Sri Bireshwara Shilpa Education ... vs The State Of Karnataka on 16 April, 2013

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Karnataka High Court

Sri Bireshwara Shilpa Education ... vs The State Of Karnataka on 16 April, 2013

Bench: K.Sreedhar Rao

                            1

         IN THE HIGH COURT OF KARNATAKA
            CIRCUIT BENCH AT GULBARGA

       DATED THIS THE 16TH DAY OF APRIL 2013

                      BEFORE

     THE HON'BLE MR.JUSTICE K.SREEDHAR RAO

       WRIT PETITION NO.34172/2010 (GM-KSR)

BETWEEN:

1.     SRI. BIRESHWARA SHILPA EDUCATION SOCIETY ®
       BIRESHWARANAGARA, CHUNCHANAGATTA
       KONANAKUNTE POST
       BANGALORE - 560 062
       BRANCH OFFICE MINCHINALA, L .T.
       BIJAPUR BY ITS SECRETARY

2.     SRI REVU BHAGANU CHAVAN
       AGED 30 YEARS
       S/O SRI BHAGANU CHAVAN, SECRETARY
       SRI BIRESHWARA SHILPA EDUCATION SOCIETY
       BANGALORE - 560 062
       BRANCH OFFICE: MINCHINALA LT
       BIJAPUR TALUK AND DISTRICT
                                         ...PETITIONERS

(BY SRI SACHIN M. MAHAJAN & K.H. NAIK, ADVOCATES)

AND:

1.     THE STATE OF KARNATAKA
       REP. BY PRINCIPAL SECRETARY
       REVENUE DEPARTMENT
       M.S. BUILDINGS
       BANGALORE - 560 001

2.     REGISTRAR OF CO-OPERATIVE SOCIETIES
       BANGALORE URBAN DISTRICT
       NO.1, ALI ASKHAR ROAD
       BANGALORE - 560 052
                            2

3.   SRI D. PANDURANGAPPA
     DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETIES
     BANGALORE URBAN DISTRICT, BANGALORE

4.   SMT. H.A. LAMANI
     AGED ABOUT 45 YEARS
     NO.126, AGASANALA
     INDI TALUK, BIJAPUR DISTRICT
                                          ...RESPONDENTS

(SRI MANAVENDRA REDDY, GOVT. ADV. FOR R1 TO R3;
 SRI LIYAQAT FAREED USTAD, ADV. FOR R4)

      THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND
227 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE
THAT THE ORDER OF THE ENQUIRY OFFICER DATED
03.05.2010 PRDUCED AT ANNEX-J AND ALSO THE ORDER
DATED 30.09.2010 PASSED BY THE REGISTRAR OF SOCIETIES
PRODUCED AT ANNEX-K.

      THIS PETITION COMING ON FOR HEARING ON I.A. THIS
DAY, THE COURT MADE THE FOLLOWING:

                      ORDER

One Bireshwara Shilpa Education Society is registered under the Karnataka Societies Registration Act, 1960 (for short 'the Act'). There were two rival fractions amongst the Members. The second petitioner- Secretary belongs to the rival group. The other group headed by respondent No.4 called a Special General Body Meeting on 22.04.2009 and resolved to dissolve the Society and the report was sent to respondent No.2. 3 Respondent No.3 is appointed by respondent No.2 to hold an enquiry.

2. In the report submitted by respondent No.3 it is said that the dissolution is in accordance with law. Accordingly, the Society is dissolved. Respondent No.4 formed a Trust after the dissolution and the management of the school earlier run by Bireshwara Shilpa Education Society is taken over by the Trust, subsequently by respondent No.4. The petitioners aggrieved by the order of dissolution of Society by respondent Nos.2 and 3 have filed this writ petition.

3. It is no doubt true that in case of a dispute between the rival groups regarding the management of the School, it is the Civil Court that has jurisdiction to decide the matter but in the case on hand, the issue is different. One of the rival groups passed a resolution for dissolution of the Society and formed a separate Trust and takes over the management of the school run 4 by the dissolved Society. It is the other rival group which is not a party to the resolution have challenged the order of approval of dissolution on the ground that U/s. 22 of the Act, the permission of the Government is necessary. Because, the school is an aided school and the Government is providing salary of the teachers. Therefore, the dissolution without the consent of the Government is bad in law. It is the further contention that upon dissolution, the properties of the Society should be transferred to some other Society carrying on similar activity and the transfer in favour of Trust is bad in law and not permitted under the Act.

4. The provision of Section 22 of the Act is extracted hereunder:

"22. Provision for dissolution of societies and adjustment of their affairs.- Any number not less than three- fourths of the members of any society may determine that it shall be dissolved and thereupon it shall be dissolved forthwith, or at the time then agreed upon, and all necessary steps shall be taken for the disposal and settlement of the property of the society, its 5 claims and liabilities, according to the rules of the said society applicable thereto, if any, and if there are no such rules, as the governing body shall find expedient, provided that, in the event of any dispute arising among the said governing body or the members of the society, the adjustment of its affairs shall be referred to the principal Court of original civil jurisdiction of the district in which the Registered Office of the society is situate; and the Court shall make such order in the matter as it shall deem requisite:

Provided that no society shall be dissolved unless three-fourths of the members shall have expressed a wish for such dissolution by their votes delivered in person, or where proxies are allowed, by proxy, at a special general meeting convened for the purpose:

Provided further that whenever the State Government is a member of, or a contributor to, or otherwise interested in any society registered under this Act, such society shall not be dissolved without the consent of the State Government."

5. The second proviso to the Section makes it clear that whenever the State Government interested or contributing in the Society, the dissolution can be done only upon the consent of the State Government. Here in the instant case, no consent of the Government 6 is obtained. Hence, the transfer of properties of the Society to the Trust is also not valid.

In that view of the matter, writ petition is allowed.

Sd/-

JUDGE LG

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Karnataka High Court