Disposed

Appasaheb and Anr. v. the State of Karnataka and Ors.

Karnataka HC3 Apr 2025WP/200294/2024

Case brief

AI extract

What is this about?

Two ex-officials of a co-operative sugar factory challenged an order by the Commissioner for Sugarcane Development directing a criminal complaint and recovery of Rs.48 crores against them despite their not being parties to the dispute proceedings. Finding they were given no opportunity of hearing, the High Court set aside the order as to them, preserving the factory's right to pursue independent r

What the court decided

AI extract

Appasaheb and Anr. Vs the State of Karnataka and Ors. — Cooperative Societies | Karnataka HC (2025)

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1 - NC: 2025:KHC-K:2134 WP No. 200294 of 2024

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IN THE HIGH COURT OF KARNATAKA,

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KALABURAGI BENCH

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DATED THIS THE 3^RD DAY OF APRIL, 2025

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BEFORE

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THE HON'BLE DR. JUSTICE CHILLAKUR SUMALATHA

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WRIT PETITION NO.200294 OF 2024 (CS-RES)

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BETWEEN:

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SRI. APPASAHEB S/O CHANNAPPA PATIL, AGED ABOUT 61 YEARS, OCC: EX-GENERAL MANAGER, NANDI SAHAKARI SAKKARE KHARKANE NIYAMITHA, R/O CHIKKAGARASANGI, TQ: B. BAGEWADI, DIST: VIJAYAPURA.

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Digitally signed by LUCYGRACE Location: HIGH COURT OF KARNATAKA

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SRI. P.B. KALAGI S/O BASANAGOUDA KALAGI, AGED ABOUT 62 YEARS, EX. INCHARGE MANAGING DIRECTOR, NANDI SAHAKARI SAKKARE KHARKANE NIYAMITHA, R/O MUDDEBIHAL, DIST: VIJAYAPURA.

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…PETITIONERS

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(BY SMT. RATNA N. SHIVAYOGIMATH, ADVOCATE)

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AND:

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THE STATE OF KARNATAKA, REP. BY ITS SECRETARY, DEPARTMENT OF CO-OPERATIVE SOCIETIES, M.S. BUILDING, BENGALURU-1.

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2 - NC: 2025:KHC-K:2134 WP No. 200294 of 2024

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THE STATE OF KARNATAKA, REP. BY ITS SECRETARY, DEPT. OF SUGAR CANE, DEVELOPMENT AND SUGAR, VIKASA SOUDHA, BENGALURU-1.

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THE COMMISSIONER, SUGAR CANE DEVELOPMENT AND SUGAR, KHB BUILDING, 5^TH BLOCK, CBAB COMPLEX, 5^TH FLOOR, KAVERI BHAVAN, K.G. ROAD, BENGALURU-9.

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NANDI CO-OPERATIVE SUGAR FACTORY LTD., KRISHNA NAGAR, POST: HOSUR, TQ: BABLESHWAR, DIST: VIJAYAPUR.

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REPRESENTED BY THE MANAGING DIRECTOR, NANDI SAHAKARI SAKKARE, KHARKANE NIYAMITHA, KRISHNA NAGAR, TQ: BABALESHWAR, DIST: VIJAYAPURA – 586 113.

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SRI. KUMAR CHANDRAKANT DESAI AGED ABOUT 55 YEARS, THE DIRECTOR, NANDI SAHAKARI SAKKARE, KHARKANE NIYAMITHA, R/O JAINAPUR, TQ: BABALESHWAR, DIST: VIJAYAPURA – 586 113.

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3 - NC: 2025:KHC-K:2134 WP No. 200294 of 2024

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SHASHIKANT BHEEMANAGOUDA PATIL, AGED ABOUT 56 YEARS, THE CHAIRMAN AND DIRECTOR, NANDI CO-OPERATIVE SUGAR FACTOR LTD., KRISHNA NAGAR, POST: HOSUR, TQ: BABALESHWAR, DIST: VIJAYAPURA – 587 117.

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GOUDAPPA KRISHNAPPA KONAPPANAVAR, AGED ABOUT 53 YEARS, THE DIRECTOR, NANDI CO-OPERATIVE SUGAR FACTOR LTD., KRISHNA NAGAR, POST: HOSUR, TQ: BABALESHWAR, DIST: VIJAYAPURA – 587 117.

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HANAMAPPA RAMAPPA BIRADAR AGED ABOUT 57 YEARS, THE DIRECTOR, NANDI CO-OPERATIVE SUGAR FACTOR LTD., KRISHNA NAGAR, POST: HOSUR, TQ: BABALESHWAR, DIST: VIJAYAPURA – 587 117.

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RAMESH PANDAPPAJA KAREDDY, AGED ABOUT 54 YEARS, THE DIRECTOR, NANDI CO-OPERATIVE SUGAR FACTOR LTD., KRISHNA NAGAR, POST: HOSUR, TQ: BABALESHWAR, DIST: VIJAYAPURA – 587 117.

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RAMAPPA SIDDAPPA SHEBANI, AGED ABOUT 59 YEARS, THE DIRECTOR, NANDI CO-OPERATIVE SUGAR FACTOR LTD.,

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4 - NC: 2025:KHC-K:2134 WP No. 200294 of 2024

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KRISHNA NAGAR, POST: HOSUR, TQ: BABALESHWAR, DIST: VIJAYAPURA – 587 117.

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SIDDANNA MALLAPPA DESAI, AGED ABOUT 60 YEARS, THE DIRECTOR, NANDI CO-OPERATIVE SUGAR FACTOR LTD., KRISHNA NAGAR, POST: HOSUR, TQ: BABALESHWAR, DIST: VIJAYAPURA – 587 117.

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TIMMANNA VENKAPPA AMALZARI, AGED ABOUT 55 YEARS, THE DIRECTOR, NANDI CO-OPERATIVE SUGAR FACTOR LTD., KRISHNA NAGAR, POST: HOSUR, TQ: BABALESHWAR, DIST: VIJAYAPURA – 587 117.

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VENKANNA HANAMAPPA BIDARI, AGED ABOUT 52 YEARS, THE DIRECTOR, NANDI CO-OPERATIVE SUGAR FACTOR LTD., KRISHNA NAGAR, POST: HOSUR, TQ: BABALESHWAR, DIST: VIJAYAPURA – 587 117.

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RAMAPPA YALLAPPA HARIJAN, AGED ABOUT 61 YEARS, THE DIRECTOR, NANDI CO-OPERATIVE SUGAR FACTOR LTD., KRISHNA NAGAR, POST:HOSUR, TQ: BABALESHWAR, DIST: VIJAYAPURA – 587 117.

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HANAMANTH BHEEMAPPA KONNUR, AGED ABOUT 56 YEARS, THE DIRECTOR, NANDI CO-OPERATIVE SUGAR FACTOR LTD., KRISHNA NAGAR, POST:HOSUR, TQ: BABALESHWAR, DIST: VIJAYAPURA – 587 117.

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HANUMANTH KENCHAPPA KADAPATTI AGED ABOUT 58 YEARS, THE DIRECTOR, NANDI CO-OPERATIVE SUGAR FACTOR LTD., KRISHNA NAGAR, POST: HOSUR, TQ: BABALESHWAR,

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DIST: VIJAYAPURA – 587 117.

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SMT. LATA VENKANAGOUDA BIRADAR PATIL, AGED ABOUT 52 YEARS, THE DIRECTOR, NANDI CO-OPERATIVE SUGAR FACTOR LTD., KRISHNA NAGAR, POST: HOSUR, TQ: BABALESHWAR, DIST: VIJAYAPURA – 587 117.

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SMT. SUREKHA RANGAPPA NIDONI, AGED ABOUT 51 YEARS, THE DIRECTOR, NANDI CO-OPERATIVE SUGAR FACTOR LTD., KRISHNA NAGAR, POST: HOSUR, TQ: BABALESHWAR, DIST: VIJAYAPURA – 587 117.

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SRI. SHEKHAR SIDAGOUNDAPPA KOPPAD, AGED ABOUT 55 YEARS, THE DIRECTOR, NANDI CO-OPERATIVE SUGAR FACTOR LTD.,

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KRISHNA NAGAR, POST: HOSUR, TQ: BABALESHWAR, DIST: VIJAYAPURA – 587 117.

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SRI. RAMACHANDRA PANDAPPA KODABAGI, AGED ABOUT 54 YEARS, THE DIRECTOR, NANDI CO-OPERATIVE SUGAR FACTOR LTD., KRISHNA NAGAR, POST: HOSUR, TQ: BABALESHWAR, DIST: VIJAYAPURA – 587 117.

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SHARASHCHANDRA (KUMAR) TIMMANAGOUDA PATIL, AGED ABOUT 53 YEARS, THE DIRECTOR, NANDI CO-OPERATIVE SUGAR FACTOR LTD., KRISHNA NAGAR, POST: HOSUR, TQ: BABALESHWAR, DIST: VIJAYAPURA – 587 117.

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JAGADISH SHIVAPPA SHIRALSHETTI, AGED ABOUT 59 YEARS, THE DIRECTOR, NANDI CO-OPERATIVE SUGAR FACTOR LTD., KRISHNA NAGAR, POST: HOSUR, TQ: BABALESHWAR, DIST: VIJAYAPURA – 587 117.

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PRAVEEN BIPINCHANDRA SARANAIK, AGED ABOUT 58 YEARS, THE DIRECTOR, NANDI CO-OPERATIVE SUGAR FACTOR LTD., KRISHNA NAGAR, POST: HOSUR, TQ: BABALESHWAR, DIST: VIJAYAPURA – 587 117.

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7 - NC: 2025:KHC-K:2134 WP No. 200294 of 2024

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ANAND GURULINGAPPA MANGALWEDE, AGED ABOUT 57 YEARS, THE DIRECTOR, NANDI CO-OPERATIVE SUGAR FACTOR LTD., KRISHNA NAGAR, POST: HOSUR, TQ: BABALESHWAR, DIST: VIJAYAPURA – 587 117.

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…RESPONDENTS

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(BY SRI. JAISHANKAR SHESHADRI, AGA FOR R1 & R2; SRI. AMRESH S. ROJA, ADV. FOR R4; SRI. S.S. MAMADAPUR, ADV. FOR R5; SRI. AJAYKUMAR A.K., ADV. FOR R6, R7, R14; SRI. MADHUKAR DESHPANDE, ADV. FOR R9 TO R13, R15 TO R19 & R22; V/O DTD. 28.10.2024, NOTICE TO R18 IS HELD SUFFICIENT; R3, R20, R21, R23, R24 ARE SERVED)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT OR DIRECTION OR ORDER WRIT IN THE NATURE OF CERTIORARI, QUASHING THE IMPUGNED ORDER DATED 08.01.2024 IN NO.DISPUTE NO.DSK/DIS/19/2022-23 PASSED BY RESPONDENT NO.3, VIDE ANNEXURE-D, IN RESPECT OF PETITIONER ARE CONCERNED AND ETC.

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

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8 - NC: 2025:KHC-K:2134 WP No. 200294 of 2024

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CORAM: HON'BLE DR. JUSTICE CHILLAKUR SUMALATHA

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ORAL ORDER

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(PER: HON'BLE DR. JUSTICE CHILLAKUR SUMALATHA)

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Heard Smt. Ratna N. Shivayogimath, learned counsel for the writ petitioners, learned Additional Government Advocate, who represents respondent Nos.1 and 2, Sri Amresh S. Roja, learned counsel, who represents respondent No.4, Sri S.S. Mamadapur, learned counsel for respondent No.5 and Sri Ajay Kumar A.K., learned counsel for respondent Nos.6, 7 and 14. No representation on the side of other respondents on call.

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Seeking a writ in the nature of certiorari and to quash the order that is rendered by the Commissioner, Sugar Cane Development and Sugar, Bengaluru, in dispute No.DSK/DIS/19/2022-23 dated 08.01.2024, the present writ petition is filed.

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Learned counsel for the writ petitioners submits that petitioner No.1 worked as General Manager and petitioner No.2 worked as Managing Director at

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9 - NC: 2025:KHC-K:2134 WP No. 200294 of 2024

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respondent No.4 - Nandi Co-operative Sugar Factory Limited, Vijayapur. Respondent No.5 raised the dispute under Section 29C and 30 of the Karnataka Co-operative Societies Act, 1959 before respondent No.3 against some persons. It was alleged that respondent Nos.2 to 18 mentioned in the impugned order committed financial irregularities and misappropriated certain amount. The petitioners were not arrayed as respondents in the said case and thus, they were not aware of the proceedings that went on. However, finally, respondent No.3 decided the issue and directed respondent No.4 herein i.e., Nandi Co-operative Sugar Factory Limited, Vijayapur to lodge criminal complaint against two persons by name Sri Shashikant Bheemanagouda Patil and Sri Goudappa Krishnappa Konappanavar, who were arrayed as respondent Nos.2 and 3 in the said case and also against the petitioners herein. Further, a direction was issued for recovery of sum of Rs.48.00 Crores with interest from all of them.

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Learned counsel Smt. Ratna N. Shivayogimath

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submits that the petitioners are innocent and they did not commit any kind of fraud whatsoever. That apart, they were not given any opportunity to submit their version regarding the allegations levelled. Also, no relief was sought by the complainant against the petitioners herein and indeed they were not arrayed as respondents also. Therefore, respondent No.3 - the Commissioner, Sugar Cane Development has no authority to pass the impugned order against the petitioners and thus, the present writ petition is filed challenging the said order.

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Learned Additional Government Advocate accepts the submission that is made by Smt.Ratna N.Shivayogimath that the petitioners herein were not arrayed as respondents by the complainant and petitioners were not given any opportunity to project their version.

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Learned counsel for respondent No.4

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Sri Amresh S. Roja though contends that the petitioners also took part in the mischief, however states that an

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opportunity ought to have been given to the petitioners to project their defence, if any.

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In the case on hand, respondent No.3 i.e., the Commissioner for Sugarcane Development and Director of Sugarcane, Bengaluru gave a direction to Nandi Cooperative Sugar Factory Limited, Vijayapur which is arrayed as respondent No.4 herein to lodge a criminal complaint under Sections 405, 415, 420 and 425 of Indian Penal Code against four persons including the petitioners herein and also gave a direction for recovery of huge sum of Rs.48.00 crores from them. Whether the allegations against a person are simple or grievous, the said person should be accorded an opportunity to project his defence and to make his submission with regard to the allegations made therein. "Audi alteram partem" is a salutory principle which is required to be followed by all authorities either judicial or quasi judicial.

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8. It is clearly projected and established that

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without there being any opportunity accorded to the

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petitioners, the impugned order was passed against them. Therefore, this Court is of the view that the impugned order is unsustainable in the eye of law so far as the petitioners are concerned.

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9. Thus, the writ petition is disposed of with the

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following:

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ORDER

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i) The order that is rendered by respondent No.3 – the Commissioner, Sugarcane Development and Director for Sugarcane, Bengaluru in Dispute No.DSK/DIS/19/2022-2023 dated 08.01.2024 is set-aside so far as the petitioners are concerned.

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ii) In case, a criminal compliant is lodged by respondent No.4–Nandi Co-operative Sugar Factory Limited, Vijayapur against the petitioners for the alleged misconduct, investigation may go on, however, without being influenced by any of the observations

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made against the petitioners in the impugned order.

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iii) This order does not debar Respondent No.4 to initiate appropriate proceedings against the petitioners herein for recovery of amount, if any, payable by them.

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Sd/(Dr.CHILLAKUR SUMALATHA) JUDGE

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LG/SN List No.: 1 Sl No.: 25.1

Appasaheb and Anr. v. the State of Karnataka and Ors.

Case brief

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Appasaheb and Anr. v. the State of Karnataka and Ors.

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