- 1 - HC-KAR NC: 2026:KHC:27802 WP No. 12265 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF JUNE, 2026 BEFORE THE HON'BLE MR. JUSTICE M.I.ARUN WRIT PETITION NO. 12265 OF 2025 (CS-RES) BETWEEN: SRI. C SRINIVASAMURTHY, S/O LATE CHIKKANNA, AGED ABOUT 71 YEARS, RESIDING AT NO. 60/4, 3RD MAIN ROAD, 4TH CROSS ROAD, AJANADRI NEST KSRTC EXTENSION, UTTARAHALLI MAIN ROAD, BENAGALURU-560 061, (NOTE: THE BENEFIT OF SENIOR CITIZENSHIP OF PETITIONER HAS NOT CLAIMED). …PETITIONER (BY SRI SHAMANNA B H, ADVOCATE) AND: 1. THE STATE OF KARNATAKA, DEPARTMENT OF CO-OPERATIVE SOCIETY, VIKASASOUDHA, BANGALORE 560 001. 2. THE REGISTRAR OF CO-OPERATIVE, SOCIETIES IN KARNATAKA, NO.01 ALI ASKAR ROAD, BENGALURU -560 001. 3. THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETY BANGALORE REGION, DEPARTMENT OF CO-OPERATIVE SOCIETY, SAHAKARA SOUDHA, NO.146, 3RD FLOOR, 8TH CROSS, MARGOSA ROAD, MALESHWARAM, BENGALURU-560 003. 4. THE ASSISTANT REGISTRAR OF Digitally signed by V MANJUSHA BAI Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:27802 WP No. 12265 of 2025 CO-OPERATIVE SOCIETY BANGALORE REGION, DEPARTMENT OF CO-OPERATIVE SOCIETY, SAHAKARA SOUDHA, NO.146, 3RD FLOOR, 8TH CROSS, MARGASA ROAD MALESHWARAM, BENGALURU-560 003. 5. SHRI SIDDAIAH, S/O BORAIAH, AGED ABOUT 45 YEARS, NO. 46, SR LAYOUT, RAMAGONDANAHALLI, VARTHURU MAIN ROAD, WHITE FIELD POST, BENGALURU-560 066. 6. VENKATESHAPPA. K. S/O KARIYAPPA, AGED ABOUT 50 YEARS, NO.G. 508, 1ST MAIN, 7TH CROSS, HAL CENTRAL TOWNSHIP, MARATHALLI POST, BENGALURU- 560 037. 7. THE AIR CRAFT EMPLOYEES HOUSE BUILDING CO-OPERATIVE SOCIETY, LIMITED, K.H. ROAD, BANGALORE-560 027, REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER. REG. UNDER KARNATAKA CO-OPERATIVE SOCITIES ACT. …RESPONDENTS (BY SRI YOGESH D NAIK, AGA FOR R1 TO R4, V/O/DT 10.06.2026 - NOTICE TO OTHER RESPONDENT D/W) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER BEARING NO. JRB/SECTION 65/11/2016- 17 DATED 10-07-2023 PASSED BY THE 3RD RESPONDENT- ANNEXURE-F AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE M.I.ARUN - 3 - HC-KAR NC: 2026:KHC:27802 WP No. 12265 of 2025 ORAL ORDER The petitioner is said to be a member and office bearer of respondent No.7-Society. On the allegation that several irregularities have taken place in respondent No.7- Society by virtue of Annexure-A, respondent No.4 has addressed a communication to respondent No.3. Thereafter, the books of respondent No.7-Society have been inspected by the concerned officer under Section 65 of the Co-operative Societies Act, 1959 ('Act, 1959') and an order is passed by respondent No.3 under Section 68 of the Act vide Annexure-F to the writ petition. Aggrieved by the same, the petitioner has preferred the instant writ petition. His case is that certain observations have been made in the impugned communication regarding the role played by him which resulted in certain irregularities in the affairs of respondent No.7-Society. He has also placed reliance upon the order of this Court in respect of the same Society passed in W.P. No.25257/2023 wherein, the order passed under Section 68 of the Act has been set - 4 - HC-KAR NC: 2026:KHC:27802 WP No. 12265 of 2025 aside and the Registrar of Co-operative Society is directed to conduct an inspection and pass appropriate orders. 2. Per contra, learned Additional Government Advocate submits that the order passed in W.P. No.25257/2023 is per incuriam, inasmuch as it does not take into consideration the fact that the petitioner has an alternative and efficacious remedy under Section 106(1) (g) & (h) of the Act, 1959. 3. Section 65 of the Act, 1959 reads as follows:- "65. Inspection of books of a co-operative society.- (1) The Registrar may of his own motion, or on the application of a creditor of a co-operative society, inspect or direct any person authorized by him by order in writing in this behalf, to inspect the books of the society: Provided that no such inspection shall be made on the application of a creditor unless the applicant,- (a) satisfies the Registrar that the debt is a sum then due, and that he has demanded payment thereof and has not received satisfaction within a reasonable time; and - 5 - HC-KAR NC: 2026:KHC:27802 WP No. 12265 of 2025 (b) deposits with the Registrar such sum as security for the costs of the proposed inspection as the Registrar may require. (2) The Registrar shall [send a copy of the inspection report and communicate] [the result of any such inspection to the Director of Co-operative Audit and]- (a) where the inspection is made of his own motion to the society; and (b) where the inspection is made on the application of a creditor, to the creditor and the society. [(2-A) On receipt of the inspection report and the result of the inspection from the Registrar, it shall be the responsibility of the board to initiate necessary action for rectification of defects, if any, therein and place the report before the annual general meeting or a special general meeting convened for the purpose at the earliest: Provided that the general body of the co-operative society shall not be competent to pass a resolution negativing the findings of the inspection.] [(3) If the result of the [inspection] held under sub- section (1) discloses any defects in the working of the society, the society shall within [forty-five days] from the date of the receipt of the [inspection] report and communication of the result of the [inspection] - 6 - HC-KAR NC: 2026:KHC:27802 WP No. 12265 of 2025 explain to the Registrar the defects or the irregularities pointed out in the [inspection] and take steps to rectify the defects and remedy the irregularities and report to the Registrar the action taken by it thereon. The Registrar may also make an order directing the society or its office-bearers to take such action, as may be specified in the order to remedy the defects within the time specified therein.]" 4. Section 68 of the Act reads as follows:- "68. Order by the Registrar.- [(1)] [The Registrar may] make an order directing the co- operative society or its [office bearers] to take such action as may be specified in the order within the time mentioned therein to [rectify the defects and remedy the irregularities] disclosed in [xxxxx] the inquiry under section 64 or inspection under Section 65 [and 65-B.] [Explanation.-x x x x x.] [(2) A report about rectification of defects by the co-operative society shall be sent by the [board] of such society periodically till all such defects are rectified to the Registrar, the credit agency and the financial Bank, and where the defects were pointed out in the audit, to the Director of Co-operative Audit. - 7 - HC-KAR NC: 2026:KHC:27802 WP No. 12265 of 2025 (3) When the Registrar makes an order under sub- section (1) to remedy the defects disclosed in the inquiry or inspection, he shall send a copy of the order along with the result of the inquiry or inspection as the case may be, to the Director of Co- operative Audit [who shall inform the society auditor or auditing firm auditing the accounts of the society for incorporation] such results in the next audit report and financial statements wherever necessary.] [Explanation.-x x x x x.] 5. Section 106 (1)(g) & (h) read as under:- "106. Appeals to other authorities.-(1) [Subject to the provisions of section 108-A, an appeal shall lie under this section] against,— x x x x x x x x x x x x x x x (g) an order made by the Registrar under Section 67 apportioning the costs of an inquiry held under Section 64 or an inspection made under Section 65; (h) an order of the Registrar under Section 68;" 6. Whenever there is mismanagement of the Society, the jurisdictional officer is entitled to inspect the - 8 - HC-KAR NC: 2026:KHC:27802 WP No. 12265 of 2025 books of the Society under Section 65 of the Act, 1959. Thereafter, if he comes to the opinion that there is certain malfeasance or misfeasance committed by the Society, he can direct the Society concerned to rectify the defects under Section 68 of the Act, 1959 and an order to rectify it can be passed. If any person is aggrieved by the order passed subsequent to the said inspection either under Sections 67 or 68 of the Act, 1959, he can prefer an appeal under Section 106 of the Act, 1959. 7. The judgment of the Co-ordinate Bench in W.P. No.25257/2023 does not take into consideration the existence of an alternative and efficacious remedy and on facts has come to the conclusion that the interim order challenged therein deserved to be reconsidered by the authorities concerned and has allowed the writ petition. 8. As the petitioner has an alternative and efficacious remedy under Section 106 of the Act, 1959, I am not inclined to entertain the writ petition and hence, - 9 - HC-KAR NC: 2026:KHC:27802 WP No. 12265 of 2025 the same is here by dismissed, reserving liberty to the petitioner to approach the appropriate appellate authority in the manner known to law. If the petitioner were to prefer an appeal, the authority concerned shall take into consideration the time spent by the petitioner in pursuing the present petition while condoning the delay. Sd/- (M.I.ARUN) JUDGE CHS List No.: 1 Sl No.: 4