Karnataka High Court
Sri.N.Yathish vs State Of Karnataka on 1 December, 2023
-1-
NC: 2023:KHC:43342
WP No. 1744 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 1ST DAY OF DECEMBER, 2023
BEFORE
THE HON'BLE MR JUSTICE C.M. POONACHA
WRIT PETITION NO. 1744 OF 2023 (CS-EL/M)
BETWEEN:
1. SRI.N.YATHISH
S/O P L NANJUNDASWAMY
AGED ABOUT 60 YEARS
R/O NO.26, 1ST B CROSS
RMV EXTENSION
BENGALURU-560080
...PETITIONER
(BY SRI. VENUGOPAL M S.,ADVOCATE)
AND:
1. STATE OF KARNATAKA
REPRESENTED BY ITS SECRETARY
DEPARTMENT OF CO OPERATION
VIKASA SOUDHA
BENGALURU-01
2. JOINT REGISTRAR OF CO OPERATIVE SOCIETIES
URBAN BANKS DIVISION
Digitally OFFICE OF REGISTRAR OF
signed by
BHARATHI S CO OPERATIVE SOCIETIES
Location: NO.1, ALI ASKAR ROAD
HIGH BENGALURU 560082.
COURT OF
KARNATAKA
3. THE ASSISTANT REGISTRAR OF
CO OPERATIVE SOCIETIES
4TH DIVISION
BENGALURU CITY DISTRICT
NO.146, SAHAKARA SOUDHA
3RD MAIN ROAD
8TH CROSS, MARGOSSA ROAD
BENGALURU-560003
4. ANAND CO OPERATIVE BANK LTD
REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER
-2-
NC: 2023:KHC:43342
WP No. 1744 of 2023
NO.116, FIRST FLOOR
2ND MAIN ROAD
SHESHADRIPURAM
BENGALURU-560020
...RESPONDENTS
(BY SRI SIDHARTH BABURAO, AGA FOR R1 TO R3
SRI H S PRADEEP, ADVOCATE FOR R4)
THIS WP IS FILED UNDER ARTICLES 226 & 227 OF THE
CONSTITUTION OF INDIA PRAYING TO QUASHING THE
COMMUNICATION ISSUED BY THE R2 TO R4 VIDE COMMUNICATION
DATED 08/16.12.2022 BEARING NO. RCS/UBC/BENPRA/243/2022-23
VIDE ANNEXURE-K AND ETC.
THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN
'B' GROUP, THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER
The present petition is filed challenging the order bearing No.RCS/UBC/BENPRA/243/2022-23 dated 08/16.12.2022 (Annexure-K to the writ petition).
2. It is the case of the Petitioner that Respondent No.4 is a Co-operative Bank and the elections to the Board of Respondent No.4 was held on 10.02.2019 and 15 members were elected. Among the elected candidates, one Sri T.M.Nagachoodaiah died on 11.05.2021 and due to the same, one post to the Board of Directors of Respondent No.4 became vacant which was communicated by Respondent No.4 to Respondent No.2/Joint Registrars on 14.06.2021 with a request to hold elections to the said post. In the meanwhile, -3- NC: 2023:KHC:43342 WP No. 1744 of 2023 Respondent No.1 issued a circular dated 19.06.2021 directing that all elections/ bye elections to the Society shall be postponed by another six months due to the persisting Covid- 19 pandemic situation.
3. It is the further case of the Petitioner that when things stood thus, the Board of Respondent No.4 in its meeting held on 25.03.2022, co-opted the Petitioner to the post of Director. That the Respondent No.4, without hearing the Petitioner acting on complaint by certain persons, vide communication bearing No.RCS/UBC/BENPRA/243/2022-23 dated 08/16.12.2022 set aside the co-option made by Respondent No.2 of the Society.
4. Learned counsel for the Petitioner assailing the said order submits having regard to the second proviso to Section 29-E of the Karnataka Co-Operative Societies Act, 1959 since the elections to Respondent No.4 not having been held, the co- opting of the Petitioner to Board of Respondent No.4 is just and proper.
5. Learned AGA appearing for the official - Respondents vehemently opposed the relief sough for in the writ petition and -4- NC: 2023:KHC:43342 WP No. 1744 of 2023 submits that the date on which the vacancy of the post arose is required to be construed and having regard to the first proviso to Section 29-E of the Act, an election is required to be held to the vacancy that arose consequent to death of one of the Directors of the respondent. Hence, he submits that the order impugned in the present writ petition is just and proper and seeks for dismissal of the writ petition.
6. Learned counsel for Respondent No.4 submits that action of Respondent No.4 in co-opting the Petitioner to its Board is just and proper.
7. The submissions made by both the learned counsels have been considered and the material on record has been produced. The question that arises for consideration is 'whether the order dated 08/16.12.2022 impugned in the present writ petition is liable to be interfered with?'
8. Section 29-E of the Act states as follows:
Filling up of casual vacancy in the office of members of the [Board].-
Any vacancy in the office of members of the [board] of a co-operative society by reason of death, resignation, removal or otherwise, shall be filled up in -5- NC: 2023:KHC:43342 WP No. 1744 of 2023 such manner as may be specified in the bye-laws of such society:
[provided that the co-operative election commission shall conduct the election to fill up any vacancy in the office of the director of the board if the remaining term of office of the board is more than half of its original term:
Provided further that the board may fill up a casual vacancy on the board by nomination out of the same class of members in respect of which the casual vacancy has arisen, if the remaining term of office of the board is less than half of its original term:]
9. It is a matter of record that the term of office of the Board of Respondent No.3 - Society having commenced on 10.02.2019 and the term of the said Board expires on 09.02.2024.
10. Further, it is relevant to note that although death of a Director in the Board of Respondent No.4 was on 14.06.2021, elections could not be held as contemplated under Second proviso to Section 29-E of the Act in view of the Circular dated 19.06.2021 mandating that elections be postponed. Having regard to the aforementioned, it cannot be said that the co- -6-
NC: 2023:KHC:43342 WP No. 1744 of 2023 option of the Petitioner to the Board of Respondent No.4 is in any manner erroneous.
11. Having regard to the fact that the term of the Board of Respondent No.4 expires on 19.02.2024 and the period remaining is only about three months, it is just and proper that the relief sought for in the present writ petition be granted. Hence, the question framed for consideration is answered in the affirmative.
12. Accordingly, Writ petition is allowed. The order dated 08/16.12.2022 bearing No.RCS/UBC/BENPRA/243/2022-23 (Annexure - K to the writ petition) is quashed.
Sd/-
JUDGE BS List No.: 1 Sl No.: 51