- 1 - HC-KAR NC: 2025:KHC:32851 WP No. 15557 of 2022 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE R. NATARAJ WRIT PETITION NO. 15557 OF 2022 (CS-RES) BETWEEN: SRI. P.M.SADASHIVAIAH S/O LATE P. MUNISWAMY AGED ABOUT 56 YEARS R/O SHANAKARAPURA VILLAGE GUKUNTE POST, MULBAGAL TALUK, KOLAR DISTRICT-563131 …PETITIONER (BY SRI. S. VISWESWARAIAH, ADVOCATE) AND: 1. STATE OF KARNATAKA REPTD. BY ITS PRINCIPAL SECRETARY, DEPARTMENT OF CO-OPERATION, M.S BUILDING, DR. AMBEDKAR VEEDHI, BANGALORE-560001. 2. THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES, KOLAR SUB DIVISION KOLAR-563101. 3. THE CO-OPERATIVE DEVELOPMENT OFFICER, MULBAGAL TALUK, MULBAGAL KOLAR DISTRICT-563131. 4. THE SPECIAL OFFICER/ADMINISTRATOR DCC BANK, MULBAGAL BRANCH MULBAGAL-563131 Digitally signed by SUMA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:32851 WP No. 15557 of 2022 5. THE CHIEF EXECUTIVE OFFICER GUKUNTE VYAVASAYA SEVA SAHAKARA SANGA NIYAMITHA GUKUNTE, MULBAGAL TALUK, KOLAR DISTRICT-563131 …RESPONDENTS (BY SRI. S.R.KHAMROZ KHAN, ADDITIONAL GOVERNMENT ADVOCATE FOR RESPONDENT NOS.1 TO 4; SRI. Y.V.PRAKASH, ADVOCATE FOR RESPONDENT NO.5) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER PASSED BY THE 2ND RESPONDENT IN NO.A.R.49/SSN07/2022-23 DATED 21.06.2022 VIDE ANNEXURE-A BY ALLOWING THE WRIT PETITION. 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 bearing No.A.R.49/SSN07/2022-23 dated 21.06.2022 by which, a Special Officer was appointed to the Gukunte Vyavasaya Seva Sahakara Sanga Niyamitha, Gukunte, Mulbagal Taluk (henceforth referred to as 'Society' for short) under Section 31(1) of the Karnataka Co-operative Societies Act, 1959. 2. (i) The petitioner contends that he and 11 other members were elected as directors of the society at an election - 3 - HC-KAR NC: 2025:KHC:32851 WP No. 15557 of 2022 held on 01.11.2021. The petitioner was elected as a president and Mr. Ramesh was elected as a vice president. A meeting was held on 05.03.2022 under the chairmanship of the president to consider certain matters and one of the subject was to recover a sum of Rs.9,85,042/- from the respondent No.5. At the said meeting, it was resolved to co-opt one of the directors belonging to scheduled tribe as there was a vacancy. The respondent No.5 allegedly after coming know of the agenda, plotted a scheme to ensure that there is no decision taken by the Board and instigated the six directors of the society to submit their resignations to the post of directors. (ii) The petitioner contends that though the six directors were not interested to submit their resignations but at the instance of the respondent No.5 they had submitted their resignation letters to the respondent No.5 on 10.05.2022. Thereafter, the respondent No.5 addressed a letter dated 27.05.2022 to the respondent No.2 stating that six directors of the society had submitted their resignations and as such, there was no quorum and requested a special officer to be appointed. The respondent No.2 acting on the letter of the respondent - 4 - HC-KAR NC: 2025:KHC:32851 WP No. 15557 of 2022 No.5 addressed a letter dated 08.06.2022 to the respondent No.3 to submit a report. In the meanwhile, the petitioners and six other directors approached the respondent No.2 and stated that there was quorum in the society comprised of 07 directors. They also addressed a letter to the respondent No.2 on 14.06.2022 stating that there was required quorum and physically appeared before him and also produced photographs to show that there was quorum. The said letter was received by the respondent No.2 on 14.06.2022 who forwarded it to the respondent No.3. The respondent No.3 in spite of the statement of the petitioner and six other directors that there was quorum, without taking into cognizance the said fact, passed the impugned order stating that the petitioner and others did not appear before him and did not submit any reply and consequently held that there was no quorum in the society and hence, passed the impugned order appointing a special officer. The petitioner is therefore before this Court challenging the said order. 3. The learned counsel for the petitioner contends that the petitioner had taken all other six directors with him to the - 5 - HC-KAR NC: 2025:KHC:32851 WP No. 15557 of 2022 office of respondent No.2 to demonstrate that there was sufficient quorum and submitted a letter dated 14.06.2022 which was forwarded to the respondent No.3. The respondent No.3 without considering the same had reported that the petitioners and other directors did not appear before him, following which, the respondent No.2 passed the impugned order. He therefore, contends that the impugned order is one without application of mind and the same is liable to be set at nought. 4. Per contra, the learned counsel for the respondent No.5 submits that apart from six directors who had resigned, two more directors resigned on 23.06.2022 and therefore, presently there is no quorum in the society and hence, the impugned order passed by the respondent No.2 is just and proper and no interference is warranted. 5. The learned Additional Government Advocate on the other hand submitted that an appeal is maintainable against the impugned order under Section 106 of the Karnataka Co- operative Societies Act, 1959 and therefore, this Court should refrain from exercising jurisdiction. - 6 - HC-KAR NC: 2025:KHC:32851 WP No. 15557 of 2022 6. I have considered the submissions of the learned counsel for the petitioner as well as the learned Additional Government Advocate for respondent Nos.1 to 4 and learned counsel for the respondent No.5. 7. Admittedly there were 12 directors in the society, of whom six had submitted resignations. None of the six directors have challenged the acceptance of their resignation before any authority. Therefore, as a matter stands, 50% of the directors had resigned and therefore, as rightly observed by the respondent No.2 there was no quorum as contemplated under law for the society to exist. The contention of the learned counsel for the respondent No.5 that two more directors had resigned on 23.06.2022 is not disputed by the learned counsel for the petitioner. As such, presently the society is functioning with four directors which does not constitute the quorum for the managing committee to exist. The managing committee has been functioning based on the interim order granted by this Court which is against the provisions of the Act, 1959. - 7 - HC-KAR NC: 2025:KHC:32851 WP No. 15557 of 2022 8. Consequently the impugned order is just and proper and no interference is warranted. Accordingly, the writ petition is dismissed. The respondent No.2 is directed to take quick and immediate steps to ensure that the vacancy in the society is filled in accordance with law, which shall at any rate be not more than six months from the date of receipt of a copy of this order. Sd/- (R. NATARAJ) JUDGE HJ List No.: 1 Sl No.: 28