- 1 - HC-KAR NC: 2025:KHC:33484 WP No. 16067 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE R. NATARAJ WRIT PETITION NO. 16067 OF 2023 (CS-RES) BETWEEN: 1. KORANGRAPADY CO-OPERATIVE AGRICULTURAL SOCIETY LTD., (A SOCIETY REGISTERED UNDER KCS ACT, 1959) NO.76, BADAGABETTU, KUKKIKATTE UDUPI TALUK AND DISTRICT-576101 REP BY ITS PRESIDENT: HARISH SHERIGAR 2. SATHISH DEVADIGA S/O LATE CHANDRAPPA DEVADIGA AGE: 59 YEARS DIRECTOR OF FIRST PETITIONER SOCIETY R/O SAIJYOTHI NILAYA, CHITPADY, UDUPI UDUPI DISTRICT-576101 3. V. CHANDRAHAS SHETTY S/O LATE NARAYAN SHETTY AGE: 67 YEARS DIRECTOR OF FIRST PETITIONER SOCIETY "SRI LAXMI", 76, BADAGABETTU KUKKIKATTE, UDUPI, UDUPI DISTRICT-576107 …PETITIONERS (BY SRI. MAHESH R UPPIN, ADVOCATE) AND: 1. THE STATE OF KARNATAKA DEPARTMENT OF CO-OPERATION VIKAS SOUDHA, BENGALURU-560001 REP BY ITS SECRETARY Digitally signed by SUMA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:33484 WP No. 16067 of 2023 2. THE REGISTRAR OF CO-OPERATIVE SOCIETIES IN KARNATAKA NO.1, ALI ASKAR ROAD BENGALURU-560052. 3. THE ASST. REGISTRAR OF CO-OPERATIVE SOCIETIES KUNDAPURA SUB-DIVISION, SANJEEVA PRABHU BUILDING, MASTIKATTE, KUNDAPURA, UDUPI DISTRICT-576201 …RESPONDENTS (BY SRI. S.R. KHAMROZ KHAN, ADDITIONAL GOVERNMENT ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDERS DATED 17.03.2023 BEARING NO.RCS/CRD/KME-3/21/2022-23 PASSED BY THE RESPONDENT NO.2 MARKED AS ANNEXURE-A, THE LETTER DATED 11.07.2023 BEARING NO.RCS/CRD/KME-3/21/2022- 23 ISSUED BY THE RESPONDENT NO.2 MARKED AS ANNEXURE-E AND THE ORDER DATED 11.07.2023 BEARING NO.RCS/CRD/KME- 3/21/2022-23 PASSED BY THE RESPONDENT NO.2 MARKED AS ANNEXURE-F IN SO FAR AS PETITIONER NO.1 IS CONCERNED 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 R. NATARAJ ORAL ORDER The petitioners have challenged an order bearing No.Dgï¹J¸ï/¹Dgïr/PÉJAE-3/21/2022-23 dated 17.03.2023 passed by respondent No.2, a letter bearing No.Dgï¹J¸ï/¹Dgïr/PÉJAE- 3/21/2022-23 dated 11.07.2023 addressed by respondent No.2 to all the Co-operative Societies in the State and the order bearing - 3 - HC-KAR NC: 2025:KHC:33484 WP No. 16067 of 2023 No.Dgï¹J¸ï/¹Dgïr/PÉJAE-3/21/2022-23 dated 11.07.2023 passed by respondent No.2 in so far as petitioner No.1 is concerned. 2. (i) The petitioners contend that petitioner No.1 is a Primary Agricultural Credit Co-operative Society (henceforth referred to as 'PACS') registered under the Karnataka Co- operative Societies Act, 1959 (henceforth referred to as 'Act of 1959'). It is engaged in the business of acceptance of various types of deposits, providing various types of credit facilities to its members, supplying fertilizers, manure, agricultural implements, ration items etc., It does not in any way transact with the non-members. The Ministry of Co-operation, Government of India by virtue of Gazette Notification dated 06.07.2021, rolled out draft model bye-laws for PACS and issued a directive to all the States and other stakeholders to take steps for the adoption of model bye-laws by the PACS. Following the above directive, the respondent No.2 finalized uniform model bye-laws without considering the question whether it can be made applicable to various types of Co- operative Societies registered in the State. Thereafter, respondent No.2 after obtaining approval from the respondent - 4 - HC-KAR NC: 2025:KHC:33484 WP No. 16067 of 2023 No.1, in exercise of his power under Section 129A of the Act of 1959, directed all the PACS in Karnataka to adopt model bye- laws within a period of sixty days in terms of an order dated 17.03.2023. (ii) The petitioner No.1 after verifying that many of the bye-laws of the model bye-laws were opposed to the principles of establishment of Co-operative Societies and also apprehending that many of the activities mentioned in the model bye-laws cannot be performed by it and would not be for the benefit of its members, did not adopt the model bye-laws. It instead decided to carry on with existing approved bye-laws. When the general elections to the State Assembly were underway, the respondent No.2 by letter dated 08.05.2023 mandated that the model bye-laws have to be adopted by placing the same before the Annual General Meeting of the Co- operative Societies to be held statutorily before 25th of September. This was followed by a reminder letter dated 11.05.2023. The respondent No.2 thereafter passed an order dated 11.07.2023 directing that in the event PACS fails to adopt model bye-laws within a period of sixty days, he would constrained to exercise power under Section 129A(3) of the Act - 5 - HC-KAR NC: 2025:KHC:33484 WP No. 16067 of 2023 of 1959 and directed the respondent No.3 to ensure that all the Co-operative Societies in the State takes steps to adopt and implement the model bye-laws within a period of 15 days. The petitioners are therefore, before this Court challenging the direction issued by the respondent No.2 as mentioned above. 3. The learned counsel for the petitioners submitted that the petitioner No.1 is a Primary Agricultural Credit Co- operative Society and by virtue of the model bye-laws, several activities which are not within its domain are sought to be performed by compelling it to adopt the model bye-laws. He contends that if the model bye-laws are adopted, the purpose of its constitution would be defeated and the petitioner No.1 would be compelled to involve in business, which it is not interested in. He therefore, contends that adopting the model bye-laws would change the constitution of petitioner No.1 and therefore, prays that the impugned direction issued by the respondent No.2 be quashed. 4. Learned Additional Government Advocate representing the respondents submitted that the model bye- laws were framed in such a manner that it concerns all the - 6 - HC-KAR NC: 2025:KHC:33484 WP No. 16067 of 2023 Societies registered in the State of Karnataka. He also submits that there is no compulsion that the petitioner No.1 has to adopt model bye-laws in its entirety as framed by the respondent No.2. It is contended that whatever is suggested in the model bye-laws which suits petitioner No.1 could alone be incorporated and adopted. If the petitioner No.1 has any dispute regarding adoption of model bye-laws, it may seek redressal of its grievance before the Registrar. He therefore, contends that the writ petition is misconceived and therefore, liable to be dismissed. 5. I have considered the submissions of the learned counsel for the petitioners as well as the learned Additional Government Advocate for the respondents. 6. The impugned proceedings have emanated by virtue of the powers vested in the respondents under Section 129A of the Act of 1959. The petitioners have not challenged the vires of Section 129 of the Act of 1959. Be that as it may, a reading of Section 129A of the Act of 1959 makes it more than evident that the Co-operative Society is at liberty to adopt model bye-laws with or without modification, which thereby - 7 - HC-KAR NC: 2025:KHC:33484 WP No. 16067 of 2023 means that the model bye-laws which suits the petitioner No.1 could alone be incorporated and adopted. Therefore, the apprehension of the petitioner No.1 that by adopting model bye-laws, its constitution would be affected, is misplaced. The petitioner No.1 is at liberty to pick up only those bye-laws from the model bye-laws, which are suitable for its existence and operation and whatever that does not suit the petitioner No.1 or its business, the same may not be adopted. If the petitioner No.1 has any grievance, it may approach the Registrar as provided under Section 129A(3) of the Act of 1959 and seek appropriate reliefs from the Registrar. 7. The writ petition stands disposed off on the above terms. The petitioner No.1 is at liberty to place the adopted model bye-laws before the Annual General Meeting and proceed in accordance with law. Sd/- (R. NATARAJ) JUDGE PMR List No.: 1 Sl No.: 33