- 1 - HC-KAR NC: 2025:KHC:28423 WP No. 18944 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO.18944 OF 2023 (CS-SUR) BETWEEN: MR. CHANDRESH K. S/O. SRI K.P. KARKERA AGE: 47 YEARS OCCUPATION: BUSINESS R/AT PITHRODI, UDYAVARA UDUPI TALUK AND DISTRICT-574 118. …PETITIONER (BY SRI PRASANNA V.R., 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. 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 Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:28423 WP No. 18944 of 2023 4. UDUPI DISTRICT - 576 201. THE FISHERIES AND FISH PRODUCTS MANUFACTURING CO-OPERATIVE SOCIETY LTD. L.NO.836, PITHRODI UDYAVARA VILLAGE UDUPI TALUK AND DISTRICT-574 118. …RESPONDENTS (BY SRI HARISH A.S., AGA FOR R-1 TO R-3; SRI G. CHANDRASHEKARAIAH, ADVOCATE FOR R-4) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO DIRECT THE RESPONDENT NO.1 AND 2 TO CONSIDER THE REPRESENTATION DATED 28/10/2022 VIDE ANNEXURE-A TO CONDUCT RE-AUDIT OF THE SOCIETY VIZ. THE FISHERIES AND FISH PRODUCTS MANUFACTURING CO-OPERATIVE SOCIETY LTD., L.NO.836, PITHRODI, UDYAVARA VILLAGE, UDUPI TALUK AND DISTRICT FOR THE FINANCIAL YEAR 2012- 13 AND 2013-14, FOLLOWED WITH A COMMUNICATION DATED 3/17.11.2022 IN NO.THAPAGA/MAIVIVU/09/2022-23/2238 ISSUED BY THE 1ST RESPONDENT - DIRECTOR OF CO- OPERATIVE AUDIT AND COMMUNICATION DATED 24/11/2022 IN NO.VUNIVU/ HILEPA/ MI.MI.VU.SAA.SA.SAM/ MA.LE.PA/ 85 /2022-23/153 ISSUED BY THE RESPONDENT NO.2 - DEPUTY DIRECTOR CO-OPERATIVE AUDIT, VIDE ANNEXURE-B AND C RESPECTIVELY AND ALSO IN TERMS OF THE OBSERVATION MADE BY THE 2ND RESPONDENT DEPUTY DIRECTOR OF CO- OPERATIVE AUDIT AS PER HIS COMMUNICATION DATED 27/02/2023 IN NO.VUNIVU/HILEPA/MI.MI.VU.SAA.SA.SAM/ MA.LE.PA/85/2022-23/948, VIDE ANNEXURE-H; (II) ANY OTHER WRIT OR ORDER AS THIS HON'BLE COURT DEEMS FIT TO MEET THE ENDS OF JUSTICE. THIS WRIT PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ - 3 - HC-KAR NC: 2025:KHC:28423 WP No. 18944 of 2023 ORAL ORDER 1. The petitioner is before this Court, seeking for the following reliefs: " (i) Writ of Mandamus, directing the Respondent No.1 and 2 to consider the representation dated 28/10/2022 vide Annexure-A to conduct re-audit of the Society viz. 'The Fisheries and Fish Products Manufacturing Co-operative Society Ltd., L.No.836, Pithrodi, Udyavara Village, Udupi Taluk and District' for the financial year 2012-13 and 2013-14, followed with a communication dated 3/17.11.2022 in No.THAPAGA/MAIVIVU/09/2022- 23/2238 issued by the 1st respondent - Director of Co-operative Audit and Communication dated 24/11/2022 in No.VUNIVU/HILEPA/ MI.MI.VU.SAA .SA.SAM/MA.LE.PA/85/2022-23/153 issued by the respondent No.2 - Deputy Director Co-operative Audit, vide Annexure-B and C respectively and also in terms of the observation made by the 2nd respondent Deputy Director of Co-operative Audit as per his communication dated 27/02/2023 in No.vunivu/hilepa/mi.mi.vu.saa.sa.sam/ ma.le.pa/ 85/2022-23/948, vide Annexure-H; (ii) Any other writ or order as this Hon'ble Court deems fit to meet the ends of justice." 2. The grievance of the petitioner is that the present Board of Directors had furnished certain documents - 4 - HC-KAR NC: 2025:KHC:28423 WP No. 18944 of 2023 for the purpose of carrying out the audit of the Society, and the documents relating to the successful erection and commissioning of 20-ton 2 Nos. Ice plant has not been furnished by the present Committee, resulting in surcharge proceedings having been initiated against the petitioner. 3. Sri.Prasanna V.R., learned counsel for the petitioner, would submit that there is a deliberate suppression of the documents by the present new Committee so as to get the surcharge proceedings initiated against the petitioner. The documents, having been obtained under the RTI Act from the Society itself, and these documents being available with the Society itself, ought to have been submitted by the Society at the time of the audit being carried out for the Society. 4. In this regard, Sri.Prasanna V.R. relies upon the report submitted by the Deputy Director of Co- operative Audit to the Director of Co-operative Audit, - 5 - HC-KAR NC: 2025:KHC:28423 WP No. 18944 of 2023 wherein the Deputy Director has categorically indicated that certain documents have not been furnished during the course of the audit. 5. Sri. G Chandrashekar, learned counsel for respondent No.4, submits that all the documents available with the Society had been furnished at the time of audit. 6. Heard Sri. Prasanna V.R., learned counsel for petitioner and Sri. G. Chandrashekaraiah, learned counsel for Respondent No.4. 7. The short question that would arise for consideration is whether a re-audit could be conducted when there is a specific submission made, which is established by the documents produced, to indicate that the earlier audit conducted was conducted without all the documents being furnished? 8. The issue here is, as regards the use of funds of the Society for the establishment of the Ice Plant Unit. - 6 - HC-KAR NC: 2025:KHC:28423 WP No. 18944 of 2023 9. Learned counsel for petitioner contends that the same has been erected and established, and documents are available, whereas the learned counsel for respondent No.4- Society contends that no documents are available as regards the construction of the ice plant. On specific enquiry as to whether the ice plant has been set-up, he fairly submits that the ice plant has been set up, however, there are certain disputes as regards the removal and sale thereof on a subsequent date. 10. Be that as it may, If the ice plant has been set up and documents are available on record in relation thereto, but had not been submitted to the Auditor at the time of audit of the Society being conducted, that would amount to suppression of all the material facts by the new Committee and as such, the earlier audit conducted cannot be held to be proper and correct. 11. in that view of the matter, I pass the following: - 7 - HC-KAR NC: 2025:KHC:28423 WP No. 18944 of 2023 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. Sd/- (SURAJ GOVINDARAJ) JUDGE BMV* List No.: 1 Sl No.: 20