- 1 - HC-KAR NC: 2025:KHC:53307 WP No. 32911 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MRS. JUSTICE M G UMA WRIT PETITION NO. 32911 OF 2025 (CS-RES) BETWEEN: THE PRIMARY AGRICULTURAL CREDIT CO OPERATIVE SOCIETY LIMITED PERIYAPATNA TALUK, MYSORE DIST-571107 REPRESENTED BY ITS PRESIDENT REGISTERED UNDER KARNATAKA CO OPERATIVE SOCIETIES ACT, 1959 …PETITIONER (BY SRI. VARUN J. PATIL, ADVOCATE) AND: 1. THE STATE OF KARNATAKA, DEPARTMENT OF CO OPERATION, VIKAS SOUDHA, BENGALURU-560001. REP BY ITS SECRETARY 2. THE REGISTRAR OF CO OPERATIVE SOCIETIES, NO.1, ALI ASKAR ROAD, BENGALURU - 560 052. 3. THE ASSISTANT REGISTRAR CO OPERATIVE SOCIETIES HUNSUR SUB DIVISION HUNSURU - 571 105. 4. THE HABATURU PRIMARY AGRICULTURE CREDIT CO OPERATIVE SOCIETIES PERIYAPATNA TALUK REP BY ITS CEO AMENDED BY ORDER DATED:11/12/25 …RESPONDENTS (BY SRI. YOGESH D. NAIK, AGA FOR R1-3 SRI. T.P. RAJENDRA KUMAR SUNGAY, ADVOCATE FOR C/R (AB) SMT. NANDINI B.S., ADVOCATE FOR R4) Digitally signed by PRASHANTH N V Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:53307 WP No. 32911 of 2025 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF CONSTITUTION OF INDIA PRAYING TO A. ISSUE ANY WRIT OF CERTIORARI QUASHING THE IMPUGNED NOTICE/DIRECTIONS N/O.43RSR-RGN-12(5)-PR 2025-26 BEARING DATED 09/09/2025 PASSED BY THE RESPONDENT NO.3 VIDE ANNEXURE-B AND B. PERMIT THE RESPONDENT NO.5 SOCIETY TO CONTINUE TO FUNCTION IN ITS EXISTING AREA OF OPERATION AS PER ITS BYE- LAWS AND ETC., THIS WRIT PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MRS. JUSTICE M G UMA ORAL ORDER The petitioner - Society has approached this Court seeking issuance of writ in the nature of certiorari to quash the notice/directions dated 09.09.2025 bearing No.SANI43/RSR:RGN:12(5):PR 2025-26 issued by respondent No.3 produced as per Annexure-B and permit respondent No.5 - Society to continue to function in its existing area of operation as per its bye-laws. 2. Heard Sri. Varun J. Patil, learned counsel for the petitioner, Sri Yogesh D. Naik, learned Additional Government Advocate for respondent Nos.1 to 3 and - 3 - HC-KAR NC: 2025:KHC:53307 WP No. 32911 of 2025 Smt.Nandini B.S., learned counsel for respondent No.4. Perused the materials on record. 3. Learned counsel for the petitioner submitted that, respondent No.3 - Assistant Registrar of Co-operative Societies, issued the notice under Section 12(5) of the Karnataka Co- operative Societies Act, 1959 (for short 'the KCS Act') to establish a new Society and that certain villages coming under the area of operation of the petitioner - Society are to be handed over to the newly formed Society. It is further submitted that, respondent No.3 has issued the notice compelling the petitioner to release villages under its area of operation without any request from the members. Moreover, the petitioner - Society has advanced substantial loans to its members and the petitioner will not be in a position to recover the same, if the villages are released. 4. The Co-ordinate Bench of this Court in Shivananja and others V/s State of Karnataka and others1 has recorded a categorical finding that there is no embargo for functioning of two or more PACS in the same area and no 1 W.P.NO.1098 of 2024 DD.02.05.2025 - 4 - HC-KAR NC: 2025:KHC:53307 WP No. 32911 of 2025 direction could be issued under Section 12(5) of KCS Act to delete a particular Gram Panchayat, or Taluk, or District Panchayat from the area of operation of an existing Society, let alone to facilitate the establishment of a new Society. It is also held that it would not be required to delete the existing PACS from the area of operation in a particular Gram Panchayat to enable establishment of another PACS in the very same Gram Panchayat. Therefore, it is made clear that, it is for the members of the existing PACS to comply with all the obligations to the PACS, of which they are members, and to join the new PACS by resigning their membership in the old one. 5. In view of the above, the position of law is very well settled and there cannot be a direction to bifurcate the villages under Section 12(5) of the KCS Act, as there is no embargo to constitute more than one Society. 6. Learned counsel for the petitioner drew the attention of the Court to Annexure-D, where there is reference to respondent No.4 - Society, and it is stated that huge sums of more than Rs.7.60 crore along with interest is due to be paid by various borrowers. Unless the said loan is cleared, the - 5 - HC-KAR NC: 2025:KHC:53307 WP No. 32911 of 2025 borrowers cannot relinquish their rights in the petitioner - Society to become members of the new Society. Hence, I am of the opinion that the notice dated 09.09.2025 issued as per Annexure-B is liable to be quashed. 7. Accordingly, I proceed to pass the following: ORDER i) The petition is allowed. ii) Annexure-B notice dated 09.09.2025 bearing No.SANI43/RSR:RGN:12(5):PR 2025-26 issued by respondent No.3 is hereby quashed. Sd/- (M G UMA) JUDGE MKM CT:VS List No.: 1 Sl No.: 15