- 1 - HC-KAR NC: 2025:KHC:40594 WP No. 27368 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MRS. JUSTICE M G UMA WRIT PETITION NO. 27368 OF 2025 (CS-RES) BETWEEN: 1. RESERVE BANK OF INDIA STAFF AND OTHERS CO-OPERATIVE HOUSING SOCIETY LIMITED (R) A SOCIETY REGISTERED UNDER THE PROVISIONS OF KARNATAKA CO-OPERATIVE SOCIETIES ACT 1959 HAVING ITS OFFICE AT NO.541/A, RBI LAYOUT, J.P. NAGAR, 7TH PHASE, BENGALURU - 560 078. REPRESENTED BY ITS SECRETARY, SRI SHANKAR S/O SRI SEETHARAMAPPA 2. SRI. V. MURTHY S/O HIRIABILLAVA AGED ABOUT 69 YEARS PRESIDENT OF RESERVE BANK OF INDIA STAFF AND OTHERS CO-OPERATIVE HOUSING SOCIETY LIMITED (R) A SOCIETY REGISTERED UNDER THE PROVISIONS OF KARNATAKA CO-OPERATIVE SOCIETIES ACT 1959 HAVING ITS OFFICE AT NO.541/A, RBI LAYOUT, J.P. NAGAR, 7TH PHASE, BENGALURU - 560 078. 3. SRI. C.R.A. AUGUSTINE SELVARAJ S/O M RANGANATHAN AGED ABOUT 69 YEARS VICE PRESIDENT OF RESERVE BANK OF INDIA STAFF AND OTHERS CO-OPERATIVE HOUSING SOCIETY LIMITED (R) A SOCIETY REGISTERED UNDER THE PROVISIONS OF KARNATAKA CO-OPERATIVE SOCIETIES ACT 1959, HAVING ITS OFFICE Digitally signed by PRASHANTH N V Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:40594 WP No. 27368 of 2025 AT NO.541/A, RBI LAYOUT, J.P. NAGAR 7TH PHASE, BENGALURU - 560 078. …PETITIONERS (BY SRI. MALLIKARJUN N.K., ADVOCATE) AND: 1. JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES., BENGALURU DIVISION, NO.146, 3RD FLOOR, 3RD MAIN ROAD, 8TH CROSS, MARGOSE ROAD, MALLESHWARAM, BENGALURU - 560 003. 2. REGISTRAR OF CO-OPERATIVE SOCIETIES FOR KARNATAKA, NO.1, ALIASKAR ROAD, BENGALURU - 560 052. 3. SRI SADANANDA. M S/O LATE KORAGA GANIGA AGED MAJOR, #748/2-8, "NELE" 4TH MAIN, DWARAKANAGAR, NAGARABHAVI, CHANDRA LAYOUT, BENGALURU - 560 072 …RESPONDENTS (BY SRI. YOGESH D. NAIK, AGA FOR R1 & 2. SRI. MANUNATH M. HEGDE, ADVOCATE FOR R3) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE PROCEEDINGS AND ORDER DATED 04.08.2025 IN JRB/MD/15/2025- 26 PASSED BY THE RESPONDENT NO.1 VIDE ANNEXURE-A AND ETC., THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING - B GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MRS. JUSTICE M G UMA - 3 - HC-KAR NC: 2025:KHC:40594 WP No. 27368 of 2025 ORAL ORDER The petitioners being a Registered Co-operative Housing Society, represented by the Secretary and the President of the society have approached this Court seeking issuance of writ in the nature of Certiorari, to quash the proceedings and the order dated 04.08.2025 passed by respondent No.1 produced as per Annexure-A. 2. Heard Sri. Mallikarjun N.K., learned counsel for the petitioners, Sri. Yogesh D. Naik, learned Additional Government Advocate for respondents No.1 and 2 and Sri. Manjunath M. Hegde, learned counsel for respondent No.3. Perused the materials on record. 3. Facts of the case in brief are that, petitioner No.1 is the society said to be involved in developing the property for the purpose of providing residential sites to its members. Accordingly, it has formed a residential sites in the outskirt of Bengaluru. The petitioner came in contact with one Ganesh Shanbaug, proprietor of Goutam Properties and a Memorandum of Understanding dated 08.08.2008 was entered into between them for the purpose of forming layout. A dispute arose - 4 - HC-KAR NC: 2025:KHC:40594 WP No. 27368 of 2025 between Ganesh, and the society and the suit O.S.No.207/2019 came to be filed. 4. It is stated that the society came in contact with one Damodar Shetty through respondent No.3 to take up the electrical work of the layout proposed to be formed. A work order was issued in his favour. But he has not completed the work as undertaken, but started demanding exorbitant amount on various heads. Respondent No.3 being the Director of the petitioner Society, recommended to pay the amount in collusion with said Damodar Shetty even though he stopped the work entrusted to him. The petitioner noticed several defaults committed by Damodar Shetty and in that regard, suit O.S.No.378/2024 came to be filed for recovery of the amount. 5. It is contended that said Damodar Shetty has raised a dispute before respondent No.1 at the instigation of respondent No.3. Said complaint by Damodar Shetty with respondent No.1 was not maintainable. 6. It is further contended that the petitioner has filed O.S.No.7898/2024 against respondent No.3 for recovery of - 5 - HC-KAR NC: 2025:KHC:40594 WP No. 27368 of 2025 damages. Only to circumvent such proceedings initiated by the petitioner, respondent No.3 raised the dispute before respondent No.1 who is no more a member of the petitioner society, with effect from 01.12.2024, as his membership has been terminated. Under such circumstances, the dispute under Section 70 of the KCS Act with respondent No.1 is not maintainable. Accordingly, the petitioner seeks for quashing the proceedings and also the order dated 04.08.2025 produced as per Annexure-A. 7. In view of the rival contentions taken by learned counsel for both the parties, the point that would arise for my consideration is: "Whether the petitioners have made out any ground to quash the proceedings and the order dated 04.08.2025 passed by respondent No.1?" My answer to the above point is in the 'negative' for the following: REASONS 8. The admitted facts of the case are that, respondent No.3 is the member of the petitioner society and that there are - 6 - HC-KAR NC: 2025:KHC:40594 WP No. 27368 of 2025 serious allegations against him regarding misappropriation of amount. The proceedings were initiated against him. It is the contention of respondent No.3 that the petitioner society has terminated his membership without following the procedure as contemplated under law. Being aggrieved by the same, respondent No.3 has approached respondent No.1 under Section 70 of the KCS Act, which is impugned in this proceedings. 9. According to the learned counsel for petitioners, respondent No.3 should have invoked Section 105(A) of the KCS Act. Section 105(A) of KCS Act deals with Appeals relating to admission of members to the society. Here respondent No.3 was already a member of the society and his membership was revoked by the society on the specific ground. Section 70 of the KCS Act deals with dispute which may be referred to the Registrar for decision. The dispute between member, past member and the society is also covered under the dispute referred to under Section 71 of the KCS Act. Section 70(2)(e) of the KCS Act refers to the claim made by the Cooperative society for any deficiency caused in its assets, by a member, - 7 - HC-KAR NC: 2025:KHC:40594 WP No. 27368 of 2025 past member, etc. which is a dispute that can be referred under Section 70 of the KCS Act. 10. Admittedly, the petitioner society has made a claim against respondent No.3 and the same is disputed by him by raising dispute under Section 70 of the KCS Act. Therefore, I do not find any illegality in invoking Section 70 before respondent No.1 and there is no justification for the petitioners to approach this Court. Hence, they are not entitled for the same. 11. Accordingly, I answer the above point in the negative and proceed to pass the following: ORDER The petition is dismissed. Sd/- (M G UMA) JUDGE MKM CT:VS