- 1 - HC-KAR NC: 2025:KHC:41348 WP NO.10257 OF 2019 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE E.S. INDIRESH WRIT PETITION NO.10257 OF 2019 (GM-KSR) BETWEEN: MR. M.K. RAJESH (BOBBY) S/O SRI. KRISHNA MURTHY, AGED ABOUT 45 YEARS, VICE PRESIDENT, THE HASSAN CLUB B.M. ROAD, HASSAN CITY, HASSAN - 573 201. …PETITIONER (BY SRI. VENKATESH S. ARBATTI, ADVOCATE) AND: 1. THE HASSAN CLUB B.M. ROAD, HASSAN - 573 201. REP. BY ITS SECRETARY. 2. THE DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETIES, HASSAN SUB-DIVISION, HASSAN DISTRICT, HASSAN - 573 201. 3. THE HONORARY PRESIDENT THE HASSAN CLUB, B.M. ROAD, HASSAN - 573 201. …RESPONDENTS (BY SRI. PRAKASH M.H., ADVOCATE FOR R1 AND R3; SRI. MAHANTESH SHETTAR, AGA FOR R2) Digitally signed by ARUNKUMAR M S Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:41348 WP NO.10257 OF 2019 THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE COMMUNICATION/LETTER DATED 04TH AUGUST, 2018 SENT BY THE RESPONDENT NO.2 TO THE RESPONDENT NO.3 VIDE ANNEXURE-G; 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 E.S. INDIRESH ORAL ORDER In this writ petition, the petitioner is challenging the Communication/letter dated 04th August, 2018 (Annexure-G) issued by respondent No.2 to the respondent No.3; Order dated 10th August, 2018 (Annexure-K) passed by the respondent No.3; Order dated 31st December, 2018 (Annexure-L) passed by the respondent No.3, Order dated 21st July, 2018 (Annexure-Q) passed by the respondent No.2; Communication dated 01st June, 2019 (Annexure-S) issued by the respondent No.1 to the petitioner; Communication dated 23rd May, 2019 (Annexure-T) issued by the respondent No.2; Enquiry Report dated 10th May, 2019 (Annexure-W); Report of the Assistant Executive Engineer, Public Works Department produced at Annexure-X; and letter dated 27th July, 2019 (Annexure-Z) issued by the respondent No.1 to the petitioner. - 3 - HC-KAR NC: 2025:KHC:41348 WP NO.10257 OF 2019 2. The relevant facts for adjudication of this petition are that the respondent No.1-Hassan Club is a recreation Club having its own bye-laws and registered under the provisions of the Karnataka Societies Registration Act, 1960 (for short, hereinafter referred to as '1960-Act'). The respondent No.1- Club is headed by the Vice President and such other office bearers being elected by the Governing Council Members. The Bye-laws of the respondent No.1-Club is produced at Annexure- A. It is forthcoming from the writ petition that the petitioner has been elected as Vice President of the respondent No.1-Club and thereafter, he was successfully continued having elected by the Governing Council. It is also stated in the petition that the Deputy Commissioner, Hassan District is the ex-officio president of the respondent No.1-Club. It is the grievance of the petitioner that, on account of certain aspects relating to the election of the petitioner as well as the resignation offered by some of the members of the Governing Council in which the dispute has arises in the respondent No.1-Club, the respondent No.3 interfered with the affairs of the administration of the respondent No.1-Club. It is also forthcoming from the writ petition that, there were proceedings - 4 - HC-KAR NC: 2025:KHC:41348 WP NO.10257 OF 2019 in O.S.No.794/2017 and M.A.No.18/2018. It is further averred in the writ petition that the respondent No.2, issued letter dated 04th August, 2018 (Annexure-G) to the respondent No.3 with regard to the resignation letters submitted by the petitioner and other members of the Governing Council. It is further stated in the petition that the Deputy Commissioner, Hassan District being a Honorary President of the Executive Committee, vide order dated 10th August, 2018 (Annexure-K) has appointed two members of the respondent No.1-Club to run the day to day affairs and functioning of the respondent No.1-Club. 3. It is to be noted that the Deputy Commissioner, Hassan District and the Honorary President of Executive Committee vide order dated 31st December, 2018 (Annexure-L) based on the report of the Executive Engineer, Public Works Department, arrived at a conclusion that the petitioner and the Secretary of the respondent-Club have misappropriated the funds of the respondent No.1-Club during the construction of building and installation of lift, which has culminated in - 5 - HC-KAR NC: 2025:KHC:41348 WP NO.10257 OF 2019 subsequent proceedings. Hence, the petitioner presented this writ petition. 4. Heard, Sri. Vankatesh S. Arabatti, learned counsel appearing for the petitioner; Sri. Prakash M.H., learned counsel appearing for respondents 1 and 3; Sri. Mahantesh Shettar, learned Additional Government Advocate appearing for the respondent No.2. 5. Sri. Venkatesh S. Arabatti, learned counsel appearing for the petitioner contended that the respondent No.1-Club being a registered Club under the provisions of the 1960-Act, the finding recorded by the Deputy Commissioner, Hassan as Honorary President of the respondent No.1-Club in the impugned order dated 31st December, 2018 (Annexure-L) is without any basis so also, without being issued notice to the petitioner before arriving at a conclusion that there is misappropriation of funds in the respondent No.1-Club. It is also argued by learned counsel appearing for the petitioner that, in order to initiate enquiry against the office bearers of the respondent No.1-Club, pre-requisites of Section 25 of the 1960-Act have to be complied with by the respondent- - 6 - HC-KAR NC: 2025:KHC:41348 WP NO.10257 OF 2019 Authorities and in the absence of the same, the finding recorded by the respondents requires to be set-aside. 6. Per contra, Sri. M.H. Prakash, learned counsel appearing for the respondents 1 and 3 invited the attention of the Court to enquiry report produced at Annexures 'T', 'W' and 'X' and argued that, as the factual aspects have been proved with regard to misappropriation of funds in construction of new building and installation of the lift for public use, no interference be called for in the present petition. 7. Sri. Mahantesh Shettar, learned Additional Government Advocate appearing for the respondent No.2 sought to justify the impugned action taken by the respondent- State. 8. In the light of submission made by learned counsel appearing for the parties, it is not in dispute that the petitioner was elected as Vice President of the respondent No.1-Club and at that juncture, the Deputy Commissioner, Hassan District being a Honorary president. It is to be noted that the proceedings of Executive Committee of the respondent No.1- Club dated 10th August, 2018 (Annexure-K) makes it clear that - 7 - HC-KAR NC: 2025:KHC:41348 WP NO.10257 OF 2019 the Deputy Commissioner, Hassan being a President, Executive Committee, without there being any minutes of meeting and concurrence of other Governing Members, had appointed two persons to run day to day affairs and functioning of the respondent No.1-Club. Thereafter, based on the report of the Executive Engineer, Public Works Department, the Deputy Commissioner, Hassan, passed order dated 31st December, 2018 (Annexure-L), which indicates about the misappropriation of funds by the petitioner and the Secretary of the respondent No.1-Club. Undisputedly, the said finding has been made without providing an opportunity hearing to the petitioner and the said order is arbitrary in nature as the same do not contain the concurrence of the Governing Council Members. 9. Be that as it may, Section 25 of the 1960-Act empowers the Registrar-State to initiate enquiry suo moto or on the representation made by the majority of the members of the Governing Body or of one-third members of the Society. Perusal of the writ papers would indicate that, no satisfaction has been arrived at by the respondent No.2 to invoke Section 25 of the 1960-Act on suo moto based on any report or the - 8 - HC-KAR NC: 2025:KHC:41348 WP NO.10257 OF 2019 allegation made by the majority of Governing Council Members nor no document has been produced by the respondent-State that one-third of members have made allegation about misappropriation of funds by the petitioner and the Secretary of the respondent No.1-Club. In that view of the matter, the initiation of enquiry by the respondent No.2 and all further proceedings vitiates object and pre-requisites of the Section 25 of the 1960-Act. Therefore, in view of the observation made above, as the entire enquiry conducted by the respondent No.2 suffers from infirmity and arbitrary in nature in consonance of the scope of Section 25 of the 1960-Act, I find force in the submission made by learned counsel for the petitioner that the entire proceedings requires to be set-aside. Accordingly, I pass the following: O R D E R 1) Writ Petition allowed; 2) Communication/letter dated 04th August, 2018 (Annexure-G) issued by respondent No.2 to the respondent No.3; Order dated 10th August, 2018 (Annexure-K) passed by the respondent No.3; Order dated 31st December, 2018 (Annexure-L) passed by the - 9 - HC-KAR NC: 2025:KHC:41348 WP NO.10257 OF 2019 respondent No.3, Order dated 21st July, 2018 (Annexure-Q) passed by the respondent No.2; Communication dated 01st June, 2019 (Annexure-S) issued by the respondent No.1 to the petitioner; Communication dated 23rd May, 2019 (Annexure-T) issued by the respondent No.2; Enquiry Report dated 10th May, 2019 (Annexure-W); Report of the Assistant Executive Engineer, Public Works Department produced at Annexure-X; and letter dated 27th July, 2019 (Annexure-Z) issued by the respondent No.1 to the petitioner are hereby set-aside. SD/- (E.S. INDIRESH) JUDGE ARK List No.: 1 Sl No.: 36