- 1 - NC: 2025:KHC:17397 WP No. 10025 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 10025 OF 2025 (CS-RES) BETWEEN: 1. M. SRINIVASAPPA S/O MUNIVENKATAPPA, AGE 70 YEARS R/O HULIGUMMANAHALI, CHINTAMANI TALUK, CHIKKABALLAPUR DISTRICT - 563 128. 2. H.M. GOVINDAREDDY, S/O T.K MUNIVENKATARAYAPPA, AGE 50 YEARS, PRESIDENT HULUGUMMANAHALLI VYAVASAYA SEVA SAHAKARA SANGHA NIYAMITHA, R/O HULUGUMMANAHALLI, CHINTAMANI TALUK, CHIKKABALLAPUR DISTRICT - 563 128. …PETITIONERS (BY SRI. JAYKUMAR S. PATIL, SR. ADVOCATE FOR SRI. DEVI PRASAD SHETTY, ADVOCATE) AND: 1. THE STATE OF KARNATAKA DEPARTMENT OF COOPERATION, M.S. BUILDING. DR. B.R. AMBEDKAR VEEDI, BENGALURU - 560 001, REPRESENTED BY ITS PRINCIPAL SECRETARY. 2. THE DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETIES, 2ND FLOOR, DISTRICT ADMINISTRATION BUILDING, CHIKKABALLAPURA - 562 101. ® Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:17397 WP No. 10025 of 2025 3. KOLAR AND CHIKKABALLAPURA DISTRICT CENTRAL COOPERATIVE BANK LTD., DCC BANK ROAD, KOLAR - 563 101, REPRESENTED BY ITS MANAGING DIRECTOR. 4. HULUGUMMANAHALLI VYAVASAYA SEVA SAHAKARA SANGHA NIYAMITHA, HULUGUMMANAHALLI, CHINTAMANI TALUK, CHIKKABALLAPUR DISTRICT - 563 128, REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER. THE RESPONDENT NO. 3 AND 4 ARE REGISTERED UNDER KARNATAKA COOPERATIVE SOCIETIES ACT-1959) 5. MUNINARAYANAPPA, S/O MUNIVEERAPPA, AGE 70 YEARS JANGAMASEEGEHALLI, KAIVARA HOBLI, CHINTAMANI TALUK, CHIKKABALLAPUR DISTRICT - 563 128. …RESPONDENTS (BY SRI. YOGESH D. NAIK, AGA FOR R1 AND R2; SRI. KALLESHAPPA, ADVOCATE FOR R3; SRI. T. DADAKHALANDAR, ADVOCATE FOR R5; R4-HULUGUMMANAHALLI VYAVASAYA SEVA SAHAKARA SANGHA NIYAMITHA, CHIKKABALLAPUR - SERVED THROUGH HAND SUMMONS) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO-QUASH THE NOTICE DATED 26.03.2025 BEARING NO. DRC/CHUNAVANE/DELEGATE/2024-25 ISSUED BY THE R-2 PRODUCED AT ANNX-E AND ETC., THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - NC: 2025:KHC:17397 WP No. 10025 of 2025 CORAM: HON'BLE MR JUSTICE SURAJ GOVINDARAJ ORAL ORDER 1. The petitioner is before this Court seeking for the following reliefs: (a) Issue a writ in the nature of certiorari or any other order quashing the notice dated 26.03.2025 bearing No.DRC/CHUNAVANE/DELEGATE/2024-25 issued by the respondent no.2 produced at Annexure-E. (b) Issue a writ in the nature of certiorari or any other order quashing the emergency board meeting resolution dated 29.03.2025 passed by the respondent no.4 produced at Annexure-G. (c) Issue such other appropriate writ, order, or direction as this Hon'ble Court deems fit under the circumstances of the case in the interest of justice and equity. 2. The grievance of the petitioner was that the 1st petitioner having been nominated as a delegatee of the 4th Respondent-Society in the meeting dated 24.03.2025, at the instance of the Deputy Registrar of Co-operative Societies (for short, DRCS), a fresh meeting was called for vide notice dated 27.03.2025 to be held on 29.03.2025. - 4 - NC: 2025:KHC:17397 WP No. 10025 of 2025 3. The submission of Shri.Jayakumar.S.Patil, learned Senior Counsel is that there cannot be a fresh meeting which could be conducted either by the Society on its own or under the instructions of the DRCS when a resolution has already been passed by the Society in terms of Annexure-C. He submits that if at all, Respondent No.5 and/or anyone else were aggrieved by the said resolution ought to have challenged it o adopted the pocedure in terms of Subsection (3) of Section 21 of the Karnataka Co- operative Societies Act, 1959 (for short, ‘KCS Act’) wheeunde the nomination or delegation made by the Co-operative Society could be changed by a resolution of not less than 2/3rd majority of members present and voting. 4. His submission therefore is that no fresh meeting could be held to negate the earlier resolution and pass a fresh resolution without compliance of Sub- section (3) of Section 21 of the KCS Act. - 5 - NC: 2025:KHC:17397 WP No. 10025 of 2025 5. Shri.T.Dadakhalandar, learned counsel appearing for Respondent No.5 would submit that the resolution at Annexure-C is an improper one. There was no such delegation which had been approved in the said meeting and as such, a complaint had been filed to the DRCS and the DRCS had directed a fresh meeting to be held dehors the meeting when the resolution at Annexure-C has been passed. He therefore submits that calling for the meeting vide the notice dated 27.03.2025 was proper and correct. 6. Heard Shri.Jayakumar.S.Patil, learned Senior Counsel appearing for the petitioner and Shri.T.Dadakhalandar, learned counsel appearing for Respondent No.5. Perused papers. 7. The short question that would arise for consideration is: "Whether once a delegation has been made in terms of Section 21(1) of the KCS Act, can a fresh meeting be held to consider the very same resolution"? - 6 - NC: 2025:KHC:17397 WP No. 10025 of 2025 8. Section 21 of the KCS Act is reproduced hereunder for easy reference: Section 21. Manner of exercising vote. [(1) Every member, every delegate and every nominee shall exercise his vote in person and not by proxy.] [Substituted by Act 19 of 1976 w.e.f. 21.01.1976.] (2) Notwithstanding anything contained in sub- section (1),- (a) [the committee of a co-operative society which is a member of another co-operative society may appoint one of the members of the committee to vote on its behalf in the affairs of that other society;] [Substituted by Act 25 of 1998 w.e.f. 15.08.1998 and again substituted by Act 13 of 2004 w.e.g. 22.03.2004.] (b) [where the Life Insurance Corporation of India, the State Warehousing Corporation or such other institutions approved by the State Government or a market committee or a local authority or a firm, a company or any other body corporate constituted under any law for the time being in force is a member of a co-operative society, a person nominated by such institution, market committee or local authority or a firm, a company or any other body corporate constituted under any law for the time being in force, may vote on its behalf in the affairs of the society;] [Substituted by Act 25 of 1998 w.e.f. 15.08.1998. (3) [A member once nominated by the committee of a co-operative society under clause (a) of sub- section (2) to vote on its behalf in any meeting of any other co-operative society shall not be changed except by a resolution passed in a general body meeting by a majority of the members present and voting in such meeting.] [Inserted by Act 25 of 1998 w.e.f. 15.08.1998.] - 7 - NC: 2025:KHC:17397 WP No. 10025 of 2025 9. A delegation can be made by a Society to vote on its behalf in the affairs of another Society of which the said Co-operative Society is a member, which resolution in terms of clause (1) of Subsection (2) Section 21 of the KCS Act can be passed by a simple majority. Once such a resolution is passed, the only manner in which the said resolution could be negated is by a challenge to the same and the challenge being upheld by the concerned authority or by holding one other meeting under Subsection (3) of Section 21 of the KCS Act wherein the earlier resolution can be changed this time, however, with 2/3rd of the majority of the members present and voting. 10. In the present matter, by the DRCS directing holding of meeting under the notice dated 27.03.2025, the said meeting is to be considered as a fresh meeting to consider the delegation afresh in terms of clause (1) of Subsection (2) Section 21 of the KCS Act, which could be passed with a simple majority. That - 8 - NC: 2025:KHC:17397 WP No. 10025 of 2025 would negate the entire requirement of Subsection (3) Section 21 of the KCS Act requiring 2/3rd majority to change the delegation earlier made and as such, such a meeting cannot be called for. Furthermore, any meeting to be called for could have been called only on requisition by the members, by the Chief Executive Officer and not by the DRCS. 11. No challenge having been made to the earlier resolution even though the submission of Shri.Dadakhalandar, learned counsel appearing for Respondent No.5 is that the resolution has not been properly recorded. The same cannot be accepted without such a challenge. 12. In that view of the matter, I answer the point raised by holding that once a resolution has been passed under clause (a) of Subsection (1) Section 21 of the KCS Act by a Co-operative Society nominating a delegate in the meeting of the other Co-operative Society, no fresh meeting can be held at the instruction of the DRCS to negate the earlier resolution the procedure that can be followed is - 9 - NC: 2025:KHC:17397 WP No. 10025 of 2025 either to challenge the resolution and get it set aside or to follow the procedure under Sub-section (3) of Section 21 of the KCS Act. 13. As such, I pass the following: ORDER i) The Writ Petition is allowed. ii) A certiorari is issued; The notice dated 26.03.2025 at Annexure E is quashed; Consequently, resolution 29.03.2025 at Annexure-G, which is a resolution by simple majority is quashed. iii) Liberty is however reserved for Respondent No.4 to hold a meeting in terms of Subsection (3) of Section 21 of the KCS Act as also to challenge the resolution already passed. SD/- (SURAJ GOVINDARAJ) JUDGE DH List No.: 2 Sl No.: 13 CT: BHK