- 1 - HC-KAR NC: 2025:KHC:33686 WP No. 26191 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29TH DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE R. NATARAJ WRIT PETITION NO. 26191 OF 2025 (CS-RES) BETWEEN: 1. SRI. M. SANJEEVA SHETTY S/O. LATE KORAGAIAH SHETTY, AGED ABOUT 78 YEARS, 2. DR. PRAKASH SHETTY, S/O. LATE H.NARAYANA SHETTY, AGED ABOUT 68 YEARS, 3. SRI. R.RAMAIAH, S/O. LATE RAMAIAH, AGED ABOUT 72 YEARS 4. SRI. M. ANANTHAKRISHNA SHETTY, S/O. LATE UGGAPPA SHETTY, AGED ABOUT 74 YEARS, 5. DR. M.R.CHITRALEKHA, W/O. DR. MAHESH KUMAR, AGED ABOUT 75 YEARS, 6. SMT. SUPRABHA.V.RAI, W/O. LATE VISHWANATH RAI, AGED ABOUT 60 YEARS, 7. DR. T.DAYANANDA CHOUTA, S/O. LATE MAHABALA CHOUTA, AGED ABOUT 74 YEARS, 8. SRI. D.CHANDRASHEKAR SHETTY, S/O. LATE B.HERIYANNA SHETTY, AGED ABOUT 67 YEARS, Digitally signed by SUMA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:33686 WP No. 26191 of 2025 9. SRI. P.VITTAL SHETTY, S/O. LATE SUBBANNA SHETTY, AGED ABOUT 70 YEARS, ALL ARE DIRECTORS (NOW UNDER DISQUALIFICATION) SRI RAMAKRISHNA HOUSE BUILDING CO-OPERATIVE SOCIETY LTD., (SOUTH), MYSORE TRISHUL TOWERS, NO.3, 4TH MAIN ROAD, V.V. MOHALLA, MYSORE-570002 …PETITIONERS (BY SRI. M.R.RAJAGOPAL, SENIOR ADVOCATE FOR SRI. ANAND P., ADVOCATE) AND: 1. THE STATE OF KARNATAKA DEPARTMENT OF CO-OPERATION, M.S. BUILDING, DR. B.R. AMBEDKAR VEEDHI, BENGALURU-560001, REPRESENTED BY ITS PRINCIPAL SECRETARY. 2. THE REGISTRAR OF CO-OPERATIVE SOCIETIES IN KARNATAKA, NO.1, ALI ASKER ROAD, BENGALURU-560052. 3. THE ADDITIONAL REGISTRAR OF CO-OPERATIVE SOCIETY LTD., OFFICE OF THE REGISTRAR OF CO-OPERATIVE SOCIETIES IN KARNATAKA, NO.1, ALI ASKER ROAD, BENGALURU-560052. 4. SRI RAMAKRISHNA HOUSE BUILDING CO-OPERATIVE SOCIETY LTD., (SOUTH), MYSORE TRISHUL TOWERS', NO.3, 4TH MAIN ROAD, V.V. MOHALLA, MYSORE-570002., REPRESENTED BY ITS SECRETARY. …RESPONDENTS (BY SRI. D.R.RAVISHANKAR, SENOR ADVOCATE FOR SRI. K.ANANDA, ADVOCATE FOR CAVEATOR/RESPONDENT NO.5; - 3 - HC-KAR NC: 2025:KHC:33686 WP No. 26191 of 2025 SMT. PRATHIMA HONNAPURA, ADDITIONAL ADVOCATE GENERAL ALONG WITH SRI. YOGESH D. NAIK, ADDITIONAL GOVERNMENT ADVOCATE FOR RESPONDENT NOS.1 TO 3; VIDE ORDER DATED 29.08.2025, NOTICE TO RESPONDENT NO.4 IS DISPENSED WITH) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER DATED 18.08.2025 PASSED IN PROCEEDINGS IN NO.HSG-1/196/HHS/2024- 25 TO NO.HSG-1/204/HHS/2024-25 BY THE ADDITIONAL REGISTRAR OF CO-OP SOCIETIES (H AND M), BENGALURU, I.E, THE RESPONDENT NO.3 HEREIN, VIDE ANNEXURE-D, D1 TO D8 AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE R. NATARAJ ORAL ORDER The petitioners have sought for a writ in the nature of certiorari to quash the order dated 18.08.2025 passed by the respondent No.3 in proceedings in No.HSG-1/196/HHS/2024- 25 to HSG-1/204/HHS/2024-25. They have also sought for a writ in the nature of certiorari to quash the order dated 26.08.2025 passed by the respondent No.2 in Appeal No.RCS/DAP/D1/06 to 14/2025. 2. Briefly stated, the facts are that the petitioners who were the erstwhile directors of the respondent No.4, were - 4 - HC-KAR NC: 2025:KHC:33686 WP No. 26191 of 2025 disqualified under Section 29C(8)(b)(c) of the Karnataka Co- operative Societies Act, 1959 (henceforth referred to as ’the KCS Act, 1959’ for short), in terms of an order dated 18.08.2025 for a period of 5 years. The petitioners thereafter challenged the said order before the respondent No.2 in Appeal No.RCS/DAP/D1/06 to 14/2025. An application for interim stay was filed, which was rejected by the respondent No.2 in terms of an order dated 26.08.2025. Being aggrieved by the rejection of the interim relief, the petitioners are before this Court. 3. The learned Senior Counsel for the petitioners submitted that the petitioners have a right of appeal against the order passed by the respondent No.3 and therefore, pending consideration of the appeal, the respondent No.2 was bound to favourably consider the application for stay. He therefore submits that the rejection of the application for stay would have a cascading effect inasmuch as, the participation of the petitioners in the affairs of the respondent No.4 would be jeopardised. - 5 - HC-KAR NC: 2025:KHC:33686 WP No. 26191 of 2025 4. The learned Additional Government Advocate for respondent Nos.1 to 3 submits that the respondent No.2 after considering the contentions urged by the petitioners, has rightly rejected the application for stay and no indulgence is warranted, as the petitioners have been disqualified under Section 29C(8)(b)(c) and (d) of the KCS Act, 1959. 5. The learned counsel for the proposed respondent No.5 submits that he was the complainant at whose behest proceedings under Section 29C of the KCS Act, 1959, was initiated against the petitioners. He submits that since he is interested in the outcome of this writ petition, he may be permitted to come on record. 6. I have considered the submissions of the learned Senior Counsel for the petitioners and the learned Additional Government Advocate for the respondent Nos.1 to 3 and the learned counsel for the proposed respondent No.5. 7. It appears that the respondent No.3 had passed an order disqualifying the petitioners under Section 29C(8)(b)(c) and (d) of the KCS Act, 1959. Being aggrieved by the said order, the petitioners appear to have filed an appeal before the respondent No.2, where they sought interim stay of order of - 6 - HC-KAR NC: 2025:KHC:33686 WP No. 26191 of 2025 disqualification. Therefore, the respondent No.2 ought to have considered the application for stay, as refusal to do so may render the appeal infructuous or result in the petitioners performing their duties as elected directors for the present term. 8. In that view of the matter, the writ petition is allowed and the impugned order passed by the respondent No.3 in proceedings No.HSG-1/196/HHS/2024-25 to No.HSG- 1/204/HHS/2024-25 is quashed. Pending disposal of the appeal before respondent No.2, the order passed by the respondent No.2 in Appeal No.RCS/DAP/D1/06 to 14/2025 is stayed until the appeal before the respondent No.2 is disposed off. The respondent No.2 is directed to dispose off appeal expeditiously as possible, at any rate within a period of one month from the date of receipt of a copy of this order. 9. In the meanwhile, the petitioners shall not take any major policy decision affecting the finance of the respondent No.4 but may carry on the day to day activities of the board of directors of respondent No.4 and they shall also not allot any site. The petitioners may carry on the proposed General Body - 7 - HC-KAR NC: 2025:KHC:33686 WP No. 26191 of 2025 Meeting scheduled on 31.08.2025, but is subject to the above condition. 10. It is made clear that if the petitioners do not cooperate in the disposal of the appeal, the order of stay granted shall stand dissolved and the respondent No.2 shall proceed to dispose off the appeal based on the available material and as directed above and in accordance with law. 11. The learned Additional Advocate General is permitted to file memo of appearance. 12. In view of disposal of main petition, I.A.No.1/2025 does not survive for consideration and the same stands disposed off. Sd/- (R. NATARAJ) JUDGE HJ List No.: 1 Sl No.: 7 - 8 - HC-KAR NC: 2025:KHC:33686 WP No. 26191 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU [SRI M SANJEEVA SHETTY AND OTHERS VS. THE STATE OF KARNATAKA AND OTHERS] 11.09.2025 (VIDEO CONFERENCING / PHYSICAL HEARING) CORAM: HON'BLE MR. JUSTICE R. NATARAJ ORAL ORDER ON 'FOR BEING SPOKEN TO' This petition is moved for being spoken to in view of an inadvertent error that had occurred while quashing the impugned order. This Court had stayed the order passed by the respondent No.3 in proceedings Nos.HSG-1/196/HHS/2024-25 to No.HSG-1/204/HHS/2024-25 dated 18.08.2025 and had quashed the order passed by the respondent No.2 in Appeal No.RCS/DAP/D1/06 to 14/2025 dated 26.08.2025. However, in paragraph No.8 of the order dated 29.08.2025 passed by this Court, the order dated 18.08.2025 passed in proceedings Nos.HSG-1/196/HHS/2024-25 to No. HSG-1/204/HHS/2024-25 is quashed instead of staying it. Likewise, the order dated 26.08.2025 in Appeal No.RCS/DAP/D1/06 to 14/2025 is stayed instead of quashing it. - 9 - HC-KAR NC: 2025:KHC:33686 WP No. 26191 of 2025 In that view of the matter, paragraph No.8 of the order dated 29.08.2025 shall be read as follows: "8. In that view of the matter, this writ petition is allowed and the impugned order dated 18.08.2025 passed by the respondent No.3 in proceedings Nos.HSG-1/196/HHS/2024-25 to No.HSG-1/204/HHS/2024-25 is stayed pending disposal of the appeal before the respondent No.2. Consequently, the order passed by the respondent No.2 dated 26.08.2025 in Appeal No.RCS/DAP/D1/06 to 14/2025 is quashed. The respondent No.2 is directed to dispose of the appeal as expeditiously as possible at any rate within a period of one month from the date of receipt of a copy of this order." This order shall be read in conjunction with the order dated 29.08.2025. Sd/- (R. NATARAJ) JUDGE BKN List No.: 1 Sl No.: 1