- 1 - HC-KAR NC: 2025:KHC-D:12294 WP No. 106655 of 2025 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 16TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 106655 OF 2025 (CS-RES) BETWEEN: SHIRHATTI TALUK AGRICULTURAL PRODUCE MARKETING CO-OPERATIVE NIYAMIT REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER, SRI MUTTANNA S/O. MUNESHAPPAKARENNAVAR, AGE: 48 YEARS, OCC: MANAGER, R/O: LAKSHMESHWAR, TQ: LAKSHMESHWAR, DIST: GADAG – 582 116. … PETITIONER (BY SRI. JAGDISH PATIL, ADVOCATE) AND: 1. THE STATE OF KARNATAKA REPRESENTED BY ITS JOINT SECRETARY, DEPARTMENT OF CO-OPERATIVE, M.S. BUILDING, BENGALURU-560 001. 2. THE REGISTRAR OF CO-OPERATIVE ALI ASKAR ROAD, NEAR RAJ BHAVAN, VASANTH NAGAR, BENGALURU-560 052. 3. THE JOINT REGISTRAR OF CO-OPERATIVE NO. 146, 8TH CROSS 3RD MAIN ROAD, MARGOSA ROAD, MALLESHWARAM, BENGALURU-560 003. 4. DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETIES, GADAG DISTRICT TQ. AND DIST.: GADAG-582 101 ® Digitally signed by GIRIJA A. BYAHATTI Location: High Court of Karnataka, Dharwad Bench, Dharwad - 2 - HC-KAR NC: 2025:KHC-D:12294 WP No. 106655 of 2025 5. PRATHAMIK KRUSHI PATTIN SAHAKARI SANGH NIYAMIT, HULLUR RPERESENTED BY ITS CHIRMAN MEHBOOBALI S/O MOHAMMEDALI GADGOLI, AGE: MAJOR, OCC.: NIL. R/O HULLUR VILLAGE, TQ.: LAKSHMESHWAR DIST.: GADAG-582 101 6. PRATHAMIK KRUSHI PATTIN SAHAKARI SANGH NIYAMIT, BALEHOSUR REPRESENTED BY ITS DIRECTOR BASAVARADDI @ BASAVRAJ S/O CHINAPPA HANUMARADDI, AGE: MAJOR, OCC.: NIL, R/O BALEHOSUR VILLAGE, TQ.: LAKSHMESHWAR DIST.: GADAG-582 101 7. PRATHAMIKA KRUSHI PATTIN SAHAKARI SANGH NIYAMIT, YALVATTI REPRESENTED BY ITS MEMBER, GOVINDGOUD S/O VENKATGOUD PATIL, AGE: MAJOR, OCC.: NIL, R/O YALAVATTI VILLAGE, TQ.: LAKSHMESHWAR, DIST.: GADAG-582 101 … RESPONDENTS (BY SRI. RAMESH B. CHIGARI, AGA FOR R1 TO R4; SRI PRANAV U. BADAGI, ADVOCATE FOR SRI R.H. ANGADI, ADVOCATE FOR R5 TO R7) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT IN THE NATURE OF CERTIORARI QUASHING THE ORDER DATED 25/08/2025 BEARING NO. DR/GDG/APPEAL-01/2025-26/546 PASSED BY THE 4TH RESPONDENT VIDE ANNEXURE-D WITH RESPECT TO THE PETITIONERS IN THE INTEREST OF JUSTICE AND EQUITY. THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING, THIS DAY ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC-D:12294 WP No. 106655 of 2025 ORAL ORDER (PER: THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ) 1. The petitioner is before this Court seeking for the following reliefs: I. Issue a writ in the nature of certiorari quashing the order dated 25/08/2025 bearing No. DR/GDG/Appeal-01/2025-26/546 passed by the 4th respondent vide Annexure-D with respect to the petitioners in the interest of justice and equity. II. Issue a writ in the nature of certiorari quashing the order dated 25/08/2025 bearing No. DR/GDG/Appeal-01/2025-26/543 passed by the 4th respondent vide Annexure-D1 with respect to the petitioners in the interest of justice and equity. III. Issue a writ in the nature of certiorari quashing the order dated 25/08/2025 bearing No. DR/GDG/Appeal-01/2025-26/547 passed by the 4th respondent vide Annexure-D2 with respect to the petitioners in the interest of justice and equity IV. Issue such other writ or give such other direction and pass such other order as this Hon’ble Court deems fit and proper in the facts and circumstances of the cases. 2. Respondents No.5, 6 and 7 through their respective Chief Executive Officer have made an application to become a member of the Petitioner on 26.04.2024. No action has been taken on the said application. On 1.07.2024, the Petitioner had informed Respondent No.5 that the - 4 - HC-KAR NC: 2025:KHC-D:12294 WP No. 106655 of 2025 application has been rejected. Thereafter, Respondent No. 5 filed an appeal before Respondent No. 4, the Deputy Registrar of the Co-operative Societies [DRCS], which came to be allowed vide Order Dated 25.08.2025. It is challenging the same, the Petitioner is before this Court. 3. The submission of Sri.Jagdish Patil, learned counsel for the Petitioner is that 3.1. though the application for membership had been filed by the respective Chief Executive Officers, the appeal in respect of Respondent No.5 had been filed by its Chairman, Respondent No.6 by its Director, Respondent No.7 by Member, and in terms of Section 29G(4-J) it is only the Chief Executive Officer who can sue and be sued on behalf of the cooperative societies. As such, the appeal filed by the Chairman, Director and Member before the DRCS was not maintainable. - 5 - HC-KAR NC: 2025:KHC-D:12294 WP No. 106655 of 2025 3.2. It is challenging the same, the petitioner had approached this Court by contending that the DRCS ought not to have exercised jurisdiction in the appeals since the appeals were not filed by proper persons and on that basis, the interim orders had been granted. 4. Notice having been issued, respondents have entered appearance. Vakalathnama on part of Respondent No.5, 6 and 7 has been filed by the Chief Executive Officer, which is taken on record. 5. The submission of Sri.Pranav U.Badagi the learned counsel for Respondents is that 5.1. In terms of Subsection (4) of Section 16, if a co- operative society within two months from the date of the application for admission having been delivered, does not either admit or refuse to admit any such person as a member and send a written communication of such admission or refusal to the applicant before the period, then - 6 - HC-KAR NC: 2025:KHC-D:12294 WP No. 106655 of 2025 there is a deeming provision, deeming the admission of the applicant as a member of the co-operative society. 5.2. In the present case application having been filed on 26.04.2024, the period of two months expired on 25.06.2024 and as such, by midnight of 25.06.2024, Respondents No.5, 6 and 7 are deemed to be members of the petitioner-society. In that background, he submits that only a formal application was filed before the DRCS for issuance of membership certificate, etc., so that Respondents No. 5, 6 and 7 could exercise membership rights, which they could not, even though they are deemed to be members of Petitioner-Society without such certificates being issued. Hence, he submits that the order passed by the DRCS is proper and correct, taking into account the deeming fiction under Subsection (4) of Section 16 of the KCS Act, 1959. - 7 - HC-KAR NC: 2025:KHC-D:12294 WP No. 106655 of 2025 5.3. His submission also is that if the petitioner is aggrieved by the same, the petitioner has the alternative and efficacious remedy in terms of Section 106 of the KCS Act, 1959. 6. Heard Sri.Jagadish Patil, learned counsel for the petitioner, Sri.Ramesh B.chigari, AGA for respondents No.1 to 4 and Sri.Pranav U.Badagi, learned counsel for respondents No.5 to 7. Perused papers. 7. The points that would arise for consideration are: 1. Whether, on the expiry of two months from the date of submission of the application for membership, a person who had applied for membership would be deemed to be a member of the co-operative society? 2. Whether an appeal filed by a chairman, director, or a member of a society is maintainable in view of Section 29G(4) (J) of the KCS Act, 1959? 3. Whether the order passed by Respondent No.4 is required to be interfered with in the present matter? 4. What order? 8. I answer the above points as under: - 8 - HC-KAR NC: 2025:KHC-D:12294 WP No. 106655 of 2025 9. Answer to Point No.1: Whether, on the expiry of two months from the date of submission of the application for membership, a person who had applied for membership would be deemed to be a member of the co-operative society? 9.1. Section 16 of the KCS Act, 1959 is reproduced hereunder for easy reference: Members of Co-operative Societies and their Rights and Liabilities 16. Persons who may become members.-(1) Subject to the provisions of Section 17, no person shall be admitted as a member of a co-operative society except the following, namely - (a) an individual who needs the services of such co-operative society and is residing in the area of the operation of the society and is competent to enter into contract under the Contract Act, 1872 (Central Act IX of 1872); (a-1) a depositor; (b) any other co-operative society; (c) the State Government or the Central Government; (d) the Life Insurance Corporation of India, State Warehousing Corporation and such other - 9 - HC-KAR NC: 2025:KHC-D:12294 WP No. 106655 of 2025 institutions as may be approved by the State Government; (e) a firm, a company or any other body corporate constituted under any law for the time being in force including a society registered under the Karnataka Societies Registration Act, 1960 (Karnataka Act 17 of 1960); (f) a Market Committee established under the Karnataka Agricultural Produce Marketing (Regulation) Act, 1966 (Karnataka Act 27 of 1966); (g) a local authority. Explanation.- For the purpose of this clause, local authority means, a Municipal Corporation, Municipal Council, Town Panchayat, Zilla Panchayat, Taluk Panchayat or Grama Panchayat constituted under any law for the time being in force. (2) No Co-operative Society shall, without sufficient cause, refuse admission to membership to any person duly qualified therefor under the provisions of this Act, Rules and Bye-laws. (3) Any person seeking admission as a member of any Co-operative Society shall make an application in writing for admission as a member of such society. (4) Every Co-operative Society shall within two months from the date on which - 10 - HC-KAR NC: 2025:KHC-D:12294 WP No. 106655 of 2025 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 of admission as a member is received by the applicant before the expiry of the said period, his application for admission shall be deemed to have been accepted by the Co-operative Society on the last day of the said period for purposes of Section 105-A.] (5), (6) and (7) x x x x x. "(8) Notwithstanding anything contained in this Section and Section 17, the State Government shall be deemed to have been admitted as a member of a co-operative society on the day it subscribes to the share capital of such co- operative society. 9.2. A perusal of Subsection (4) of Section 16 would categorically indicate that if a person who has applied for membership is neither admitted into membership or his membership is refused within a period of two months from the date of such application, he is deemed to have become a member of the cooperative society. - 11 - HC-KAR NC: 2025:KHC-D:12294 WP No. 106655 of 2025 9.3. Though the reference is to a person in Subsection (4) of Section 16, in my opinion, the same would also take into account any other co- operative society that has made an application to become a member of another co-operative society, be it a secondary society, federal society or apex society. Thus, whether it is a person or a co-operative society that makes an application for membership to a co-operative society, the said application would have to be considered and necessary orders passed within two months from the date of said application, and a communication thereof is to be sent to the applicant. 9.4. In the present case, though the 5th, 6th and 7th respondents have submitted their application on 26.04.2024, it is only on 1.07.2024 that the petitioner intimated about the application being rejected. The said intimation on 1.07.2024 was - 12 - HC-KAR NC: 2025:KHC-D:12294 WP No. 106655 of 2025 beyond a period of two months inasmuch as the said period expired at midnight on 25.04.2024, if 26.04.2024, that is the date of application, is taken into consideration. If not, the same expired on the midnight of 26.04.2024 if the date of application is excluded. 9.5. Thus, in terms of Subsection (4) of Section 16 and the deeming fiction therein, if there is no rejection of the application for admission into membership and or there is no clarification which has been sought for on the said application and the document submitted in relation thereto, on the expiry of two months from the date of the said application, the said applicant is deemed to have become a member. 9.6. In the event of any clarification or the like is sought for within the said period of two months, the date gets shifted to the date of submission of the clarification and even if after clarification - 13 - HC-KAR NC: 2025:KHC-D:12294 WP No. 106655 of 2025 being submitted and or documents being submitted, no action is taken to admit such person or cooperative society into membership of the cooperative society, two months thereafter, the deeming friction under Subsection (4) of Section 16 would become operational and that person would be deemed to be a member of the cooperative society. 9.7. 9.7. This case is peculiar in as much as though the deeming fiction kicked in at the most on 26.04.2024, the intimation of rejection was sent on 1.07l.2024. Therefore, the said intimation would have no value in terms of Subsection (4) of Section 16 since by midnight of 26.04.2024, respondents No.5, 6 and 7 were deemed to be members of the petitioner society. 9.8. The petitioners thereafter approached the DRCS challenging the said order and virtually seeking - 14 - HC-KAR NC: 2025:KHC-D:12294 WP No. 106655 of 2025 for declaration of their membership. This in my considered opinion would be only a formal declaration since a deeming fiction has already kicked in and the DRCS would only have to act in furtherance of such deeming fiction under Subsection (4) of Section 16 requiring a direction to be issued to the petitioner to issue the membership certificate and settle and perform such either ministerial or formal actions that are required to be performed to admit respondents No.5, 6 and 7 into membership of the petitioner. 9.9. Thus, the filing of the proceedings before the DRCS in this particular case, taking into account the peculiar fact situation, is not one which was necessary, but became a formality. 9.10. Thus I answer Point no (1) by holding that on the expiry of two months from the date of submission of the application for membership, a person or co-operative society who had applied - 15 - HC-KAR NC: 2025:KHC-D:12294 WP No. 106655 of 2025 for membership would be deemed to be a member of the co-operative society, if the same is not refused by valid reasons within that period and communicated to the applicant. 10. ANSWER TO POINT No.2: Whether an appeal filed by a chairman, director, or a member of a society is maintainable in view of Section 29G(4) (J) of the KCS Act, 1959? 10.1. In terms of Section 29G(4)(j), it is only the Chief Executive Officer who can sue or be sued on behalf of the cooperative society. The same is also reiterated in Sub-Rule (12) of Rule 14 of the Karnataka Cooperative Societies Rules, 1960 [‘KCS Rules’ for short] which relates to powers and functions of the Chief Executive and mandates that if the Chief Executive Officer who can institute, defend, conduct, compound or abandon any suit or other legal proceedings by or against society. Thus, it is categorically clear - 16 - HC-KAR NC: 2025:KHC-D:12294 WP No. 106655 of 2025 that it is only a Chief Executive Officer who could have filed a proceeding before the DRCS. 10.2. The present proceedings filed on behalf of Respondents No. 5, 6 and 7 before the DRCS having filed by Chairman, Director and Member, respectively, is not in accordance with Section 29G(4)(j), Sub-Rule (12) of Rule 14 of the KCS Rules. 10.3. Thus, I answer point No.2 by holding that the proceedings which have been filed by Respondents No. 5, 6 and 7 were not appropriately instituted before the DRCS. 11. ANSWER TO POINT No.3: Whether the order passed by Respondent No.4 is required to be interfered with in the present matter? 11.1. The peculiarity of the circumstances in the present matter have been considered both in answer to point No.1 and point No.2. The proceedings before the DRCS by Respondents No. 5, 6 and 7 were virtually filed for a formal - 17 - HC-KAR NC: 2025:KHC-D:12294 WP No. 106655 of 2025 order of membership to be issued to Respondents No.5, 6 and 7 in terms of the deeming fiction under Subsection (4) of Section 16. 11.2. It cannot be disputed that by midnight of 26.06.2024, Respondents No.5, 6 and 7 were deemed to be members of the Petitioner's Society. As such, whether the proceedings were filed by the Chairman, Director and Member before the DRCS or not, the same would not in any manner affect the membership of Respondents No.5, 6 and 7. The requirement of the Chief Executive Officer to have filed the same not having been complied with by Respondents No.5, 6 and 7, even if the proceedings before the DRCS were to be eschewed, the membership of Respondents No.5, 6 and 7 in the Petitioner would stand confirmed and undisturbed. - 18 - HC-KAR NC: 2025:KHC-D:12294 WP No. 106655 of 2025 11.3. Thus, I answer point No.3 by holding that in the peculiar facts and circumstances, it would not be necessary for this Court to interfere with the orders passed by DRCS, since the same would result in an empty formality. The membership of Respondents No.5, 6 and 7 continuing to be valid and subsisting, it would only require an additional process of the Chief Executive Officer of Respondents No.5, 6 and 7 to file a further proceeding before DRCS for similar reliefs. In the present matter, the Chief Executive Officer has entered appearance on behalf of Respondents No.5, 6 and 7, which would be required to be taken into consideration by this Court to render complete and effective justice. 11.4. Hence, I answer point No.3 by holding that the orders passed by DRCS, in the peculiar circumstances, does not require any interference, though, I have held that it is only - 19 - HC-KAR NC: 2025:KHC-D:12294 WP No. 106655 of 2025 the Chief Executive Officer who can sue and be sued on behalf of the Cooperative society. 12. ANSWER TO POINT NO.4: what order? 12.1. In view of my answers to point Nos.1, 2 and 3 above, no grounds being made out, the petition stands dismissed. 12.2. Petitioner shall treat Respondent 5, 6 and 7 as its members and include them in any electoral roll, which are required to be prepared for the purpose of holding of elections to the Petitioner- society. Sd/- (SURAJ GOVINDARAJ) JUDGE LN List No.: 1 Sl No.: 218