- 1 - NC: 2025:KHC:3841 WP No. 2240 of 2025 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. 2240 OF 2025 (CS-RES) BETWEEN: SRI. K. RAGHUCHANDRA BALLAL S/O LATE C. RAMAYYA BALLAL, AGED ABOUT 63 YEARS, R/AT. SARVAMNANGALA NIVAS, BATNAGAR, NEAR SHIVAJI CLUB, THOKOTTU POST, ULLAL- 575020 DAKSHINA KANNADA DISTRICT. …PETITIONER (BY SRI. VINAY N., ADVOCATE) AND: 1. THE STATE OF KARNATAKA DEPARTMENT OF CO-OPERATIVE SOCIETIES, VIDHANASOUDHA, BENGALURU-01 REPRESENTED ITS SECRETARY. 2. DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETIES, DAKSHINA KANNADA DISTRICT, MANGALORE O/AT. JANATA BAZAR, 1ST FLOOR, GANAPATHI HIGH SCHOOL ROAD, MANGALORE-575001 3. JAGRITHA MULTIPURPOSE CO-OPERATIVE SOCIETY HEAD OFFICE AT. “JAGRITI SADAN” TEMPLE ROAD, ULLALA-575020, DAKSHINA KANNADA DISTRICT. 4. SRI. SHANKARA BANGERA, S/O NARAYANA PUTHRAN AGED ABOUT 52 YEARS, PRESIDENT, JAGRITHA MULTIPURPOSE CO-OPERATIVE SOCIETY, R/AT. ASHWIN NIVASA, MOGAVEERA PATNA, Digitally signed by MAHALAKSHMI B M Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:3841 WP No. 2240 of 2025 ULLALA- 575020 5. SMT. SAVITRI K. BHAT, W/O KAMALAKSHA BHAT AGED ABOUT 70 YEARS EX-VICE PRESIDENT AND DIRECTOR, JAGRITHA MULTIPURPOSE CO-OPERATIVE SOCIETY, R/AT. NEAR L.N. TEMPLE ROAD, ULLALA-575020 6. SRI. U. AITAPPA SHETTIGAR, S/O THIMMAPPA SHETTIGAR AGED ABOUT 70 YEARS DIRECTOR, JAGRITHA MULTIPURPOSE CO-OPERATIVE SOCIETY, R/AT. D.NO. 15-44, PADMASHALI COMPOUND, NEAR ABBAKKA CIRCLE, ULLALA-575020 7. SRI U. MADHAVA SUVARNA S/O THYAMPA MESTRI AGED ABOUT 75 YEARS DIRECTOR, JAGRITHA MULTIPURPOSE CO-OPERATIVE SOCIETY, R/AT. SUVARNA NIVAS, OMBATTHUKERE, ULLALA-575020 8. SRI SURESH SAPALYA S/O NARAYANA SAPALYA AGED ABOUT 65 YEARS, DIRECTOR, JAGRITHA MULTIPURPOSE CO-OPERATIVE SOCIETY, R/AT. POOJASHRI NILAYA, KOPPALA, ULIYA, ULLALA-575020 9. SRI PADMANABHA SHETTY VARKADI, S/O MUNDAPPA SHETTY AGED ABOUT 70 YEARS, DIRECTOR, JAGRITHA MULTIPURPOSE CO-OPERATIVE SOCIETY, R/AT. SHRI GURU NILAYA, SARASWATHA KUMERU, SOMESHWARA VILLAGE, POST KOTEKAR, ULLALA-575020 - 3 - NC: 2025:KHC:3841 WP No. 2240 of 2025 10. SRI MADHUSUDAN N. RAO, S/O NAGAPPAYYA AGED ABOUT 70 YEARS, DIRECTOR, JAGRITHA MULTIPURPOSE CO-OPERATIVE SOCIETY, R/AT. SUNDARIBHAG, MASTHIKATTA, ULLALA-575020 11. SRI A. JAGDISH NAIK, S/O APPAYYA NAIK AGED ABOUT 60 YEARS, DIRECTOR, JAGRITHA MULTIPURPOSE CO-OPERATIVE SOCIETY, R/AT. POOMAN HOUSE, TALAPADY, TALAPADY POST-575023 12. SRI LOKESH B. SAALYAN, S/O BHOJA SAALYAN AGED ABOUT 50 YEARS, DIRECTOR, JAGRITHA MULTIPURPOSE CO-OPERATIVE SOCIETY, R/AT. LAXMI NILAYA, MOGAVEERA PATNA, ULLALA-575020 13. SRI UDAYA KUMAR R.K., S/O LATE RAGHAVA BADIKOTYA AGED ABOUT 40 YEARS, DIRECTOR, JAGRITHA MULTIPURPOSE CO-OPERATIVE SOCIETY, R/AT. RK VAIDYANATHA NAGARA, 1ST CROSS, ULLALABAIL, ULLALA-575020 14. SMT. MALATHI SUDHAKAR, W/O SUDHAKAR K B AGED ABOUT 65 YEARS, DIRECTOR, JAGRITHA MULTIPURPOSE CO-OPERATIVE SOCIETY, R/AT. SHRI GANESH PRASAD, KORAGAJJA DWARADA BALI, KUTHAR, MUNNUR POST-575017. 15. SMT. MALLIKA, W/O SUDHEER AGED ABOUT 52 YEARS, - 4 - NC: 2025:KHC:3841 WP No. 2240 of 2025 THE GENERAL MANAGER, JAGRITHA MULTIPURPOSE CO-OPERATIVE SOCIETY, R/AT. SUBHASH NAGARA, ULLALA-575020 16. SMT. SURYAKALA, W/O SURESH AGED ABOUT 55 YEARS, VICE PRESIDENT, JAGRITHA MULTIPURPOSE CO-OPERATIVE SOCIETY, R/AT. CHOTA MANGALORE, MAIN ROAD ULLALA, ULLALA-575020 17. SRI U. LAKSHMAN, S/O HEMANTH U AGED ABOUT 70 YEARS, DIRECTOR, JAGRITHA MULTIPURPOSE CO-OPERATIVE SOCIETY, R/AT. MALADI ESTATE, BENGRE, KULUR, KAVOOR, MANGALORE-575020 …RESPONDENTS (BY SRI. SIDHARTH BABU RAO, AGA FOR R1 AND R2) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER DATED 31.12.2024 BEARING NO. DRP:56:CR04:2024-25 PASSED BY THE RESPONDENT NO.2 HEREIN (PRODUCED AS ANNEXURE-L) AND CONSEQUENTLY DIRECT THE RESPONDENT NO.2 TO CONSIDER COMPLAINT FILED BY THE PETITIONER (PRODUCED AS ANNEXURE- K). THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MRS JUSTICE K.S. HEMALEKHA - 5 - NC: 2025:KHC:3841 WP No. 2240 of 2025 ORAL ORDER The petitioner is seeking for the following reliefs: “i) Issue a Writ of Certiorari and Quash the order dated 31.12.2024 bearing No.DRP:56:CR04:2024- 25 passed by the respondent No.2 herein (produced as Annexure-"L") and consequently direct the respondent No.2 to consider complaint filed by the petitioner (produced as Annexure- "K"); and ii) Pass such other and further orders as deemed fit in the facts and circumstances of the case and in the interest of justice and equity.” 2. Heard the learned counsel for the petitioner and learned AGA for the respondents. 3. The petitioner claims to be a member of respondent No.3-Society and that he served as a President in respondent No.3-society for the period from 2015 to 2021. It is submitted that the enquiry was conducted under Section 65 of the Karnataka Co-Operative Societies Act, 1959 (‘the Act’ for short), for some illegalities committed by the employees of the Masti Katta Branch of - 6 - NC: 2025:KHC:3841 WP No. 2240 of 2025 respondent No.3-society during the year 2011-2015 and on enquiry, it was found that Rs.1,29,47,497/- was misappropriated by certain employees of the said Masti Katta Branch. It is the case of the petitioner that respondent No.3 - society, without recovering the amount from the employees who misappropriated the amount, has shown the said amount under the head ‘Assets’ in the balance sheet of respondent No.3-society for the year 2021-2022 and also shown it as interest recovered as per Section 65 of the Act and further shown as profit for the year 2021-2022. The petitioner filed a complaint before respondent No.2-Deputy Registrar of Co-Operative Societies and to the office of the Director Audit Department and sought to re-audit the accounts of respondent No. 3- the society, for the year 2021-2022 for irregularities stated to have been committed by respondent Nos.4 to 17. Pursuant to the complaint filed by the petitioner, the Director of the Audit Department sought permission from the Government to conduct the re-audit of the books of accounts of respondent No.3-society for - 7 - NC: 2025:KHC:3841 WP No. 2240 of 2025 the year 2021-2022 and sanction was granted to conduct the re-audit of book of accounts of respondent No.3- Society. The Deputy Registrar of Co-Operative Societies issued a letter to the Deputy Director of the Audit Department stating that as per the report of the Assistant Registrar of Co-Operative Societies, it was found in the general meeting of respondent No.3 dated 18.09.2022, a resolution has been passed to distribute the profits to the members as a dividend, which is not recovered from the person who misappropriated the funds. 4. Pursuant to the sanction issued by respondent No.1, respondent No.2 passed an order and re-audit of respondent No.3-society was conducted. The Auditor submitted a report stating that for the period 2021-2022, as per the said audit report, it is clear that without recovering the misappropriation funds, the same has been shown under the head ‘Profit’ and distributed to the members of respondent No.3-society. It is at that stage, when the audit report submitted, that the petitioner gave - 8 - NC: 2025:KHC:3841 WP No. 2240 of 2025 a complaint on 03.12.2024 before respondent No.2 to dissolve the present administrative board, suspend the Chief Executive Officer of respondent No.3-society and hence, sought to appoint an administrator to respondent No.3-society and cancel the membership of all the members who are responsible for the loss caused to respondent No.3. 5. The grievance of the petitioner is that there being a re-audit report indicating the misappropriation, the same being brought to respondent No. 2, respondent No. 2, without conducting any enquiry issued a letter dated 31.12.2024 to the petitioner that it had already enquired into the matter under Section 65 of the Act and passed an order under Section 68 and it has no power to re-examine its report under Section 65 and directed the petitioner to approach the appropriate forum. The grievance of the petitioner is that respondent No.2 has the power under Section 30 of the Act to suspend the board to appoint an administrator. - 9 - NC: 2025:KHC:3841 WP No. 2240 of 2025 6. Perusal of the impugned order indicates that respondent No.2 has directed the petitioner to approach the appropriate authorities as per the grievance of the petitioner and the perusal of the impugned order indicates that there is no illegality or infirmity arrived at by respondent No.2 warranting any interference by this Court. Accordingly, the writ petition is dismissed as devoid of merits. Sd/- _______________________ JUSTICE K.S. HEMALEKHA MBM List No.: 1 Sl No.: 19