Allowed

The Bapuji Co-Operative Housing Society v. the State of Karnataka

Karnataka HC3 Dec 2024WP/42602/2017

Case brief

AI extract

What is this about?

A co-operative housing society challenged a Joint Registrar's administrative direction to collect differential share value from members whose enrollment eligibility was under enquiry under Section 65 of the Karnataka Co-operative Societies Act and pending before the Karnataka Appellate Tribunal. The Court held such direction impermissibly interfered with pending proceedings and quashed it.

What did the court decide?

Order dated 10.01.2017 (Annexure-J) quashed; writ petition allowed.

The Bapuji Co-Operative Housing Society Vs the State… — Cooperative Societies | Karnataka HC (2024)

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1 - NC: 2024:KHC:49857 WP No. 42602 of 2017

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 3^RD DAY OF DECEMBER, 2024

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BEFORE

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THE HON'BLE MR JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 42602 OF 2017 (CS-RES)

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BETWEEN:

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THE BAPUJI CO-OPERATIVE HOUSING SOCIETY, NO.9/1, 1ST CROSS, MM ROAD, BYATARAYAPURA, BANGALORE - 560 026. REPRESENTED BY ITS CEO.

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…PETITIONER

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(BY SRI. MAHESH KIRAN SHETTY ., ADVOCATE)

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AND:

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THE STATE OF KARNATAKA, DEPARTMENT OF CO-OPERATION, VIDHANA SOUDHA, AMBEDKAR VEEDHI, BANGALORE - 560 001.

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Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA

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THE REGISTRAR OF CO-OPERATIVE SOCIETIES, ALI ASKAR ROAD, BANGALORE - 560 001.

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THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES, BANGALORE DIVISION, CHAMARAJAPET, BANGALORE - 560 018.

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G ARADYA, AGE MAJOR, NO.391/3, 14TH MAIN ROAD,

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2 - NC: 2024:KHC:49857 WP No. 42602 of 2017

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M C LAYOUT, VIAJAYANAGAR, BENGALURU - 560 040.

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BASAVARAJU B S, AGE MAJOR, NO.100, 5TH CROSS, BAPUJI LAYOUT, VIJAYANAGAR, BENGALURU - 560 040.

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SMT USHAPADMA R, AGE MAJOR, NO.99, 5TH CROSS, BAPUJI LAYOUT, VIJAYANAGAR, BENGALURU - 560 040.

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JAYAKUMAR P, AGE MAJOR, NO.109, 5TH CROSS, BAPUJI LAYOUT, VIJAYANAGAR, BENGALURU - 560 040.

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D R PANDITH, AGE MAJOR, NO.202, ADITHYA, 8TH CROSS, BAPUJI LAYOUT, VIAJAYANAGAR, BENGALURU - 560 040.

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GURUPRASAD S, AGE MAJOR, NO.183, 7TH CROSS, BAPUJI LAYOUT, VIJAYANAGAR, BENGALURU - 560 040.

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3 - NC: 2024:KHC:49857 WP No. 42602 of 2017

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10. VIJAYAKUMAR C

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S/O LATE G CHANNAIAH, AGE MAJOR, NO.103, NEW NO.5, 5TH CROSS, BAPUJI LAYOUT, VIJAYANAGAR, BENGALURU - 560 040.

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MUNIRATHNA M, AGE MAJOR, NO.204, 8TH CROSS, BAPUJI LAYOUT, VIJAYANAGAR, BENGALURU - 560 040.

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SMT R RADHA, AGE MAJOR, NO.72, 5TH CROSS, BAPUJI LAYOUT, VIJAYANAGAR, BENGALURU - 560 040.

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THILAK SINGH V, AGE MAJOR, NO.81, 5TH CROSS, BAPUJI LAYOUT, VIJAYANAGAR BENGALURU - 560 040.

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K S CHANDRASEKHARA, AGE MAJOR, NO.80, 5TH CROSS, BAPUJI LAYOUT, VIJAYANAGAR, BENGALURU - 560 040.

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SMT NETRHAVATHI M P, AGE MAJOR,

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NC: 2024:KHC:49857 WP No. 42602 of 2017

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NO.116, 6TH CROSS, BAPUJI LAYOUT, VIJAYANAGAR, BENGALURU - 560 040.

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SMT MANJULA R, AGE MAJOR, NO.117, 6TH CROSS BAPUJI LAYOUT VIJAYANAGAR

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BENGALURU - 560 040.

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VENUGOPAL KARKARA, AGE MAJOR, NO.24, 4TH CROSS BAPUJI LAYOUT VIJAYANAGAR BENGALURU - 560 040.

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S RAJASHEKHAR, AGE MAJOR, NO.22, 4TH CROSS, BAPUJI LAYOUT, VIJAYANAGAR, BENGALURU - 560 040.

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RAVICHANDRAN N, AGE MAJOR, NO.287, 9TH CROSS, BAPUJI LAYOUT, VIJAYANAGAR, BENGALURU - 560 040.

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SHAMBHULINGA K S, AGE MAJOR, NO.289/59, 9TH CROSS BAPUJI LAYOUT, VIJAYANAGAR, BENGALURU - 560 040.

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5 - NC: 2024:KHC:49857 WP No. 42602 of 2017

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SMT K NIRMALADEVI, AGE MAJOR, NO.98, 5TH CROSS, BAPUJI LAYOUT, VIJAYANAGAR, BENGALURU - 560 040.

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SMT VEENA RAJKUMAR, AGE MAJOR, NO.13, 4TH CROSS, BAPUJI LAYOUT, VIJAYANAGAR, BENGALURU - 560 040.

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SMT C R ROOPA, AGE MAJOR, NO.161/27, 36TH CROSS, 5TH BLOCK, JAYANAGAR, BENGALURU - 560 041.

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C H ASHWATHKUMAR, AGE MAJOR, NO.20, 4TH CROSS, BAPUJI LAYOUT, VIJAYANAGAR, BENGALURU - 560 040.

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THAPASACHARI, AGE MAJOR, NO.39, 4TH CROSS, BAPUJI LAYOUT, VIJAYANAGAR, BENGALURU - 560 040.

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SMR R R KASTHURI, AGE MAJOR, NO.107, 5TH CROSS, BAPUJI LAYOUT, VIJAYANAGAR,

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6 - NC: 2024:KHC:49857 WP No. 42602 of 2017

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BENGALURU - 560 040.

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SMT BAGYAMMA, AGE MAJOR, NO.115/1, 6TH CROSS, BAPUJI LAYOUT, VIJAYANAGAR, BENGALURU - 560 040.

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SMT PARVATHAMMA, AGE MAJOR, NO.123, 6TH CROSS, BAPUJI LAYOUT, VIJAYANAGAR, BENGALURU - 560 040.

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SMT SUMANGALA, AGE MAJOR, 17/17, 4TH CROSS, BAPUJI LAYOUT, VIJAYANAGAR, BENGALURU - 560 040.

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H RAVIKUMAR, AGE MAJOR, NO.297, 9TH CROSS, BAPUJI LAYOUT, VIJAYANAGAR, BENGALURU - 560 040.

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M S PARAMASHIVAPPA, AGE MAJOR, NO.5, 4TH CROSS, BAPUJI LAYOUT, VIJAYANAGAR, BENGALURU - 560 040.

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SMT. SUMANGALA, AGE MAJOR,

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7 - NC: 2024:KHC:49857 WP No. 42602 of 2017

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NO.132, 6TH CROSS, BAPUJI LAYOUT, VIJAYANAGAR, BENGALURU - 560 040.

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SMT SANNABORAMMA SUBRAMANI, AGE MAJOR, NO.127, 6TH CROSS, BAPUJI LAYOUT, VIJAYANAGAR, BENGALURU - 560 040.

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SMT C P SAROJAMMA, AGE MAJOR, NO.19/18, 4TH CROSS, BAPUJI LAYOUT, VIJAYANAGAR, BENGALURU - 560 040.

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SMT M GEETHA, AGE MAJOR, NO.21/21, 4TH CROSS, BAPUJI LAYOUT, VIJAYANAAR, BENGALURU - 560 040.

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SMT KAMALA, AGE MAJOR, NO.797/A, GOKULA, IST STAGE, 2ND MAIN, 6TH CROSS, YASHAVANTHAPURA, BENGALURU - 560 022.

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…RESPONDENTS

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(BY SRI. YOGESH D NAIK., AGA FOR R1 TO R3; SRI. Y.S.H REDDY., ADVOCATE FOR R4 TO R12, R14 TO R30, R32, R33 TO R36;)

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8 - NC: 2024:KHC:49857 WP No. 42602 of 2017

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THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER DTD 10.1.2017 VIDE ANNEXURE-J AND ETC.,

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THIS PETITION, COMING ON FOR FINAL HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR JUSTICE SURAJ GOVINDARAJ

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ORAL ORDER

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The petitioner is before this Court seeking for the following reliefs:

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"It is prayed that this Hon'ble court be pleased to issue a writ in the nature of certiorari or any other appropriate writ or direction to quash the order bearing no. JRB/Gruha/Doo.Arji/187/2016-17 dated 10.01.2017 vide Annexure-J in the interest of justice and equity"

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The petitioner is a House Building Co-operative Society. The previous committee had allegedly indulged in various irregularities and misappropriation of funds of the Society, as also enrolling members without following due procedure. The Joint Registrar of the Co-operative Societies has initiated suo-moto proceedings under Section 65 of the Karnataka Co-operative Societies Act, 1959. One of the aspects of the enquiry was as regards the ineligibility of certain persons, namely respondent Nos.4 to 36 to be enrolled as members of the Society and

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9 - NC: 2024:KHC:49857 WP No. 42602 of 2017

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that necessary document in relation thereto had not been properly examined.

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Allotments have been made to non-members, the said allotments were also proposed to be cancelled by the Society, which is now the subject matter of proceedings before the Karnataka Appellate Tribunal, Bangalore. In the meanwhile, the petitioner-Society had increased the share value from Rs.100/- to Rs.1,000/- which could be availed of by the genuine members of the Society.

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The respondent Nos.4 to 36 had approached the Joint Registrar of Co-operative Societies - respondent No.3, with a complaint that they were not permitted to make payment of the differential amount for the share capital. It is taking into account the said complaint, the impugned order dated 10.01.2017, has passed on the administrative side by the Joint Registrar and directed the Society to accept the differential value. Challenging the said administrative order, the petitioner is before this Court.

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The submission of Sri. Mahesh Kiran Shetty, learned counsel appearing for the petitioner is that the Joint

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10 - NC: 2024:KHC:49857 WP No. 42602 of 2017

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Registrar of Co-operative Societies himself having initiated suo-moto proceedings and enquiry under Section 65 of the Karnataka Co-operative Societies Act, 1959, as regards illegal enrollment and allotment of sites. It is not permissible for the same Joint Registrar of Co-operative Societies to also, on the administrative side, direct the society to collect the differential share capital from those illegal allottees and illegal members, more so when the dispute as regards their membership is pending consideration before the Karnataka Appellate Tribunal.

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Though respondent Nos.4 to 12, 14 to 30, 32, 33 to 36 have been served and represented by counsel, they are not present today. Insofar as respondent Nos.13 and 31 are concerned, though they have been served, no vakalathnama has been filed.

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I have heard Sri. Mahesh Kiran Shetty, learned counsel for the petitioner and perused the records.

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It is clear that the dispute as regards the enrollment of membership of respondent Nos.4 to 36 is now pending before the Karnataka Appellate Tribunal. This aspect

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being to the knowledge of the Joint Registrar of Co-operative Societies, who is also party to those proceedings, it is rather shocking that the Joint Registrar of Co-operative Societies has issued an administrative direction, directing the Society to collect the full share value from respondent Nos.4 to 36 by the Society. No such direction either on the administrative or judicial side could have been issued by the Joint Registrar of Cooperative Societies until the culmination of the proceedings before the Karnataka Appellate Tribunal, where the eligibility of these respondent Nos.4 to 36 to be a members is an issue.

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Virtually by way of the administrative order, the Joint Registrar of Co-operative Societies is trying to create equities in favour of respondent Nos.4 to 36 by directing the Society to collect money from respondent Nos.4 to 36, which is impermissible and which would amount to interference with the proceedings before the Karnataka Appellate Tribunal.

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NC: 2024:KHC:49857 WP No. 42602 of 2017

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12 -

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In that view of the matter, 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 certiorari is issued order bearing No.JRB/Gruha/Doo.A/187/2016-17 dated 10.01.2017 at Annexure - J is quashed;

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iii) Pending IA's stands dismissed.

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SD/(SURAJ GOVINDARAJ) JUDGE

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AM List No.: 1 Sl No.: 55

The Bapuji Co-Operative Housing Society v. the State of Karnataka

Case brief

What is this about?

What did the court decide?

The Bapuji Co-Operative Housing Society v. the State of Karnataka

Case brief

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