- 1 - NC: 2025:KHC:13579 WP No.6225 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 1ST DAY OF APRIL, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO.6225 OF 2025 (CS-EL/M) BETWEEN: 1. SRI. M. MANJAPPA S/O LATE M. ERAPPA, AGED ABOUT 56 YEARS, R/O. NEERALAGI, MALLAPURA POST, SORABA TALUK, SHIVAMOGGA - 577 413. 2. SRI. SHIVALINGAPPA K. C. S/O SRI. KARIBASAPPA, AGED ABOUT 55 YEARS, R/O. MALLAPURA, SORABA TALUK, SHIVAMOGGA - 577 413. 3. SRI. SATISH D. REVANKAR, S/O LATE DATTATREYA, AGED ABOUT 53 YEARS, R/O. MALLAPURA, SORABA TALUK, SHIVAMOGGA - 577 413. 4. SRI. SHIVANANDAPPA, S/O SRI. BASAVANTHAPPA, AGED ABOUT 50 YEARS, R/O. MALLAPURA, SORABA TALUK, SHIVAMOGGA - 577 413. Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:13579 WP No.6225 of 2025 5. SRI. H. NINGAPPA, S/O SRI. SHIVAPPA, AGED ABOUT 77 YEARS, R/O. MALLAPURA, SORABA TALUK, SHIVAMOGGA - 577 413. 6. SMT. SHAKUNTALAMMA, W/O SRI. NAGAAPPA, AGED ABOUT 52 YEARS, R/O. MALLAPURA, SORABA TALUK, SHIVAMOGGA - 577 413. 7. SRI. H. VEERESHAPPA, S/O SRI. MASTERAMMA, AGED ABOUT 68 YEARS, R/O. NEELARAGI, MALLAPURA POST, SORABA TALUK, SHIVAMOGGA - 577 413. 8. SRI. B. CHANDRAPPA, S/O SRI. BASAVANNEPPA, AGED ABOUT 60 YEARS, R/O. NEELARAGI, MALLAPURA POST, SORABA TALUK, SHIVAMOGGA - 577 413. PETITIONER NOS. 1 TO 8 ARE THE MEMBER OF THE GOVERNING COUNCIL PRIMARY AGRICULTURAL CO-OPERATIVE SOCIETY (PACS), MALLAPURA, ANNAVATTI TALUK, SHIVAMOGGA. …PETITIONERS - 3 - NC: 2025:KHC:13579 WP No.6225 of 2025 (BY SRI. HIREMATH MALLAYYA VEERAYYA, ADVOCATE) AND: 1. THE STATE OF KARNATAKA BY ITS SECRETARY, DEPARTMENT OF CO-OPERATION, VIDHANA SOUDHA, BENGALURU - 560 001. 2. THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES, SAGAR SUB DIVISION, ACHARYA COMPLEX, I CIRCLE, BH ROAD, SAGAR, SHIVAMOGGA DISTRICT - 577 401. 3. THE SUPERVISOR, DCC BANK, ANNAVATTI CIRCLE, NEAR POLICE STATION, SHIVAMOGGA DISTRICT - 577 201. …RESPONDENTS (BY SRI. YOGESH D. NAIK, AGA) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER DATED 27.01.2025 IN AR 25/KALUM-28A(5)/CR-22/2024-25 AS PER ANNEXURE-H BY ISSUE OF WRIT IN THE NATURE OF CERTIORARI OR ANY OTHER WRIT OR DIRECTIONS; DIRECT THE RESPONDENT NOS. 2 AND 3 TO ALLOW THE PETITIONERS - 4 - NC: 2025:KHC:13579 WP No.6225 of 2025 TO CONTEST THE ENSUING ELECTION THE GOVERNING COUNCIL OF PACS, MALLAPURA, SORABA TALUK, SHIVAMOGGA DISTRICT FOR THE CO-OPERATIVE YEAR 2025-2026 TO 2029-2030. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ ORAL ORDER 1. Petitioners are before this Court seeking the following reliefs: a) To quash the impugned Order dated 27.01.2025 in AR 25/Kalum-28A(5)/CR-22/2024-25 as per Annexure-H by issue of writ in the nature of certiorari or any other writ or directions; b) To direct the Respondent Nos. 2 & 3 to allow the Petitioners to contest the ensuing election to the Governing Council of PACS, Mallapura, Soraba Taluk, Shivamogga District for the co-operative year 2025-2026 to 2029-2030; c) To grant such other relief/s as deems fit in the circumstances of the case and allow the writ petition with costs in the interest of justice and equity." 2. The petitioners are aggrieved by the appointment of Administrator to the Primary Agricultural Co-operative - 5 - NC: 2025:KHC:13579 WP No.6225 of 2025 Society, Mallapura, Annavatti Taluk. The submission made by the learned counsel for the petitioners is that earlier secretary had expired on 20.02.2023, thereafter, the Society had corresponded with respondent No.2 - Assistant Registrar of Co-operative Societies, Sagar Sub Division, on 17.09.2024, 05.11.2024, 11.11.2024 and 29.11.2024 for appointment of Secretary. 3. A show-cause notice came to be issued on 24.12.2024, calling upon the petitioners as to why the Governing Council of the Society has not conducted election to the Society within the stipulated time as per Karnataka Co- operative Societies Rules, 1960, and the provision of Rule 13D having not been complied with, why the petitioners should not be disqualified and why an Administrator be not appointed to conduct election as per Section 28A(5) of the Karnataka Co-operative Societies Act, 1959. 4. The petitioners submitted an explanation that since the earlier Secretary had expired, new Secretary could not be appointed and as such the proceedings could not be taken up. The explanation having not been accepted by - 6 - NC: 2025:KHC:13579 WP No.6225 of 2025 respondent No.2, respondent No.3 herein was appointed as Administrator on 27.01.2025. Challenging the same, petitioners are before this Court. 5. The submission of Sri. M.V. Hiemath, learned counsel for the petitioners is that, steps could not be taken for appointment of a Chief Executive Officer or Incharge CEO, since permission was not granted by respondent No.2 - ARCS and since no Chief Executive Officer or in-charge CEO was appointed, the requirement of Rule 13D could not be complied. The petitioners have been disqualified under Section 29-C and the Administrator has been appointed to conduct the elections. As such, learned counsel submits that there being genuine and bona fide reason for non compliance of Rule 13D, the same has not been considered by the second respondent. Learned counsel therefore submits that, this fact having not been considered by respondent No.2, the order dated 27.01.2025 suffers from legal lacuna requiring it to be set aside. - 7 - NC: 2025:KHC:13579 WP No.6225 of 2025 6. Learned Additional Government Advocate relying on Rule 17 of the Karnataka Co-operative Societies Rules, 1960, would submit that it is for the Society to assess the requirement of number of employees depending on the work load and business requirement as also the financial position of the Society and there is no requirement of any pre-approval to be granted by the ARCS for appointment of any CEO. It is after the recruitment is made, the same would be intimated to the Assistant Registrar of Co- operative Societies. In the present case, there is no appointment made by the petitioners and there is no requirement for pre-approval of Assistant Registrar of Co- operative Societies. The explanation given by the petitioners to the show-cause notice being not satisfactory, the impugned order dated 27.01.2025 has been passed, taking into consideration all relevant aspects which cannot be found fault with. 7. The short question that would arise for consideration of this Court is whether there is any prior permission required to be obtained from the ARCS for a Society to - 8 - NC: 2025:KHC:13579 WP No.6225 of 2025 appoint a Secretary or a Chief Executive Officer or an In- charge Chief Executive Officer? 8. Rule 17 of the Karnataka Co-operative Societies Rules, 1960, deals with Officers and employees of Co-operative Societies, their qualifications etc. A perusal of Sub-rule (1) thereof, would indicate that subject to the budget allotted by General Body, the Managing Board of the Co- operative Society shall from time to time, determine the strength of the establishment of the Co-operative Society, keeping in view the workload and business requirements of the Society and the scale of pay and other allowances admissible to each employee of the establishment thereof with reference to the financial position of the Society. On that basis, in terms of Rule 17A prescribing minimum qualifications, the society has to embark on the process of recruitment. Perusal of Rule 17 or 17A, does not in any manner indicate any requirement of pre approval from Assistant Registrar of Co-operative Societies or Registrar of Co-operative Societies for initiating recruitment process. - 9 - NC: 2025:KHC:13579 WP No.6225 of 2025 9. It is for the Managing Board on the basis of the budget sanctioned by General Body of the Society to fix such posts as may be required for recruitment, the qualifications being prescribed under Rule 17A, invite applications, recruit qualified persons for the concerned posts. All these aspects are to be carried out by the Managing Board or the Governing Council of the Society and there is no requirement for any pre approval from the Assistant Registrar of Co-operative Societies or Registrar of Co-operative Societies for the purpose of initiation of recruitment process. 10. It is only if the Society is continuously under loss for three years and if the accumulated loss in the preceding year exceeds 2% of the working capital, that permission is required to be obtained. In the present case, the Co- operative Society is stated to be a profitable one. Therefore, even the provisions of Sub-rule (1) of Rule 17 would not be applicable. The post of a Secretary or a Chief Executive Officer is not an 'Out Source Post'. Therefore, Sub-rule (4) of Rule 17 would also be not applicable. - 10 - NC: 2025:KHC:13579 WP No.6225 of 2025 11. Hence, the contention of the learned counsel for the petitioners that pre-approval of Assistant Registrar of Co- operative Societies is required for initiating recruitment process is not sustainable in law. The earlier secretary having expired on 20.02.2023, no action having been taken till January, 2025, the Administrator has been appointed and petitioners have been disqualified. It is nearly two years from the date of expiry of the earlier Secretary during which time, the Governing Council has not taken any steps. The same cannot be justified under any circumstances. 12. In that view of the matter, no case is made out for interference. The petition is dismissed. SD/- (SURAJ GOVINDARAJ) JUDGE sac List No.: 2 Sl No.: 3