- 1 - NC: 2025:KHC:1580 WP No. 22493 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MRS JUSTICE K.S. HEMALEKHA WRIT PETITION NO.22493 OF 2024 (CS-RES) BETWEEN: SRI AMRITHARAJ S/O. LATE MUNNUSWAMY, AGED ABOUT 55 YEARS, R/AT NO.18, 2ND CROSS, NARAYANA REDDY ROAD, DODDA BANASWADI, BANGALORE – 560043. ... PETITIONER (BY SRI DILRAJ JUDE ROHIT SEQUEIRA, ADVOCATE) AND: 1. STATE OF KARNATAKA DEPARTMENT OF CO-OPERATION 6TH FLOOR, M.S.BUILDING, AMBEDKAR VEEDHI, BENGALURU – 560 001. BY ITS ADDITIONAL CHIEF SECRETARY 01. 2. ADDITIONAL REGISTRAR OF CO-OPERATIVE SOCIETIES (H & M) NO.01, ALI ASKAR ROAD, BENGALURU – 560052. 3. THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES, BENGALURU REGION SAHAKARA SOUDHA, NO.143 3RD FLOOR, 3RD MAIN ROAD, 8TH CROSS, MARGOSA ROAD, MALLESWARAM, BENGALURU – 560003. Digitally signed by MAHALAKSHMI B M Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:1580 WP No. 22493 of 2024 4. BHARAT ELECTRONICS AMBEDKAR MULTIPURPOSE CO-OPERATIVE SOCIETY LTD. (REG. UNDER KCS ACT 1959) NO.G-01, BEL COLONY, JALAHALLI, BENGALURU – 560013 BY ITS SECRETARY MANJULA, AGED ABOUT 52 YEARS. 5. THE PRESIDENT, BHARAT ELECTRONICS AMBEDKAR MULTIPURPOSE CO-OPERATIVE SOCIETY LTD. (REG. UNDER KCS ACT 1959) NO.G-01, BEL COLONY, JALAHALLI, BENGALURU – 560013 MR. VIJAY KUMAR AGED ABOUT 38 YEARS. ... RESPONDENTS (BY SRI YOGESH D. NAIK, AGA FOR R-1 TO R-3; SRI DADA KALANDAR, ADVOCATE FOR R-4) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 AND 227 OF CONSTITUTION OF INDIA PRAYING TO THE ORDER PASSED BY LEARNED 3RD RESPONDENT VIDE ORDER BEARING NO.JRB/MISC./14/2021-22 DATED 20/10/2022 PRODUCED AT ANNEXURE-A; THE ORDER PASSED BY THE ADDL. REGISTRAR OF COOPERATIVE SOCIETIES i.e. 2ND RESPONDENT IN DATED 05/08/2024 VIDE ANNEXURE-B, CONFIRMING THE ORDER PASSED BY THE 3RD RESPONDENT IN CASE NO.JRB/MISC./14/2021-22 DATED 20/10/2022, PRODUCED AT ANNEXURE-A. THIS WRIT PETITION COMING ON FOR DICTATION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MRS JUSTICE K.S. HEMALEKHA - 3 - NC: 2025:KHC:1580 WP No. 22493 of 2024 ORAL ORDER Petitioner challenges the order passed by respondent No.3-Joint Registrar of Co-Operative Societies dated 20.10.2022 and the dismissal of the appeal preferred by the petitioner before respondent No.2-Additional Registrar of Co-Operative Societies vide order dated 05.08.2024. The challenge in the petition is regarding disqualification of the petitioner from the board of respondent No.5-society under Section 29-C (3) (c) of the Karnataka Co-Operative Societies Act, 1959 (‘KCS Act, 1959’ for short). 2. Brief facts are that, the petitioner was elected as a member of the Managing Committee of respondent No.4 in an election held on 09.02.2020, wherein he was declared unanimously selected for the tenure of five years. The petitioner served as the President of respondent No.4- society from February 2010 to February 2020 and thereafter, until the issuance of the impugned order, i.e., upto 20.10.2022. - 4 - NC: 2025:KHC:1580 WP No. 22493 of 2024 3. Respondent Nos.3 and 4 filed petition before the Joint Registrar seeking disqualification of the petitioner under Section 29-C (3)(c) of the KCS Act, 1959 stating the ground of absence of meeting. Respondent No.3 on 20.10.2022 disqualified the petitioner on the ground that the petitioner has not attended the annual general meeting as envisaged under the KCS Act, 1959. 4. It is the grievance of the petitioner that the meetings were held within 15 days and not in three consecutive months as required by the byelaws of the society and the meetings were held during the Covid-19 pandemic, which was major distraction for the petitioner’s attendance. It is the further case of the petitioner that the petitioner has resigned from the Director of the society on 28.07.2022, however, his resignation was rejected by respondent Nos.3 and 4. 5. Heard learned senior counsel for the petitioner and learned counsel for the respondents. - 5 - NC: 2025:KHC:1580 WP No. 22493 of 2024 6. Learned senior counsel for the petitioner submits that the disqualification of the petitioner was on two counts, that there is violation of Section 29-C(3)(c) of the KCS Act, 1959 and that the petitioner by violating the provisions of the Act has appointed the close relative as a clerk in the society. It is submitted that the clerk in question is not a close relative as defined under the KCS Act, 1959 and the disqualification of the petitioner warrants interference. It is submitted that the claim of the respondent-society was that on 11.09.2021, 18.09.2021, 25.09.2021 and 10.10.2021, the petitioner has absented himself for the three consecutive meetings for the board of the society without any leave, however, the impugned order passed by respondent Nos.2 and 3 is without considering that on 11.09.2021, the petitioner had attended the meeting and there are available materials documents produced by the petitioner. It is submitted that disqualification based on the petitioner’s absenteeism for the three consecutive meetings for the Board of Directors is not justified, as the meetings in question were - 6 - NC: 2025:KHC:1580 WP No. 22493 of 2024 held within 15 days period, which do not comply with the byelaws and the statutory provisions as the meetings were consequently held on 11.09.2021, 18.09.2021 and 25.09.2021. Disqualification order passed by respondent No.3 is without adhering to the procedural requirement as prescribed in the byelaws and the KCS Act, 1959. 7. Per contra, learned counsel for respondent No.4 reiterating the statement of objections submits that the petitioner was disqualified on the ground that the petitioner being a Board of Directors of respondent No.4- society has absented for the board meetings which were held on 13.07.2021 11.09.2021, 18.09.2021, 25.09.2021 and 11.10.2021 and respondent No.3-authority as well as second appellate authority have rightly passed an order confirming the order of disqualification. It is submitted that apart from the order of the disqualification, the petition also suffers from the order of disqualification passed against all the Board of Directors which is in challenge in WP No.23019/2024. - 7 - NC: 2025:KHC:1580 WP No. 22493 of 2024 8. Having heard the learned counsel for the parties, the question that falls for consideration is : “i. Whether disqualification order under Section 29-C (3) (c) of the KCS Act, 1959 is valid given the specific circumstances of the meeting held during COVID-19 pandemic? ii. Whether the impugned orders passed by respondent Nos.2 and 3 warrant interference in the facts and circumstances of the present case?” 9. The dispute was raised by respondent No.5- society stating that the society had convened monthly meeting as a routine course to discuss the subject matters on 13.07.2021 by issuing notice on 08.07.2021 to all the members including the petitioner herein, who had acknowledged the said meeting notice but failed to attend the meeting which is held on 13.07.2021 without leave from the committee of the management. Further, the claim of the society was that on 04.09.2021, a meeting notice was served to the petitioner to attend the said meeting, which was scheduled on 11.09.2021, but it was postponed and rescheduled on 18.09.2021, Further, in - 8 - NC: 2025:KHC:1580 WP No. 22493 of 2024 spite of meeting notice, the petitioner has failed to attend the said meeting which was scheduled on 18.09.2021 as well as 25.09.2021. 10. Section 29-C (3) (c) of the KCS Act, 1959 reads as under: “29-C. Disqualification for membership of the board.- xxx (3) If the board of a co-operative society fails.– xxx (c) to present the audited accounts and annual report in the annual general meeting. every member of such defaulting board shall be disqualified for being elected or appointed or continued as a member of the board of the society for a period of five years from the date of the order of disqualification.” 11. The Act disqualifies the members-cum-Directors failed to attend three consecutive meetings of the board of the society without leave of absence. - 9 - NC: 2025:KHC:1580 WP No. 22493 of 2024 12. The byelaws of respondent No.5-society states that the Director will be disqualified if they missed the meeting held over continuous period of three months not within a month. Section 29-C (3) (c) disqualifies a Director for appointing a close relative, it is stated by the petitioner that the person appointed as a clerk is not a close relative and it does not fit into the definition provided under the KCS Act, 1959 and thus, the appointing of the individual, it does not fall under the disqualification provision. 13. On perusal of the impugned orders at Annexures-A and B indicate that respondent Nos.2 and 3 have ignored the claim of respondent No.5-society and specific conditions prescribed by the byelaws of the society, particularly, requirement of the meeting upon the span of three months and not within a month. The petitioner’s reasons for absence was due to impact of pandemic, which was not considered by the authorities, as the meetings, which were scheduled on 13.07.2021, - 10 - NC: 2025:KHC:1580 WP No. 22493 of 2024 11.09.2021, 18.09.2021 and 25.09.2021 was during the period when the SOP for the pandemic was in operation and there was restriction for the citizens to attend any such gatherings. The impugned orders passed by respondent Nos.2 and 3 are without considering the explanation offered by the petitioner and in light of such circumstances, the points framed for consideration is answered holding that the impugned orders passed by respondent Nos.2 and 3 warrant interference by this Court and this Court pass the following: ORDER i. Writ petition is allowed. ii. Impugned orders dated 20.10.2022 and 05.08.2024 passed by respondent Nos.2 and 3 are hereby set aside. iii. Respondent No.3 to reconsider the matter afresh strictly in accordance with law. iv. Parties to appear before respondent No.3 on 05.02.2025. v. All contentions of the parties are kept open. - 11 - NC: 2025:KHC:1580 WP No. 22493 of 2024 vi. This Court has not expressed merits or demerits of the case and any observations made by this Court would be only to the limited extent to consider this writ petition. Sd/- ________________________ JUSTICE K.S. HEMALEKHA MBM List No.: 1 Sl No.: 28