Writ Petitioner challenged an enquiry report regarding a cooperative society registration cancellation. The court held the wrong section was invoked for the inquiry type required and directed a fresh application under the correct provision.
Petition disposed of; petitioner directed to file an application for inquiry under Section 27 of the Act.
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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 6TH DAY OF JANUARY, 2026
BEFORE
THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 37013 OF 2025 (GM-KSR)
BETWEEN:
MR. CHUNA RAFI AHMED S/O LATE CHUNA ABDUL RAHMAN AGED ABOUT 59 YEARS, RESIDING AT OLD NO. 2, CORPORATION NO. 40, K.G. HALLI, NAGAWARA MAIN ROAD BENGALURU 560045.
…PETITIONER
(BY SRI. ANIKETH K U, ADVOCATE FOR
Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA
SRI. SACHIN B S., ADVOCATE)
AND:
ROOM NO. 610, 6TH FLOOR, 3RD GATE, M.S. BUILDING BENGALURU-560001 REPRESENTED BY ITS PRINCIPAL SECRETARY
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BENGALURU-560 045 REPRESENTED BY ITS SECRETARY MR. N. SALEEM AHMED
…RESPONDENTS
(BY SRI. B. RAVINDRANATH, AGA FOR R1 TO R4;
SRI. FAZIL AHMED, ADVOCATE FOR C/R5)
THIS W.P. IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ENQUIRY REPORT DATED 16.05.2025 SUBMITTED BY THE RESPONDENT NO.
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4 IN COMPLAINT NO.18/2024 AS PER ANNEXURE-A AND CONSEQUENTLY DIRECT FRESH ENQUIRY INTO THE COMPLAINT NO. 18/2024 BY COMPETENT AUTHORITY PURSUANT TO THE COMPLAINT AT ANNEXURE-C. FURTHER, QUASH/REVOKE/CANCEL THE RENEWAL OF THE REGISTRATION CERTIFICATE DATED 03.10.2023 GRANTED IN FAVOUR OF RESPONDENT NO.5, THE JAMATH-E-LABABEEN EDUCATION SOCIETY AS PER ANNEXURE-B.
THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD
ORAL ORDER
The petitioner admittedly was a member of the fifth respondent, a Society registered under the Karnataka Societies Registration Act, 1960 [for short, 'the Act of 1960' ] and the petitioner has called in question a report filed by the fourth respondent while seeking cancellation of the fifth respondent's registration under the Act of 1960.
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2. According to the petitioner, the Society
has not been functioning from the year 2014-2015 but certain persons have fabricated documents of an Annual General Meeting [AGM] purportedly held on 25.08.2021 and the registration is renewed based on that AGM [ in terms of Annexure - B ]. The petitioner's complaint under Section 25 of the Act of 1960 is based on this and other assertions such as that he has not participated in the AGM but his signature is forged to indicate that he has accepted his nomination as the Treasurer of the fifth respondent.
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the petitioner, submits that the fourth respondent could not have conducted the inquiry under Section 25 of the Act of 1960 because the power to hold inquiry is only with the Registrar of Societies, and that in any event, the impugned report is a confirmation of the Authority's failure to look into material allegations against the persons who purport to manage the fifth respondent. The learned counsel emphasizes that if the allegations are looked into without bias, the renewal of registration accorded to the fifth respondent is liable to be cancelled.
the fifth respondent, submits that the petitioner was indeed a member of the fifth respondent until his membership was suspended and the petitioner's membership is suspended because he has illegally constituted a trust under the name and style "JamatE-Lababeen" and that the petitioner has filed a
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frivolous complaint against the office bearers of the fifth respondent in Crime No.16/2024, and this Court has intervened to grant interim order.
Additional Government Advocate, is heard in the light of these circumstances which cursorily capture the facts leading to the present petition. The question for consideration is: whether this Court must intervene with the fourth respondent's report . The petitioner's complaint is for cancellation of the fifth respondent's registration and that should be the subject matter of
an inquiry under Section 27 of the Act of 1960. The Section 27 of the Act of 1960 reads as under.
27. Cancellation of registration and
dissolution of certain societies .-
(1) If it appears to the Registrar that any society registered or deemed to be registered under this Act, is carrying on any unlawful activity or allows unlawful activity to be carried on within any premises under the
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control of the society, [the Registrar may hold an enquiry or authorise any officer to hold an enquiry into the activities of such society and in respect of every such enquiry, the Registrar or the authorised officer] shall have the same powers as are specified in sub-section (2) of section 25. [The authorised officer shall, on completion of the enquiry, submit a report to the Registrar.]
(2) If on an enquiry under sub-section (1), the Registrar is satisfied that any such society has been carrying on any unlawful activity or has allowed any unlawful activity to be carried on within any premises under the control of the society, he shall, after giving reasonable notice to the society to show cause why the registration of the society should not be cancelled and the society dissolved, and after considering the representations, if any, made on behalf of the society, by order cancel the registration of the society and direct dissolution of the society; and thereupon the assets of the society shall be distributed, and the liabilities discharged, in the same manner as if the society had been dissolved under section 22.
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(3) An appeal shall lie to the [Karnataka Appellate Tribunal] against any order passed by the Registrar under sub-section (2), within sixty days from the date of communication of the order, and the decision on such appeal shall be final."
1 25. Enquiry by the Registrar, etc. - (1) The Registrar may on his own motion and shall on the application of the majority of the members of the governing body or of not less than onethird of the members of the society, hold an enquiry or direct some person authorised by him by order in writing in accordance with the rules made in this behalf to hold an enquiry into the constitution, working and financial condition of a registered society.
(2) The Registrar or the person authorised by him under sub-section (1) shall have the following powers, namely,—
(a) he shall, at all reasonable times, have free access to the books, accounts, documents, securities, cash and other properties belonging to or in the custody of the society and may summon any person in possession or responsible for the custody of any such books, accounts, documents securities, cash or other
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circumscribed by the conditions as contained therein, including the circumstances in which the enquiry could be. This Court must also observe that the fourth respondent's report is vitiated because he has not gone into the question of the AGM being held as is required in law. As such, the petition stands disposed of observing that it should be open to the
properties to produce the same at any place at the headquarters of the society or any branch thereof;
(b) he may summon any person who, he has reason to believe, has knowledge of any of the affairs of the society to appear before him at any place at the headquarters of the society or any branch thereof and may examine such person on oath;
(c) (i) he may, notwithstanding anything contained in this Act or in any rule or regulation prescribing the period of notice for a general meeting of the society, require the governing body of the society to call a general meeting at such time and place at the headquarters of the society or any branch thereof and to determine such matters as may be directed by him. If the governing body of the society refuses or fails to call a meeting, he shall have power to call it himself;
(ii) any meeting called under sub-clause (i) shall have all the powers of a general meeting called under the rules or regulations of the society and its proceedings shall be regulated by such rules or regulations;
(iii) when an enquiry is made under this section, the Registrar shall communicate the result of the enquiry to the society concerned.
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petitioner to file an application for an inquiry under Section 27 of the Act of 1960 leaving open all contentions to be considered if indeed the petitioner files such an application.
Sd/(B M SHYAM PRASAD) JUDGE
RB
3 issues framed by the court
Whether the inquiry conducted under Section 25 of the Act was legally competent for cancellation of registration under Section 27.
Whether the Report of the fourth respondent was vitiated by not examining allegations regarding the Annual General Meeting.
Whether directions should be issued to quash the report and initiate fresh proceedings under the correct section.
3 provisions across 2 enactments
Mr. Chuna Rafi Ahmed S/o Late Chuna Abdul Rahman
The State of Karnataka Department of Co-operation Government of Karnataka
The Registrar of Societies Department of Cooperative Societies
The Deputy Registrar of Societies Department of Cooperative Societies
Senior Inspector Cooperative Societies
Jamath-e-Lababeen Education Society
B M Shyam Prasad
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
