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2025 DAILYLAW 85709 (KAR)

SANTRUPTI CREDIT CO-OP. SOCIETY LTD, KUMATA v. THE STATE OF KARNATAKA

WP/107673/2025 · 2025-12-15

M Nagaprasanna

body2025

Judgment text

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- 1 - HC-KAR NC: 2025:KHC-D:18261 WP No. 107673 of 2025 IN THE HIGH COURT OF KARNATAKA,AT DHARWAD DATED THIS THE 15TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 107673 OF 2025 (CS-EL/M) BETWEEN: 1. SANTRUPTI CREDIT CO-OP SOCIETY LTD., KUMATA KUMATA 1ST FLOOR, NEAR TEMPLE, OLD BUS STAND KUMATA 581343 R/BY ITS CHIEF EXECUTIVE OFFICER VINAY BABU PATGAR, AGE : 35 YEARS, SI NO. 965. 2. VISHWAKARMA SOUHARDA SAHAKARI NIYAMIT NEAR HEAD POST OFFICE, TQ: KUMATA 581343 R/BY ITS MANAGER HAREESH DEVADAS ACHARI, AGE : 36 YEARS, SI NO. 881. 3. SIND SOUHARDA CREDIT CO-OP SOCIETY LTD MANKI, 1ST FLOOR, SHIVA COMPLEX NEAR GRAM PANCHAYATH, MANKI TQ: HONNAVAR 581348 R/BY ITS CHIEF EXECUTIVE OFFICER GANAPATHI MASTI NAIK, AGE: 45 YEARS, SI NO. 976. 4. VIVEK CREDIT SOUHARDA SAHAKARI NIYAMITH SAKIN BELEKERI, TQ: ANKOLA 581321 R/BY ITS CHIEF EXECUTIVE OFFICER ASHOK SHANTARAM NAIK, AGE: 45 YEARS, SI NO. 924 5. SHARADAMBA MAHILA VIVIDDODESHGAL SAHAKARI SANGH NIYAMITH MAIN ROAD, ANKOLA, SAKIN ANKOLA TQ: ANKOLA 581314 R/BY ITS CHIEF EXECUTIVE OFFICER MANJULA S MODI, AGE : 45 YEARS, SI NO. 861 Digitally signed by VISHAL NINGAPPA PATTIHAL Location: High Court of Karnataka, Dharwad Bench, Dharwad - 2 - HC-KAR NC: 2025:KHC-D:18261 WP No. 107673 of 2025 6. ADARSHA MAHILA VIVIDDODESHGAL SOUHARDA SAHAKARI SANGH NIYAMITH SAKIN ANKOLA TQ: ANKOLA 581314 R/BY ITS CHIEF EXECUTIVE OFFICER MANGALA NAIK, AGE : 45 YEARS, SI NO. 810 7. DHANYASHREE SOUHARDA CREDIT SAHAKARI NIYAMITH ANCHE: SAGADGERI TQ: ANKOLA 581319 R/BY ITS CHIEF EXECUTIVE OFFICER SHYAMALA NAIK, AGE : 42 YEARS, SI NO. 1030 8. MANIKANTA SOUHARDA CREDIT SAHAKARI NIYAMITH BARDOLI BUILDING, NEAR HONNARAKA TEMPLE, ANKOLA TQ: ANKOLA 581314 R/BY ITS CHIEF EXECUTIVE OFFICER MANORAMA BRAHMANAND NAYAK, AGE : 43 YEARS, SI NO. 1006 9. KARWAR TALUKA SARAKARI ANUDANITH AND NIVRUTI NOUKARAR HOUSING CREDIT CO-OP SOCIETY LMT., KARWAR KACHERI: TEACHERS COLONY, NANDANA GADDA, SAKIN NANDANAGADDA, TQ: KARWAR 581304 R/BY ITS CHIEF EXECUTIVE OFFICER GIRISH SHANTA NAIK RANE, AGE : 50 YEARS, SI NO. 660 10. AKSHAYA CO-OP CREDIT SOCIETY LTD. DR. KAMALAKAR ROAD, SAKIN KARWAR TQ: KARWAR 581301 R/BY ITS GENERAL MANAGER SINJANV DUMING DIAS, AGE : 45 YEARS, SI NO. 779 …PETITIONERS (BY SRI. R.H.ANGADI, ADVOCATE) - 3 - HC-KAR NC: 2025:KHC-D:18261 WP No. 107673 of 2025 AND: 1. THE STATE OF KARNATAKA DEPT OF CO-OPERATIVE SOCIETIES M.S. BUILDING, BENGALURU-560001 REPRESENTED BY ITS SECRETARY 2. THE STATE CO-OPERATIVE ELECTION AUTHORITY, 3RD FLOOR, A-BLOCK, SHANTI NAGAR, TIMC BUILDING, BENGALURU-560002 REPRESENTED BY ITS COMMISSIONER 3. THE RETURNING OFFICER CANARA DISTRICT CENTRAL CO-OPERATIVE BANK LMT. NEW MARKED YARD SHIRASI DIST. UTTARA KANNADA-581314 4. CHIEF EXECUTIVE OFFICER CANARA DISTRICT CENTRAL CO-OPERATIVE BANK LMT. NEW MARKED YARD SHIRASI DIST. UTTARA KANNADA-581314 5. SUB REGISTRAR OF CO-OPERATIVE SOCIETIES, KARWAR, UTTAR KANADA DISTRICT KARWAR 581341 6. CANARA DISTRICT CENTRAL CO-OPERATIVE BANK LMT. NEW MARKET YARD SHIRASI DIST. UTTARA KANNADA-581314 …RESPONDENTS (BY SMT. NANDINI SOMAPUR, AGA FOR R1, R3, R5; SRI. G.V.BHARAMAGOUDAR, ADVOCATE FOR R2; SRI. VISHWANATH HEGDE, ADVOCATE FOR R4 & R6) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI QUASHING THE INELIGIBLE VOTERS LIST PREPARED BY THE 6TH RESPONDENT MARKED AT ANNEXURE-B, DATED 25/10/2025. B) ISSUE A WRIT OF MANDAMUS TO RESPONDENT NO.6 TO CONDUCT THE ELECTIONS BY PERMITTING THE PETITIONER SOCIETY TO PARTICIPATE IN THE ELECTION PROCESS TO BE HELD ON 25/10/2025 - 4 - HC-KAR NC: 2025:KHC-D:18261 WP No. 107673 of 2025 TO THE 6TH RESPONDENT SOCIETY VIDE ANNEXURE-C DATED 25/9/25 AND ETC., THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING B GROUP THIS DAY, ORDER WAS MADE THEREIN AS UNDER: ORAL ORDER (PER: THE HON'BLE MR. JUSTICE M.NAGAPRASANNA) 1. Learned counsel appearing for the parties in unison would submit that, the issue in the lis stands covered by judgment rendered by Coordinate Bench of this Court in W.P. No.8502/2022 C/w. W.P. No.8477/2022, disposed off on 7th June 2022. The Coordinate Bench of this Court held as follows: “8. In the light of these rival submissions, the question for consideration is: Whether these writ petitions must be disposed of directing the Returning Officer [the fourth respondent and sixth respondents in the respective petitions to announce the results of the elections held on 23.04.2022 including the votes cast by the petitioners. 9. The provisions of Rule 13-D (2-A) of the Rules read as hereunder: (3) The Election Officer shall take steps for publication of voters list in the following manner, namely:- (a) for publication of draft eligible electoral list, a list of defaulters, a list of members whose repayment falls due, before the election date clear fifty days; - 5 - HC-KAR NC: 2025:KHC-D:18261 WP No. 107673 of 2025 (b) for calling objections, if any, calling upon the defaulter members to repay the amounts due to the co-operative societies on or before thirty clear days prior to the date of election; (c) the scrutiny and verification of the voters list after payment by defaulters etc., clear twenty days before the ate of election. (d) for publication of final eligible voters list before fifteen clear days prior to the date of election. The underlining is by this Court. 10. These provisions do not leave any room for doubt that an excluded member, with the publication of the Draft Eligible Electoral List, must have an opportunity by way of an individual notice to file objections on exclusion from the Electoral List. It must be shown that the concerned Chief Executive has prepared and sent notice to the affected members. The Public Notice dated 8.11.20211 does 1 This Public Notice reads as follows: ¸ÀAWÀzÀ ¨ÉʯÁ wzÀÄÝ¥Àr DzÉñÀ ¸ÀASÉå: r Dgï ªÉÊ: Dgï.J¸ï.Dgï.JA.J.©.¹.Dgï-16/2018- 19 ¢£ÁAPÀ 16.11.2018 gÀAvÉ ¸ÀºÀPÁgÀ ¸ÀAWÀUÀ¼À G¥À¤§AzsÀPÀgÀÄ, ªÀÄAqÀå f¯Éè, ªÀÄAqÀågÀªÀgÀÄ ¨ÉʯÁ wzÀÄݪÀrAiÀÄ£ÀÄß D£ÀÄªÉÆÃ¢¹ £ÉÆAzÁ¬Ä¹gÀÄvÁÛgÉ. CzÀgÀAvÉ '©' vÀgÀUÀw gÉÊvÀ ¸ÀzÀ¸ÀågÀ µÉÃj£À ªÀÄÄR¨É¯É gÀÆ.1000.00 UÀ¼ÀÄ ªÀÄvÀÄÛ µÉÃgÀÄ ±ÀÄ®ÌzÀ ¨Á§Ä gÀÆ.100.00 UÀ¼ÀÄ DVgÀÄvÀÛzÉ. ªÀiÁ£Àå '©' vÀgÀUÀw ¸ÀzÀ¸ÀågÁzÀ vÀªÀÄä µÉÃgÀÄ ªÉƧ®UÀÄ gÀÆ.500.00UÀ¼ÀÄ EzÀÄÝ ¨ÁQ µÉÃgÀÄ ªÉƧ®UÀÄ gÀÆ.500.00UÀ¼ÀÄ PÀrªÉÄ EgÀÄvÀÛzÉ. EzÀgÀ eÉÆvÉUÉ ¨ÁQ EgÀĪÀ µÉÃgÀÄ ±ÀÄ®Ì gÀÆ.90.00UÀ¼ÀÄ ¸ÉÃj MlÄÖ gÀÆ590,00UÀ¼À£ÀÄß ¥ÁªÀw¸À®Ä ºÁUÀÆ ªÀiÁ£Àå '©' vÀgÀUÀw PÉ®ªÀÅ ¸ÀzÀ¸ÀågÀ µÉÃgÀÄ ªÉƧ®UÀÄ gÀÆ.100.00UÀ¼ÀÄ EzÀÄÝ. ¨ÁQ µÉÃgÀÄ ªÉƧ®UÀÄ gÀÆ900.00UÀ¼ÀÄ PÀrªÉÄ EgÀÄvÀÛzÉ. EzÀgÀ eÉÆvÉUÉ ¨ÁQ EgÀĪÀ µÉÃgÀÄ ¸ÀÄ®Ì gÀÆ 100.00UÀ¼ÀÄ ¸ÉÃj MlÄÖ gÀÆ 1000.00UÀ¼À£ÀÄß ¢£ÁAPÀ:11.12.2021 gÉÆ¼ÀUÉ ¸ÀAWÀPÉÌ ¥ÁªÀw¸ÀĪÀAvÉ F ªÀÄÆ®PÀ vÀªÀÄUÉ w½¹zÉ. ªÀÄÄAzÀĪÀjzÀÄ EzÀ®èzÉ PÀ£ÁðlPÀ ¸ÀºÀPÁgÀ ¸ÀAWÀUÀ¼À C¢ü¤AiÀÄ£ÀÄ 1959gÀ ¥ÀæPÀgÀt 20(2) (J4) ºÁUÀÆ (J5)gÀrAiÀİè£À CªÀPÁ±ÀUÀ¼ÀAvÉAiÀÄÆ CºÀðvÉAiÀÄÆ ºÉÆA¢gÀ¨ÉÃPÁVgÀÄvÀÛzÉ. vÀ¦àzÀ°è ªÀÄÄAzÉ d£ÀªÀj 2022gÀ ªÀiÁºÉAiÀÄ°è £ÀqÉAiÀİgÀĪÀ DqÀ½vÀ ªÀÄAqÀ° ZÀÄ£ÁªÀuÉAiÀÄ°è ªÀÄvÀ ZÀ¯Á¬Ä¸À®Ä ºÁUÀÆ ¸Àà¢üð¸À®Ä CªÀPÁ±À«gÀĪÀÅ¢®è JA§ «µÀAiÀĪÀ£ÀÄß F ªÀÄÆ®PÀ vÀªÀÄUÉ w½¸À¯ÁVzÉ. - 6 - HC-KAR NC: 2025:KHC-D:18261 WP No. 107673 of 2025 not meet these requirements. In fact, it is admitted on behalf of the respondents that there are deficiencies in the preparation of the Final Electoral Roll after the publication of the Draft Eligible Electoral List, and the petitioners have not been issued with individual notices. 11. The Hon’ble Supreme Court in Shri Sant Sadguru Janardan Swami (Moingiri Maharaj) Sahakari Dugha Utpadak Sanstha and Another v. State of Maharashtra and Others supra has held as follows: ‘7. A perusal of the Rules discloses that the preparation of provisional list of voters, filing of objection against the provisional list of voters, consideration of the objection by the Collector and finalising the list of voters, all occur in the Rules which cover the entire process of the election. The Rules framed for election of specified societies are complete code in itself providing for the entire process of election beginning from the stage of preparation of the provisional voters list, decision on the objection by the Collector, finalisation of electoral rolls, holding of election and declaration of result of the election. In view of the scheme of the Act and Rules, the preparation of voters' list must be held to be part of the election process for constituting managing committee of a specified society. 12. In view of our finding that preparation of the electoral roll is being an intermediate stage in the process of election of the managing committee of a specified society and the election process having been set in motion, it is well settled that the High Court should not stay the continuation of the election process even though there may be some alleged illegality or breach of rules while preparing the electoral roll. It is not disputed that the election in question has already been held and the result thereof has been stayed - 7 - HC-KAR NC: 2025:KHC-D:18261 WP No. 107673 of 2025 by an order of this Court, and once the result of the election is declared, it would be open to the appellant to challenge the election of returned candidate, if aggrieved, by means of an election petition before the election tribunal. 12. It follows from this decision that the adjudication of all questions must be as provided under Section 70(2) of the Co-operative Societies Act2. However, in the present case the respondents admit that there are deficiencies in finalization of Final Electoral List. The petitioners are admittedly not issued with individual notice as required under the provisions of Rule13-D (2-A) of the Co- operative Societies Rules; the petitioners have now cast their votes in the elections on 23.04.2022; the petitioners are not given the opportunity to show cause against the allegations that they have created documents. The respondents, despite admitting deficiencies in finalisation of the Final Electoral List, want to invoke the rule of alternative remedy. This Court is of the considered view that, in the peculiarities of this case, the writ petitions should be disposed of with directions to the concerned respondent to announce results counting even the votes cast by the petitioners and with liberty to all the 2 70. Disputes which may be referred to Registrar for decision.- (1) Notwithstanding anything contained in any law for the time being in force, if any dispute touching the constitution, management, or the business of a co-operative society arises,— (a) xxxxxxxxx (2). For the purposes of sub-section (1), the following shall be deemed to be disputes touching the constitution, management or the business of a co-operative society, namely:— (a). XXXXXXXXXXX (b). XXXXXXXXXXXXX (c). any dispute arising in connection with the election of a President, Vice- president, Chairman, Vice-chairman, Secretary, Treasurer or Member of Committee of the society. - 8 - HC-KAR NC: 2025:KHC-D:18261 WP No. 107673 of 2025 concerned to avail remedy under Section 70(2) of the Act if aggrieved by the results. If such remedy is availed raising a dispute, exclusion of votes of those petitioners who are guilty of fraud can also be considered based on the material that will be placed on record. Therefore, writ petitions are disposed of calling upon the Returning Officer [the fourth respondent/sixth respondent in the respective petitions] to announce the result forthwith including the votes cast by the petitioners in both the petitions. All the contentions are left open for consideration in appropriate proceedings, if commenced.” 2. Learned counsel would submit that, if the same order is passed, it would suffice in this case also. 3. In that light, the writ petition is disposed calling upon the respondent – Returning Officer to announce the result forthwith including the votes cast by the petitioners. All the contentions are left open for consideration in appropriate proceedings, if commenced. Sd/- (M.NAGAPRASANNA) JUDGE RHR/CT-ASC List No.: 1 Sl No.: 0