Dismissed

The President v. the State of Karnataka

Karnataka HC27 Feb 2024WP/18424/2022

Case brief

AI extract

What is this about?

A district co-operative milk producers' union challenged refusal of membership in the state co-operative federation. The Registrar and appellate authority directed conferment of membership, and the federation's writ petition failed. The High Court held Bye-law No.5(1)(a) requires only that the applicant be a union of co-operative societies in a district, with no restriction based on business activ

What the court decided

AI extract

The President Vs the State of Karnataka — Cooperative Societies | Karnataka HC (2024)

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1 - NC: 2024:KHC:7957 WP No. 18424 of 2022

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 27^TH DAY OF FEBRUARY, 2024

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BEFORE

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THE HON'BLE MR JUSTICE ANANT RAMANATH HEGDE WRIT PETITION NO. 18424 OF 2022 (CS-RES)

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BETWEEN:

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THE PRESIDENT, KARNATAKA STATE CO-OPERATIVE FEDERATION LTD., NO.32 3^RD FLOOR, RACE COURSE ROAD, BENGALURU - 560 001.

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KARNATAKA STATE CO-OPERATIVE FEDERATION LTD., NO.32, 3^RD FLOOR, RACE COURSE ROAD, BENGALURU - 560 001, REP. BY ITS MANAGING DIRECTOR.

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…PETITIONERS

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(BY SRI ANANDA K, ADVOCATE)

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AND:

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Digitally signed by PRAMILA G V Location: HIGH COURT OF KARNATAKA

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THE STATE OF KARNATAKA, DEPARTMENT OF CO-OPERATION, VIKASA SOUDHA, DR B R AMBEDKAR VEEDHI, BENGALURU -560 001, REPRESENTED BY ITS SECRETARY.

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THE REGISTRAR OF CO-OPERATIVE SOCIETIES OF KARNATAKA STATE, NO.01, ALI ASKAR ROAD, BENGALURU-560052.

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THE ADDITIONAL REGISTRAR OF CO-OPERATIVE SOCIETIES,(INDUSTRIES AND ANIMAL HUSBANDRY), OFFICE OF THE REGISTRAR OF CO-OPERATIVE SOCIETIES, NO.01, ALI ASKAR ROAD, BENGALURU - 560052.

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THE DHARWAD HAVERI GADAG AND UTTARA KANNDA DISTRICT CO-OPERATIVE MILK PRODUCER'S SOCIETIES UNION LTD.,

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NC: 2024:KHC:7957 WP No. 18424 of 2022

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LAKKAMMANAHALLI INDUSTRIAL AREA, VIDYAGIRI POST, DHARWAD - 580 004, REPRESENTED BY ITS MANAGING DIRECTOR.

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…RESPONDENTS

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(BY SRI B.J. ESWARAPPA, AGA FOR R1 TO R3, SRI NAVEEN GUDIKOTE S, ADVOCATE FOR R4)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF CONSTITUTION OF INDIA PRAYING TO CALL FOR THE RECORDS, HEAR THE PARTIES QUASH THE ORDER DTD 28.04.2022 PASSED IN APPEAL NO.RCS/DAP/D1/39/2018-19 BY THE R2 AT ANNEXURE-P AND QUASH THE ORDER DTD 07.07.2018 PASSED IN DISPUTE BY THE R3 AT ANNEXURE-L AND DISMISS THE APPEAL FILED BY THE R4 AT ANNEXURE-J BY ALLOWING THIS WRIT PETITION.

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THIS PETITION COMING ON FOR DICTATING ORDERS THIS DAY, THE COURT MADE THE FOLLOWING:

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ORDER

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The petitioners are assailing the order dated 28.04.2022 in Appeal No.RCS/DAP/D1/39/2018-19 passed by the 2^nd respondent marked at Annexure-P and also the order dated 07.07.2018 in Dispute No.Aani/Kai.Saa.Sam2/01/Dave/2017-18 passed by the 3^rd respondent marked at Annexure-L.

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The second petitioner is a federation of Co-operative Societies and the 1^st petitioner is the President of the 2^nd petitioner federation of Co-operative Societies. The contesting 4^th respondent is the Union of District Co-

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3 - NC: 2024:KHC:7957 WP No. 18424 of 2022

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operative Milk Producers Co-operative Societies, located in four districts namely Dharwad, Haveri, Gadag, and Uttara Kannada. The 4^th respondent filed an application before the 2^nd petitioner federation seeking membership in the 2^nd petitioner federation. The application is dismissed on the premise that the 4^th respondent does not fulfil the eligibility criteria prescribed in the Bye-law of the 2^nd petitioner federation to become a member of the 2^nd petitioner federation. Thereafter, the 4^th respondent filed one more application requesting the 2^nd petitioner federation to furnish all documents including the board resolution dated 27.10.2016 wherein, the 2^nd petitioner federation seems to have decided to reject the application of 4^th respondent Union seeking membership in the second petitioner federation. On 23.02.2017, the Managing Director of the 2^nd petitioner wrote a letter to the 4^th respondent rejecting the request for membership of the federation. Aggrieved by the said letter dated 23.02.2017, the 4^th respondent filed an appeal before the 3^rd respondent under Section 105-A of Karnataka Cooperative Societies Act, 1959 (for short 'Act of 1959').

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NC: 2024:KHC:7957 WP No. 18424 of 2022

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The petitioners appeared in the said appeal. The 3^rd respondent allowed the appeal and directed the petitioners to confer membership to the 4^th respondent union in the 2^nd petitioner federation in terms of the order dated 07.07.2018. The petitioners filed an appeal under Section 106(1)(n) and Section 106(2)(d) of the Act of 1959. In terms of the order dated 28.04.2022, the second respondent who heard the appeal dismissed the same filed by the petitioners. Hence, the petitioners are before this Court.

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Learned counsel for the petitioners would submit that the Bye-law of the federation prescribes eligibility criteria to seek membership in the said federation. According to him, the eligibility criteria are prescribed in Bye-law No.5 of the said second petitioner federation. The relevant portion of said Bye-law reads as under:-

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"5) ¸ÀzÀ¸ÀåvÀé:

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(1) ªÀÄºÁªÀÄAqÀ¼ÀzÀ ¸ÀzÀ¸ÀåvÀéªÀÅ PÉ¼ÀV£ÀªÀjUÉ ®¨sÀå«gÀÄvÀÛzÉ. J) f¯Áè ¸ÀºÀPÁgÀ MPÀÆÌlUÀ¼ÀÄ; ©) C¥ÉPïì ¸ÀºÀPÁgÀ ¸ÀAWÀUÀ¼ÀÄ; ¹) ¸ÀºÀPÁgÀ ¸ÀPÀÌgÉ PÁSÁð£ÉUÀ¼ÀÄ ªÀÄvÀÄÛ ¸ÀºÀPÁj £ÀÆ°£À VjtÂUÀ¼ÀÄ (PÁAiÀÄðPÉëÃvÀæªÀÅ JµÉÖÃ EzÀÝgÀÆ)

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NC: 2024:KHC:7957 WP No. 18424 of 2022

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(r) f¯ÉèUÉ «ÄÃjzÀ DzÀgÉ ErÃ gÁdåPÉÌ ªÁå¦¹zÀ PÁAiÀÄðPÉëÃvÀæªÀÅ¼Àî ¸ÀºÀPÁgÀ ¸ÀAWÀUÀ¼ÀÄ; (E) gÁdåPÉÌ «ÄÃjzÀ PÁAiÀÄðPÉëÃvÀæªÀÅ¼Àî §ºÀÄgÁdå ¸ÀºÀPÁgÀ ¸ÀAWÀUÀ¼À PÁAiÉÄÝ 2002 (PÉÃA¢æÃAiÀÄ PÁAiÉÄÝ ¸ÀASÉå: 39 / 2002) Cr £ÉÆÃAzÁ¬ÄvÀªÁzÀ DzÀgÉ gÁdåzÀ°è £ÉÆÃAzÁ¬ÄvÀ PÀbÉÃjAiÀÄ£ÀÄß¼Àî ¸ÀºÀPÁgÀ ¸ÀAWÀUÀ¼ÀÄ:"

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Learned counsel for the petitioners referring to the said eligibility criteria would contend that the 4^th respondent does not fit into any of the eligibility criteria fixed under the aforementioned Bye-law. Thus, he would contend that the order directing the confirmation of membership to the 4^th respondent in the second petitioner federation is contrary to the eligibility criteria fixed under the Byelaw, as such, the same is liable to be set aside. It is also his submission that 4^th respondent union does not come under the category of " f¯Áè ¸ÀºÀPÁgÀ MPÀÆÌlUÀ¼ÀÄ" which is mentioned in Bye-law No.5(1)(a). It is the submission of the learned counsel for the petitioners that the 4^th respondent is a union of Milk Producers Society as such, it does not fall under the category of " f¯Áè ¸ÀºÀPÁgÀ MPÀÆÌl" .

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He would further point out that the object of " f¯Áè ¸ÀºÀPÁgÀ

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MPÀÆÌlUÀ¼ÀÄ" is way different from the object of the district

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NC: 2024:KHC:7957 WP No. 18424 of 2022

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milk producers' union. Merely because milk producers Co-operative Societies of the district came forward and formed a union, it cannot be said that they come under the category of " f¯Áè ¸ÀºÀPÁgÀ MPÀÆÌlUÀ¼ÀÄ" . It is his submission that this contention is not properly appreciated by the Authorities while passing the impugned orders.

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Learned counsel for the 4^th respondent would contend that the eligibility criteria under Bye-law No.5(1)(a) of the second petitioner federation prescribes the membership to be conferred on district co-operative unions. It is the submission of the learned counsel for the 4^th respondent that the 4^th respondent union is the union of Co-Operative Milk Producers Society established under the Act of 1959 and registered and established in four different districts as such, the 4^th respondent fulfils the eligibility criteria prescribed under Bye-law No.5(1)(a).

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This Court has considered the contentions raised at the Bar.

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There is no dispute that the second petitioner federation is a federation registered under the Karnataka Co-

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NC: 2024:KHC:7957 WP No. 18424 of 2022

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operative Societies Act, 1959. So also, the 4^th respondent union is a union registered under the Karnataka Co-operative Societies Act, 1959. Admittedly, the 4^th respondent union comprises the co-operative milk producers societies registered under the Act of 1959 which are established in four districts namely Dharwad, Gadag, Haveri, and Uttara Kannada. These facts are not in dispute. Since the 2^nd petitioner federation is a union registered under the Act of 1959, the membership to the second petitioner federation is governed by the Act of 1959 and the Bye-laws to the 2^nd petitioner federation. The Bye-law which is relevant to the discussion is already extracted above. The aforementioned Bye-law No.5 of 2^nd petitioner federation prescribes the eligibility to become a member of the 2^nd petitioner federation. As can be noticed from Bye-law No.5(1)(a), District Cooperative Unions are eligible to be the members of the federation. The contention of the learned counsel for the petitioners that the 4^th respondent union does not fulfil the qualification prescribed under Bye-law No.5(1)(a) has no merit as the Bye-law No.5(1)(a) does not prescribe

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NC: 2024:KHC:7957 WP No. 18424 of 2022

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any qualification to be the member based on the business of union or the business of the members of the union. All that is required in terms of Bye-law No.5(1)(a) is that the union must be the union of co-operative societies in a district. There cannot be any denial of the fact that the 4^th respondent union comprises the co-operative societies under the Act of 1959 and those co-operative societies in

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four districts which are dealing in the milk business have formed a union.

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This being the position, this Court is of the view that the 4^th respondent does qualify to become a member of the second petitioner federation as the 4^th respondent is a district co-operative union. There is nothing in the Byelaw or the Act of 1959 or the Rules of 1960 which would make the 4^th respondent district co-operative union to be ineligible. There is nothing in the Act of 1959, Rules 1960 and the Bye-laws of the 2^nd petitioner federation to make 4^th respondent union ineligible to be the member of the petitioner corporation based on its activity namely the business of sale of milk.

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NC: 2024:KHC:7957 WP No. 18424 of 2022

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For the aforementioned reasons, this Court is of the view that there is no merit in the writ petition.

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Accordingly, the writ petition is dismissed.

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Sd/JUDGE

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CHS/List No.: 1 Sl No.: 16 .

The President v. the State of Karnataka

Case brief

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What the court decided

The President v. the State of Karnataka

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