- 1 - HC-KAR NC: 2025:KHC-D:13977 WP No. 107610 of 2025 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 16TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 107610 OF 2025 (CS-RES) BETWEEN: PAVITRA W/O. JYOTIBHA JADHAV, AGE: 32 YEARS, OCC: AGRICULTURE, CHIEF PROMOTER, PROPOSED GOTHEVIKAS PRATHMIK KRUSHI PATTIN SAHAKARI SANGH NIYAMIT GOTHE, TQ: JAMAKHANDI, DIST: BAGALKOT – 587 330. …PETITIONER (BY SRI. SANJANA S. MUDHOL, ADVOCATE) AND: 1. THE STATE OF KARNATAKA, REPRESENTED BY ITS SECRETARY, DEPARTMENT OF CO-OPERATION, M. S. BUILDING, BENGALURU – 560 001. 2. THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETY, JAMAKHANDI, JAMAKHANDI SUB DIVISION, JAMAKHANDI, TQ: JAMAKHANDI, DIST: BAGALKOT, PIN 587 301. …RESPONDENTS (BY SRI. RAMESH CHIGARI, AGA FOR RESPONDENTS) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE WRIT IN THE NATURE OF CERTIORARI TO QUASH THE IMPUGNED ORDER DATED 02/01/2025 IN NO. AR-8/RSR/RGN/CR-55/2024-25 PASSED BY THE 2ND RESPONDENT VIDE ANNEXURE-B. TO ISSUE WRIT IN THE NATURE OF MANDAMUS DIRECTING THE RESPONDENT NO.2 TO GRANT PERMISSION TO FLOATING OF SHARE AMOUNT FOR PRE- REGISTRATION OF THE SOCIETY IN THE NAME OF THE PROPOSED GOTHEVIKAS PRATHMIK KRUSHI PATTIN SAHAKARI SANGH NIYAMIT, GOTHE, TQ: JAMAKHANDI, DIST: BAGALKOT AT GOTHE BY ALLOWING THIS WRIT PETITION IN THE INTEREST OF JUSTICE AND EQUITY AND ETC., RAKESH S HARIHAR Digitally signed by RAKESH S HARIHAR Location: High Court of Karnataka Dharwad Bench Date: 2025.10.18 12:17:05 +0530 - 2 - HC-KAR NC: 2025:KHC-D:13977 WP No. 107610 of 2025 THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: ORAL ORDER (PER: THE HON'BLE MR. JUSTICE M.NAGAPRASANNA) 1. The petitioner is before this Court seeking the following prayer: 1. To issue writ in the nature of certiorari to quash the impugned order dated 02/01/2025 in No. AR- 8 /RSR/ RGN/CR-55/2024-25 passed by the 2nd respondent vide Annexure-B. 2. To issue writ in the nature of mandamus directing the respondent no.2 to grant permission to floating of share amount for pre-registration of the society in the name of the PROPOSED GOTHEVIKAS PRATHMIK KRUSHI PATTIN SAHAKARI SANGH NIYAMIT, GOTHE, TQ: JAMAKHANDI, DIST: BAGALKOT at GOTHE by allowing this writ petition in the interest of justice and equity. 3. To issue any other order, directions as deems in the circumstances of the case. 2. Heard Miss Sanjana S.Mudhol for petitioner and Shri Ramesh Chigari, learned AGA for respondents. 3. Learned counsel Smt. Sanjana S.Mudhol appearing for the petitioner submits that the issue in the lis stands answered by judgments rendered by the Coordinate - 3 - HC-KAR NC: 2025:KHC-D:13977 WP No. 107610 of 2025 Benches which are all appended to the petition. The position of law is not disputed by the AGA. The Coordinate Bench in Writ Petition No.100493 of 2024 has held as follows: “The petitioner who intends to establish a co- operative society submitted an application with the 3rd respondent seeking permission for collection of share amount. Based on the report submitted by the Sale Officer, respondent No.3 rejected the proposal stating that existing societies are likely to be affected. Hence, this petition. 2. Heard the learned counsels for the parties. 3. The petitioner submitted an application only for permission to collect shares with an intention to establish a co-operative society and at this stage respondent No.3 ought not to have rejected the application since the question of economic viability and chances of success of the co- operative society to be established is a matter, which requires to be considered at the time of registration. 4. Rule 3 of the Karnataka Co-operative Societies Rules, 1961, deals with formalities for registration and sub-rule (3) states that the registrar on being satisfied that the proposed society has reasonable chances of success and is going to be economically viable may permit the chief promoter to collect such amount of share capital from such number of persons intending to become the members of the proposed society within such period as he may specify. In other words, the registrar is under an obligation to hear the petitioner to satisfy himself that the proposed society has reasonable chances of success and is going to be economically viable. - 4 - HC-KAR NC: 2025:KHC-D:13977 WP No. 107610 of 2025 5. In the instant case, respondent No.3 without giving an opportunity of hearing to the petitioner to satisfy that the proposed society has reasonable chances of success and is going to be economically viable, has rejected the application and the same is in violation of principles of natural justice. 6. Accordingly, the writ petition is allowed. The impugned order dated 22.12.2023 passed by the 3rd respondent at Annexure-E is hereby quashed. 7. Respondent No.3 to grant permission to collect the share amount for pre-registration of Doodh Ganga Vividhoddesha Prathamik Grameena Krushi Sahakari Sangha Niyamita, Hombaradi, Nippani talulka, subject to petitioner satisfying other requirements of law, after providing an opportunity of hearing to the petitioner. 8. Petitioner to be present before respondent No.3 on 20.02.2024 at 11.00 a.m. without awaiting for further notice from respondent No.3.” 4. Another Coordinate Bench following the said judgment in W.P. No.103027 of 2024 has held as follows: “Heard the learned counsel for the petitioner Miss.Sanjana S. Mudhol and the learned HCGP for the respondents. 2. The petitioner is an agriculturist and permanent resident of Ainapur village, Kagawad takuk, district Belagavi. He was not enrolled as member of any of the primary Co-operative Societies. The petitioner and other similarly situated farmers have called for a Gram Sabha meeting at Ainapur village to address their grievances and problems suffered by the farmers in the village and therefore, decided to form a society in the name of Karnataka Vividodesh Prathmik Grameen Krushi Sahakari Sangh Niyamit, Ainapur to the welfare of - 5 - HC-KAR NC: 2025:KHC-D:13977 WP No. 107610 of 2025 the farmers in the village. 3. In view of the same, the petitioner made a representation to respondent No.2 on 22.12.2023 to grant permission for floating the share collection from the eligible farmers for registration of the Co- operative Society in the name of Karnataka Vividodesh Prathmik Grameen Krushi Sahakari Sangh Niyamit, Ainapur. Respondent No.2 sent a letter to the Co-operative Inspector requesting him to submit a report regarding economic viability of the proposed society by a letter dated 01.01.2024 without hearing the petitioner or notifying the petitioner. The Co- operative Inspector submitted a report which was also without notice and knowledge of the petitioner and based on the said report, respondent No.2 without hearing the petitioner passed the impugned order and rejected the proposal for grant of floating of the share collection to the proposed formation of the society by order dated 11.03.2024, which is impugned herein. 4. It is contended by the learned counsel for the petitioner that respondent No.2 has rejected the proposal for floating of the share collection only on the reason that it is not viable and there could be overlapping of the society, that there are already two societies registered in the same area. Therefore, the question of the present society being successful for overlapping other Co-operative Societies already existing with the same qualities is against the guidelines prescribed by NABARD. 5. Learned counsel for the petitioner contends that the said reasoning provided by respondent No.2 is arbitrary, illegal and unsustainable. It is without application of judicial mind. There is no such requirement forthcoming under the Act or the Rules for permitting floating of shares as what is opined by the respondent. Whether there is a chance of success of Co-operative Society and economic viability is not the requirement to be considered and no application of mind has been applied by the respondent while passing the - 6 - HC-KAR NC: 2025:KHC-D:13977 WP No. 107610 of 2025 impugned order and without even hearing and notifying the petitioner has out rightly rejected the proposal for floating of share collection for formation of the society. 6. Learned counsel for the petitioner relies upon the judgment of a Co-ordinate Bench of this Court in WP No.100493/2024 dated 06.02.2024 wherein in similar matter on similar grounds the assistant registrar of Co-operative Societies has rejected the application without giving an opportunity to the petitioner to satisfy the requirement and chances of success and viability. The writ petition came to be allowed. Another judgment has been also relied by the learned counsel for the petitioner in WP No.104197/2021 which also goes in favour of the petitioner for the reason that while considering the application for economic viability and success of the floating of shares, the respondent may not look into the existence of societies or viability of the other Co-operative Societies. It is only on the basis of information furnished by the promoters that the Registrar is required to be satisfied on the proposed floating of shares by the Society to have reasonable chance of success and economic viability that is required to be satisfied which has to be considered by the Registrar, which has not been done in the present case. 7. Also it is not the case of the respondent that there are other rival Co-operative Societies which have filed any complaint or objection to the floating of shares of the present petitioner or formation of the societies. Under these circumstances, there is force in the argument put forth by the learned counsel for the petitioner and is appreciated by this Court for allowing the petition. Hence, the petition is required to be allowed. Accordingly, I pass the following order: ORDER i) The writ petition is allowed. - 7 - HC-KAR NC: 2025:KHC-D:13977 WP No. 107610 of 2025 ii) The impugned order dated 11.03.2024 in No.AR- 11/RSR/141/2023-24 passed by respondent No.2 vide Annexure-C is hereby quashed. iii) The respondent is directed to collect the share amount for floating of the shares of society for registration subject to the petitioner satisfying other requirements of the law and provide an opportunity to the petitioner before passing any such orders.” 5. This Court following the aforesaid orders in Writ Petition No.100512 of 2025, allowing the petition in terms of its order 27th January 2025. 6. In the light of the issue standing completely answered, the petition deserves to succeed with the prayers that are sought be granted. 7. For the aforesaid reasons, the following: ORDER (i) The petition is allowed. - 8 - HC-KAR NC: 2025:KHC-D:13977 WP No. 107610 of 2025 (ii) The impugned order dated 02.01.2025 passed by the 2nd respondent at Annexure-D, is hereby quashed. (iii) Respondent No.2 to grant permission to collect the share amount for pre- registration of Society in the name Proposed Gothevikas Prathmik Krushi Pattin Sahakari Sangh Niyamit, Gothe, Tq.: Jamakhandi, Dist.: Bagalkot, subject to petitioner satisfying other requirements of law, after providing an opportunity of hearing to the petitioner. (iv) Petitioner to be present before the respondent No.2 on 03.11.2025 at 11.30 a.m., without awaiting for further notice from respondent No.2. Sd/- (M.NAGAPRASANNA) JUDGE VNP/CT-ASC List No.: 1 Sl No.: 13