- 1 - NC: 2025:KHC:3851 WP No. 3660 of 2018 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MRS JUSTICE K.S. HEMALEKHA WRIT PETITION NO. 3660 OF 2018 (CS-RES) BETWEEN: KARNATAKA CO OPERATIVE OILSEEDS GROWERS' FEDERATION LTD., AT NO.11, 4TH FLOOR, "BLUD CROSS CHAMBERS", INFANTRY ROAD CROSS, BENGALURU - 560 001. REP BY ITS MANAGING DIRECTOR. …PETITIONER (BY SRI.PRASHANTH B.R., ADV FOR SRI. RAMACHANDRAN K., ADVOCATE) AND: STATE OF KARNATAKA, REP BY ITS SECRETARY TO GOVERNMENT, CO-OPERATION DEPARTMENT, GOVERNMENT OF KARNATAKA, VIKASA SOUDHA, BENGALURU - 560 001. …RESPONDENT (BY SRI.SIDDARTH BABURAO., AGA) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE AMENDMENT IN SUB-RULE M IN RULE 21, AMENDMENT OF THE ANNEXURE OF THE GOVERNMENT OF KARNATAKA, CO- OPERATION SECRETARIAT NOTIFICATION BEARING NO. CO 123 CLM 2016 BENGALURU, DATED 29.07.2017 PASSED BY THE RESPONDENT VIDE ANNEXURE-A, WHEREIN, THE METHOD OF RECRUITMENT OF THE CHIEF EXECUTIVE IN RESPECT OF THE KARNATAKA STATE CO-OPERATIVE OIL FEDERATION LIMITED, THE PETITIONER ABOVE HAS BEEN AMENDED TO Digitally signed by MAHALAKSHMI B M Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:3851 WP No. 3660 of 2018 THE EFFECT THAT AN OFFICER NOT BELOW THE RANK OF ADDITIONAL REGISTRAR OF CO-OPERATIVE SOCIETIES FROM THE DEPT OF CO-OPERATION CAN BE DEPUTED AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DwAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MRS JUSTICE K.S. HEMALEKHA ORAL ORDER The petitioner in this writ petition is seeking for the following prayer: "a. Issue a Writ or Order or Direction in the nature of Certiorari quashing the amendment in Sub-Rule 'M' in Rule 21, Amendment of the Annexure of the Government of Karnataka, Co-operation Secretariat Notification bearing No.CO 123 CLM 2016 BENGALURU, dated Passed by the Respondent 29.07.2017 passed by the respondent vide Annexure-A, wherein, the method of recruitment of the Chief Executive in respect of the Karnataka State Co-operative Oil Federation Limited, the Petitioner above has been amended to the effect that an Officer not below the rank of Additional Registrar of Co-operative Societies from the Dept. of Co-operation can be deputed. b. Issue any other appropriate writ or direction, as this Hon'ble Court deems fit and proper to grant in the circumstances of the case. - 3 - NC: 2025:KHC:3851 WP No. 3660 of 2018 c. For the cost of this proceedings." 2. Heard the learned counsel appearing for the petitioner and learned Additional Government Advocate appearing for respondent. 3. Learned Counsel for the petitioner submits that the amendment in Sub-Rule 'M' in Rule 21 at Annexure-A pertains to 'Karnataka State Co-operative Oil Federation Limited' and the petitioner is 'Karnataka Co-operative Oilseeds Growers' Federation Limited' the notification issued at Annexure-A does not have any implications on the petitioner - society and the petitioner does not intend to press this petition. 4. Attention is drawn to the order in W.P.No.20797/2023 wherein the challenge was made by the petitioner - society regarding the direction issued by the government directing the petitioner to redo the recruitment process by following the reservation polices as directed by the Government which came to be disposed off on 27.03.2024 observing that loans provided for - 4 - NC: 2025:KHC:3851 WP No. 3660 of 2018 commercial purposes or under market-driven terms may not inherently signify state assistance, particularly if they do not entail substantial financial support or control. Critical to the determination of the state's authority to issue directives to the petitioner-federation is the establishment of majority shareholding by the State Government. Control by the State must be of a substantial nature, typically involving majority shareholding or effective control over the entity. Without concrete evidence demonstrating majority shareholding, the State lacks the requisite authority to issue directives and exert control over the federation's internal decision-making processes. Furthermore, while Cooperative Societies are subject to regulatory frameworks, they retain autonomy in their day-to-day operations, including recruitment processes. The State's authority is limited to regulatory or supervisory functions and does not extend to dictating internal decisions of the federation, such as recruitment processes, particularly in the absence of majority shareholding. - 5 - NC: 2025:KHC:3851 WP No. 3660 of 2018 5. The writ petitions were allowed and the impugned order passed by the government was set aside observing that in the absence of majority share capital held by the State in the petitioner Federation undermines the legitimacy of the State’s directive and the State lacks the requisite authority to dictate internal processes such as recruitment polices. It is submitted by the petitioner that in view of the finding in WP.No.20797 of 2023 and connected matter and the impugned notification at Annexure A clearly indicating in respect of ‘Karnataka State Cooperative Oil Federation Limited’ and not the petitioner herein, the petitioner has no grievance does not minted to press the petition, accordingly, the writ petition is dismissed as not pressed. Sd/- ________________________ JUSTICE K.S. HEMALEKHA KVR List No.: 2 Sl No.: 6