sri.B.T.Jayagopal that his seniority has been ignored and he has not been allotted a site. Therefore, a direction is given to the petitioner-society to allot a site to the said member. Learned Senior Counsel submits that the JRCS while conducting an enquiry under Section 64 of the Act, is only exercising administrative powers and not a judicial power or quasi-judicial power as provided under Section 70 of the Act.
attention of this Court to a Full Bench decision of the Patna High Court in the case of Kinjer Vyaper Mandal Sahyog
Samiti Ltd., Vs. Deputy Registrar, Co-operative Societies, Patna Division and Others , reported in 1986
SCC OnLine Pat 17 and submits that the Full Bench of the Patna High Court has analyzed the relevant provisions i.e., Sections 40 and 48 of the Orissa Co-operative
Societies Act, 1935, which are 'pari materia' with Sections 68 and 70 of the Karnataka Co-operative Societies Act. Learned Senior Counsel submits that the Full Bench of the Patna High has brought out the distinction between the powers exercised by the Registrar under two separate Chapters. The powers exercised by the Registrar under one Chapter where the provisions contained in Sections 64, 65 and 68 which are administrative powers are distinguishable from the power exercised by the Registrar under Section 70 of the Act.
Full Bench of the Patna High Court has held that the powers exercised under Section 40 therein, which is 'pari materia' with Section 68 of the Act, is an administrative power of the Registrar stemming from the result of an audit or an enquiry or an inspection etc. It was held that it is a power vested to penalize for misconduct and negligence on the one hand, in order to compensate the society by way of surcharge therefor, on the other, it has
nothing to do with inter se disputes which may arise under
the provisions of Section 48 (which is 'pari materia' with Section 70 of the Act). It was held that in a limited way the two sections can be said to be mutually exclusive and operating in altogether different fields. Learned Senior Counsel would therefore submit that while exercising administrative powers under Sections 64, 65 and 68 of the Act, no such interim directions could be given by the JRCS, directing the society not to allot or register or to allot a particular site in favour of a particular member of the society. Learned Senior Counsel submits that if a member of the society is aggrieved of the non-allotment of site or disregard to the seniority, he/she is required to raise a dispute under Section 70 and if such a dispute is raised, it may be permissible for the Registrar to issue such directions in the interregnum that the society shall not allot or register a site. Moreover, as is evident from the material available on record, the JRCS has been passing such orders, vacating them and again passing orders restraining the society at his own will.
Nevertheless, this Court also has to bear in mind that the petitioner-society is legitimately bound to make allotments or register the sites having regard to the seniority and in compliance of the provisions of law.
Ordered accordingly.
Sd/JUDGE
DL
2 issues framed by the court
Whether the Joint Registrar could issue directions not to allot or register sites in favour of members during an administrative enquiry.
Whether the Registrar was exercising judicial power or administrative power under Section 64 of the Karnataka Co-operative Societies Act, 1959.
Colour shows how this judgement treated each authority
Kinjer Vyaper Mandal Sahyog Samiti Ltd., Vs. Deputy Registrar, Co-operative Societies, Patna Division and OthersRelied on¶42
1986 SCC OnLine Pat 17 · Who else cites this
2 provisions across 1 enactments
The Karnataka Government Class-D Employees Housing Building Co-operative Society Ltd.
The State of Karnataka, Department of Co-operation
The Registrar of Co-operative Societies
The Joint Registrar of Co-operative Societies, Bangalore Region
Asmath Narayan
R Devdas
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
