- 1 - HC-KAR NC: 2025:KHC-D:7685 WP No. 103297 of 2025 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 16TH DAY OF JUNE 2025 BEFORE THE HON'BLE MR. JUSTICE PRADEEP SINGH YERUR WRIT PETITION NO. 103297 OF 2025 (CS-RES) BETWEEN: SRI MAHADEV S/O. SADASHIV HOSAMANI, SINCE DEAD BY HIS LR’S. 1. SMT. SAVITA W/O. MAHADEV HOSAMANI AGE: 45 YEARS, OCC: HOUSEHOLD WORK, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, DIST: BAGALKOT-587314. 2. SAHANA D/O. MAHADEV HOSAMANI AGE: 22 YEARS, OCC: HOUSEHOLD WORK, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, DIST: BAGALKOT-587314. 3. SUSHMITA D/O. MAHADEV HOSAMANI, AGE: 20 YEARS, OCC: HOUSEHOLD WORK, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, DIST: BAGALKOT-587314. 4. PRATIKSHA D/O. MAHADEV HOSAMANI AGE: 18 YEARS, OCC: HOUSEHOLD WORK, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, DIST: BAGALKOT-587314. 5. VENKATESH S/O. MAHADEV HOSAMANI AGE: 18 YEARS, OCC: HOUSEHOLD WORK, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, Digitally signed by VIJAYALAKSHMI M KANKUPPI Location: HIGH COURT OF KARNATAKA DHARWAD BENCH Date: 2025.06.19 16:01:05 +0530 - 2 - HC-KAR NC: 2025:KHC-D:7685 WP No. 103297 of 2025 DIST: BAGALKOT-587314. 6. SMT. MANGALA W/O. SADASHIV HOSAMANI AGE: 67 YEARS, OCC: HOUSEHOLD WORK, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, DIST: BAGALKOT-587314. …PETITIONERS (BY SRI. CHETAN T. LIMBIKAI, ADVOCATE) AND: 1. THE STATE OF KARNATAKA, R/BY ITS PRINCIPAL SECRETARY, DEPART THE CO-OPERATIVE SOCIETIES, VIDHANA SOUDHA, BENGALURU-01. 2. THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES, ARCS OFFICE, SUB-DIVISION, JAMAKHANDI, BAGALKOT DIST-587101. 3. SRI. GANGADHAR URBAN CO-OPERATIVE SOCIETY LTD., R/BY SRI. SHRISHAIL S/O MURIGEPPA BALIKAI, AGE: 49 YEARS, OCC: CHIEF EXECUTIVE OFFICER, KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, DIST: BAGALAKOT-587314. 4. SRI. ASHOK S/O. SIDDAPPA KALATIPPI, AGE: MAJOR, OCC: AGRICULTURE, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, DIST: BAGALAKOT-587314. 5. SRI. TIPPANNA S/O. MALLAPPA ATHANI AGE: MAJOR, OCC: AGRICULTURE, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, - 3 - HC-KAR NC: 2025:KHC-D:7685 WP No. 103297 of 2025 DIST: BAGALKOT-587314. SRI. KALLAPPA S/O. CHANNABASAPPA BALOKAI, SINCE DEAD BY HIS LR’S 6. SRI. SHIVANAND S/O. KALLAPPA BALIKAI, AGE: 50 YEARS, OCC: AGRICULTURE, R/O: BAGOGIKOPPA, TQ: RAMADURG, DIST: BELAGAVI-590001. 7. SRI. PRAKASH S/O. KALLAPPA BALIKAI, AGE: 48 YEARS, OCC: AGRICULTURE, R/O: BAGOGIKOPPA,TQ: RAMADURG, DIST: BELAGAVI-590001. 8. SRI. VITTHAL S/O. KALLAPPA BALIKAI, AGE: 46 YEARS, OCC: AGRICULTURE, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, DIST: BAGALKOT-587314. 9. SRI. NAGAPPA S/O. KALLAPPA BALIKAI, AGE: 44 YEARS, OCC: AGRICULTURE, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, DIST: BAGALKOT-587314. 10. SRI. IRAPPA S/O. KALLAPPA BALIKAI, AGE:42 YEARS, OCC: AGRICULTURE, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, DIST: BAGALKOT-587314. 11. SRI. MAHADEV S/O. KALLAPPA BALIKAI, AGE: 40 YEARS, OCC: AGRICULTURE, R/O: BAGOGIKOPPA, TQ: RAMADURG, DIST: BELAGAVI-590001. - 4 - HC-KAR NC: 2025:KHC-D:7685 WP No. 103297 of 2025 12. SRI. SHANKAR S/O. KALLAPPA BALIKAI, AGE: 38 YEARS, OCC: AGRICULTURE, R/O: BAGOGIKOPPA, TQ: RAMADURG, DIST: BELAGAVI-590001. 13. SMT. SUNDRAVVA D/O. KALLAPPA BALIKAI, AGE: 47 YEARS, OCC: HOUSEHOLD, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, DIST: BAGALKOT-587314. 14. SMT. YALLAVVA D/O. KALLAPPA BALIKAI, AGE: 47 YEARS, OCC: HOUSEHOLD, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, DIST: BAGALKOT-587314. 15. SRI. BASAVARAJ S/O. IRAAPPA BALIKAI, AGE:MAJOR, OCC: AGRICULTURE, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, DIST: BAGALKOT-587314. 16. SRI. RAJU S/O. RAMAPPA HOSAMANI, AGE:MAJOR, OCC: AGRICULTURE, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, DIST: BAGALKOT-587314. 17. SRI. GANGAPPA S/O. DUNDAPPA BAGI, AGE:MAJOR, OCC: AGRICULTURE, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, DIST: BAGALKOT-587314. SRI. KALLAPPA S/O. PARAPPA TERADAL, SINCE DEAD BY HIS LR’S - 5 - HC-KAR NC: 2025:KHC-D:7685 WP No. 103297 of 2025 18. SMT. GOURAVVA W/O. KALLAPPA TERADAL, AGE: 62 YEARS, OCC: AGRICULTURE, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, DIST: BAGALKOT-587314. 19. SRI. SADASHIV S/O. KALLAPPA TERADAL, AGE:52 YEARS, OCC: AGRICULTURE, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, DIST: BAGALKOT-587314. 20. SRI. ASHOK S/O. KALLAPPA TERADAL, AGE:45 YEARS, OCC: AGRICULTURE, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, DIST: BAGALKOT-587314. 21. SMT. SUSALAVVA D/O. KALLAPPA TERADAL, AGE:42 YEARS, OCC: AGRICULTURE, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, DIST: BAGALKOT-587314. SMT. KALAVATI W/O. VIRUPAKSH KAVASI, SINCE DEAD BY HER LR’S 22. SRI. SHANKAR S/O. VIRUPAKSH KAVASI, AGE:57 YEARS, OCC: AGRICULTURE, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, DIST: BAGALKOT-587314. 23. SRI. PRAKASH S/O. VIRUPAKSH KAVASI, AGE:52 YEARS, OCC: AGRICULTURE, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, DIST: BAGALKOT-587314. - 6 - HC-KAR NC: 2025:KHC-D:7685 WP No. 103297 of 2025 24. SMT. SUNITA D/O. VIRUPAKSH KAVASI, AGE:46 YEARS, OCC: AGRICULTURE, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, DIST: BAGALKOT-587314. 25. SMT. GEETA D/O. VIRUPAKSH KAVASI, AGE:42 YEARS, OCC: AGRICULTURE, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, DIST: BAGALKOT-587314. 26. SRI. SHANKAR S/O. SUBHADRA DOMBAR AGE:MAJOR, OCC: AGRICULTURE, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, DIST: BAGALKOT-587314. 27. SRI. SHRISHAIL S/O. PARAPPA MALI, AGE:MAJOR, OCC: AGRICULTURE, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, DIST: BAGALKOT-587314. 28. SRI. RAJU S/O. NINGAPPA KOUJALAGI, AGE:MAJOR, OCC: AGRICULTURE, R/O: KALLATTI, TERADAL, TQ: RABAKAVI-BANAHATTI, DIST: BAGALKOT-587314. …RESPONDENTS (BY SMT. MALA B. BHUTE, AGA FOR R1 & R2; SRI. PRASHANT S. KADADEVAR, ADVOCATE FOR C/R3; R4-R28 DISPENSED WITH) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE WRIT OF CERTIORARI QUASHING THE IMPUGNED AWARD DATED 31/12/2024 BEARING NO.AR-8/D/DDS/226/2022-23/1476 VIDE ANNEXURE-A AND ALSO QUASH THE IMPUGNED AWARD DATED 24/01/2025 BEARING NO. AR-8/D/DDS/226/2022-23 VIDE ANNEXURE-B PASSED - 7 - HC-KAR NC: 2025:KHC-D:7685 WP No. 103297 of 2025 BY THE 2ND RESPONDENT, IN THE INTEREST OF JUSTICE AND EQUITY IN SO FOR AS, PETITIONER ARE CONCERNED AND ETC. THIS PETITION COMING ON FOR ORDERS THIS DAY, ORDER WAS MADE THEREIN AS UNDER: ORAL ORDER (PER: THE HON'BLE MR. JUSTICE PRADEEP SINGH YERUR) 1. The present petition is filed by the petitioners seeking to quash the impugned order dated 31.12.2024 vide annexure-A and also award dated 24.12.2025 vide annexure-B passed by respondent No.2. 2. Petitioners are the legal representatives of one Mahadev S/o Sadashiva Hosamani, who died on 13.11.2023. The said deceased- Mahadev S/o Sadashiva Hosamani, was working in the 3rd respondent-Cooperative Society as a Chief Executive Officer, during the period 2012-13 to 2018-19. Respondent No.3 along with respondent No.2 conducted audit of the respondent No.3- Co-operative Society for the period 2012-2019 and realized that there was certain misappropriation of funds to the tune of Rs.98,31,805.59. - 8 - HC-KAR NC: 2025:KHC-D:7685 WP No. 103297 of 2025 3. It is the case of the 3rd respondent that the father of petitioners late Mahadev S/o Sadashiva Hosamani, misappropriated a sum of Rs.16,85,340.23/-. The 3rd respondent approached the 2nd respondent under Section 69 of the Karnataka Co-operative Societies Act, based on which 2nd respondent issued the charge sheet against all the petitioners alleging that, certain sum of money was misappropriated during the period of 2012-19 by the father of the petitioners while discharging his duty as a Chief Executive Officer. Thereafter, 2nd respondent passed an order under Section 103 of the Act for attachment of properties of the father of the petitioners. The 3rd respondent-Bank initiated proceedings under Section 69 of the Act for a recovery of appropriate amount by the erring officials/management of the society. The father of the petitioners had appeared through advocate and the 2nd respondent after hearing the matter, passed an award 31.12.2024 holding that the father of the - 9 - HC-KAR NC: 2025:KHC-D:7685 WP No. 103297 of 2025 petitioners is liable to pay sum of Rs.3,58,21,136.59/- along with interest at the rate of 16% per annum. 4. It is the case of the petitioners that 2nd respondent passed another award Suo-Moto without there being any application of mind or by any application by either of the parties pursuant to the impugned order dated 24.01.2025. In pursuance to the said order, 2nd respondent issued form Nos.8 and 9 fixing the auction of the landed properties of the father of the petitioners. 5. It is the contention of the learned counsel for the petitioners that the impugned order passed by 2nd respondent is illegal, arbitrary and the same is liable to be quashed. It is also contended that no sufficient opportunity is given to the petitioners or their father. It is also contended that once an order is passed on 31.12.2024, the subsequent order passed on 24.01.2025 Suo-Moto is bad in law as the authority becomes Functus-Officio and it cannot pass any further orders. Under these circumstances, learned counsel for the petitioners - 10 - HC-KAR NC: 2025:KHC-D:7685 WP No. 103297 of 2025 approached this Court and impugned order was passed on deposit of certain amount on 31.05.2025. Though, the petitioners were ready to pay the amount, but the respondents did not receive the amount and the respondents have proceeded further with public auction and the properties entered in the name of the Society. The petitioners are aggrieved and hence, they are before this Court. 6. Learned counsel representing the respondent vehemently contends that the present petition itself is not maintainable. However, this Court had given opportunity to the respondents vide the interim order dated 31.05.2025, the same was also not adhered. Despite the same, the petitioners instead of challenging this order before the Tribunal by filing an appeal as contemplated under Section 105 of the Karnataka Cooperative Societies Act, against any order passed under Section 69 of the Act, has erroneously approached this Court. Therefore, the learned counsel contends that the present petition is not - 11 - HC-KAR NC: 2025:KHC-D:7685 WP No. 103297 of 2025 maintainable. Petitioners ought to be relegated to file an appeal under the provisions of Section 105 of the Act. On these grounds, he seeks to dismiss the petition. 7. Heard learned counsel for the petitioners and learned counsel for the respondents and perused the Court records and provisions of Section 105 of the Act, 1959. 8. It is apparently clear without any ambiguity that on any orders passed under Section 69 of the Act, appeal lies to the Tribunal under Section 105 of the Act. 9. Learned counsel for the petitioners has contended that there are several flaws in the impugned orders passed by the 2nd respondent. Therefore, on merits he has a good case on hand, as there is a blatant violation of the Act and Rules and once authority becomes functus- officio, it cannot pass any further orders. On these grounds, he seeks that there is a good case on hand. 10. Be that as it may, once there is an alternative and efficacious remedy available to the petitioners, the petitioners are duty bound to approach the said - 12 - HC-KAR NC: 2025:KHC-D:7685 WP No. 103297 of 2025 Forum/Tribunal challenging the impugned order. The impugned order that is questioned is dated 31.12.2024 and subsequent order dated 24.01.2025, there is a specific timeline provided under Section 105(F) of the Act, which provides 60 days time from the date of the award of the decision passed by the authority. The petitioners have filed the present petition on 19.05.2025. This Court had given an opportunity to the petitioners to deposit Rs.30,00,000/- in a time bound manner and provided reprieve to the petitioners. However, the same was not utilised and till date, no amount is paid. 11. In view of the appellate remedy available to the petitioners under Section 105F of the Act, this Court is not inclined to accept the contentions and entertain the present petition. Petition deserves to be disposed of. Accordingly, I pass the following: ORDER i. The writ petition is disposed of. - 13 - HC-KAR NC: 2025:KHC-D:7685 WP No. 103297 of 2025 ii. The petitioners are at liberty to approach the Appellate Tribunal in accordance with the Act and Rules. iii. Petitioners are also at liberty to approach 2nd respondent to make good any amount. If the 2nd respondent accepts the same, he shall proceed further in accordance with law. iv. All contentions of the petitioners are kept open. v. This Court has not expressed any opinion on the merits of the matter, so also on the point of limitation. Ordered accordingly. Sd/- (PRADEEP SINGH YERUR) JUDGE AC CT-MCK List No.: 1 Sl No.: 17