Allowed

Kurburu Reshme and Raithare Seva Sahakara Sangha Niyamitha v. the State of Karnataka

Karnataka HC20 Nov 2025WP/32529/2025

Case brief

AI extract

What is this about?

The High Court of Karnataka allowed a writ petition seeking quashing of a notice issued under Section 12(5) of the Karnataka Cooperative Societies Act. Relying on a coordinate bench, the court held the notice facilitating the establishment of a new society in the same operational area was invalid. The notice was quashed.

What did the court decide?

The notice dated 06.03.2024 issued by respondent No.3 under Section 12(5) of the Karnataka Cooperative Societies Act, 1959 is quashed.

Kurburu Reshme and Raithare Seva Sahakara Sangha… — Cooperative Societies | Karnataka HC (2025)

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NC: 2025:KHC:47924 WP No. 32529 of 2025

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 20^TH DAY OF NOVEMBER, 2025

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BEFORE

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THE HON'BLE MRS. JUSTICE M G UMA WRIT PETITION NO. 32529 OF 2025 (CS-RES)

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BETWEEN:

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KURBURU RESHME AND RAITHARE SEVA SAHAKARA SANGHA NIYAMITHA KURUBURU, CHINTAMANI TALUK, CHIKKABALLAPUR DISTRICT - 563125 REPRESENTED BY ITS CEO, REGISTERED UNDER KARNATAKA CO-OPERATIVE SOCIETIES ACT, 1959

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…PETITIONER

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(BY SRI. VARUN JAYKUMAR PATIL, ADVOCATE)

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AND:

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THE STATE OF KARNATAKA, DEPARTMENT OF CO-OPERATION, VIKAS SOUDHA, BENGALURU - 560001 REP BY ITS SECRETARY

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Digitally signed by PRASHANTH N V Location: High Court of Karnataka

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THE REGISTRAR OF CO-OPERATIVE SOCIETIES NO.1, ALIA ASKAR ROAD, BENGALURU - 560 052

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THE ASSISTANT REGISTRAR CO-OPERATIVE SOCIETIES CHIKKABALLAPUR SUB-DIVISION, CHIKKABALLAPUR DISTRICT - 563125

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ANURU VIVIDODESHA PRATHAMIKA KRUSHI PATINA SAHAKAR SANGHA NIYAMITA, ANUR" CHINTAMANI TALUK, CHIKKABALLAPUR - 563 125

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…RESPONDENTS

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(BY SRI. YOGESH .D. NAIK, AGA FOR R1-3

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NC: 2025:KHC:47924 WP No. 32529 of 2025

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HC-KAR

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SRI. SARAVANA .S., ADVOCATE FOR R4 V/O DT. 20/11/2025 - I.A. 1/25 FOR IMPLEADING R4 IS ALLOWED )

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO A. QUASHING THE IMPUGNED NOTICE/DIRECTIONS N/O.SANI48/NONDANI/CR168/2023-24 BEARING DATED 06/03/2024 PASSED BY THE RESPONDENT NO.3 VIDE ANNEXURE-B AND B. PERMIT THE RESPONDENT NO.3 SOCIETY TO CONTINUE TO FUNCTION IN ITS EXISTING AREA OF OPERATION AS PER ITS BYE-LAWS AND ETC.,

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THIS WRIT PETITION, COMING ON FOR HEARING - INTERLOCUTORY APPLN, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MRS. JUSTICE M G UMA

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ORAL ORDER

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The petitioner - Society has approached this Court seeking issuance of writ in the nature of certiorari to quash the notice dated 06.03.2024 bearing No.SANI48/NONDANI/CR168/2023-24 issued by respondent No.3 produced as per Annexure-B and permit respondent No.3 - Society to continue to function in its existing area of operation as per its bye-laws.

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Heard Sri. Varun Jaykumar Patil, learned counsel for the petitioner, Sri Yogesh D. Naik, learned Additional

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3 - NC: 2025:KHC:47924 WP No. 32529 of 2025

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HC-KAR

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Government Advocate for respondent Nos.1 to 3. and Sri. Sarvana S, learned counsel for respondent No.4. Perused the materials on record.

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Learned counsel for the petitioner submitted that, respondent No.3- Assistant Registrar of Co-operative Societies, issued the notice under Section 12(5) of the Karnataka Cooperative Societies Act, 1959 ( for short 'KCS Act') to establish a new Society and that certain villages coming under the area of operation of the petitioner - Society should be handed over to the newly formed Society. It is further submitted that, respondent No.3 has issued the notice compelling the petitioner to release villages under its area of operation without any request from the members. Moreover, the petitioner - Society has advanced substantial loans to its members and the petitioner will not be in a position to recover the same, if the villages are released.

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The Co-ordinate Bench of this Court in Shivananja and others V/s State of Karnataka and others¹ has recorded a categorical finding that there is no embargo for

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1 W.P.NO.1098 of 2024 DD.02.05.2025

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NC: 2025:KHC:47924 WP No. 32529 of 2025

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HC-KAR

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functioning of two or more PACS in the same area and no direction could be issued under Section 12(5) of KCS Act to delete a particular Gram Panchayat, or Taluk, or District Panchayat from the area of operation of an existing Society, let alone to facilitate the establishment of a new Society. It is also held that it would not be required to delete the existing PACS from the area of operation in a particular Gram Panchayat to enable establishment of another PACS in the very same gram Panchayat. Therefore, it is made clear that, it is for the members of the existing PACS to comply with all the obligations to the PACS, of which they are members, and to join the new PACS by resigning their membership in the old one.

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In view of the above, the position of law is very well settled and there cannot be a direction to bifurcate the villages under Section 12(5) of the KCS Act, as there is no embargo to constitute more than one Society as held by the Co-ordinate Bench of this Court.

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Learned counsel for the petitioner drew the attention of the Court to Annexure-D, where there is reference to respondent No.4 - Society, and it is stated that huge sums of

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NC: 2025:KHC:47924 WP No. 32529 of 2025

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HC-KAR

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more than Rs.1.5 crores along with interest is due to be paid by various borrowers. Unless the said loan is cleared, the borrowers cannot relinquish their rights in the petitioner - Society to become members of the new Society. Hence, I am of

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the opinion that the notice dated 06.03.2024 issued as per Annexure-B is liable to be quashed.

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7. Accordingly, I proceed to pass the following:

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ORDER

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