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Karnataka High Court

Sri K H Thamme Gowda vs The Deputy Registrar Of Co Operative ... on 29 September, 2020

Author: G.Narendar

Bench: G.Narendar

 IN THE HIGH COURT OF KARNATAKA AT BENGALURU

   DATED THIS THE 29TH DAY OF SEPTEMBER, 2020

                      BEFORE

       THE HON'BLE MR.JUSTICE G.NARENDAR

             W.P.NO.9873/2020 (CS RES)

BETWEEN

1. SRI K H THAMME GOWDA
S/O HANUMANTHAPPA
AGED ABOUT 62 YEARS

2. SRI K M GOPAL
S/O MUNISHAMAPPA
AGED ABOUT 55 YEARS,

BOTH ARE EX.DIRECTORS
KOLAVANAHALLI MILK PRODUCERS
CO-OPERATIVE SOCEITY LIMITED.
KOLAVANAHALLI,
CHICKBALLAPUR TALUK
CHICKBALLAPUR DISTRICT-562103.
                                    ...PETITIONERS

(BY SRI J.S.PATIL, SR. ADV. FOR
 SRI JAI PRAKASH REDDY, ADV.)

AND

1. THE DEPUTY REGISTRAR OF
CO-OPERATIVE SOCIETIES,
CHICKBALLAPUR DISTRICT,
CHICKBALLAPUR-562103.

2. THE ASSISTANT REGISTRAR OF
CO-OPERATIVE SOCIETIES,
CHICKBALLAPUR SUB-DIVISION
CHICKBALLAPUR DISTRICT-562103
                       2

3. KOLAVANAHALLI MILK PRODUCERS
CO-OPERATIVE SOCIETY LIMITED
KOLAVANAHALLI,
CHICKBALLAPUR TALUK,
CHICKBALLAPUR DISTRICT,
BY ITS SECRETARY-562103

4. SRI K S DYAVAPPA
S/O LATE SONNAPPA
AGED ABOUT 63 YEARS
R/AT KOLAVANAHALLI VILLAGE,
CHICKBALLAPUR TALUK AND
DISTRICT-562103

5. SRI K B PILLEGOWDA
S/O LATE BACHAPPA
AGED ABOUT 58 YEARS
R/AT KOLAVANAHALLI VILLAGE
CHICKBALLAPUR TALUK AND
DISTRICT-562103

6. SRI K MANJUNATH
S/O SRI K M KRISHNAPPA
AGED ABOUT 42 YEARS
R/AT KOLAVANAHALLI VILLAGE
CHICKBALLAPUR TALUK AND
DISTRICT-562103

7. SRI K M MUNINARAYANAPPA
S/O LATE MUNISONNAPPA
AGED ABOUT 65 YEARS
R/AT KOLAVANAHALLI VILLAGE
CHICKBALLAPUR TALUK AND
DISTRICT-562103

8. SRI K M THAMMEGOWDA
S/O SRI MUNIKYATHAPPA
AGED ABOUT 52 YEARS
R/AT KOLAVANAHALLI VILLAGE
CHICKBALLAPUR TALUK
CHICKBALLAPUR DISTRICT-562103
                          3

9. THE SPECIAL OFFICER/
ROUTE EXTENSION OFFICER
OFFICE OF KOLAR-CHICKBALLAPUR
MILK UNION
KOLAVANAHALLI MILK PRODUCERS
CO.OPERATIVE SOCIETY LIMITED
KOLAVANAHALLI
CHICKBALLAPUR TALUK,
CHICKBALLAPUR DISTRICT-562103.
                                   ...RESPONDENTS

(BY SMT. NILOUFER AKBAR, AGA FOR R1 & R2,
 BY SRI D.N.NANJUNDAREDDY, SR. ADV. FOR
 SRI P.ANAND, ADV. FOR C/R4.)


     THIS WRIT PETITION IS FILED UNDER ARTICLES
226 & 227 OF THE CONSTITUTION OF INDIA PRAYING
TO QUASH THE ORDER DATED 12.08.2020 VIDE
ANNEXURE-J PASSED BY R-1 ETC.

     THIS  WRIT  PETITION  COMING    ON  FOR
PRELIMINARY HEARING THIS DAY, THE COURT MADE
THE FOLLOWING:

                      ORDER

Heard Sri.Jayakumar S. Patil, learned Senior counsel along with Sri.Jai Prakash Reddy, learned counsel for the petitioners, Sri.D.N.Nanjundareddy, learned Senior counsel along with Sri.P.Anand, learned counsel for caveator/respondent No.4 and Smt.Niloufer Akbar, learned Additional Government Advocate for respondent Nos.1 and 2. 4

2. Pursuant to the orders of this Court dated 25.09.2020, respondent No.1, who is the appellate authority has filed an affidavit. Paragraph Nos.3 and 5 of the said affidavit reads as under:-

'3. I humbly submit that the Petitioner and Respondents No.4 to 8 and one Sri K.S.Anjinappa, totally 8 persons were elected as Directors of the Respondent No.3 - Society to a Board comprising of 13 members. Out of these 8 Directors, Anjinappa died on 21.06.2019 and the Petitioners tendered their resignation on 25.07.2020, leaving a Board comprising of 5 members. Based on the letter as per Annexure-E dated 11.08.2020 sent by the 3rd Respondent to the 2nd Respondent proceedings were initiated for appointment of a Special Officer as per Section 31(1) of the Karnataka Co-Operative Societies Act resulting in an Order being passed on 11.08.2020 for appointment of one.

5. On 12.08.2020, I passed an impugned Order, keeping in mind the Principles of Natural Justice and to see that no injustice is caused to any of the parties in the Appeal, I, with all bonafide intentions exercised my discretion and passed the Order. There was 5 no other ulterior motive or malafides. The impugned Order of stay granted on 12.08.2020 only to examine the genuineness of the resignation submitted by the Petitioners herein to their Directorship in the Respondent No.3 Society. Moreover, the 2nd Respondent herein has passed the Order under Section 31(1) of the KCS Act, 1959 on the same day i.e. on 11.08.2020, the Inspector of Co- Operative Societies has submitted the Report with regard to the quorum, without examining the genuineness of the resignations submitted by the Petitioners. Hence, the impugned Order has been passed only to examine the reality/genuineness of the resignations.'

3. The question as to whether the principles of natural justice have to be observed or not is answered by the statute itself. A reading of sub- section 2 of Section 31 of the Karnataka Co-operative Societies Act, 1959 obviates any discussion in that regard. Further, the issue with regard to efficacy of Section 31 of the Act has also been stated by this Court in the case of Sharanabasappa and Others 6 vs. The State of Karnataka reported in ILR 2018 KAR 238.

4. This Court, would not have entertained the writ petition in normal circumstances, but on account of the interim order by respondent No.1 - appellate authority, a situation has arisen whereby there is no governing body for the societies. Admittedly, there are only 5 remaining members and they fall short of the quorum as mandated under sub-rule 4 of Rule 14 AK of the Act. In the absence of quorum, the statue absolutely does not permit the conduct of business and now by the operation of the interim order, the hands of the Special Officer, who had stepped into the shoes of the Board has also been tied down, which in the opinion of this Court is impermissible.

5. In that view of the matter, interim order staying the appointment of the Special Officer is working against the interest of the institution, which 7 in the opinion of the Court, is impermissible. In that view of the matter, interim order dated 12.08.2020 in Appeal No.DRC/Appeal/106/Dhava-02/2020 at Annexure-J is modified. The appointment of the Special Officer stands restored and the Special Officer shall conduct the business of the Society.

6. Respondent Nos.4 to 8 shall not interfere in the affairs or in the conduct of business of the Society.

7. The first respondent shall expedite the consideration and disposal of the appeal.

Ordered accordingly. The petition stands disposed of.

No order as to costs.

Sd/-

JUDGE dn/-

CT-HR