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2025 DAILYLAW 60702 (KAR)

THE TALUKA AGRICULTURE AND MARKETING CO OPERATIVE SOCIETY LTD. KARATAGI v. THE STATE OF KARNATAKA

WP/100817/2023 · 2025-11-06

M Nagaprasanna

body2025

Judgment text

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- 1 - HC-KAR NC: 2025:KHC-D:15167 WP No. 100817 of 2023 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 6TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 100817 OF 2023 (CS-RES) BETWEEN: 1. THE TALUKA AGRICULTURE AND MARKETING CO-OPERATIVE SOCIETY LTD. KARATAGI TQ. KARATAGI, DIST. KOPPAL-583331 BY ITS CHIEF PROMOTOR, DODDAPPA S/O. LAXMAN RAO DESAI. 2. THE TALUKA AGRICULTURE AND MARKETING CO-OPEATIVE SOCIETY LTD. KARATAGI TQ. KARATAGI, DIST. KOPPAL-582301 BY ITS CEO … PETITIONERS (BY SRI. VIDYAVATI KOTTURSHETTAR, ADVOCATE) AND: 1. THE STATE OF KARNATAKA DEPARTMENT OF CO OPERATION VIAKS SOUDHA, BENGALURU-560001, BY ITS ADDITIONAL CHIEF SECRETARY 2. THE DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETIES KOPPAL DIST: KOPPAL-582301. 3. THE TALUKA AGRICULTURE AND MARKETING COOPERATIVE SOCIETY LTD, GANGAVATHI TQ: GANGAVATHI, DIST: KOPPAL-582301. BY ITS CEO. 4. THE PRIMARY AGRICULTURE CO-OPERATIVE SOCIETY LTD. VISHAL NINGAPPA PATTIHAL Digitally signed by VISHAL NINGAPPA PATTIHAL Location: High Court of Karnataka Dharwad Bench Date: 2025.11.07 11:53:39 +0530 - 2 - HC-KAR NC: 2025:KHC-D:15167 WP No. 100817 of 2023 CHALLUR,TQ: KARATAGI, DIST KOPPAL-582301. BY ITS PRESIDENT VENKTESH METI. 5. THE PRIMARY AGRICULTURE CO-OPERATIVE SOCIETY LTD., YARADONA,TQ GANGAVATHI, DIST: KOPPAL-582301 BY ITS PRESIDENT A.CHANDRASHEKARGUODA 6. THE PRIMARY AGRICULTURE CO-OPERATIVE SOCIETY LTD., BENNUR,TQ: GANGAVATHI, DIST: KOPPAL-583231 BY ITS PRESIDENT RAMZANSAB KAMPLI. 7. THE PRIMARY AGRICULTURE CO-OPERATIVE SOCIETY LTD. SIDDAPPUR,TQB KARATAGI, DIST: KOPPAL-583231 BY ITS PRESIDENT ADYAPPA BASARKATTI. 8. THE PRIMARY AGRICULTURE CO-OPERATIVE SOCIETY LTD. MYLAPUR, TQ GANGAVATHI, DIST KOPPAL-583231 BY ITS PRESIDENT VIRUPASHIGOUDA GUDDUR. 9. THE PRIMARY AGRICULTURE CO-OPERATIVE SOCIETY LTD. SINGNAL TQ: GANGAVATHI, DIST: KOPPAL-583231 BY ITS DIRECTOR SHIVAPPA YARADONI. 10. THE PRIMARY AGRICULTURE CO-OPERATIVE SOCIETY LTD. GUNDURU, TQ: KARATAGI, DIST: KOPPAL-583231 BY ITS PRESIDENT RAJASHEKARAPPA S/O. SHARANAPPA 11. CHANDRASHEKARGOUDA S/O. AYYAGOUDA AGED ABOUT 46 YEARS, OCC: AGRICULTURE, R/O. BENNUR,TQ: GANGAVATHI, DIST: KOPPAL-583231. … RESPONDENTS (BY SRI. RAMESH CHIGARI, AGA FOR R1 TO R3; SRI. J.S. SHETTY, ADVOCATE FOR C/R11; R4 TO R10 ARE SERVED) - 3 - HC-KAR NC: 2025:KHC-D:15167 WP No. 100817 of 2023 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 OR ANY OTHER ORDER QUASHING THE ORDER DATED 11-01-2023 IN NO.CO26.CAP.2022 PASSED BY RESPONDENT NO.1 AS PER ANNEXURE-L. 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: A. Issue a writ in the nature of certiorari or any other order quashing the order dated 11-01- 2023 in No.CO26.CAP.2022 passed by Respondent No.1 as per Annexure-L. B. Issue such other writ order or direction as deemed fit under the circumstances of the cases. 2. Heard Smt. Vidyavati Kotturshettar, learned counsel appearing for the petitioners; Shri Ramesh Chigari, learned AGA appearing for respondent Nos.1 to 3; and Shri J.S. Shetty, learned counsel appearing for caveat respondent No.11. 3. The petitioner applies for formation of a new Society on 05.08.2018. The Deputy Registrar Co-operative Societies (for short “DRCS”) by an endorsement directed the third respondent - 4 - HC-KAR NC: 2025:KHC-D:15167 WP No. 100817 of 2023 to hold a general body meeting for the formation of a new Taluka Agricultural Primary Co-operative Marketing Society (for short “TAPCMS”) on 05.08.2018. On 14.09.2021, the second respondent is said to have issued an endorsement that the application submitted by the tenth respondent has some lacuna in it, and the application could be resubmitted. After considering the documents submitted by the petitioner, the second respondent passes an order under Section 7 of the Karnataka Cooperative Societies Act, 1959 (hereinafter referred to as “the Act”, for short) granting registration of the petitioner's Society. The first election to the Society also takes place on 18.05.2022 and the list and board of members are also published. When things stood thus respondent Nos.4 to 11 prefer a revision petition before the Revisional Authority invoking Section 108 of the Act and the Revisional Authority passes an order allowing the revision of the respondents and remitting the matter back to the hands of DRCS. It is this that has driven the present petitioner before this Court, in the subject petition. 4. Learned counsel Smt. Vidyavati Kotturshettar appearing for the petitioner would take this Court through the - 5 - HC-KAR NC: 2025:KHC-D:15167 WP No. 100817 of 2023 provisions of the Act i.e., Sections 106 and 108 of the Act to demonstrate that a Society registered under Section 7 must be challenged only by filing an appeal and the revision was not entertainable. More so, in the light of the fact that the application filed by respondent No11 Society was not at all subsisting before the authority, she would contend that the revision is not maintainable and any order that is passed subsequently, is a nullity in law. Therefore, she would seek that the petition be allowed. 5. Per contra, learned counsel Shri J.S. Shetty appearing for respondent No.11 would vehemently refute the submission and contend that Section 108A itself provides revision in cases where no appeal is filed and pending before the appellate authority and therefore, the revision was maintainable as it is the power of revising authority to suo motu call for the records and pass necessary orders in accordance with law. Learned counsel further submits that the application of the petitioner was pending as could be gathered from the documents appended to the petition by the petitioner themselves and further contend that since the application was pending, the - 6 - HC-KAR NC: 2025:KHC-D:15167 WP No. 100817 of 2023 revision was maintainable. Therefore, learned counsel would submits that the petition be dismissed. 6. The learned AGA would also toe the lines of the learned counsel appearing for respondent No.11 in seeking dismissal of the petition. 7. I have given my anxious considerations to the submissions of the learned counsel appearing for the parties and have perused the materials on record. 8. The afore-narrated facts are not in dispute. The petitioner's Society comes into existence in accordance with the order passed by the Deputy Registrar of Co-operative Societies on 18.01.2022 in terms of Section 7 of the Act. Section 7 of the Act reads as follows: “7. Registration.- (1) If the Registrar is satisfied— (a) that the application complies with the provisions of this Act rules and the provisions of any other law for the time being in force; (b) that the objects of the proposed society are in accordance with section 4; (c) that the aims of the proposed society are not inconsistent with the principles of social justice; - 7 - HC-KAR NC: 2025:KHC-D:15167 WP No. 100817 of 2023 (d) that the proposed bye-laws are not contrary to the provisions of this Act and the rules; and (e) that the proposed society complies with the requirements of sound business and has reasonable chances of success; the Registrar shall, within a period of three months from the date of receipt of the application, register the co-operative society and its bye-laws, and send by registered post, a certificate of registration and the original registered bye-laws signed with date and seal by him to the chief promoter mentioned in the application or to the chief executive of the Co-operative which is converted (2) If the Registrar is unable to dispose of such application within the period specified in sub-section (1), the society and the bye-laws shall be deemed to have been registered. (3) Where the Registrar refuses to register a proposed co-operative society, he shall forthwith communicate his decision, with the reasons therefor, to the person making the application and if there be more than one to the person who has signed first in the application. (4) The Registrar shall maintain a register of all co- operative societies registered or deemed to be registered under this Act.” (Emphasis supplied) 9. Section 7 of the Act permits registration of a new Society. Once the Society is in place under Section 7 of the Act, in the event, some person is aggrieved by such registration, it could be challenged by way of filing an appeal under Section 106 of the Act. Section 106 of the Act reads as follows: - 8 - HC-KAR NC: 2025:KHC-D:15167 WP No. 100817 of 2023 “106. Appeals to other authorities- (1) Subject to the provisions of section 108A, an appeal shall lie under this section against,— (a) an order of the Registrar under section 7; (b) an order of the Registrar under section 12; (c) an order of the Registrar under section 17 (d) an order of the Registrar under sub-section (2) of section 27; (d-1) an order of the Registrar made under section 28A(5) (d-2)] an order of the Registrar under section 29C; (e) an order of the Registrar 1 made under section 30; (e-1) an order of Registrar 2 under sub-section (1) of section 31 (f) the seizure and impounding of books or property under section 66; (g) an order made by the Registrar under section 67 apportioning the costs of an inquiry held under section 64 or an inspection made under section 65; (h) an order of the Registrar under section 68; (i) x x x (j) an order made by the Registrar under section 72; (k) any order made by the Liquidator of a co- operative society in exercise of the powers conferred on him by section 74, other than a determination under clause (f) of sub-section (2) of that section; - 9 - HC-KAR NC: 2025:KHC-D:15167 WP No. 100817 of 2023 (k-1) an order made by the Registrar under section 99 (l) an order made by the Registrar under section 101; or (m) an order for attachment of any property made by the Registrar under section 103 other than an order referred to in clause (e) of section 105. (n) an order made by the Registrar under section 105A; (o) an order of the Registrar made under section 111 (2) An appeal against any act, decision or order under sub-section (1) shall be made within sixty days from the date of the act, decision or order, (a) If the act, decision or order was made by the Assistant Registrar, to the jurisdictional Deputy Registrar; (b) If the act, decision or order was made by the Deputy Registrar, to the jurisdictional Joint Registrar; (c) If the act, decision or order was made by the Joint Registrar, to the jurisdictional Additional Registrar or to the Registrar, as the case may be; (d) If the act, decision or order was made by the Additional Registrar, to the Registrar; (e) If the act, decision or order was made by the Registrar, to the State Government. Provided further that the appellate authority may admit an appeal preferred after the said period of sixty days, if it is satisfied that the appellant had sufficient cause for not preferring the appeal within the said period Explanation.- x x x - 10 - HC-KAR NC: 2025:KHC-D:15167 WP No. 100817 of 2023 (3) Where an appeal is preferred, the appellate authority may, in order to prevent the ends of justice being defeated, make such interlocutory orders pending the final decision of appeal as it may deem fit; (4) In disposing of an appeal under this section the appellate authority, may after giving the parties an opportunity of making their representations, pass such order thereon as it may deem fit (5) The appeal shall be decided within a period of twelve months excluding the period of stay granted by a Court if any. However, the Registrar may for the reasons to be recorded in writing extend the period not exceeding eighteen months. Provided that the State Government shall, on a report made by the Registrar, may extend the period beyond eighteen months if it is satisfied that, there are genuine/valid grounds for such extension. (6) No appeal against an order for execution of an order, decision or award for payment of money shall be entertained by the Appellate Authority under sub-section (1) unless it is accompanied by satisfactory proof for having deposited with the concerned society, twenty five percent of the amount in terms of the order, decision or award. After the disposal of the appeal, the amount so deposited shall be adjusted towards the amount payable by the appellant and in case no amount is required to be paid by the Appellant, the amount so deposited shall be refunded to him by the Society.” (Emphasis supplied) 10. Section 106(1)(a) of the Act directs an appeal to be filed against an order of registration of Society under Section 7 of the Act. In the case at hand, the Society of the petitioner is registered under Section 7 of the Act. Therefore, the appeal was - 11 - HC-KAR NC: 2025:KHC-D:15167 WP No. 100817 of 2023 maintainable and entertainable. Notwithstanding the aforesaid fact on a specious plea that an application of respondent No.11 was also pending, respondent Nos.4 to 11 prefer a revision petition under Section 108 of the Act. Section 108 reads as follows: “108. Powers of revision of State Government.- Subject to the provisions of section 108A, the State Government suo motu at any time, and, on application of any person aggrieved, within a period of six months from the date of any order, may call for and examine the record of any case or proceedings of any officer subordinate to it except those subject to appeal or revision by the Tribunal or those in respect of which [an appeal has been made to the State Government or other authorities under section 106 and the State Government after such enquiry as it deems fit is satisfied that the order of the officer is contrary to law and has resulted in a miscarriage of justice, pass such orders thereon as the State Government deems just: Provided that no order shall be made to the prejudice of any person under this section unless he has been given a reasonable opportunity of being heard.” 11. Though Section 108 of the Act empowers the Revisional Authority to call for records at any time within six months of the registration of the Society, it would not mean that it would override the powers in appeal under Section 106 of the Act. Therefore, once the Society is registered under Section 7 of - 12 - HC-KAR NC: 2025:KHC-D:15167 WP No. 100817 of 2023 the Act, the revision would not become entertainable, the appeal under Section 106(1)(a) of the Act would still be maintainable. 12. For the aforesaid reasons, the following: ORDER (i) The petition stands disposed. (ii) The order of entertainment of the revision petition by the revisional authority and remitting the matter back to the hands of the DRCS for a fresh consideration, being contrary to law stands obliterated. (iii) All other remedies available to the respondents are left open. Sd/- (M.NAGAPRASANNA) JUDGE VNP / CT: ANB List No.: 1 Sl No.: 5