- 1 - NC: 2025:KHC:17119 WP No. 10232 of 2025 C/W WP No. 14086 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 10232 OF 2025 (CS-RES) C/W WRIT PETITION NO. 14086 OF 2023 (CS-RES) IN WP No. 10232/2025 BETWEEN: 1. K. V. SRINIVAS, S/O K.V. VENKATAPPA, AGED 52 YEARS, 2. NARASIMHAMURTHY.S S/O SHANKARAPPA, AGED ABOUT 37 YEARS, 3. SHIVARAJ R.V S/O MAADI RAMANNA, AGED ABOUT 48 YEARS, 4. PADMAVATHAMMA W/O MUNIREDDY, AGED 72 YEARS, 5. MANJULAMMA S/O CHOWDAPPA, AGED ABOUT 38 YEARS. ALL PETITIONERS ARE DIRECTORS OF KOTAGAL Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:17119 WP No. 10232 of 2025 C/W WP No. 14086 of 2023 VYAVASAYA SEVA SAHAKARA SANGHA NIYAMITHA, KOTAGAL VILLAGE, CHINTAMANI TALUK - 563 125. …PETITIONERS (BY SRI. JAIKUMAR S. PATIL, SR. ADVOCATE FOR SMT. ANUSHA N, ADVOCATE) AND: 1. DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETIES CHIKKABALLAPURA, DC OFFICE PREMISES, CHIKKABALLAPUR - 562 101. 2. ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES, CHIKKABALLAPURA SUB DIVISION, APMC YARD, M.G ROAD, CHIKKABALLAPURA DISTRICT - 562 101. 3. CO-OPERATIVE DEVELOPMENT OFFICER/ENQUIRY OFFICER CHINTAMANI TALUK, KOTAGAL VYAVASAYA SEVA SAHAKARA SANGHA NIYAMITHA, KOTAGAL VILLAGE, CHINTAMANI TALUK - 563 125. 4. KOTAGAL VYAVASAYA SEVA SAHAKARA SANGHA NIYAMITHA, KOTAGAL VILLAGE, CHINTAMANI TALUK - 563 125, REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER. (REGISTERED UNDER THE KARNATAKA COOPERATIVE SOCIETIES ACT-1959) 5. THE MANAGER KOLAR-CHIKKABALLAPUR DCC BANK LTD., CHINTAMANI - 563 125, CHIKKABALLAPUR DISTRICT. - 3 - NC: 2025:KHC:17119 WP No. 10232 of 2025 C/W WP No. 14086 of 2023 (REGISTERED UNDER THE KARNATAKA COOPERATIVE SOCIETIES ACT-1959) 6. VENKATASHAMI REDDY. V.A S/O ASHWATH REDDY AGED ABOUT 40 YEARS VEERAPALLY, KOTGAL POST, CHINTAMANI TALUK, CHIKKABALAPURA DISTRICT. 7. N.L SRINIVASA REDDY S/O LAKSHMINARASAREDDY AGED ABOUT 55 YEARS, NARASAPURA, KOTGAL POST, CHINTAMANI TALUK, CHIKKABALAPURA DISTRICT - 563 125. 8. MUNIVENKATAPPA S/OVENKATARAMANNA AGED ABOUT 52 YEARS, KURUMARALAHALLI, KOTGAL POST, CHINTAMANI TALUK, CHIKKABALAPURA DISTRICT - 563 125. 9. ASHWATH REDDY, S/O MUNIYAPPA, AGED ABOUT 43 YEARS, JAGATHANAHALLI, KOTGAL POST, CHINTAMANI TALUK, CHIKKABALAPURA DISTRICT - 563 125. 10. D.L MANJUNATH, S/O LAKSHMANNA, AGED ABOUT 45 YEARS. KOTGAL, KOTGAL POST, CHINTAMANI TALUK, - 4 - NC: 2025:KHC:17119 WP No. 10232 of 2025 C/W WP No. 14086 of 2023 CHIKKABALAPURA DISTRICT - 563 125. 11. THIPPANNA S/O GANGAPPA, AGED ABOUT 60 YEARS, KOTGAL, KOTGAL POST, CHINTAMANI TALUK, CHIKKABALAPURA DISTRICT - 563 125. 12. R.G NAGARAJ S/O LATE GORLA KONDAPPA, AGED ABOUT 47 YEARS, RAGOTAHALLI, KOTGAL POST, CHINTAMANI TALUK, CHIKKABALAPURA DISTRICT - 563 125. 13. KOLAR -CHIKKALABALAPURA DISTRICT CENTRAL COOPERATIVE BANK LTD., PRABHA TALKIES ROAD, KOLAR - 563 101, REPRESENTED BY ITS MANGING DIRECTOR. (REGISTERED UNDER THE KARNATAKA COOPERATIVE SOCIETIES ACT-1959) …RESPONDENTS (BY SRI. YOGESH D. NAIK, AGA FOR R1 TO R3; SRI. KALLESHAPPA, ADVOCATE FOR R5 AND R13; SRI. T. DADAKHALANDAR, ADVOCATE FOR R6 TO R11) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE RESOLUTION DATED 25.03.2025 PASSED BY THE R-4 PRODUCED AS ANNX-P AND ETC., - 5 - NC: 2025:KHC:17119 WP No. 10232 of 2025 C/W WP No. 14086 of 2023 IN WP NO. 14086/2023 BETWEEN: 1. K.V. SRINIVAS S/O K.V. VENKATAPPA AGED ABOUT 52 YEARS, 2. R.G. NAGARAJ S/O LATE GORLA KONDAPPA AGED ABOUT 47 YEARS 3. NARASIMHAMURTHY S. S/O SHANKARAPPA AGED ABOUT 37 YEARS 4. SHIVARAJ. R.V. S/O MAADI RAMANNA AGED ABOUT 48 YEARS 5. PADMAVATHAMMA W/O MUNIREDDY AGED 72 YEARS 6. MANJULAMMA S/O CHOWDAPPA AGED ABOUT 38 YEARS ALL PETITIONERS ARE DIRECTORS OF KOTAGAL VYAVASAYA SEVA SAHAKARA SANGHA NIYAMITHA, KOTAGAL VILLAGE, CHINTAMANI TALUK. ...PETITIONERS (BY SRI. JAIKUMAR S. PATIL, SR. ADVOCATE FOR SRI. DEVI PRASAD SHETTY, ADVOCATE) - 6 - NC: 2025:KHC:17119 WP No. 10232 of 2025 C/W WP No. 14086 of 2023 AND: 1. DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETIES CHIKKABALLAPURA, DC OFFICE PRESMISES, CHIKKABALLAPUR - 562 101. 2. ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES CHIKKABALLAPURA SUB DIVISION, APMC YARD, M.G.ROAD, CHIKKABALAPURA DISTRICT - 562 101. 3. CO-OPERATIVE DEVELOPMENT OFFICER/ENQUIRY OFFICER CHINTAMANI TALUK KOTAGAL VYAVASAYA SEVA SAHAKARA SANGHA NIYAMITHA, KOTAGAL VILLAGE, CHINTAMANI TALUK - 563 125. 4. KOTAGAL VYAVASAYA SEVA SAHAKARA SANGHA NIYAMITHA, KOTAGAL VILLAGE, CHINTAMANI TALUK - 563 125 REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER. (REGISTERED UNDER THE KARNATAKA COOPERATIVE SOCIETIES 1959) 5. THE MANAGER KOLAR CHIKKABALLAPUR DCC BANK LTD., CHINTAMANI - 563 125 CHIKKABALLAPUR DISTRICT. (REGISTERED UNDER THE KARNATAKA COOPERATIVE SOCIETIES 1959) - 7 - NC: 2025:KHC:17119 WP No. 10232 of 2025 C/W WP No. 14086 of 2023 6. VENKATASHAMI REDDY V.A. S/O ASHWATH REDDY AGED ABOUT 40 YEARS, 7. N.L SRINIVASA REDDY S/O LAKSHMINARASAREDDY AGED ABOUT 55 YEARS 8. MUNIVENKATAPPA S/O VENKATARAMANNA AGED ABOUT 52 YEARS, 9. ASHWATH REDDY S/O MUNIYAPPA AGED 43 YEARS, 10. D.L MANJUNATH S/O LAKSHMANNA AGED 45 YEARS 11. THIPPANNA S/O GANGAPPA AGED 60 YEARS RESPONDENTS NO.6 TO 11 ARE DIRECTORS OF KOTAGAL VYAVASAYA SEVA SAHAKARA SANGHA NIYAMITHA, KOTAGAL VILLAGE, CHINTAMANI TALUK - 563 125. ...RESPONDENTS (BY SRI. YOGESH D. NAIK, AGA FOR R1 TO R3; R4 TO R6, R8 TO R11 - SERVED) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE ORDER PASSED BY R2 DATED 09/06/2023 IN NO SANI 48 - 8 - NC: 2025:KHC:17119 WP No. 10232 of 2025 C/W WP No. 14086 of 2023 AMARAM/31(1)CR-01/2023-24 PRODUCED AT ANNEXURE -E AND ETC., THESE PETITIONS, 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 for the following reliefs in W.P.No.10232/2025:- Wherefore, the petitioner most humbly prays that this Hon'ble Court may be pleased to issue i. Issue a writ in the nature of certiorari quashing the resolution dated 25.03.2025 passed by the respondent No.4 produced as Annxure-P. ii. such other direction or order writ as may deem fit to this Hon'ble Court may kindly be issued. 2. Petitioners are before this Court seeking for the following reliefs in W.P.No.14086/2023:- Wherefore, the petitioner most humbly prays that this Hon'ble Court may be pleased to issue i. Issue a writ in the nature of certiorari quashing the order passed by respondent No.2 dated 09.06.2023 in No.SANI 48 AMARAM/31(1)CR- 01/2023-24 produced at Annexure-E. - 9 - NC: 2025:KHC:17119 WP No. 10232 of 2025 C/W WP No. 14086 of 2023 ii. Issue a writ in the nature of certiorari quashing the order passed by the respondent No.1 dated 22.06.2023 in appeal No.DRC/APPEAL/106/01/2023 produced at Annexure-J. iii. Such other direction or order writ as may deem fit to this Hon'ble Court may kindly be issued. 3. The respondent No. 4-Kotagal Vyavasaya Seva Sahakara Sangha Niyamitha , the petitioners and respondent Nos.6 to 12 were elected to the Board of Directors in the election conducted on 15.05.2022, respondent No.12 was elected as a President and petitioner No.2 was elected as a Vice President in the election on 02.06.2022. Thereafter, there being some disputes respondent Nos.6 to 12 are alleged to have submitted their resignation letters on 22.05.2023. However, respondent No.12 contended that no such resignation was submitted by respondent No.12 someone had impersonated respondent No.12 and as such alleged that there was a fraud which has been committed. Respondent Nos.6 to 11 have however confirmed the resignation which they had submitted. 4. The Co-operative Development Officer having received the resignation letters allegedly including that of respondent - 10 - NC: 2025:KHC:17119 WP No. 10232 of 2025 C/W WP No. 14086 of 2023 No.12 had forwarded the same to the Assistant Registrar of Co-operative Societies (ARCS). The ARCS considering that 6 out of 12 Directors had resigned being of the opinion that the quorum was not available. The quorum being 7 appointed a Special Officer, the said appointment of Special Officer was challenged by the petitioners and respondent No.12-R.G.Nagaraj in W.P. number 14057/2023 where in the order of appointing the Special Officer dated 09.06.2023 has been stayed. 5. The petitioner is before this Court contending that when respondent Nos.6 to 11 have resigned from the post of Directors, they have conducted a meeting and passed a resolution on 25.03.2025 they are not so authorized to either conduct a meeting or pass a resolution, they no longer be members of the Board of Directors. 6. The submission of Sri. Jaikumar S Patil, learned Senior counsel is that there is no dispute about respondent Nos.6 to 11 having resigned, they have neither file an appeal nor challenged their resignation. It is only R.G.Nagaraj and the petitioners who had filed the Writ Petition. R.G.Nagaraj contending that he had never issued the resignation and - 11 - NC: 2025:KHC:17119 WP No. 10232 of 2025 C/W WP No. 14086 of 2023 someone else had impersonated him. Thus, he submits that the interim order in W.P. No.14057/2023 staying the order of appointment of Special Officer dated 09.06.2023 would only reinstate the continuing Directors that is the Directors who have not resigned including R.G.Nagaraj. The respondent Nos.6 to 11 who have resigned and their resignation have been accepted, the same having attained finality cannot hold any meeting and as such, he submit that the writ petition is required to be allowed. 7. Sri. T.Dadakhalandar., learned counsel appearing for respondent Nos.6 to 11 would submit that in view of the interim order in W.P No. 14057/2023 the appointment of Special Officer having been stayed, the entire Board will come back into operation. As such, a meeting had been called for by respondent Nos.6 to 11 which was not attended by the petitioners and a resolution has been validly passed, since the respondent Nos.6 to 11 continued to be Directors. As such, he submits that the resolution being proper and valid, the writ petition is required to be dismissed. - 12 - NC: 2025:KHC:17119 WP No. 10232 of 2025 C/W WP No. 14086 of 2023 8. Sri. Kalleshappa., learned counsel for respondent Nos.5 and 13 submits that the dispute is between the petitioners and respondent Nos.6 to 11 and the Federal Society has nothing to do with it. 9. Sri. Yogesh D Naik., learned Additional Government Advocate submits that the resignation submitted by respondent Nos.6 to 11 have been validly accepted by the ARCS, a dispute as regards to validity or otherwise of resignation of respondent No.12-R.G.Nagaraj is pending consideration in the appeal. 10. Heard learned counsel for the petitioners and learned counsel for the respondents. 11. Perused the materials on record. 12. The points that would arise for consideration are:- i. Whether when a Special Officer is appointed on account of lack of quorum due to resignation by the majority of the Directors, on an appeal filed by one of the Directors alleging that he has not resigned and the same being stayed, would the entire Board of Directors be reinstated ?. ii. What order ?. 13. I answer the above points as under: - 13 - NC: 2025:KHC:17119 WP No. 10232 of 2025 C/W WP No. 14086 of 2023 i. Whether when a Special Officer is appointed on account of lack of quorum due to resignation by the majority of the Directors, on an appeal filed by one of the Directors alleging that he has not resigned and the same being stayed, would the entire Board of Directors be reinstated ? 13.1 In the present case, it is not in dispute that respondent Nos.6 to 11 have resigned though a resignation letter has been submitted by respondent No.12, the said respondent contends that such resignation letter was not submitted by him and someone else is impersonated him and as such it is not his resignation letter. The resignation submitted by respondent Nos.6 to 11 have been accepted by the ARCS and their resignation is complete and has attained finality. Since, respondent Nos.6 to 11 have not challenged individually or jointly or severally, the said acceptance of either the resignation letter or the acceptance of resignation by the ARCS, it is taken into account the challenge made by respondent No.12 that this Court in W.P. 14057/2023 has stayed the appointment of the Special Officer being of the opinion that the resignation of R.G.Nagaraj if were to be issued, the quorum for the Society would be available as a society could continue to - 14 - NC: 2025:KHC:17119 WP No. 10232 of 2025 C/W WP No. 14086 of 2023 function. The said challenge has been made only by R.G.Nagaraj, the benefit of the said order of challenge to the resignation can only enure to Sri. R.G.Nagaraja and not to the other respondents, who had submitted their resignations namely respondent Nos.6 to 11. 14. If R.G.Nagaraj's resignation were to be eschewed then the quorum being present, it is only the non resigning Directors and R.G.Nagaraj who can conduct a meeting of the Board and not respondent Nos.6 to 11 whose resignation is complete. The stay of the order of appointment of Special Officer cannot enure to the benefit of respondent Nos.6 to 11 but can only enure to the benefit of the non resigning Directors including Sri. R.G.Nagaraj. Respondent Nos.6 to 11 therefore cannot contend that due to the stay of the order dated 09.06.2023 they have also are reinstated as Directors irrespective of the resignation submitted by them. 15. In that view of the matter, I answer point No.1 by holding that once a resignation is submitted, accepted and not challenged, the same would attain finality and the resigning Directors cannot seek to contend that they continue to be - 15 - NC: 2025:KHC:17119 WP No. 10232 of 2025 C/W WP No. 14086 of 2023 Directors of the Society without any favorable orders having been passed in their favour and as such, the interim order in W.P No. 14057/2023 will only enure to the benefit of Sri. R.G.Ngaraj and the Directors who have not resigned and not to the Directors who have resigned and resignation has been accepted. 16. In so far as WP No.14086/2025 is concerned Sri. R.G Nagaraja having categorically contended that he had not submitted his resignation and nothing being placed on record indicating that he had submitted his resignation. I am of the considered view that if the resignation of R.G.Nagaraja is eschewed, the quorum would be available and once the quorum is available respondent No.2-ARCS would not have a right to appoint a Special Officer. 17. Answer to point No.2: ii. What order ? 17.1. In view of my answer to point No.1, respondent Nos.6 to 11 could not have conducted any meeting nor passed any resolution. As such, I pass the following:- - 16 - NC: 2025:KHC:17119 WP No. 10232 of 2025 C/W WP No. 14086 of 2023 ORDER IN W.P NO.10232/2025 i. Writ Petition No.10232/2025 is allowed. ii. A certiorari is issued, resolution dated 25.03.2025 passed by respondent Nos.4 in a separate meeting held by them at Annexure- P is quashed. ORDER IN W.P NO.14086/2023 i. Writ petition No.14086/2023 is disposed of. ii. A certiorari is issued, the order passed by respondent No.2 at Annexure-E is hereby quashed. iii. A certiorari is issued, the order passed by respondent No.1 at Annexure-J is hereby quashed. iv. W.P. No.14086/2023 has been filed on account of the first respondent- Deputy Registrar of Co- operative Society not having granted interim orders in the appeal filed by Sri.R.G.Nagaraja and others. This Court having granted such an interim order and the said interim order being continued. v. I am of the consider opinion that the interim order could continue until the disposal of the appeal filed - 17 - NC: 2025:KHC:17119 WP No. 10232 of 2025 C/W WP No. 14086 of 2023 by Sri.R.G.Nagaraja and others. As such, W.P No.14086/2023 is disposed of by extending the interim order till the disposal of the appeal in Appeal No. 106/01-2023 by the DRCS. The DRCS is directed to dispose of the said appeal as expeditiously as possible preferably within a period of six months from today. Sd/- (SURAJ GOVINDARAJ) JUDGE VS List No.: 1 Sl No.: 18 CT: BHK