Nataraj S L v. State of Karnataka
Karnataka Cooperative Societies Act, 1959 – Sections 29C, 65, 68, 106(1)(h)
Case brief
What is this about?
WP No. 4997 of 2020 (CS-RES), High Court of Karnataka, R. Nataraj J., 19.09.2025 — Aruna Co-operative Bank Ltd; Section 29C disqualification of directors for five years; Section 65 enquiry and Section 68 order alleging misappropriation of Rs.12.29 crores after RBI inspection cash shortage of Rs.12,29,25,000/-; maintainability of writ despite alternative appeal under Section 106(1)(h); natural justice and drastic civil consequences; reliance on Whirlpool Corporation v. Registrar of Trade Marks (1998) 8 SCC 1; quashing of orders dated 26.02.2020 and remand to Joint Registrar of Co-operative Societies, Urban Bank Cell; Special Officer appointment dated 27.02.2020; conditional relief with costs of Rs.10,000/- per petitioner; conclusion of proceedings within three months.
What did the court decide?
Petition allowed in part: the ten orders dated 26.02.2020 passed by respondent No.3 under Section 29C are quashed; the case is remitted to respondent No.3 to hear the petitioners and pass appropriate orders in accordance with law; petitioners to appear before respondent No.3 on 08.10.2025 at 3.00 p.m. with objections and pay cost of Rs.10,000/- each to Sri. Jayadeva Institute of Cardiovascular Sciences and Research, Bengaluru by 07.10.2025; if cost is not paid or objections not filed, respondent No.3 may proceed in accordance with law; respondent No.3 to conclude proceedings within three months of the petitioners filing objections.