Kaivalyapathi Vs the State of Karnataka — Writ and Judicial Review | Karnataka HC (2025)

Kaivalyapathi Vs the State of Karnataka — Writ and Judicial Review | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Writ petition allowed; writ of certiorari issued quashing both orders dated 16.11.2023 passed by respondent No.3 (Annexure-H: No.A.R-32/DAANY AAAPAA/PRA.29-C/C.R-01/2023-24 and Annexure-J: No.SANI-32/AMAMRA/KALAM.31(1)/C.R.50/2023-24); petitioners reinstated as Directors of respondent No.4-Society.

Issue for consideration

Whether the orders dated 16.11.2023 passed by respondent No.3 disqualifying the petitioners from holding the post of Director of respondent No.4-Society under Clause C of sub-section (8) of Section 29C of the Karnataka Co-operative Societies Act, 1969 could stand, given that Sri. M.R. Prasanna had admittedly been reinstated.

Court's answer

Since Sri. M.R. Prasanna had admittedly been reinstated pursuant to the Board resolution dated 12.12.2022 and the contempt proceedings filed by him (C.C.C. No.27/23) had been withdrawn, it was not proper for the Deputy Registrar to contend that the petitioners had not complied with the order of reinstatement of Sri. M.R. Prasanna.

Ratio / Principle

The fact that respondent No.4 in the present matter is represented by Sri. M.R. Prasanna as its Chief Executive Officer, who has filed the statement of objections, contraindicates the allegation on the basis of which powers under Clause C of sub-section (8) of Section 29C of the Karnataka Co-operative Societies Act, 1969 were exercised, since Sri. M.R. Prasanna has already been reinstated.

Detailed headnote1 paragraphs

Co-operative law - Disqualification of directors - Karnataka Co-operative Societies Act, 1969, S.29C(8)(C) - Assistant Registrar of Co-operative Societies disqualified members of Karnakuppe Milk Producer's Co-operative Society Ltd. for three years from directorship on the ground of violation of Board orders in not reinstating the suspended Chief Executive Officer, Sri. M.R. Prasanna - Prasanna had, however, been reinstated by Board resolution dated 12.12.2022 (temporarily, dehors financial powers), the contempt proceedings filed by him (C.C.C. No.27/23) stood withdrawn, and he appeared in the writ petition representing the Society as its Chief Executive Officer and filed the statement of objections - Held, this status contraindicated the very allegation underlying the exercise of power under S.29C(8)(C), and it was not open to the Deputy Registrar to contend non-compliance with the reinstatement - Both orders dated 16.11.2023 (Annexures H and J) quashed in certiorari under Articles 226 and 227; petitioners reinstated as Directors of the Society.

Procedural history

How this case reached the court

AI extract

Order under challenge
Two orders, both dated 16.11.2023, passed by respondent No.3: (a) Order bearing No.A.R-32/DAANY AAAPAA/PRA.29-C/C.R-01/2023-24 vide Annexure-H, and (b) Order bearing No.SANI-32/AMAMRA/KALAM.31(1)/C.R.50/2023-24 vide Annexure-J, disqualifying the petitioner(s) from directorship; both sought to be quashed by writ of certiorari.¶45
Assistant Registrar of Co-operative Societies, Tumkur Sub Division (respondent No.3) · 16.11.2023
Prior proceeding
Sri. M.R. Prasanna had been appointed as Chief Executive Officer of respondent No.4; allegations existed as regards his discharge of work as a Secretary, particularly financial matters and fabrication of documents of the society.¶48
Prior proceeding
At its meeting dated 24.10.2022 the Board unanimously passed a resolution suspending Sri. M.R. Prasanna from the post of Chief Executive Officer.¶51
Prior proceeding
Sri. M.R. Prasanna raised a dispute before respondent No.3 challenging the suspension, when an exparte interim order of stay was granted.¶52
Prior proceeding
The exparte interim stay was challenged before this Court in W.P.No.22806/2022, wherein this Court by order dated 30.11.2022 granted an interim order of stay.¶52
Prior proceeding
Contempt proceedings filed by Sri. M.R. Prasanna came to be withdrawn.¶52
Prior proceeding
By Resolution dated 12.12.2022 the Board temporarily appointed Sri. M.R. Prasanna as Chief Executive Officer, dehors financial powers, on account of the allegations made against him.¶53
Prior proceeding
Subsequently, respondent No.2, exercising (printed as 'excising') powers under Clause C of sub-section (8) of Section 29C of the Karnataka Co-operative Societies Act, 1969, disqualified the petitioner for a period of three years from holding the post of directorship.¶53
Prior proceeding
Ground for the disqualification was stated as violation of the orders by the Board in not reinstating Sri. M.R. Prasanna.¶57
Prior proceeding
Sri. M.R. Prasanna had admittedly been reinstated; the contempt proceedings filed in C.C.C. No.27/23 had been withdrawn by him; and he appeared in the present matter as Chief Executive Officer of respondent No.4, filing the statement of objections.¶59
Prior proceeding
The contempt proceedings filed in C.C.C. No.27/23 had been withdrawn by Sri. M.R. Prasanna.¶59