Disposed

Siddihalli Primary Agricultural Credit Co-Operative Society Ltd. v. the State of Karnataka

Karnataka HC12 Oct 2023WP/21325/2023

Case brief

AI extract

What is this about?

The High Court disposed of three writ petitions regarding the postponement of cooperative bank elections. Finding fault with both the CEO and Election Authority for failing to issue notices, the Court directed the Authority to hold elections immediately and held that board members would not be disqualified for the delay.

What did the court decide?

Direction to the Cooperative Election Authority to hold elections expeditiously; Board members not disqualified from future elections due to this delay.

Siddihalli Primary Agricultural Credit Co-Operative… — Cooperative Societies | Karnataka HC (2023)

¶1

NC: 2023:KHC:37494 WP No. 21325 of 2023

¶2

¶3

& Connected matters

¶4

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

¶5

DATED THIS THE 12^TH DAY OF OCTOBER, 2023

¶6

BEFORE

¶7

THE HON'BLE MR JUSTICE M.I.ARUN

¶8

WRIT PETITION NO.21325 OF 2023 (CS-EL/M) C/W

¶9

WRIT PETITION NO.21356 OF 2023 (CS-EL/M)

¶10

¶11

WRIT PETITION NO.21461 OF 2023 (CS-EL/M)

¶12

IN WP NO.21325 OF 2023:

¶13

BETWEEN:

¶14

SIDDIHALLI PRIMARY AGRICULTURAL CREDIT CO-OPERATIVE SOCIETY LTD. SIDDIHALLI VILLAGE

¶15

Digitally signed by H K HEMA Location: High Court of Karnataka

¶16

JAGALURU TALUK DAVANAGERE DISTRICT-577 513 REPRESENTED BY ITS AUTHORIZED DIRECTOR SRI J.S. VENUGOPAL REDDY AGED ABOUT 66 YEARS

¶17

ALSO DIRECTOR OF DAVANGERE DCC BANK LTD. DAVANAGERE.

¶18

MALALAKERE PRIMARY AGRICULTURAL CREDIT CO-OPERATIVE SOCIETY LTD. MALALAKERE VILLAGE DAVANAGERE TALUK & DISTRICT-577 006 REPRESENTED BY ITS AUTHORIZED DIRECTOR SRI B. SHEKHARAPPA AGED ABOUT 54 YEARS ALSO DIRECTOR OF DAVANAGERE DCC BANK LTD. DAVANAGERE.

¶19

¶20

NC: 2023:KHC:37494 WP No. 21325 of 2023

¶21

& Connected matters

¶22

PRIMARY AGRICULTURAL CREDIT CO-OPERATIVE SOCIETY LTD. KENGALAHALLI VILLAGE, HONNALI TALUK DAVANGERE DISTRICT-577 217 REPRESENTED BY ITS AUTHORIZED DIRECTOR SRI K.H. SHANMUKHAPPA AGED ABOUT 69 YEARS ALSO DIRECTOR OF DVANAGERE DCC BANK LTD. DAVANGERE.

¶23

HANAGAVADI MILK PRODUCERS CO-OPERATIVE SOCIETY LTD. HANAGAVADI VILLAGE, HARIHARA TALUK DAVANGERE DISTRICT-577 601 REPRESENTED BY ITS AUTHORIZED DIRECTOR SRI JAGADEESHAPPA BANAKAR AGED ABOUT 70 YEARS ALSO DIRECTOR OF DAVANGERE DCC BANK LTD. DAVANGERE.

¶24

...PETITIONERS

¶25

(BY SRI P.P. HEGDE, SENIOR ADVOCATE AND SRI M.R. RAJAGOPAL, SENIOR COUNSEL FOR SRI P. ANAND, ADVOCATE)

¶26

AND:

¶27

THE STATE OF KARNATAKA DEPARTMENT OF CO-OPERATIVE SOCIETIES VIKASA SOUDHA BENGALURU-560 001 REPRESENTED BY ITS PRINCIPAL SECRETARY.

¶28

KARNATAKA STATE CO-OPERATIVE ELECTION AUTHORITY 3RD FLOOR, T T M C BUILDING A BLOCK, K.H.ROAD SHANTHINAGAR BENGALURU-560 027 REPRESENTED BY ITS COMMISSIONER.

¶29

¶30

NC: 2023:KHC:37494 WP No. 21325 of 2023

¶31

& Connected matters

¶32

THE DEPUTY COMMISSIONER/ DISTRICT ELECTION OFFICER OF FEDERAL CO-OPERATIVE SOCIETIES DAVANGERE DISTRICT DAVANGERE-577 006.

¶33

THE RETURNING OFFICER OF DAVANGERE DISTRICT CENTRAL CO-OPERATIVE BANK LTD. & SPECIAL LAND ACQUISITION OFFICER, KIADB, DAVANGERE-577 006.

¶34

DAVANGERE DISTRICT CENTRAL CO-OPERATIVE BANK LTD. NO.311, A BLOCK, SRI D. DEVARAJA URS EXTENSION P.B. ROAD, DAVANGERE-577 006 REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER.

¶35

… RESPONDENTS

¶36

(BY SRI K. SHASHI KIRAN SHETTY, AG FOR SRI SIDHARTH, AGA FOR R.1, R.3 & R.4; SRI PROF. RAVI VERMA KUMAR, SENIOR ADVOCATE FOR SRI T.L. KIRAN KUMAR, ADVOCATE FOR R.2.)

¶37

THIS PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO i) ISSUE A WRIT OF CERTIORARI OR ANY SUITABLE WRIT OR DIRECTION AS THE CASE MAY BE TO QUASH THE PROCEEDINGS/ORDER BEARING ¸ÀA.fC/r«f/¥sÉ¸À¸ÀAZÀÄ/D.ªÀÄA.ZÀÄ/02/2023-24 DATED 11.09.2023 ISSUED BY THE RESPONDENT NO.3 AT ANNEXUREQ AND ETC.

¶38

IN WP NO.21356 OF 2023:

¶39

BETWEEN:

¶40

DAVANGERE DISTRICT CENTRAL CO-OPERATIVE BANK LTD. NO.311, A BLOCK

¶41

4 - NC: 2023:KHC:37494 WP No. 21325 of 2023

¶42

& Connected matters

¶43

SRI D. DEVARAJA URS EXTENSION, P.B. ROAD, DAVANGERE-577 006 REGISTERED UNDER KARNATAKA CO-OPERATIVE SOCIETIES ACT, 1959 REPRESENTED BY ITS PRESIDENT SRI B. HALESHAPPA S/O. LATE KENCHAPPA AGED ABOUT 69 YEARS.

¶44

PRIMARY AGRICULTURAL CREDIT CO-OPERATIVE SOCIETY LTD. NALLUR, CHANNAGIRI TALUK DAVANGERE DISTRICT-577 221 REPRESENTED BY IT DIRECTOR SRI G.N. SWAMY S/O. G.H. NEELAKANTAIAH AGED ABOUT 50 YEARS AND ALSO DIRECTOR OF DAVANGERE CENTRAL DISTRICT CO-OPERATIVE BANK LTD. REGISTERED UNDER KARNATAKA CO-OPERATIVE SOCIETIES ACT, 1959.

¶45

...PETITIONERS

¶46

(BY SRI JAYAKUMAR S. PATIL, SENIOR ADVOCATE FOR SRI A MAHAMMED TAHIR, ADVOCATE)

¶47

AND:

¶48

THE STATE OF KARNATAKA DEPARTMENT OF CO-OPERATION M.S. BUILDING, BANGALORE-560 001 REPRESENTED BY ITS SECRETARY.

¶49

THE REGISTRAR OF COOPERATIVE SOCIETIES NO.1, ALI ASKAR ROAD BANGALORE-560 052.

¶50

THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES DAVANGERE DISTRICT

¶51

5 - NC: 2023:KHC:37494 WP No. 21325 of 2023

¶52

& Connected matters

¶53

DAVANGERE-577 006.

¶54

THE STATE CO-OPERATIVE ELECTION AUTHORITY 3RD FLOOR, TTMC A BLOCK SHANTHINAGAR, BANGALORE-560 027 REPRESENTED BY ITS SECRETARY.

¶55

THE DEPUTY COMMISSIONER / DISTRICT ELECTION OFFICER OF FEDERAL CO-OPERATIVE SOCIETIES DAVANGERE DISTRICT DAVANGERE-577 006.

¶56

THE RETURNING OFFICER DAVANGERE DISTRICT CENTRAL CO-OPERATIVE BANK LTD. & SPECIAL LAND ACQUISITION OFFICER KIADB, DAVANGERE-577 006.

¶57

…RESPONDENTS

¶58

(BY SRI K. SHASHI KIRAN SHETTY, AG A/W SRI SIDHARTH, AGA FOR R.1 TO R.3, R.4 & R.6; SRI PROF. RAVI VERMA KUMAR, SENIOR ADVOCATE FOR SRI T.L. KIRAN KUMAR, ADVOCATE FOR R.4.)

¶59

THIS PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO i) ISSUE A WRIT OF CERTIORARI QUASHING THE INPUGNED PROCEEDINGS/ORDER BEARING ¸ÀA.fC/r«f/¥sÉ¸À¸ÀAZÀÄ/D.ªÀÄA.ZÀÄ/ 02/2023-24 DATED 11.09.2023 PASSED BY THE RESPONDENT NO.5 VIDE ANNEXURE-M IN SO FAR AS PETITIONERS ARE CONCERNED, IN THE INTEREST OF JUSTICE AND EQUITY AND ETC.

¶60

IN WP NO.21461 OF 2023:

¶61

BETWEEN:

¶62

SRI MUDEGOWDRU GIRISH S/O. M. PARAMESHWARAPPA

¶63

AGE: 55 YEARS

¶64

¶65

NC: 2023:KHC:37494 WP No. 21325 of 2023

¶66

& Connected matters

¶67

R/O. "SADASHIVA", NO.1637/10 TARALABALU BADAVANE DAVANGERE-570 005.

¶68

PRESIDENT SREE SHANKAR PRATHAMIKA BALAKEDHAARARA SAHAKARA SANGHA NIYAMITHA (A SOCIETY REGISTERED UNDER KCS ACT, 1959) NARASARAJA PETE, DAVANGERE-577 001.

¶69

SRI B. KARIBASAPPA S/O. B. BASAPPA AGE: 54 YEARS ELEBETHURU DAVANGERE TALUK & DISTRICT-577 001.

¶70

PRESIDENT ELEBETHURU PRATHAMIKA KRISHI PATHINA SAHAKARA SANGHA NIYAMITHA (A SOCIETY REGISTERED UNDER KCS ACT, 1959) ELEBEHTURU DAVANGERE TALUK & DISTRICT-577 001.

¶71

...PETITIONERS

¶72

(BY SRI MAHESH R. UPPIN, ADVOCATE) AND:

¶73

STATE OF KARNATAKA BY ITS PRINCIPAL SECRETARY DEPARTMENT OF CO-OPERATION M.S. BUILDING, BENGALURU-560 001.

¶74

CO-OPERATIVE ELECTION AUTHORITY T.T.M.C BUILDING, 3rd FLOOR SRI KENGAL HANUMANTHAIAH ROAD SHANTHINAGARA, BENGALURU-560 027 BY ITS SECRETARY.

¶75

DEPUTY COMMISSIONER & DISTRICT ELECTION OFFICER OF FEDERAL

¶76

¶77

NC: 2023:KHC:37494 WP No. 21325 of 2023

¶78

& Connected matters

¶79

CO-OP. SOCIETIES DAVANAGERE DISTRICT DAVANAGERE-577 001.

¶80

ADDITIONAL REGISTRAR OF CO-OPERATIVE SOCIETIES ALI ASKAR ROAD

¶81

BENGALURU-560 001.

¶82

DAVANAGERE DISTRICT CENTRAL CO-OPERATIVE BANK NIYAMITHA (A BANK REGISTERED UNDER KCS ACT, 1959) DEVARAJ URS BADAVANE DAVANAGERE-577 001 BY ITS MANAGING DIRECTOR.

¶83

… RESPONDENTS

¶84

(BY SRI K. SHASHI KIRAN SHETTY, AG A/W SRI SIDHARTH, AGA FOR R.1, R.3 & R.4; SRI PROF. RAVI VERMA KUMAR, SENIOR COUNSEL FOR SRI T.L. KIRAN KUMAR, ADVOCATE FOR R.2; SRI JAYAKUMAR S. PATIL, SENIOR COUNSEL FOR SRI DEVI PRASAD SHETTY, ADVOCATE FOR R.5.)

¶85

THIS PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO i) ISSUE WRIT IN THE NATURE OF MANDAMUS DIRECTING THE RESPONDENT NO.4 TO INITIATE PROCEEDINGS UNDER SECTION 29-C (3) OF THE KARNATAKA CO-OPERATIVE SOCIETIES ACT, 1959 AGAINST THE MEMBERS OF THE PRESENT BOARD OF DIRECTORS OF THE FIFTH RESPONDENT AND DISQUALIFY THEM FOR A PERIOD OF FIVE YEARS FROM CONTESTING THE ELECTION TO THE BOARD OF THE FIFTH RESPONDENT IN THE INTEREST OF JUSTICE AND ETC.

¶86

8 - NC: 2023:KHC:37494 WP No. 21325 of 2023

¶87

& Connected matters

¶88

THESE PETITIONS COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THROUGH PHYSICAL HEARING/VIDEO CONFERENCING THIS DAY, THE COURT MADE THE FOLLOWING:

¶89

ORDER

¶90

The aforementioned writ petitions pertains to elections to be conducted to Davanagere District Central Co-operative Bank Limited ('the Society' for short).

¶91

The elections to the Society are scheduled to be held on 26.10.2023. However, the Election Officer by way of impugned order dated 11.09.2023 has postponed the

¶92

elections by withdrawing the order passed under Rule 14(1) of the Karnataka Co-operative Societies Rules, 1960 ('the Rules' for short). Aggrieved by the same, W.P.Nos.21325/2023 and 21356/2023 are filed with a prayer to quash the impugned order. W.P.No.21461/2023 is filed by alleging that elections to the Society were required to be postponed due to the mistake of the board members of the Society. Hence, they should be disqualified as per Section 29-C(3) of the

¶93

¶94

NC: 2023:KHC:37494 WP No. 21325 of 2023

¶95

& Connected matters

¶96

Karnataka Co-operative Societies Act, 1959 ('the Act' for short) and a direction be issued to the concerned Authorities to conduct the elections as expeditiously as possible.

¶97

It is seen from the documents produced, that the Chief Executive Officer of the Society has intimated the Cooperative Election Authority about the impending expiry of the term of the Board of the Society within the stipulated time. However, notices to alleged ineligible members of the Society as contemplated under Rule 13-D (2-A)(ii) of the Rules has not been issued by the Society.

¶98

Upon receipt of an intimation about the expiry of the term of the Board of the Society, the concerned Election Officer has taken steps to conduct the election and has issued the notification under Rule 14(1) of the Rules. But, thereafter, upon realizing that notice to ineligible members

¶99

have not been issued as contemplated in law, he has sought to postpone the same as he felt that it was not possible for him to finalise the electoral rolls.

¶100

10 -

¶101

NC: 2023:KHC:37494 WP No. 21325 of 2023

¶102

& Connected matters

¶103

However, it is also noticed that the Co-operative Election Authority has not issued any order as

¶104

contemplated under Rule 13-D(2) of the Rules.

¶105

As held by this Court in W.P.No.20333/2023 and connected matters, for conduct of elections to a Cooperative Society, both the Chief Executive Officer of the Society as well as the Co-operative Election Authority has to play their part as envisaged under the Karnataka Co-operative Societies Act, 1959 and the Rules made thereunder. In the instant case, there has been fault on part of both the Chief Executive Officer and the Co-operative Election Authority, which has resulted in the electoral rolls not being finalized which require postponement of the elections.

¶106

Learned Advocate General appearing for the State, under the given peculiar facts and circumstances of the case, fairly submitted that the State would not initiate any action to disqualify the present office bearers of the Board

¶107

11 -

¶108

NC: 2023:KHC:37494 WP No. 21325 of 2023

¶109

& Connected matters

¶110

on the ground that the Chief Executive Officer of the Society did not take steps to issue notice as contemplated under Rule 13-D(2-A)(ii) of the Rules.

¶111

Learned counsel for the petitioner in

¶112

W.P.No.21461/2023 also submitted that he would not press for the relief of disqualifying the present office bearers of the Society.

¶113

Learned counsel appearing for the Society submits that the term of the Board of the Society is expiring on

¶114

29.10.2023 and steps would be taken to issue notices to

¶115

the alleged ineligible members as contemplated under Rule 13-D(2-A)(ii) of the Rules, within two days from today.

¶116

Given the peculiar facts and circumstances of the case, this Court is of the opinion that without making this

¶117

as a precedent, it would be appropriate to direct the Co-operative Election Authority to conduct elections to the

¶118

12 -

¶119

NC: 2023:KHC:37494 WP No. 21325 of 2023

¶120

& Connected matters

¶121

Society as expeditiously as possible keeping in view the

¶122

provisions of Section 28-B of the Act.

¶123

Hence, the following:

¶124

ORDER

¶125

(i) The Co-operative Election Authority shall hold elections to Davanagere District Central Co-operative Bank Limited as expeditiously as possible;

¶126

(ii) The office bearers of the Board of Davanagere District Central Co-operative Bank Limited including the Chief Executive Officer shall cooperate for smooth conduct of elections with the Co-operative Election Authority;

¶127

(iii) The Board members of Davanagere District Central Co-operative Bank Limited shall not be disqualified from contesting future elections to the said Board on the ground that there was a delay in conduct of elections to Davanagere District Central Co-operative Bank Ltd.;

¶128