Research › Search › Judgment

High Court of Karnataka · body

2025 DAILYLAW 37561 (KAR)

NANDOLLI VIVIDODDESHA PRATHAMIKA KRUSHI SAHAKARA SANGA NADOLLI v. THE STATE OF KARNATAKA

WP/106972/2025 · 2025-09-19

Suraj Govindaraj

body2025

Judgment text

Extracted from the PDF above. The PDF is authoritative.

- 1 - HC-KAR NC: 2025:KHC-D:12690 WP No. 106972 of 2025 IN THE HIGH COURT OF KARNATAKA,AT DHARWAD DATED THIS THE 19TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 106972 OF 2025 (CS-EL/M) BETWEEN: NANDOLLI VIVIDODDESHA PRATHAMIKA KRUSHI SAHAKARA SANGA, NADOLLI-581359, TQ. YELLAPUR, DIST. UTTARA KANNADA, REP. BY ITS CHIEF EXECUTIVE OFFICER, GURUPRASAD S HEGDE. …PETITIONER (BY SRIYUTHS. A.P. HEGDE JANMANE AND VIJAY M. MALALI, ADVOCATES) AND: 1. THE STATE OF KARNATAKA REP. BY ITS PRINCIPAL SECRETARY, DEPARTMENT OF CO-OPERATION, M S BUILDING, 6TH FLOOR, BANGALORE -01. 2. CO-OPERATIVE ELECTION AUTHORITY REPRESENTED BY ITS COMMISSIONER, 3RD FLOOR, SHANTI NAGAR, TTMC ‘A’ BLOCK, SHANTINAGAR, BENGALURU-560027. 3. JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES, BELAGAVI REGION, BELAGAVI AND ELECTION OFFICER TO ALL SECONDARY SOCIEITES BELAGAVI REGION-590001. R Digitally signed by GIRIJA A. BYAHATTI Location: High Court of Karnataka, Dharwad Bench, Dharwad - 2 - HC-KAR NC: 2025:KHC-D:12690 WP No. 106972 of 2025 4. DEPUTY REGISTRAR OF CO-OPERATIVE SOCIEITES, UTTARA KANNADA DISTRICT, KARWAR, U K DISTRICT-581342. 5. RETURNING OFFICER T.A.P.C.M.S, LTD. YELLAPUR AND CO-OPERATIVE DEVELOPMENT OFFICER, YELAPUR, U.K. DISTRICT-581342. 6. YELLAPUR TALUKA AGRICULTURAL PRODUCE CO-OP MARKETING SOCIETY LTD., YELLAPUR, UTTARA KANNADA DISTRICT, REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER-581342. …RESPONDENTS (BY SRIYUTHS. RAMESH B. CHIGARI, AGA FOR R1, R3, R4 & R5; G.V. BHARAMAGOUDAR, ADVOCATE FOR R2; N.V.YAJI, ADVOCATE FOR R6) --- THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO A. ISSUE WRIT IN THE NATURE OF MANDAMUS BY DIRECTING THE RESPONDENT NO.5 TO PERMIT THE PETITIONER SOCIETY TO CONTEST AND CAST VOTE IN THE BOARD OF ELECTION OF RESPONDENT NO.6 SOCIETY VIDE ANNEXURE-H, ELECTION TO BE HELD ON 28.09.2025. A.A. ISSUE WRIT IN THE NATURE OF CERTIORAI BY QUASHING THE ENDORSEMENT DATED 01.09.2025 BEARING NO.JRL/A/CR-89/2025-26 ISSUED BY RESPONDENT NO.3 AS PER ANNEXURE D1. B. ANY OTHER RELIEF AS THIS HON BLE COURT DEEMS FIT IN THE ENDS OF JUSTICE. THIS PETITION COMING ON FOR PRILIMINARY HEARING THIS DAY, ORDER WAS MADE THERIEN AS UNDER: - 3 - HC-KAR NC: 2025:KHC-D:12690 WP No. 106972 of 2025 ORAL ORDER (PER: THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ) 1. The petitioner is before this Court seeking for the following reliefs: a. Issue writ in the nature of mandamus by directing the respondent No.5 to permit the petitioner society to contest and cast vote in the board of election of Respondent No.6 society vide Annexure-H, election to be held on 28.09.2025. a.1. Issue writ in the nature of certiorari by quashing the endorsement dated 01.09.2025 bearing No.JRL/A/CR-89/2025-26 issued by Respondent No.3 as per Annexure D1. b. Any other relief as this Hon’ble Court deems fit in the ends of justice. 2. The brief facts of the case are; 2.1. The petitioner, a Primary Agricultural Cooperative Society, had submitted an application on 14.10.2022 seeking for A class membership in respondent No.6 Society, which came to be rejected by respondent No.6 on 31.12.2022, on the ground that the registration - 4 - HC-KAR NC: 2025:KHC-D:12690 WP No. 106972 of 2025 of the petitioner Society is under challenge before this Court. 2.2. Challenging the said order, the petitioner had approached the Deputy Registrar of Cooperative Societies (DRCS), respondent No.4, who had, vide order dated 02.05.2023, set aside the order of rejection dated 31.12.2022 and directed respondent No.6 to grant membership to the petitioner. 2.3. The said order came to be challenged by respondent No.6 before respondent No.3, which challenge came to be rejected vide order dated 19.08.2024. 2.4. It is thereafter that the respondent Society, in its meeting held on 31.03.2025, passed a resolution granting membership to the petitioner Society. The name of the petitioner Society not being found in the eligible list of voters, the petitioner - 5 - HC-KAR NC: 2025:KHC-D:12690 WP No. 106972 of 2025 had submitted a representation on 22.08.2025 to respondent No.3 seeking permission to nominate a delegate, vote, and contest the elections, as regards which calendar of events had been issued on 06.09.2025 2.5. It is at that stage, respondent No.6 objected that the petitioner, having been admitted into membership on 31.03.2025, had not completed a period of one year from the date of membership in terms of Section 20 (2)(a-iii) of the Karnataka Cooperative Societies Act, 1959 (hereinafter referred to as the ‘KCS Act’ for short), and as such, the petitioner would not be entitled to participate in the said election by either voting or contesting. 2.6. It is challenging the same that the petitioner is before this Court. 3. Sri. Vijay Malali, learned counsel for the petitioner, would submit that; - 6 - HC-KAR NC: 2025:KHC-D:12690 WP No. 106972 of 2025 3.1. The application which had been submitted by the petitioner for membership was on 14.10.2022. Though the same came to be rejected on 31.12.2022, the said order of rejection came to be set aside by the DRCS on 02.05.2023, and as such, the membership ought to have been considered from 02.05.2023, since it is only a ministerial act which was required to be performed by the respondents. 3.2. Be that as it may, even an appeal having been filed, though there was no stay, the appeal came to be dismissed on 19.08.2024. This aspect also has not been taken into consideration. 3.3. There is a delay on the part of the respondent Society in holding a meeting, and merely because the respondent Society passed a resolution on 31.03.2025 admitting the petitioner to the membership of respondent No.6 Society, the provision of Section 20(2)(a-iii) of the KCS - 7 - HC-KAR NC: 2025:KHC-D:12690 WP No. 106972 of 2025 Act cannot be pressed into service by respondent No.6 Society, and as such, the petitioner’s name would have to be included in the eligible list of voters and the delegate of the petitioner be permitted to vote and to participate in the said election by voting and contesting in the said election. 4. Sri. Narayan V. Yaji, learned counsel appearing for respondent No.5 and respondent No.6, would submit that; 4.1. In terms of Section 20(2)(a-iii) of the KCS Act, a person who has become a member of the Society not less than 12 months prior to the date of such meeting for election, shall not have a right to vote at the general meeting or at the election of members of the Court of the Cooperative Society. The petitioner, being admitted as a member of the respondent No.6 Society only on 31.03.2025, one year not having elapsed, - 8 - HC-KAR NC: 2025:KHC-D:12690 WP No. 106972 of 2025 respondent No.6 has rightly rejected the request of the petitioner to participate in the election. 4.2. Once the petitioner completes one year of membership, he would be permitted to participate in any election, other general meeting, or in the election held subsequent to such completion of one year. 4.3. The very registration of the petitioner being under challenge, a writ petition having been filed being dismissed and a writ appeal is pending, there cannot be any fault found with respondent No.6 in not admitting the petitioner to the membership of respondent No.6. There are no mala fides on the part of respondent No.6. As such, respondent No.6 having acted in terms of the mandate of Section 20(2)(a-iii) of the KCS Act, no fault could be found with the respondent abd no direction is required to be issued - 9 - HC-KAR NC: 2025:KHC-D:12690 WP No. 106972 of 2025 permitting the petitioner to participate in the election by voting and contesting at the election. 5. Heard Sri.Vijay M. Malali, learned counsel for the petitioner, Sri.Ramesh B. Chigari, learned AGA for respondent Nos.1, 3, 4 and 5, Sri.G. V. Bharamagoudar, learned counsel for respondent No.2 and Sri.Narayan V. Yaji, learned counsel for respondent No.6. Perused the papers. 6. The points that would arise for consideration are: i. If an application for membership has been filed by a person or a co- operative society to become a member of a co-operative society, and the said application is rejected, on a challenge being made, if the rejection is set aside, what would be the date to be taken into consideration for the purpose of ascertaining the date of membership? ii. In the present matter, what would be the date that would have to be taken into consideration for ascertaining the membership? iii. What order? - 10 - HC-KAR NC: 2025:KHC-D:12690 WP No. 106972 of 2025 7. I answer the above points as under 8. Answer to Point No.(i): If an application for membership has been filed by a person or a co- operative society to become a member of a co- operative society, and the said application is rejected, on a challenge being made, if the rejection is set aside, what would be the date to be taken into consideration for the purpose of ascertaining the date of membership? 8.1. In terms of Section 16 (1) of the KCS Act, subject to the provision of Section 17 of the Karnataka Co-operative Societies Act, no person shall be admitted as a member of a co-operative society except the following: 8.1.1. An individual who needs the services of such a co-operative society 8.1.2. is residing in the area of operation of the society 8.1.3. is competent to enter into a contract under the Contract Act, 1872; - 11 - HC-KAR NC: 2025:KHC-D:12690 WP No. 106972 of 2025 8.2. in terms of Section 16(2) of the KCS Act, no co- operative society shall, without sufficient cause, refuse admission to membership to any person duly qualified therefor under the provisions of the Act, Rules, and Bylaws. 8.3. For that purpose, under Section 16(3) of the KCS Act, a person seeking admission as a member of any co-operative society shall make an application in writing, and 8.4. In terms of Section 16(4) of the KCS Act, every co-operative society shall, within two months from the date on which the application for admission was delivered to such society, either admit or refuse to admit any such person as a member and shall send a written communication of such admission or refusal to the applicant before the said period. If no communication is received, there is a deeming fiction that such person has become a member of the co- - 12 - HC-KAR NC: 2025:KHC-D:12690 WP No. 106972 of 2025 operative society on the last day of the said period of two months. 8.5. Insofar as Section 17 of the KCS Act is concerned, none of those conditions are attracted in the present case. 8.6. Thus, in terms of Section 16, the petitioner being a co-operative society, is qualified to be a member of respondent No.6 Society. There is no disqualification of the petitioner under Section 17 of the KCS Act, despite which, respondent No.6 had rejected the application of the petitioner vide order dated 31.12.2022, which came to be set aside by the DRCS by order dated 02.05.2023. 8.7. Once such rejection was set aside, it was but required for respondent No.6 Society to admit the petitioner into membership of respondent No.6, such admission being only a formal or - 13 - HC-KAR NC: 2025:KHC-D:12690 WP No. 106972 of 2025 ministerial act pursuant to the order of the DRCS. 8.8. This I say so for more reasons than one, inasmuch as: 8.8.4. Firstly, there was an order of the DRCS to admit the petitioner into membership of respondent No.6 Society. 8.8.5. Secondly, under Section 16(4) of the KCS Act, there is a deeming fiction admitting a person into membership after a period of two months if no communication has been received. When the communication has been set aside, that would mean that the communication was not in existence, thus bringing into force the deeming fiction. 8.9. As such, the petitioner would have been deemed to be a member of respondent No.6 Society in - 14 - HC-KAR NC: 2025:KHC-D:12690 WP No. 106972 of 2025 the midnight of 14.12.2022, once the communication of respondent No.6 was set aside. 8.10. Be that as it may, even if the deeming fiction were not to be applied, the fact that on 02.05.2023 there was an order passed by the DRCS, which subsequently came to be confirmed by the JRCS on 19.08.2024, would indicate that the reasons given by the respondent for rejection had been rejected by both the authorities. Thereafter, there being no challenge, the same attained finality. 8.11. Thus, once a rejection of the membership application is set aside, there would be no option for the respondent Co-operative Society but to admit the applicant into membership, which ought to have happened within a reasonable period from the date of such setting aside. - 15 - HC-KAR NC: 2025:KHC-D:12690 WP No. 106972 of 2025 8.12. The formality of holding a meeting and passing a resolution subsequently, and the date of such meeting, cannot be taken into consideration for the purpose of calculation of the time period under Section 20(2)(a-iii) of the KCS Act. 8.13. Thus, I answer Point No.(i) by holding that, if a rejection of an application for membership is challenged and set aside before the appropriate authority, then the date of membership would have to be considered from the date of such setting aside, as the only formality of holding a meeting and passing a resolution would remain with the co-operative society. 9. Answer to Point No.(ii): In the present matter, what would be the date that would have to be taken into consideration for ascertaining the membership? 9.1. In the present case, the application having been filed on 14.10.2022, the same was rejected on 31.12.2022 and set aside by the DRCS on - 16 - HC-KAR NC: 2025:KHC-D:12690 WP No. 106972 of 2025 02.05.2023, confirmed by the JRCS on 19.08.2024, there being no stay by the JRCS of the order of the DRCS, the date of the order passed by the DRCS on 02.05.2023 would have to be taken into consideration for determining the date of membership of the petitioner in respondent No.6 Society. 9.2. Hence, I answer Point No.(ii) by holding that the petitioner is deemed to be a member of respondent No.6 Society on 02.05.2023, if not on 14.10.2023, on account of the deeming fiction under Section 16 (4) of the KCS Act. 10. Answer to Point No.(iii): What Order? 10.1. In view of my answer to Point Nos.(i) and (ii) above, I pass the following: ORDER i. The writ petition is allowed. - 17 - HC-KAR NC: 2025:KHC-D:12690 WP No. 106972 of 2025 ii. A mandamus is issued, directing respondent No.5 to permit the petitioner Society to contest and cast its vote in the election to the Board of Directors of respondent No.6 Society to be held on 28.09.2025. iii. Respondent No.6 shall act on the operative portion of the order without insisting for the entire order. iv. Respondent No.6 is also directed to act on a printout of the uploaded copy of this order without insisting on a certified copy. v. Learned counsel for respondent No.6 is directed to inform respondent No.6 about the above order. Learned AGA is also directed to inform the Returning Officer about the above order. Sd/- (SURAJ GOVINDARAJ) JUDGE gab CT:PA List No.: 1 Sl No.: 20