Dismissed

The Prathamik Krushi Pattin Sahakari Sangha Niyamit Hirehal v. the State of Karnataka

Karnataka HC8 Apr 2024WA/100095/2024

Case brief

AI extract

What is this about?

A cooperative society challenged an inquiry into its financial functioning ordered suo motu under Section 64 of the Karnataka Cooperative Societies Act, 1959. The Division Bench found no irregularity in initiating the inquiry and upheld the Single Judge's dismissal of the writ petition along with Rs.1,00,000 costs for suppression of material facts.

What the court decided

AI extract

The Prathamik Krushi Pattin Sahakari Sangha Niyamit… — Cooperative Societies | Karnataka HC (2024)

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NC: 2024:KHC-D:6277-DB WA No.100095 of 2024

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IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 8^TH DAY OF APRIL, 2024

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PRESENT

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THE HON'BLE MR JUSTICE M.I.ARUN

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AND

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THE HON'BLE MR JUSTICE UMESH M ADIGA

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WRIT APPEAL NO.100095 OF 2024 (CS-RES)

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BETWEEN:

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THE PRATHAMIK PATTIN SAHAKARI SANGHA NIYAMIT HIREHAL

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HIREHAL-582209, TQ. RON, DIST. GADAG R/BY ITS CHIEF EXECUTIVE OFFICER,

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SHRI SHANKARAGOUDA S/O. VEERANAGOUDA GOUDAR, AGE. 56 YEARS, OCC. AGRICULTURE, R/O. 385 GARADI ONI, WARD NO.2, HIREHAL-582209, TQ. RON, DIST. GADAG.

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…APPELLANT

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(BY SRI. SHUBHENDU A AKALWADI, ADVOCATE)

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AND:

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Location: HIGH COURT OF VISHALNINGAPPAPATTIHAL KARNATAKADHARWADBENCHDate: 2024.04.10 16:59:02 +0530

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THE STATE OF KARNATAKA R/BY ITS PRL. SECRETARY DEPT. OF REVENUE, M.S. BUILDING, DR. AMBEDKAR VEEDHI, BENGALURU-560001.

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THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES, GADAG SUB-DIVISION, GADAG-581117, TQ. AND DIST. GADAG.

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THE DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETIES, GADAG-581117, TQ. AND DIST. GADAG.

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VEERANAGOUDA S. POLICEPATIL AGE. MAJOR, OCC. AGRICULTURE, R/O. HIREHAL-582209, TQ. RON, DIST. GADAG.

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…RESPONDENTS

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(BY SRI. V.S. KALASURAMATH, HCGP)

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NC: 2024:KHC-D:6277-DB WA No.100095 of 2024

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THIS WRIT APPEAL IS FILED U/S.4 OF KARNATAKA HIGH COURT ACT, 1961, PRAYING TO, SET ASIDE THE ORDER PASSED BY THE LEARNED SINGLE JUDGE DATED 13.03.2024 IN W.P.NO.103984/2022 BY QUASHING THE IMPUGNED ORDER PASSED BY THE 2^ND RESPONDENT DATED 13.09.2022 IN NO. AR-18/KALAM.64/CR-1/2022-23/297 VIDE ANNEXURE-E TO THE WRIT PETITION & ETC.,

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THIS APPEAL, COMING ON FOR PRELIMINARY HEARING, THIS DAY, M.I.ARUN, J., DELIVERED THE FOLLOWING:

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JUDGMENT

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The appellant is a Cooperative Society. An enquiry under Section 64 of the Karnataka Cooperative Societies

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Act, 1959 (for short, ‘the Act’) has been ordered to examine the financial functioning of the Cooperative

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Society.

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Section 64(1) and (2) of the Act reads as

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follows:

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“64. Inquiry by Registrar.-(1) The Registrar may, of his own motion, by himself or by a person authorised by him, by order in writing, hold an inquiry into³ [any matter specified in the order touching] the constitution, working and financial condition of a co-operative society.

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(2) An inquiry of the nature referred to in sub-section (1) shall be held on the application of. –

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(a) a co-operative society to which the society concerned is affiliated;

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3 - NC: 2024:KHC-D:6277-DB WA No.100095 of 2024

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(b) a majority of the members of the⁴ [board] of the society; or

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(c) not less than one-third of the total number of members of the society.

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1[(2-A) An inquiry under sub-section (1) shall be completed² [within a period of twelve months which may, however be extended by³ [by the Registrar for the reasons to be recorded in writing], for a further period of six months]:]

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4[Provided that the State Government shall, on a report made by the Registrar, shall have power to extend the period for holding the enquiry beyond eighteen months if it is satisfied that, there are genuine grounds for the extension”

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In the instant case, certain complaints have been made against the functioning of the appellantSociety, based on which, Competent Officer has made preliminary enquiry and upon coming to the conclusion that there is prima facie material against the Society has ordered for an enquiry.

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Reading of the Section 64 of the Act makes it

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clear that an enquiry can be initiated either suo moto by the Registrar or by any person authorized or under certain other circumstances as contemplated under Section 64(2)

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4 - NC: 2024:KHC-D:6277-DB WA No.100095 of 2024

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of the Act. In the instant case, upon the materials placed before us, it has to be concluded that the Competent Officer has ordered for enquiry by invoking his suo moto power. We do not find any irregularity in the same.

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Learned Single Judge apart from appreciating the aforementioned facts and position of law, on the ground that the appellant herein has suppressed the material facts and that he had already participated in the enquiry before filing writ petition and that he had obtained interim order suppressing the material facts and stalled the enquiry, has imposed a cost of Rs.1,00,000/- on the appellant herein. We do not find any error in the same.

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For the aforementioned reasons, the writ appeal is hereby dismissed.

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Sd/JUDGE

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Sd/JUDGE

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NAA/CT:VP LIST NO.: 1 SL NO.: 34

The Prathamik Krushi Pattin Sahakari Sangha Niyamit Hirehal v. the State of Karnataka

Case brief

What is this about?

What the court decided

The Prathamik Krushi Pattin Sahakari Sangha Niyamit Hirehal v. the State of Karnataka

Case brief

What is this about?

What the court decided

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