Dismissed

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

Karnataka HC9 Feb 2024WP/1015/2020

Case brief

AI extract

What is this about?

The High Court dismissed a writ petition challenging the amendment of bye-laws and consequent voter direction by the Assistant Registrar of Cooperative Societies. The court held the Registrar's action was valid as a Special General Body Meeting could reconsider and override an earlier Annual General Body Meeting decision.

What the court decided

AI extract

Bhagamandala Primary Agricultural Credit Co… — Cooperative Societies | Karnataka HC (2024)

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1 - NC: 2024:KHC:5691 WP No. 1015 of 2020

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 9^TH DAY OF FEBRUARY, 2024

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BEFORE

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THE HON'BLE MR JUSTICE ANANT RAMANATH HEGDE

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WRIT PETITION NO. 1015 OF 2020 (CS-EL/M)

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BETWEEN:

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BHAGAMANDALA PRIMARY AGRICULTURAL CREDIT COOPERATIVE SOCIETY LTD HAVING ITS REGISTERED OFFICE AT BHAGAMANDALA VILLAGE, MADIKERI TALUK KODAGU DISTRICT - 571 247 REPTD. BY ITS CHIEF EXECUTIVE OFFICER.

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BHAGAMANDALA PRIMARY AGRICULTURAL CREDIT COOPERATIVE SOCIETY LTD., BHAGAMANDALA VILLAGE MADIKERI TALUK KODAGU DISRICT - 571 247 BY ITS PRESIDENT.

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…PETITIONERS

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(BY SRI. DEVI PRASAD SHETTY, ADVOCATE)

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AND:

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Digitally signed by SUMA Location: High Court of Karnataka

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THE STATE OF KARNATAKA BY ITS PRINCIPAL SECRETARY TO GOVERNMENT DEPARTMENT OF COOPERATION GOVERNMENT OF KARNATAKA 6^TH FLOOR, 3^RD GATE, M.S.BUILDING DR B.R.AMBEDKAR VEEDHI BENGALURU - 560 001.

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THE REGISTRAR OF COOPERAITVE SOCIETIES IN KARNATAKA, NO.1, ALI ASKER ROAD, BENGALURU - 560 052.

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THE DEPUTY REGISTRAR OF COOPERATIVE SOCIETIES, KODAGU DISTRICT, MADIKERI - 571 231.

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THE ASSISTANT REGISTRAR OF COOPERATIVE SOCIEITES, MADIKERI SUB-DIVISION

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2 - NC: 2024:KHC:5691 WP No. 1015 of 2020

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KODAGU DISTRICT - 571 231.

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COOPERATIVE DEVELOPMENT OFFICER VERIFICATION OFFICER OFFICE OF THE DEPUTY REGISTRAR OF COOPERAITVE SOCITIES, MADIKERI, KODAGU DISTRICT-571 231.

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RETURNING OFFICER APPAINTED FOR BHAGAMANDALA PRIMARY AGRICULTURAL CREDIT COOPERATIVE SOCIETY LTD., BHAGAMANDALA VILLAGE

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MADIKERI TALUK

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KODAGU DISTRICT - 571 247.

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KUNDACHERRI PRIMARY AGRICULTURAL CREDIT CO-OPERATIVE SOCIETY LTD KUNDACHERI, CHETTIMANI BHAGAMANDALA HOBLI MADIKERI TALUK, KODAGU DISTRICT-571 247 BY ITS CHIEF EXECUTIVE OFFICER.

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(AMENDED AS PER COURT ORDER DATED 31.1.2020)

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…RESPONDENTS (BY SRI. M SRINIVAS KUMAR, HCGP FOR R1-R5; SRI. N R KRISNAPPA, ADVOCATE FOR R7; R6 SERVED AND UNREPRESENTED)

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THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE DIRECTIONS ISSUED BY THE R-4 IN HIS LETTER DTD.26.12.2019 AT ANNEXURE-P AS FAR AS IT RELATES TO DIRECTING THE P-1 SOCIETY TO TRANSFER THE SHARES OF THE MEMBERS COMING UNDER KUNCHERI PADAKALLU SINGATHOORU AND CHARANDERI, VILALGE TO KUNDACHERI PACS AND TO DIVIDE THE ASSETS AND LIABILITIES OF THE P-1 SOCIETY AND ETC.

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

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3 - NC: 2024:KHC:5691 WP No. 1015 of 2020

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ORDER

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Heard the learned counsel for the petitioners and learned High Court Government Pleader for respondent Nos.1 to 5 as well as learned counsel for respondent No.7.

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Petitioner No.1 is a Primary Agriculture Credit Cooperative Society, which is represented by its Chief Executive Officer. Petitioner No.2 is the same society represented by the President. For all practical purposes, this is a petition filed by Bhagamandala Primary Agricultural Credit Cooperative Society, having its registered office at Bhagamandalal Village, Madikeri Taluk, Kodagu District. Hence, petitioners are referred to as petitioner society.

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The petitioner - society is aggrieved by the order at Annexure - J dated 06.02.2018. In terms of the said order, the Assistant Registrar of Co-operative Societies/respondent No.4 has amended bye-law of the petitioner - society exercising the power under Section 12 of the Karnataka Co-operative Societies Act, 1959 (for short 'Act of 1959'). In terms of the said order, the bye-law of the petitioner - society was amended deleting four villages from its area of operation.

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NC: 2024:KHC:5691 WP No. 1015 of 2020

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Annexure - P is a letter dated 26.12.2020, wherein a direction is issued by the Assistant Registrar of Co-operative Societies, Madikeri clarifying as to who are the voters, who can vote in the election to the Board of petitioner - society. In terms of the said letter, the Assistant Registrar of Co-operative Societies has clarified that the erstwhile members of the petitioner - society who are not falling within the territory of the society cannot vote in the election to the Board of petitioner - society. The petitioner has also sought for a writ of mandamus to direct respondent Nos.3 to 5 to prepare the voters list including the members from four villages namely, Kundacheri, Padakallu, Singathoor and Cherandati villages.

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Other facts necessary for adjudication of the

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petition can be summarized as under:-

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The petitioner is a society registered under the Act of 1959. The petitioner - society had territorial jurisdiction over 15 villages. It appears that there was a proposal to set up one more Co-operative Society covering the area of operation of four villages, which are part of the area of operation of the petitioner - society. This proposal was pursuant to the policy

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NC: 2024:KHC:5691 WP No. 1015 of 2020

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decision of the Government, which encouraged the setting up of Co-operative Society in each Panchayath territorial jurisdiction. Accordingly, a Special General Body Meeting was convened and in the said meeting, the members of the petitioner - society agreed for the proposal to set up a separate Co-operative Society for four villages named above. In the said meeting, the members of the petitioner - society took a decision on 08.01.2018 to relinquish four villages named above and resolved to amend the bye-laws of the society confining its operation to the remaining villages. Pursuant to the decision taken at the Special General Body Meeting, consequent order has been passed by the Assistant Registrar of Co-operative Societies vide order dated 06.02.2018 marked at Annexure - J.

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Learned counsel for the petitioners would contend that in the General Body Meeting held on 22.09.2017, the members had taken a decision not to surrender four villages of the petitioner - society enabling respondent No.7 - society to establish a new society. It is his contention that since the decision is already taken in the Annual General Body Meeting, further decision could not have been taken in the Special General Body meeting, which is held on 08.01.2018. It is his

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NC: 2024:KHC:5691 WP No. 1015 of 2020

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further contention that proposal to amend the bye-laws can only be taken in the Annual General Body Meeting. Thus, he would contend that the impugned order at Annexure - J is unsustainable and prayed for quashing the same. He further submitted that once Annexure - J is quashed, consequent letter/direction at Annexure - P should also be quashed.

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Learned counsel for respondent No.7 would submit

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that the writ petition is not maintainable on the premise that the petitioner has an alternative remedy under Section 106 of the Act of 1959. He would also submit that assuming that the writ petition is heard on merits, the petitioner - society has no case on merits for a simple reason that in a Special General Body Meeting held, the members have taken a decision to surrender four villages of the society in favour of respondent No.7 - society and subsequent to the resolution, the Assistant Registrar of Co-operative Societies has passed consequent order permitting the amendment of bye-law and he has also recognized respondent No.7 as a society and respondent No.7 is functioning since last three years. Thus, he would contend that there is no merit in the writ petition.

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NC: 2024:KHC:5691 WP No. 1015 of 2020

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This Court has considered the contentions raised at

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the bar.

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There is no dispute that on 08.01.2018, the Special General Body Meeting of the petitioner - society was convened to discuss the proposal to surrender four villages to enable respondent No.7 - society to establish a Co-operative Society having territorial jurisdiction over the four villages. In the Special General Body Meeting, the society has taken unanimous decision to surrender aforementioned four villages and accordingly, decision is communicated to the Registrar of Cooperative Societies. The authority under the Act of 1959 has considered the decision and has approved the proposal for amendment considering the fact that the amendment is in tune with the policy decision taken by the Government to establish a Co-operative Society in each of the Panchayath jurisdiction. This being the position, this Court is of the view that the fact that the decision which is taken in Special General Body Meeting which is contrary to the decision taken in the Annual General Body Meeting does not come in the way of Assistant Registrar of Co-operative Societies approving the decision. It is relevant to note that the decision taken in Annual General Body

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8 - NC: 2024:KHC:5691 WP No. 1015 of 2020

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Meeting is the decision dated 22.09.2017. Thereafter, the society has convened a Special General Body Meeting to reconsider its own decision and accordingly, the decision is reconsidered. There is nothing in the Karnataka Co-operative Societies Act, 1959, which prohibits Co-operative Society to take a decision contrary to the decision taken earlier. The only procedure contemplated is there has to be a meeting, which is to be convened in accordance with law. It is not the case of the petitioner - society that the Special General Body Meeting is not convened by following the procedure. This being the position, this Court is of the view that no fault can be found in the impugned order at Annexure - J where the Assistant Registrar of Co-operative Societies has taken a decision to amend the bye-law, which is pursuant to the decision taken by the members of the petitioner - society in the Special General Body Meeting held on 08.01.2018. This being the position, the writ petition to quash the impugned order at Annexure - J is not maintainable.

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As far as Annexure - P is concerned, it is relevant to

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note that the Assistant Registrar of Co-operative Societies has passed an order consequent to the establishment of respondent

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NC: 2024:KHC:5691 WP No. 1015 of 2020

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No.7 - society holding that members falling within the territory of respondent No.7 - society cannot vote in the election to the board of the petitioner - society. The said direction is also in accordance with law. Since this Court has taken a view that the decision of the Assistant Registrar of Co-operative Societies approving amendment of bye-law is in accordance with law, Annexure - P cannot be quashed.

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For the aforesaid reasons, this writ petition is dismissed .

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Sd/JUDGE

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PMR List No.: 1 Sl No.: 27

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

Case brief

What is this about?

What the court decided

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

Case brief

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