M/S Power Recreations Vs State of Karnataka — Writ and Judicial Review | Karnataka HC (2025)

M/S Power Recreations Vs State of Karnataka — Writ and Judicial Review | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Petition allowed; the second respondent's impugned order dated 05.05.2025 (Annexure-A) quashed, with the observation that the disposal shall not in any manner preclude action by the police authorities or by the second respondent otherwise permissible in law.

Issue for consideration

Whether the second respondent's order dated 05.05.2025 rejecting the statutory filing of accounts and list of office bearers for 2024-25 and 2025-26 on the ground that the petitioner encouraged gambling should be quashed.

Court's answer

If the petitioner is guilty of encouraging gambling, the Police Authorities must act to ensure that appropriate measures are taken, as should the second respondent to cancel the registration if it is within its jurisdiction under the Societies Act.

Ratio / Principle

An allegation that the petitioner encouraged gambling cannot be a reason to refuse accepting the accounts statement or the list of members.

Key takeaways

Being in respectful agreement with the decision in W.P.No.813/2025 (decided 24.07.2025) in similar circumstances, the petition is allowed and the second respondent's impugned order dated 05.05.2025 is quashed, with the observation that this disposal shall not in any manner preclude action by the police authorities or by the second respondent otherwise permissible in law.ratio¶37

Detailed headnote1 paragraphs

Societies Registration / Refusal to accept statutory filings - A society registered under the Karnataka Societies Registration Act, 1960 challenged the order dated 05.05.2025 of the Deputy Registrar of Cooperative Societies and District Registrar, Chitradurga, which rejected the statutory filing of accounts and list of office bearers for 2024-25 and 2025-26 on the ground that the society encouraged gambling. The Court held that if the petitioner is guilty of encouraging gambling, the police authorities must act and the second respondent may cancel the registration if within its jurisdiction under the Societies Act, but that cannot be a reason to refuse accepting the accounts statement or the list of members. In respectful agreement with the decision in W.P.No.813/2025 (decided 24.07.2025) in similar circumstances, the writ petition was allowed and the impugned order was quashed, it being observed that the disposal shall not preclude action by the police authorities or the second respondent otherwise permissible in law. (B M Shyam Prasad, J.)

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NC: 2025:KHC:36616 WP No. 25645 of 2025

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 15^TH DAY OF SEPTEMBER, 2025

BEFORE

THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 25645 OF 2025 (GM-KSR)

BETWEEN:

Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA

M/S POWER RECREATIONS (REGISTERED UNDER KARNATAKA SOCIETIES REGISTRATION ACT 1960) OFFICE AT, NEAR CHALLAKERE TOLL GATE, CHITRADURGA REP BY ITS PRESIDENT MR. NAGABHUSHAN K S/O. SRI. K. G. KANUMAPPA AGED ABOUT 56 YEARS

…PETITIONER

(BY SRI. BHARATH KUMAR V., ADVOCATE)

AND:

STATE OF KARNATAKA

THROUGH REGISTRAR OF COOPERATIVE SOCIETIES ALI ASKAR ROAD

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NC: 2025:KHC:36616 WP No. 25645 of 2025

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BENGALURU 560001

DEPUTY REGISTRAR OF COOPERATIVE SOCIETIES AND DISTRICT REGISTRAR CHITRADURGA HAVING OFFICE AT B L GOWDA LAYOUT CHITRADURGA DISTRICT

…RESPONDENTS

(BY SRI. RAHUL CARIAPPA, AGA)

THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER DATED 05.05.2025 BEARING NO. DRD/SAN-SAM/C.R/S.O.R-102-2024-25/202425. WHEREIN THE R2 HAS REJECTED THE STATUTORY FILING OF ACCOUNTS AND LIST OF OFFICE BEARERS FOR THE YEAR 2024-25 AND 2025-26 PRESENTED BY THE PETITIONER ON BEHALF OF M/S POWER RECREATIONS.

THIS PETITION, COMING ON FOR

PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD

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ORAL ORDER

The petitioner, a society registered under the Karnataka Societies Registration Act, 1960 [for short, ' the Societies Act' ], is aggrieved by the second respondent's order dated 05.05.2025 [ Annexure - A ]. This order dated 05.05.2025 reads that the accounts filed for the year 2024-25 and the list of members as required under Section 13 of the Societies Act cannot be accepted because the petitioner has encouraged gambling.

Mr. Bharath Kumar V, the learned counsel for the petitioner, submits that in very similar circumstances this Court has quashed a similar order directing the society concerned to be registered without insisting on any compliance, including a license to run a recreational centre. As against these assertions, Mr. Rahul Cariappa, the learned Additional Government Advocate, submits that the

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second respondent's order is part of the decision taken to curb gambling activities in the District of Chitradurga and to ensure that gambling activities are curbed.

This Court must observe that if the petitioner is guilty of encouraging gambling, the Police Authorities must act to ensure that appropriate measures are taken as should the second respondent to cancel the registration if it is within its jurisdiction under the Societies Act but that cannot be a reason to refuse accepting the accounts statement or the list of members. As such, this Court is in respectful agreement with the decision in W.P.No.813/2025, which is decided on 24.07.2025 in similar circumstances, and the petition is allowed quashing the second respondent's impugned order dated 05.05.2025 but observing that this disposal shall not in any manner preclude action by the police

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authorities or by the second respondent otherwise permissible in law.

Sd/(B M SHYAM PRASAD) JUDGE

RB