- 1 - HC-KAR NC: 2025:KHC:33208 WP No. 23981 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE R. NATARAJ WRIT PETITION NO. 23981 OF 2025 (CS-RES) BETWEEN: V. ASHWATHNARAYANA REDDY S/O. LATE VENKATAIAH, AGED ABOUT 68 YEARS, R/O. NO.68, 2ND CROSS, MATHRU LAYOUT, GKVK POST, BENGALURU-560 065. …PETITIONER (BY SRI. DEVIPRASAD SHETTY, ADVOCATE) AND: 1. THE DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETIES, KARNATAKA STATE SOUHARDHA SAMYUKTA SAHAKARI (N), SOUHARDHA SAHAKARI SOUDHA, 1ST FLOOR, BETWEEN 17TH AND 18TH CROSS, MARGOSA ROAD, MALLESHWARAM, BENGALURU-560 055. 2. MAHAYOGI VEMANA SOUHARDHA PATTINA SAHAKARI SANGHA NO. 784, A CROSS ROAD, LIONS SEVA BHAVANA, YELAHANKA NEW TOWN, BENGALURU-560 064. REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER, (REGISTERED UNDER KARNATAKA SOUHARDA SAHAKARI ACT, 1997) 3. BABU REDDY S/O. B. H. KRISHNAREDDY, AGED ABOUT 54 YEARS, Digitally signed by SUMA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:33208 WP No. 23981 of 2025 NO.111, AMMANA MANE, HANUMANTHARAYA STREET, BAIRATHI, BENGALURU NORTH, BENGALURU-560 077. …RESPONDENTS (BY SRI YOGESH NAIK, ADDITIONAL GOVERNMENT ADVOCATE FOR RESPONDENT NO.1; MS. ARCHANA PATIL, ADVOCATE FOR SRI K.S.N. RAJESH, ADVOCATE FOR RESPONDENT NO.3; SRI NARAJJI DEEPAK, ADVOCATE FOR RESPONDENT NO.2) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER PASSED BY THE HON'BLE KARNATAKA APPELLANT TRIBUNAL IN APPEAL NO.35/2025 ON IA NO.1/2025 DATED 21.02.2025 PRODUCED AS ANNEXURE-D AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE R. NATARAJ ORAL ORDER The petitioner has challenged an order dated 21.02.2025 passed by the Karnataka Appellate Tribunal (for short, ‘the Tribunal’) on I.A No.1 in Appeal No.35/2025 as well as the Order dated 11.07.2025 passed by the Tribunal in Appeal No.35/2025 on I.A. No.III. - 3 - HC-KAR NC: 2025:KHC:33208 WP No. 23981 of 2025 2. (i) The respondent No.3 was an elected Director of the respondent No.2-Society. He submitted his resignation on 25.06.2022. However, he did not withdraw it within 15 days as prescribed under Section 28-A of the Karnataka Souharda Sahakari Act, 1997 (for short, ‘the Act, 1997’) The respondent No.2 which was considering it as subject No.12 at its meeting accepted the resignation of respondent No.3 in terms of its resolution dated 23.08.2022. Respondent No.3 then raised a dispute i.e. ªÁådå ¸ÀASÉå: rDgïr/PÀ.gÁ.¸Ë.¸ÀA.¸À.¤.,/949/2022-23 before the respondent No.1 challenging the resolution dated 23.08.2022. The respondent No.1 rejected the dispute in terms of the order dated 06.01.2025 which was modified on 06.02.2025 (ii) The respondent No.3 then challenged the said order before the Tribunal in Appeal No.35/2025. An application In I.A. No.1 for stay was filed and the Tribunal in term of an order dated 21.02.2025, stayed the resolution dated 23.08.2022 in so far as it related to subject No.12, passed by the respondent No.2 herein. In the meanwhile, the petitioner was co-opted as a Director of the respondent No.2-Society in terms of a resolution - 4 - HC-KAR NC: 2025:KHC:33208 WP No. 23981 of 2025 dated 19.02.2025 to fill up a vacancy that arose due to the resignation of respondent No.3. The petitioner herein then filed I.A. No.II to implead him as respondent No.3 in Appeal No.35/2025 before the Tribunal. The respondent No.3 herein also filed I.A.No.III to stay the operation of the resolution No.3 dated 19.02.2025 passed by the respondent No.2 herein co- opting the petitioner as Director in place of respondent No.3 herein. Both the applications were heard and the Tribunal in terms of the order dated 11.07.2025, allowed I.A. No.II and the petitioner herein was ordered to be impleaded as respondent No.3 in Appeal No.35/2025 and granted stay of the operation and implementation of the resolution No.3 dated 19.02.2025 passed by the respondent No.2 herein as sought by the respondent No.3 herein in I.A. No.III, till the next date of hearing. 3. Being aggrieved by the said orders dated 21.02.2025 and 11.07.2025 passed on I.A. No.I and I.A No.III respectively, by the Tribunal, the petitioner is before this Court. 4. Learned counsel for the petitioner contends that the petitioner was not granted an opportunity to file objections to - 5 - HC-KAR NC: 2025:KHC:33208 WP No. 23981 of 2025 the application - I.A. No.III filed by the respondent No.3. He also contends that the petitioner was nominated for the remainder term of two months as the resignation submitted by the respondent No.3 was deemed to have been accepted since the respondent No.3 did not withdraw it within the time allowed under Section 28-A of the Act, 1997. 5. Per contra, the learned counsel for respondent No.3 submitted that the application (I.A. No.I) for stay filed by respondent No.3 was argued on 19.02.2025 and therefore, all the parties before the Tribunal were aware that the Tribunal had posted the application (I.A. No.I) for orders on 21.02.2025. Despite that, the respondent No.2-Society had passed a resolution dated 19.02.2025 to co-opt the petitioner in the place of respondent No.3. She contends that this is done only with an intent to keep the respondent No.3 out of the respondent No.2. She further contends that if the co-option of the petitioner is not stayed, the purpose of the proceedings before the Tribunal would be defeated. Therefore, she contends that the impugned orders passed by the Tribunal are just and proper and no interference is warranted. - 6 - HC-KAR NC: 2025:KHC:33208 WP No. 23981 of 2025 6. The learned counsel for respondent No.2 submits that a vacancy of Director arose in respondent No.2 – Society due to the resignation of respondent No.3 and therefore it was necessary to co-opt the petitioner to ensure quorum for meetings. 7. I have considered the submissions of the learned counsel for the petitioner and the learned counsel for respondent No.2 and the learned counsel for respondent No.3. 8. The respondent No.3 had challenged an order passed by the respondent No.1 in a dispute i.e. ªÁådå ¸ÀASÉå: rDgïr/PÀ.gÁ.¸Ë.¸ÀA.¸À.¤.,/949/2022-23 under Section 39 of the Act, 1997 before the Tribunal in an Appeal No.35/2025. Respondent No.2 herein – Society was represented before the Tribunal when I.A. No.I was taken up for consideration. The fact that the application was heard and the matter was reserved for orders on I.A. No.I was known to the respondent No.2 cannot be disputed. If that be so, the action of the respondent No.2 in co-opting the petitioner as Director in the place of respondent No.3, had to be examined by the Tribunal. The Tribunal was therefore right in allowing the petitioner to be - 7 - HC-KAR NC: 2025:KHC:33208 WP No. 23981 of 2025 impleaded by allowing I.A. No.II. In so far as staying the resolution No.3 dated 19.02.2025 passed by the respondent No.2 – Society whereby the petitioner herein was co-opted as Director in the place of respondent No.3 herein, the Tribunal must have granted an opportunity to the petitioner to justify his co-option and thereafter, the Tribunal must have passed appropriate orders. Since the same is not done, the impugned order in so far as it stays the co-option of the petitioner warrants interference. 9. Accordingly, this Writ Petition is allowed in part. The impugned order dated 11.07.2025 passed by the Karnataka Appellate Tribunal on I.A. No.III filed by the respondent No.3 herein, in Appeal No.35/2025 is set aside. The Tribunal is directed to provide an opportunity to the petitioner herein to file objections to I.A. No.III and after hearing him and the respondent No.3 herein, may pass appropriate orders. The Tribunal shall consider the application – I.A No.III as expeditiously as possible at any rate within a period of 15 days from the date of receipt of a certified copy of this order. - 8 - HC-KAR NC: 2025:KHC:33208 WP No. 23981 of 2025 10. It is open for the petitioner and the respondent No.3 to advance the proceedings before the Tribunal and request the Tribunal to dispose off the application – I.A. No.III as directed hereinabove in accordance with law. Sd/- (R. NATARAJ) JUDGE SMA List No.: 1 Sl No.: 53