- 1 - HC-KAR NC: 2025:KHC:39711 WP No. 14706 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE R. NATARAJ WRIT PETITION NO. 14706 OF 2025 (CS-EL/M) BETWEEN: KURUBURU RESHME BELEGARARA HAAGU RAITHARA SEVA SAHAKARA SANGHA NIYAMITHA KURUBURU, CHINTAMANI TALUK CHIKKABALLAPURA DISTRICT REPRESENTED BY ITS DELEGATE/PRESIDENT. VENKATAREDDY M S/O MUNISHAMAPPA AGE 77 YEARS. (REGISTERED UNDER KARNATAKA COOPERATIVE SOCIETIES ACT-1959) ...PETITIONER (BY SRI. JAYAKUMAR S. PATIL, SENIOR ADVOCATE FOR SRI. DEVIPRASAD SHETTY, ADVOCATE) AND: 1. THE STATE OF KARNATAKA DEPARTMENT OF CO-OPERATION M.S BUILDING, DR. B.R. AMBEDKAR VEEDHI BENGALURU -560001. REPRESENTED BY ITS PRINCIPAL SECRETARY 2. THE STATE CO-OPERATIVE ELECTION AUTHORITY, 3RD FLOOR, T.T.M.C. 'A' BLOCK, SHANTHI NAGAR, BANGALORE-560 027, REPRESENTED BY ITS SECRETARY. Digitally signed by SUMA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:39711 WP No. 14706 of 2025 3. DEPUTY COMMISSIONER/ELECTION OFFICER KOLAR DISTRICT KOLAR-563101 4. RETURNING OFFICER KOLAR-CHIKKABALLAPUR DCC BANK LTD, DCC BANK ROAD, KOLAR-563101 5. KOLAR-CHIKKABALLAPUR DCC BANK LTD, DCC BANK ROAD, KOLAR-563101. REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER 6. KOLAR-CHIKKABALLAPUR DCC BANK LTD, CHINTAMANI BRANCH, OPP. TO POST OFFICE, CHINTAMANI, CHIKKABALLAPURA DISTRICT-563125, REPRESENTED BY ITS MANAGER (RESPONDENT NO.5 AND 6 ARE REGISTERED UNDER THE KARNATAKA COOPERATIVE SOCIETIES ACT-1959) 7. SRI. N. NAGIREDDY S/O T. NAREPPA AGED ABOUT 60 YEARS, R/O DIRECTOR, KLLAHALLI SFSCS, CHINATAMANI TALUK, CHIKKABALLPAURA DISTRICT-563125 CAUSE TITLE AMENDED AS PER COURT ORDER DATED 12.06.2025 ...RESPONDENTS (BY SRI. YOGESH D. NAIK, ADDITIONAL GOVERNMENT ADVOCATE FOR RESPONDENT NOS.1, 3 AND 4; SRI. T.L.KIRAN KUMAR, ADVOCATE FOR RESPONDENT NO.2; SRI. K.S.KALLESHAPPA, ADVOCATE FOR RESPONDENT NO.5; SRI. D.R.RAVISHANKAR, SENIOR ADVOCATE FOR SRI. SARAVANA S., ADVOCATE FOR RESPONDENT NO.7; - 3 - HC-KAR NC: 2025:KHC:39711 WP No. 14706 of 2025 NOTICE SERVED ON RESPONDENT NO.6) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT THE RESPONDENT NO.3 TO 5 TO PERMIT THE PETITIONER SOCIETY TO CAST THE VOTE IN THE ELECTION SCHEDULED TO BE HELD ON 28.05.2025 ANNEXURE-A TO THE RESPONDENT NO.5 DCC BANK. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE R. NATARAJ ORAL ORDER The petitioner has sought for a writ in the nature of mandamus to direct the respondent Nos.3 to 5 to permit it to cast vote in the election scheduled on 28.05.2025 to the Managing Committee of respondent No.5. 2. (i) The petitioner claims to be a Primary Agricultural Credit Co-operative Society registered under the provisions of the Karnataka Co-operative Societies Act, 1959 (henceforth referred to as 'Act of 1959') and is governed by its byelaws. The petitioner is represented by its President who was nominated as a delegate to participate in the elections to the Managing Committee of respondent No.5 scheduled on - 4 - HC-KAR NC: 2025:KHC:39711 WP No. 14706 of 2025 28.05.2025. The respondent No.5 is a Federal Society and is the financing agency providing assistance to the Taluka Agricultural Societies and Primary Societies like the petitioner. (ii) The respondent No.5 had issued a notice dated 07.4.2025 to the petitioner under Section 20(2)(b)(iv)(a) and (b) of the Act of 1959 calling upon the petitioner to pay KCC and CCL loan arrears of Rs.12,95,55,000/- on or before 06.05.2025, failing which, it would be considered as ineligible to participate and vote in the elections scheduled on 28.05.2025. As per the demand notice, the petitioner had paid the KCC and CCL loan arrears to the respondent No.5 on several dates commencing from 03.04.2025 to 03.05.2025. On 06.05.2025, the Chief Executive Officer of the petitioner went to the respondent No.5 to pay balance of Rs.3,00,00,000/- in cash to meet the deadline fixed by the respondent No.5 to be eligible to participate and contest in the upcoming elections. The respondent No.6 refused to accept cash on the ground that it would exceed the cash handling limit of the branch. The respondent No.6 issued an endorsement dated 06.05.2025 to that effect. On 09.05.2025, the petitioner paid the remaining - 5 - HC-KAR NC: 2025:KHC:39711 WP No. 14706 of 2025 arrears of Rs.2,98,64,000/- to the respondent No.5 - bank and claimed that in all, it had repaid Rs.14,69,52,000/- between 03.04.2025 and 09.05.2025. On 13.05.2025, the respondent No.5 addressed a letter to the petitioner stating that within the time given to it to repay the loan amount of Rs.12,95,55,000/-. An amount of Rs.10,76,28,000/- was deposited and the balance sum of Rs.2,19,27,000/- was still not deposited. (iii) The respondent No.5 prepared a final eligible and ineligible voters lists pertaining to Chintamani constituency for the election scheduled on 28.06.2025 and the petitioner was placed in the ineligible voters list where it was mentioned that the petitioner was a defaulter, although it had repaid the dues. The petitioner contends that in view of it being placed in the ineligible list, it would be deprived of participating and voting in the election scheduled on 28.05.2025. It contends that in similar circumstances, this Court in W.P.No.12191/2025 had directed the respondent No.5 to accept the delegation of a primary society and permitted him to cast vote at the elections to the respondent No.5. - 6 - HC-KAR NC: 2025:KHC:39711 WP No. 14706 of 2025 (iv) The petitioner is therefore, before this Court challenging its inclusion in the ineligible voters list and therefore, prays that an opportunity be granted to the petitioner to participate in the elections. 3. This Court in terms of an interim order dated 20.05.2025 permitted the petitioner to cast its vote but however, had directed that the vote cast shall be kept in a separate ballot box and the result of the election had to be declared only after obtaining orders of the Court. 4. The learned Senior counsel for the petitioner submitted that the respondent No.5 had issued a notice dated 07.04.2025 indicating that the petitioner was due of a sum of Rs.27,98,64,000/- and that the petitioner had paid only Rs.1,03,77,000/- and was liable to pay 50% of the outstanding i.e. a sum of Rs.12,95,55,000/- by or before 06.05.2025 by 5.00 p.m. to become eligible to vote at the elections to the Managing Committee of respondent No.5. He contends that the petitioner had paid Rs.14,69,52,000/- as on 09.05.2025 and therefore, it had paid 50% of the amount due as demanded by the respondent No.5 and hence, it was eligible to participate in - 7 - HC-KAR NC: 2025:KHC:39711 WP No. 14706 of 2025 the elections to the Managing Committee of respondent No.5. He therefore, prays that ineligibility of the petitioner be set aside and the vote cast by the petitioner be ordered to be counted and the results be declared. 5. The petition is opposed by the respondent No.5, which has filed a synopsis which discloses that the respondent No.5 had addressed a letter dated 07.04.2025 calling upon the petitioner to pay sum of Rs.12,95,55,000/- on or before 06.05.2025 before the closing hours. It is contended that due to non-payment of the amount, the respondent No.5 had included the petitioner in ineligible list of voters. It is contended that the petitioner is totally due in a sum of Rs.27,98,64,000/- and that the petitioner had paid a sum of Rs.1,03,77,000/- and as per Section 20(2)(b)(iv)(c) of the Act of 1959, the petitioner would have been eligible to vote, if it paid 50% of the outstanding amount. It is contended that the final voters list with respect of the respondent No.5 was published on 12.05.2025 and the petitioner had paid Rs.14,73,92,000/- on 09.05.2025 and therefore, the respondent No.5 had given a letter to the election officer on - 8 - HC-KAR NC: 2025:KHC:39711 WP No. 14706 of 2025 27.05.2025 stating that the petitioner is eligible to cast the vote at the elections to the Managing Committee scheduled on 28.05.2025. In short, the respondent No.5 has conceded the case of the petitioner. 6. Learned counsel for the respondent No.5 has reiterated the above contentions. 7. An application was filed for impleadment by a Director of Primary Society in Chintamani to come on record as respondent No.7. The said application was allowed in terms of an order dated 12.06.2025 and proposed respondent No.7 was ordered to be brought on record as respondent No.7. 8. The respondent No.7 has filed application for vacating the order of stay wherein he has contended that the petitioner has suppressed material facts in as much as on the date the voters list was finalized, the petitioner was included in the ineligible list in view of default in payment of the loan and therefore, was not entitled to vote as provided under Section 20(2)(b)(iv)(a) and (b) of the Act of 1959. - 9 - HC-KAR NC: 2025:KHC:39711 WP No. 14706 of 2025 9. The learned counsel for the respondent No.7 reiterated the above contentions and submitted that the petitioner being a defaulter was not entitled to cast its vote and therefore, the vote cast by the petitioner be disallowed and the results of the election be declared. 10. I have considered the submissions of the learned Senior counsel for the petitioner as well as the learned counsel for the respondent No.5 and the learned counsel for respondent No.7 and learned Additional Government Advocate. 11. A perusal of the notice dated 07.04.2025 issued by the respondent No.5, shows that the petitioner was liable to repay a sum of Rs.27,98,64,000/- to respondent No.5 as on 31.03.2025. Therefore, to be eligible to cast the vote at the elections to the Managing Committee of the respondent No.5, the petitioner was bound to pay 50% of the said amount namely, a sum of Rs.13,99,32,000/-. In a notice under Section 20(2)(b)(iv)(a) of the Act of 1959, it was stated by the respondent No.5 that as on 07.04.2025, the petitioner has paid a sum of Rs.1,03,77,000/- and was liable to pay a sum of Rs.12,95,55,000/- by 06.05.2025 to become eligible to vote - 10 - HC-KAR NC: 2025:KHC:39711 WP No. 14706 of 2025 and contest the elections to the Managing Committee of respondent No.5. The petitioner has furnished the details of payment made to the respondent No.5 in Annexure - D. The same is extracted below:- ¸ÀASÉå ¢£ÁAPÀ SÁvÉ ¸ÀASÉå ªÉÆvÀÛ 1 05.04.2025 125004603320 6900000 2 03.05.2025 125004603320 4380000 3 05.04.2025 125004605033 6909000 4 03.05.2025 125004605033 5264000 5 05.04.2025 125001345757 6560000 6 03.05.2025 125001345757 1245000 7 05.04.2025 125001665937 7143000 8 03.05.2025 125001665937 2582000 9 05.04.2025 125003149863 12332000 10 03.04.2025 125004604743 6275000 11 09.04.2025 125003149863 13811000 12 09.04.2025 125003923498 13260000 13 09.05.2025 125002749475 9900000 14 05.04.2025 125004605599 8850000 15 03.05.2025 125004605599 3919000 16 05.04.2025 125002803944 2148000 17 03.05.2025 125002803944 2910000 18 09.05.2025 125004539635 29864000 MlÄÖ 14,69,52,000 - 11 - HC-KAR NC: 2025:KHC:39711 WP No. 14706 of 2025 12. If we exclude the payments made by the petitioner, prior to 07.04.2025, it is evident that the petitioner had repaid Rs.8,71,35,000/- as on 09.05.2025 as against Rs.12,95,55,000/- payable by 06.05.2025. Therefore, the action of the respondent No.5 in including the name of the petitioner in the ineligible list of voters is just and proper and does not warrant any interference. 13. In view of the above, this petition fails and the same is dismissed. The respondent No.4 is directed to declare the results of the election without counting the vote cast by the petitioner. 14. In view of dismissal of the petition, pending I.As., if any, do not survive for consideration and the same stand dismissed. Sd/- (R. NATARAJ) JUDGE PMR List No.: 1