Dismissed¶56

Shivamogga District Co. Operative Union Ltd. v. the Joint Registrar of

Karnataka HC9 Mar 2026WP/369/2017

Case brief

AI extract

What is this about?

Keywords: Karnataka Co-operative Societies Act 1959 Section 69; surcharge order; co-operative society directors; car purchase resolution; Karnataka Appellate Tribunal Appeal No.398/2011 (CS); Shivamogga District Co-operative Union Ltd.; Joint Registrar of Co-operative Societies Bengaluru; writ petition dismissed; WP No.369 of 2017 (CS-RES); Articles 226 and 227; High Court of Karnataka; Justice E.S. Indiresh; order dated 25-08-2015; decision dated 09-03-2026.

What did the court decide?

The Court noted that, as brought out at paragraph 18 of the Tribunal's order, the petitioner-Society and other Directors had passed the resolution to purchase a Car for the benefit of the petitioner-Society. ¶51

Shivamogga District Co. Operative Union Ltd. Vs… — Writ and Judicial Review | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Dismissed

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Issue for consideration

Whether the order dated 25.08.2015 of the Karnataka Appellate Tribunal, Bengaluru in Appeal No.398/2011 (CS) is sustainable under law, in view of the petitioner's contentions that no material supported the purchase of the Car while the petitioner-Society was under loss, and that Section 69 of the KCS Act was not attracted to respondents 2 to 9 so as to pass the surcharge order. +1 more

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Court's answer

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Ratio / Principle

Taking into consideration the scope and ambit of Section 69 of the KCS Act, and the requirement of ingredients to invoke Section 69 of the KCS Act, the Court found the impugned order dated 25.08.2015 of the Karnataka Appellate Tribunal, Bengaluru in Appeal No.398/2011 (CS) just and proper, not calling for interference; accordingly the writ petition was dismissed.

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Detailed headnote1 paragraphs

Karnataka High Court (Hon'ble Mr. Justice E.S. Indiresh, sole judge) dismissed Writ Petition No.369 of 2017 (CS-RES) filed by Shivamogga District Co-operative Union Ltd. under Articles 226 and 227 of the Constitution, seeking quashing of the Karnataka Appellate Tribunal, Bengaluru order dated 25.08.2015 in Appeal No.398/2011 (CS) (Annexure-H). Petitioner's counsel argued that no material supported the purchase of a Car while the Society was under loss, and that Section 69 of the Karnataka Co-operative Societies Act, 1959 was not attracted to respondents 2 to 9 so as to pass the surcharge order; the State (through the AGA) sought confirmation of the Tribunal's order. The Court, having considered paragraph 18 of the Tribunal's order showing that the petitioner-Society and other Directors had passed a resolution to purchase the Car for the Society's benefit, and weighing the scope and ambit and the ingredients required to invoke Section 69 of the KCS Act, held the Tribunal's order just and proper and declined interference. All pending applications were disposed of.

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NC: 2026:KHC:14011 WP NO.369 OF 2017

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HC-KAR

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 09^TH DAY OF MARCH, 2026

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BEFORE

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THE HON'BLE MR. JUSTICE E.S.INDIRESH WRIT PETITION NO.369 OF 2017 (CS-RES)

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BETWEEN:

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SHIVAMOGGA DISTRICT CO-OPERATIVE UNION LTD., VINOB NAGAR, SHIVAMOGGA - 577 204. REP. BY ITS CHIEF EXECUTIVE OFFICER, SRI. NAGARAJ S/O BASAVARAJAPPA, AGED ABOUT 38 YEARS.

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…PETITIONER

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(BY SRI. CHANDRASHEKAR P. PATIL, ADVOCATE)

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AND:

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Digitally signed by CHAYA S A Location: HIGH COURT OF KARNATAKA

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THE JOINT REGISTRAR OF CO -PERATIVE SOCIETIES, CHAMARAJPET, BENGALURU DIVISION, BENGALURU - 560 018.

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H. SRINIVAS S/O H.R. SUBBA RAO, AGED ABOUT 79 YEARS, OCC: AGRICULTURE, R/AT HOSBLE, SORABA TALUK, SHIVAMOGGA DISTRICT - 577 204.

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SRI. M.G. KRISHNA MURTHY S/O GANESH BHAT, AGED ABOUT 71 YEARS, OCC: AGRICULTURE, R/AT KARIKIKUPPE VILLAGE,

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NC: 2026:KHC:14011 WP NO.369 OF 2017

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HC-KAR

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SAGAR TALUK, SHIVAMOGGA DISTRICT - 577 204.

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C.S. CHANDRA BHOOPAL EX-CHAIRMAN, SHIVAMOGGA DISTRICT CO-OPERATIVE UNION LTD., 1^ST FLOOR, DARGA COMPLEX, TILAK NAGAR, SHIVAMOGGA CITY - 577 204.

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SRI. M.UMESH DIRECTOR, SHIVAMOGGA DISTRICT CO-OPERATIVE UNION LTD., SINCE DECEASED, BY LRS, SMT. JAYASHRI W/O M. UMESH, BILAGADU VILLAGE, HEBBANDI POST, HONNESARA MARG, SAGAR TALUK, SHIVAMOGGA DISTRICT - 577 204.

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R. VENKATESH DIRECTOR, SHIVAMOGGA DISTRICT CO-OPERATIVE UNION LTD., KUMBRI NARAYANA PURA, TALLIKATTE POST, BHADRAVATHI TALUK, SHIVAMOGGA DISTRICT - 577 204.

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H. SHIVAPPA EX-CHAIRMAN, SHIVAMOGGA DISTRICT CO-OPERATIVE UNION LTD., SINCE DEDEASED, BY LRS,

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7(a). SMT. T.P. SAROJAMMA, W/O H. SHIVAPPA, AGE: MAJOR.

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7(b). KUM. SHILPA D/O H. SHIVAPPA, AGE: MAJOR.

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3 - NC: 2026:KHC:14011 WP NO.369 OF 2017

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HC-KAR

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7(c). DEEP S/O H. SHIVAPPA, AGE: MAJOR.

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7(d). SAMPATH KUMAR S/O H. SHIVAPPA, AGE: MAJOR,

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RESPONDENTS NO.7(a) TO 7(d) ARE R/O GAMA VILLAGE, GAMA POST, SHIKARIPURA TALUK, SHIVAMOGGA DISTRICT - 577 204.

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B. SOMASEKHARAPPA EX-DIRECTOR, SHIVAMOGGA DISTRICT CO-OPERATIVE UNION LTD., R/O HONNEBAGI VILLAGE, RAJGONDANAHALLI POST, CHANNAGIRI TALUK, DAVANAGERE DISTRICT.

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T.S. MANJUNATH EX-DIRECTOR, SHIVAMOGGA DISTRICT CO-OPERATIVE UNION LTD., TALLIKATTE POST, BHADRAVATHI TALUK, SHIVAMOGGA DISTRICT - 577 204.

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…RESPONDENTS

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(BY SRI. K. KENCHEGOWDA, AGA FOR R1; SRI. S.V. PRAKASH, ADVOCATE FOR R3; R7(a) TO R7(d) AND R9 - SERVED; V/O DATED 20.11.2017, NOTICE TO R6 AND R8 IS HELD SUFFICIENT; V/O DATED 22.12.2021, NOTICE TO R4 AND R5 IS HELD SUFFICIENT)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE ORDER DATED 25^TH AUGUST, 2015 PASSED BY THE KARNATAKA APPELLATE TRIBUNAL, BENGALURU IN APPEAL NO.398/2011 (CS) VIDE ANNEXURE-H.

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NC: 2026:KHC:14011 WP NO.369 OF 2017

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HC-KAR

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

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CORAM: HON'BLE MR. JUSTICE E.S.INDIRESH

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ORAL ORDER

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In this writ petition, the petitioner is challenging the Order dated 25^th August, 2015 (Annexure-H) passed by the Karnataka Appellate Tribunal, Bengaluru in Appeal No.398/2011 (CS).

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Heard Sri. Chandrashekar P. Patil, learned counsel

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appearing for the petitioner; Sri. K. Kenchegowda, learned Additional Government Advocate appearing for the respondent No.1; Sri. S.V. Prakash, learned counsel appearing for the respondent No.3.

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Sri. Chandrashekar P. Patil, learned counsel appearing for the petitioner argued that the impugned order dated 25^th August, 2015 (Annexure-H) passed by the Karnataka Appellate Tribunal in Appeal No.398/2011 (CS) is not sustainable under law, since, no material has been placed to purchase the Car when the petitioner-Society is under loss. It is also submitted by learned counsel appearing for the petitioner that, Section 69 of the Karnataka Co-operative

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5 - NC: 2026:KHC:14011 WP NO.369 OF 2017

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HC-KAR

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Societies Act, 1959 (for short, hereinafter referred to as 'KCS Act' ) is not attracted to the respondents 2 to 9 so as to pass surcharge order. Accordingly, sought for interference of this Court.

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Per contra, Sri. K. Kenchegowda, learned Additional Government Advocate appearing for the respondent No.1 submits that, the only ground urged by the petitioner is the purchase of the Car, is for the benefit of the petitioner-Society. Accordingly, he submits that the impugned order passed by the Karnataka Appellate Tribunal requires to be confirmed.

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Having taken note of the submission made by learned counsel appearing for the parties, I have carefully considered the reasons assigned by the Karnataka Appellate Tribunal in the impugned order particularly at paragraph 18, which makes it clear that the petitioner herein and other Directors have passed the resolution to purchase a Car for the benefit of the petitioner-Society. In that view of the matter, taking into consideration the scope and ambit of Section 69 of the KCS Act and also by looking into the requirement of ingredients to invoke Section 69 of the KCS Act, I am of the

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NC: 2026:KHC:14011 WP NO.369 OF 2017

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HC-KAR

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view that the impugned order dated 25^th August, 2015 (Annexure-H) passed by the Karnataka Appellate Tribunal, Bengaluru in Appeal No.398/2011 (CS) is just and proper, which does not call for interference. Accordingly, writ petition

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is dismissed.

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All pending applications stands disposed of.

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SD/(E.S. INDIRESH) JUDGE

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ARK

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List No.: 1 Sl No.: 7

Shivamogga District Co. Operative Union Ltd. v. the Joint Registrar of

Case brief

What is this about?

What did the court decide?

Shivamogga District Co. Operative Union Ltd. v. the Joint Registrar of

Case brief

What is this about?

What did the court decide?

What the court decided

Issues for consideration

Statutes considered

Procedural history

Parties & counsel

Coram

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