Allowed

T. N. Shivaraju v. State of Karnataka

Karnataka HC13 Mar 2023WP/1952/2023

Case brief

AI extract

What is this about?

Petitioners challenged an order passed by the Deputy Registrar of Co-operative Societies. The court held that without government shareholding, loans, or guarantees, no action could be taken under Section 30 of the Act. The writ petition was allowed, and the order was quashed.

What did the court decide?

The Writ Petition was allowed; the writ of certiorari was issued; Annexure-A1 dated 27.12.2022 passed by Respondent No. 2 was quashed.

T. N. Shivaraju Vs State of Karnataka — Cooperative Societies | Karnataka HC (2023)

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1 - WP No. 1952 of 2023

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 13^TH DAY OF MARCH, 2023

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BEFORE

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THE HON'BLE MR JUSTICE SURAJ GOVINDARAJ

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WRIT PETITION NO. 1952 OF 2023 (CS-RES)

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BETWEEN:

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T. N. SHIVARAJU S/O LATE H NANJAPPA AGED 58 YEARS

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T S NAGARAJA S/O SHIVANNA AGED 57 YEARS

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J CHANDRASHEKAR S/O G JAYANNA AGED 50 YEARS

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Digitally signed by POORNIMA SHIVANNA Location: HIGH COURT OF KARNATAKA

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B S RUDRESH KUMAR S/O SIDDARAMAIAH AGED 52 YEARS

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H B JAGADISH S/O H K BHOJAPPA AGED 48 YEARS

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T N SHIVAKUMAR S/O NARASAPPA AGED 52 YEARS

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T Y NAGARAJU S/O YELLAIAH AGED 56 YEARS

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T H GURUDATH S/O T C HANUMANTHAIAH AGED 52 YEARS

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WP No. 1952 of 2023

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T L KANTHARAJU S/O LAKSHMANA AGED 48 YEARS

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R RADHA W/O T GOVINDARAJU AGED 55 YEARS

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VIDYAKRISHNA S/O T V KRISHNA AGED 59 YEARS

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SHANTHAMMA S/O T V MANJUNATH AGED 57 YEARS

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ALL ARE DIRECTORS OF THE TOWN CO-OPERATIVE SOCIETY LTD., DHABEGHATTA ROAD TURUVEKERE TUMKUR DISTRICT-572227

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…PETITIONERS

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(BY SRI. DEVI PRASAD SHETTY., ADVOCATE)

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AND:

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STATE OF KARNATAKA DEPARTMENT OF URBAN DEVELOPMENT M S BUILDING BANGALORE-560001 REPRESENTED BY ITS PRINCIPAL SECRETARY

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THE DEPUTY REGISTRAR OF CO OPERATIVE SOCIETIES ROOM NO.305, 2^ND FLOOR, MINI VIDHANA SOUDHA TUMKURU DISTRICT TUMKURU-572101.

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THE TOWN COOPERATIVE SOCIETY LTD DABBEGHATTA ROAD TURUVEKERE -572227 TUMKUR DISTRICT BY ITS CHIEF EXECUTIVE OFFICER (CEO) (RESPONDENT NO.3 SOCIETY IS A REGISTERED UNDER

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WP No. 1952 of 2023

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THE KARNATAKA COOPERATIVE SOCIETIES REGISTRATION ACT 1959)

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…RESPONDENTS

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(BY SMT. A.R. SHARADAMBA, AGA FOR R1 & R2; R3-SERVED)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO IS FILED PRAYING TO ISSUE A WRIT IN THE NATURE OF CERTIORARI QUASHING ANNEXURE-A1 DATED 27/12/2022 INNO.DRT/CHUNAVANE/KALAM/30/299/2022-23 PASSED BY THE RESPONDENT NO.2.

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THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, THE COURT MADE THE FOLLOWING:

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ORDER

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The petitioners are before this Court seeking for the following reliefs:

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a. Issue a writ in the nature of certiorari quashing Annexure-A1 dated 27/12/2022 in No.DRT/CHUNAVANE/KALAM/30/299/2022-23 passed by the Respondent No.2.

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b. To pass such other writ, order or direction as this Hon’ble court deems fit under the circumstance of the case.

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The contention of Sri.Deviprasad Shetty, learned counsel for the petitioners is that no action could be taken against respondent No.3 under Section 30 of the Karnataka Co-operative Societies Act, 1959 (for short, ‘the Act’), since it is only if the Government

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WP No. 1952 of 2023

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were holding any shares, had issued any loan, provided financial assistance or any guarantee that it would derive its power to take action against the office bearers of respondent No.3.

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Taking note of the said submission, vide order dated 09.03.2023, the learned AGA was called upon to make submissions with regard to the above.

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Today, learned AGA, on instructions of Sri.N.Venkatesh, Deputy Registrar of Co-operative Societies, Tumkur District, who is present before the Court, submits that the Government is not holding any shares, has not issued any loan nor has provided any financial assistance or guarantee to respondent No.3Society. The submission is noted.

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Taking into account the said submission made, I am of the considered opinion that respondent No.2 would not had derived any right under Section 30 of the Act to take any action against respondent No.3 and/or its

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WP No. 1952 of 2023

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Directors, let alone its former Directors. As such, I pass the following:

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ORDER

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i. The Writ Petition is Allowed.

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ii. A writ of certiorari is issued. Annexure-A1 dated 27.12.2022 bearing No.DRT/CHUNAVANE/KALAM30/299/2022-23 passed by respondent No.2 is hereby quashed.

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Sd/JUDGE

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PRS List No.: 1 Sl No.: 56

T. N. Shivaraju v. State of Karnataka

Case brief

What is this about?

What did the court decide?

T. N. Shivaraju v. State of Karnataka

Case brief

What is this about?

What did the court decide?

What the court decided

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