- 1 - HC-KAR NC: 2025:KHC:49019-DB WA No. 1436 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26TH DAY OF NOVEMBER, 2025 PRESENT THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE AND THE HON'BLE MR. JUSTICE C.M. POONACHA WRIT APPEAL NO. 1436 OF 2025 (CS-SUR) BETWEEN: THE FISHERIES AND FISH PRODUCTS MANUFACTURING CO-OPERATIVE SOCIETY LIMITED, L. NO.836, PITHRODI, UDYAVARA VILLAGE, UDUPI TALUK, UDUPI DISTRICT - 574 118. REP. BY ITS PRESIDENT, SRI GIRISH V. SUVARNA, S/O LATE VISHWANATH BANGERA, AGED ABOUT 50 YEARS. …APPELLANT (BY SRI. S.RAJASHEKAR, ADVOCATE) AND: 1. THE DIRECTOR OF CO-OPERATIVE AUDIT, DEPARTMENT OF CO-OPERATION, STATE OF KARNATAKA, OFFICE OF THE DIRECTOR OF CO-OPERATIVE AUDIT, NO.17, JAYANIVAS, SHANKARMUTT ROAD, BASAVANAGUDI, BENGALURU - 560 004. Digitally signed by NIRMALA DEVI Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:49019-DB WA No. 1436 of 2025 2. THE DEPUTY DIRECTOR OF CO-OPERATIVE AUDIT, UDUPI DISTRICT, UDUPI - 574 101. 3. THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES, KUNDAPURA SUB-DIVISION, KUNDAPURA, UDUPI TALUK, UDUPI DISTRICT - 576 201. 4. MR. CHANDRESH K, S/O SRI K.P. KARKERA, AGED ABOUT 49 YEARS, R/AT PITHRODI, UDAYAVARA, UDUPI TALUK, UDUPI DISTRICT - 574 118. …RESPONDENTS (BY SMT. NAMITHA MAHESH, AGA FOR RESPONDENTS No.1 TO 3; SRI. JAYAKUMAR S. PATIL, SENIOR ADVOCATE ALONG WITH SRI. PRASANNA V R., ADVOCATE FOR C/R-4) THIS WRIT APPEAL IS FILED U/S 4 OF THE KARNATAKA HIGH COURT ACT PRAYING TO SET ASIDE THE ORDER DATED 24/07/2025 PASSED BY THE LEARNED SINGLE JUDGE OF THIS HON'BLE COURT IN WP NO.18944/2023 AND CONSEQUENTLY DISMISS THE WRIT PETITION FILED BY THE RESPONDENT NO.4 AND GRANT SUCH OTHER AND FURTHER RELIEFS. THIS APPEAL, COMING ON FOR PRELIMINARY HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC:49019-DB WA No. 1436 of 2025 CORAM: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE and HON'BLE MR. JUSTICE C.M. POONACHA ORAL JUDGMENT (PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE) 1. The appellant has filed the present appeal impugning an order dated 24.07.2025 passed by the learned Single Judge in W.P. No.18944/2023 [CS-SUR] whereby, the said petition was allowed in terms of the following order: i) The Writ Petition is allowed: ii) A Mandamus is issued, directing the respondents No.1 and 2 to consider the representation dated 28.10.2022 submitted by the petitioner in terms of the report of the Deputy Director of Co-operative Audit dated 27.02.2023 at Annexure H. iii) In the event of the Auditor coming to a conclusion that there is suppression of material facts and documents at the time when the audit was conducted earlier, the Registrar of Co- Operative Societies is directed to take the same into consideration and initiate such action as may be permissible under law, as regards the present new Committee. iv) Pending I.As., if any, stand disposed of. 2. Respondent No.4 [Writ Petitioner] had filed the said writ petition inter alia praying that directions be issued to respondent - 4 - HC-KAR NC: 2025:KHC:49019-DB WA No. 1436 of 2025 Nos.1 and 2 to consider the representation dated 28.10.2022 and conduct re-audit of the Appellant's Society for the financial years 2012-13 and 2013-14. 3. The writ petitioner was essentially aggrieved by the allegations made by the Departmental Auditor regarding misappropriation of funds. Thereafter, the Assistant Registrar of Co-operative Societies [respondent No.3] had commenced surcharge proceedings which culminated in an order dated 18.10.2022 holding that the Society was entitled to recover a sum of Rs.68,85,675/- with interest at the rate of 15% p.a. from respondent No.4 and other erstwhile office bearers. 4. Respondent No.4 made a representation before respondent No.1 dated 28.10.2022. The writ petitioner claimed that the audit conducted earlier was not proper as the present office bearers of the appellant Society had not provided the documents relating to successful erections and commissioning of 2 ice plants of 20 tons. It is also pointed out that an Ice Plant had been set up but there were certain disputes with regard to the removal and sale thereof on a subsequent date. In this regard, the learned Single Judge has observed that if the Ice Plant had been set up and the - 5 - HC-KAR NC: 2025:KHC:49019-DB WA No. 1436 of 2025 documents were available on the record, non-furnishing of such documents at the time of the audit would amount to suppression of material facts. 5. Without rendering any final decision on the allegations made in the writ petition, the learned Single Judge directed respondent Nos.1 and 2 to consider the representation dated 28.10.2022 made by the writ petitioner in light of the audit report of the respondent No.2 dated 27.02.2023 which was enclosed with the writ petition. Clearly, the directions issued to respondent Nos.1 and 2, do not determine the rights of the parties. It merely requires respondent No.2 to enquire into the allegations that are made and consider the writ petitioner's representation. 6. We find no grounds to interfere with the said directions. The appeal is unmerited and accordingly, dismissed. Sd/- (VIBHU BAKHRU) CHIEF JUSTICE Sd/- (C.M. POONACHA) JUDGE BS - List No.: 1 Sl No.: 7