Extracted from the PDF above. The PDF is authoritative.
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HC-KAR NC: 2026:KHC:27145 WP No. 24890 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8TH DAY OF JUNE, 2026 BEFORE THE HON'BLE MR. JUSTICE M.I.ARUN WRIT PETITION NO. 24890 OF 2023 (CS-RES)
BETWEEN:
1. SRI. JAYARAMAIAH S/O LATE RAMAPPA AGED ABOUT 68 YEARS DIRECTOR TUMKUR MILK PRODUCERS CO-OPERATIVE SOCIETIES LIMIED KONDAVADI, MADHUKIRI TALUK TUMKUR-572 127. 2. SRI. VENKATAPPA S/O VENKATARAVANAPPA AGED ABOUT 55 YEARS DIRECTOR TUMKUR MILK PRODUCERS CO-OPERATIVE SOCIETIES LIMIED KONDAVADI, MADHUKIRI TALUK TUMKUR-572 127. 3. SRI. BARIANNA DODDAPPA AGED 68 YEARS DIRECTOR TUMKUR MILK PRODUCERS CO-OPERATIVE SOCIETIES LIMIED KONDAVADI, MADHUKIRI TALUK TUMKUR-572 127. 4. SRI. SHIVARAM K.
S/O KAKIMALLAIAH AGED ABOUT 47 YEARS DIRECTOR
Digitally signed by V MANJUSHA BAI Location: HIGH COURT OF KARNATAKA
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TUMKUR MILK PRODUCERS CO-OPERATIVE SOCIETIES LIMIED KONDAVADI, MADHUKIRI TALUK TUMKUR-572 127. 5. SRI GOVINDAIAH S/O GOVINDAPPA AGED ABOUT 68 YEARS DIRECTOR TUMKUR MILK PRODUCERS CO-OPERATIVE SOCIETIES LIMIED KONDAVADI, MADHUKIRI TALUK TUMKUR-572 127. 6. SRI DODDACHOWDAPPA S/O RAMAKRISHNAIAH AGED 45 YEARS DIRECTOR TUMKUR MILK PRODUCERS CO-OPERATIVE SOCIETIES LIMIED KONDAVADI, MADHUKIRI TALUK TUMKUR-572 127. 7. SMT MATI GIRIJAMMA S/O CHOWDAPPA DIRECTOR TUMKUR MILK PRODUCERS CO-OPERATIVE SOCIETIES LIMIED KONDAVADI, MADHUKIRI TALUK TUMKUR-572 127. …PETITIONERS (BY SRI. JAYAKUMAR S.PATIL, SR.ADVOCATE FOR SRI. MAHAMAD TAHIR A., ADVOCATE)
AND:
1. THE STATE OF KARNATAKA DEPARTMENT OF CO-OPERATION M.S.BUILDING BNAGALORE-560 001. REPRESENTED BY ITS SECRETARY. - 3 -
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2. THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES MADHUGIRI SUB DIVISION MADHUGIRI TALUK TUMKUR DISTRICT-572 127. 3. TUMKUR MILK PRODUCERS CO-OPERATIVE SOCIETIES LIMITED KONDAVADI, MADHUKIRI TALUK TUMKUR DISTRICT-572 127. REPRESENTED BY ITS CEO REGISTERED UNDER KARNTAKA CO-OPERATIVE SOCIETES ACT, 1959. …RESPONDENTS (BY SRI. YOGESH D.NAIK, AGA FOR R1 & R2;
R3 - SERVED BUT UNREPRESENTED)
THIS PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED COMMUNICATION BEARING NO.NOSANI- 33/MKT/ANARHATHE/21/2023-24 DATED 19/10/2023 ISSUED BY RESPONDENT NO.2 VIDE ANNEXURES-B TO B6 AND ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THROUGH PHYSICAL HEARING/VIDEO CONFERENCING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE M.I.ARUN
ORAL ORDER
1. Aggrieved by the notices issued to the petitioners under Section 29C of the Karnataka Co-operative Societies Act, 1959 (for short 'the Act'), the present writ petition is filed.
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2. The case of the petitioners is that, they are the elected members of the Board of Directors of respondent no.3-Society. Respondent no.3-Society is a Federal Society. The allegation of the petitioners is that the said notices have been issued with an ulterior motive of disqualifying the petitioners from the elections which were scheduled in the near future on the date when the notices were issued. It is alleged that the said notices have been issued with malafide intentions. It is further alleged that the said notices have been issued to all the members of the Board of Directors of respondent no.3-Society. It is submitted that the contents of the notices makes an allegation for disqualification of a Board of Director under Section 29C(8)(b) of the Act and that the said notice can be issued only against an individual board member for an act which is done fraudulently or with gross negligence or in contravention of the provisions of the Act and the notice has to specify the said act. In the instant case, it is submitted that, the allegation constitutes a misdemeanor on the part of the entire board for which action can only be initiated under Section 30 of the Act and notice could not have been issued under Section 29C(8)(b) of the Act. It is submitted that the notices have been issued
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without jurisdiction and contrary to the provisions of law and hence it is prayed that impugned notices at Annexures-'B' series be set aside. 3. Per contra, the learned AGA upon instructions, justifies the impugned notices. It is further submitted that what has been issued to the petitioners is only a show case notice and the petitioners are having the liberty to reply to the same including the grounds raised by the petitioners as recorded above and the jurisdictional Joint Registrar shall decide the same in accordance with law.
Reliance is also placed upon the decision of this Court in W.P.No.34285/2024 and it is submitted that under similar circumstances the writ petitions were dismissed reserving the liberty to the petitioners to reply to the show cause notices. 4. It is seen, what has been issued to the petitioners is only a show cause. Under normal circumstances this Court would not exercise its extraordinary jurisdiction under Article 226 of Constitution of India while deciding such a dispute and the petitioners should be relegated to the authority concerned giving them the liberty to reply to the said notice. However, in
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this case, the petitioners have alleged malafides, arbitrariness and lack of jurisdiction in issuing the said notice. There is a specific allegation that show cause notices under Section 29C of the Act could not have been issued on the grounds alleged in the said notices. Under the said circumstances, depending upon the facts and circumstances of the case, this Court is always having the jurisdiction to entertain the writ petition or relegate the aggrieved person to the authority concerned. 5. The contents of the said notices read as under:
"ಕಾಟಕ ಕಾಟಕ ಕಾಟಕ ಕಾಟಕ ಸಾರ ಸಾರ ಸಾರ ಸಾರ ಸಹಾರ ಸಹಾರ ಸಹಾರ ಸಹಾರ ಇಾ
ೆ ಇಾ
ೆ ಇಾ
ೆ ಇಾ
ೆ
ಸಹಾರ ಸಹಾರ ಸಹಾರ ಸಹಾರ ಸಂಘಗಳ ಸಂಘಗಳ ಸಂಘಗಳ ಸಂಘಗಳ ಸಾಯಕ ಸಾಯಕ ಸಾಯಕ ಸಾಯಕ ಬಂಧಕರ ಬಂಧಕರ ಬಂಧಕರ ಬಂಧಕರ ಕೇ ಕೇ ಕೇ ಕೇ ಮಧು ಮಧು ಮಧು ಮಧು ಉಪ !ಾಗ ಉಪ !ಾಗ ಉಪ !ಾಗ ಉಪ !ಾಗ ಮಧು ಮಧು ಮಧು ಮಧು £ÀA¸À¤-33/JAPÉn/C£ÀðºÀvÉ/21/2023-24 ¢£ÁAPÀ:19-10-2023 -: ಾರಣ ಾರಣ ಾರಣ ಾರಣ ೇಳ#ವ ೇಳ#ವ ೇಳ#ವ ೇಳ#ವ ೋ&ೕ' ೋ&ೕ' ೋ&ೕ' ೋ&ೕ' :- ಷಯ : ಾಲು ಉ+ಾ,ದಕರ ಸಹಾರ ಸಂಘ ೊಂಡ/ಾ0 ಮಧು +ಾಲೂ1ಕು ಈ ಸಂಘದ ಆಡ4ತ ಮಂಡ6 7ೇಶಕರಗಳ ಇವರ ರುದ9 ಕಾಟಕ ಸಹಾರ ಸಂಘಗಳ ಾ:; ಕಲಂ 29 (<) ರ0 ಕ=ಮೈ?ೊಳ@ವ ಕುತು. ಉೆ1ೕಖ :-1) Bಾಂಕ:26-06-2023 ರಂದು ಸಂಘದ ಪ ೕCDಾ ವರB. 2)E=ೕ FGೆ,ೕHಾIJ KL ಪMಟN!ಾದಯO ೊಂಡ/ಾ0 ಇವರ ದೂರು ಅQ Bಾಂಕ:25-06-2023.
RೕಲSಂಡ ಷಯೆS ಸಂಬಂB<ದಂ+ೆ ಾಲು ಉ+ಾ,ದಕರ ಸಹಾರ ಸಂಘ ೊಂಡ/ಾ0 ಮಧು +ಾಲೂ1ಕು ಈ ಸಂಘದ61 ಸಹಾರ ಸಂಘಗಳ ಾT7ೆ ಮತುU ಯಮಗಳನುW Gಾ6ಸದ XನWೆಯ61 ಇಾ
ೆಯ ಅYಾಗಳ# ೆZೆ<ದ ಪ ೕCDಾ ವರB ಮತುU ಸಂಘದ ೆಕSಪ[ೆ\ೕಧಾ ವರB ಇವMಗಳನುW ಪEೕ6ಸಾ, ಸಂಘದ ಅಧOCರು ಮತುU ಆಡ4ತ ಮಂಡ6 7ೇಶಕರುಗಳ# ಈ ೆಳಕಂಡವMಗಳನುW ಉಲ1ಂಘೆ ]ಾ0ರುವMದು ಕಂಡು ಬಂBದು; ಈ ೆಳನಂ+ೆ ಆ^ೋ_ಸಾ7ೆ.:-
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HC-KAR NC: 2026:KHC:27145 WP No. 24890 of 2023
ಆ^ೋಪ ಆ^ೋಪ ಆ^ೋಪ ಆ^ೋಪ 1: ಸಂಘದ ಆಡ4ತ ಮಂಡ6 7ೇಶಕರ Hಾ`ನಗ4?ೆ ಚುಾವDೆಯು Bಾಂಕ:17-3-2019 ರಂದು ಚುಾವDೆ ನZೆB7ೆ. ಕಾಟಕ ಸಹಾರ ಸಂಘಗಳ ಾ:; ಕಲಂ ಯಮ ಮತುU ಉಪ Yಗಳ ೕ+ಾO 13 ಜನ 7ೇಶಕರನುW ಚುಾTಸ!ೇಾದು;, 10 ಜನ 7ೇಶಕರುಗಳನುW ]ಾತ= ಅ ^ೋಧ/ಾ ಆ:S]ಾಂ0ೊಂ0ರು+ಾU^ೆ. ಉ4ದ 03 ಜನ 7ೇಶಕರುಗಳ# Hಾ`ನಗಳ#
ಾ6 ಇರುತU7ೆ. ಈ Hಾ`ನಗಳನುW ಕಾಟಕ ಸಹಾರ ಸಂಘಗಳ ಯಮ 14 ಎಎd ೕ+ಾO ಅರವತುU Bವಸ7ೊಳ?ಾ Hಾ`ನಗಳನುW ಭF ]ಾ0ೊಳ@!ೇಾದು; ಆ Hಾ`ನಗಳನುW ಭF ]ಾ0ೊಳ@7ೇ ಾ:; ಮತುU ಯಮಗಳನುW ಉಲ1ಂf<ರುFUೕ. ಆ^ೋಪ ಆ^ೋಪ ಆ^ೋಪ ಆ^ೋಪ 2: ಕಾಟಕ ಸಹಾರ ಸಹಾರ ಸಂಘಗಳ ಾ:; ಕಲಂ 27 K(K) ೕ+ಾO ಸಂಘದ ವರBಗಳನುW ಈ ಾgಾಲಯೆS ಸ61ಸ!ೇಾರುತU7ೆ. ಆದ^ೆ, ವರBಗಳನುW ಸ61ಸ7ೇ ಾ:; ಮತುU ಯಮಗಳನುW ಉಲ1ಂf<ರುFUೕ. ಆ^ೋಪ ಆ^ೋಪ ಆ^ೋಪ ಆ^ೋಪ 3: ಮh ಸಹಾರ ಸಂಘದ ೆಕSಪ[ೆ\ೕದೆಯನುW ಕಾಟಕ ಸಹಾರ ಸಂಘಗಳ ಾ:; ಕಲಂ 1959 ರ 63(1) ರ ೕ+ಾO ೆಕSಪ[ೆ\ೕಧೆಯನುW ಗBತ ಅವYಯ61 ೆZೆ<, ೆಕSಪ[ೆ\ೕಧಾ ವರBಯನುW /ಾiಕ Hಾ]ಾನO ಸjೆಯ61 ವರBಯನುW ಮಂ0<, ಅದರ61ರುವ ಎಾ1 7ೋಷಗಳನುW ಮತುU ಎಾ1 ನೂOನ+ೆಗಳನುW ಸಪ0<ೊಂ0ರುವ ಬ?ೆk ಅನುGಾಲಾ ವರBಯನುW /ಾiಕ Hಾ]ಾನO ಸjೆ ನZೆದ ಮೂವತುU Bವಸ7ೊಳ?ಾ ಸ61ಸ!ೇಾರುತU7ೆ. ಆದ^ೆ, ಇವMಗಳನುW ಸ61ಸ7ೇ ಕಾಟಕ ಸಹಾರ ಸಂಘಗಳ ಾ:; ಕಲಂ 28 <(ಎಂ), 63(10) ಗಳನುW ಉಲ1ಂf<ರುFUೕ. ಆ^ೋಪ ಆ^ೋಪ ಆ^ೋಪ ಆ^ೋಪ 4: ಸಹಾರ ಸಂಘದ /ಾiಕ Hಾ]ಾನO ಸjೆಯನುW, HೆGೆNಂಬl 25 ^ೊಳ?ೆ ೆZೆ< ಸjೆಯ ನಡವ4ೆಗಳನುW, ಸjೆ ೆZೆದ ಮೂವತುU Bನ7ೊಳ?ಾ ಈ ಾgಾಲgಾೆS ಸ61ಸ!ೇಾರುವMzÀÄ ಕZಾmಯ. ಆದ^ೆ ಇದರಂ+ೆ ನಡವ4ೆಗಳನುW ಸ61ಸ7ೇ, ಕಾಟಕ ಸಹಾರ ಸಂಘಗಳ ಾ:; ಕಲಂ 27 ಮತುU ಯಮ 14 ಎnೆ (14) ನುW ಉಲ1ಂf<ರುFUೕ. ಆ^ೋಪ ಆ^ೋಪ ಆ^ೋಪ ಆ^ೋಪ 5: ಸಹಾರ ವಷ ಮುಾUಯ/ಾದ 30 Bವಸ7ೊಳ?ಾ, +ಾ+ಾS6ಕ ಆoಕ ತಃSÉÛಗಳನುW ತgಾ<. ಆಡ4ತ ಮಂಡ6ಯ61 ಚq<, ಸಹಾರ ೆಕSಪ[ೆ\ೕಧಕ?ೆ 30 Bನಗrೆsಳ?ಾ ಮಂ0ಸ7ೇ, ಕಾಟಕ ಸಹಾರ ಸಂಘಗಳ ಯಮ 14 ಎಎt (2)(9) ನುW ಉಲ1ಂf<ರುFUೕ. ಆ^ೋಪ ಆ^ೋಪ ಆ^ೋಪ ಆ^ೋಪ 6: ಸಂಘದ ಉಪ Y ಸಂ
ೆO 45(5) ಮತುU 46(13) ನುW ಉಲ1ಂf<ರುFUೕ. ಆ^ೋಪ ಆ^ೋಪ ಆ^ೋಪ ಆ^ೋಪ 7: ಮh ಸಹಾರ ಸಂಘದ ೆಕSಪ[ೆ\ೕಧಾ ವರBಯ61ರುವಂ+ೆ ಸಂಘದ ಅಪದ9ನ YಯನುW ಕಾಟಕ ಸಹಾರ ಸಂಘಗಳ ಯಮಗಳ# 1960 ರ ಯಮ 23(2) ರನIಯ ಾ:; ಮತುU ಯಮಗಳನುW ಪ=+ೆOೕಕ/ಾ uೇವv ]ಾಡ7ೇ, ಾ:; ಮತುU ಯಮಗಳನುW ಉಲ1ಂf<ರುFUೕ. - 8 -
HC-KAR NC: 2026:KHC:27145 WP No. 24890 of 2023
ಆ^ೋಪ ಆ^ೋಪ ಆ^ೋಪ ಆ^ೋಪ 8: ಸಂಘದ ಉಪ ಯಮಗಳ ೕ+ಾO ಆoಕ ವಹDೆ XತದೃiNTಂದ ನಗದು EಲುSJFಯನುW ಆಡ4ತ ಮಂಡ6 ಸjೆಯ61 ಚq< ಕ=ಮ &NರುವMBಲ1.
ಈ RೕಲSಂಡ ಎಾ1 [ಾಸನಬದ; ಜ/ಾ!ಾ;ಗಳನುW ವXಸುವ61 ಸಂಪxಣ^ಾ ಫಲ^ಾರುFUೕ. ಮh ಾಯಲC+ೆ ಪಲ+ೆTಂದ ಸಂಘದ ಆಡ4ತವM ಕುಂzತ/ಾರುತU7ೆ. ಇದರಂ+ೆ ಆಡ4ತ ಮಂಡ6 ಅಧOCರು ಮತುU 7ೇಶಕ^ಾದ ೕವMಗಳ# ಾ:; ಮತುU ಯಮಗಳನುW ಉಲ1ಂಘೆ ]ಾ0ರುವMದಂದ, ಮhನುW ಕಾಟಕ ಸಹಾರ ಸಂಘಗಳ ಾ:; ಕಲಂ 29(<)(8) ರ0ಯ61 7ೇಶಕರ Hಾ`ನBಂದ ಏೆ ಅನಹ+ೆ?ೊ4< 7ೇಶಕರ Hಾ`ನBಂದ ಏೆ +ೆ?ೆದುಾಕ!ಾರದು ಎಂಬುದೆS ಈ ೋ&ೕಸು ೕ07ೆ. ಈ ಬ?ೆk Bಾಂಕ: 31-10-2023 ರಂದು ಮh 6|ತ ಸಮnಾTi ಮತುU 7ಾಖಾFಗrೆsಂB?ೆ ಈ Gಾ=Yಾರದ ಮುಂ7ೆ ಾಜ^ಾ ವರDೆ ಸ61ಸಲು ಸೂq<7ೆ. ತ_,ದ61 ಮh ವರDೆ ಏನೂ ಇಲ1/ೆಂದು ಪಗv<, Rೕೆ F4<ದ ಾ:;ಯನIಯ 7ೇಶಕರ Hಾ`ನBಂದ ಅನಹ+ೆ?ೊ4ಸಲು ಕ=ಮ ಡಾಗುವMದು. ಈ ಾರಣ ೇಳ#ವ ೋ&ೕಸನುW ನನW ಸIಹHಾUCರ ಾಗೂ ಕೇಯ }ಹೊಂB?ೆ Bಾಂಕ:19-10-2023 ರಂದು ೕ0ರು+ೆUೕೆ. ¸À» ಸಹಾರ ಸಂಘಗಳ ಸಾಯಕ ಬಂಧಕರು ಮಧು ಉಪ jಾಗ ಮಧು"
6. It is not in dispute that the same notices have been issued in respect of all the members of the Board of Directors of respondent no.3-Society. 7. Perusal of the same shows that no individual fraudulent or otherwise illegal action as contemplated under Section 29C(8)(b) of the Act has been alleged against any of the petitioners herein. The allegations pertain to the decision of the Board of Directors of respondent no.3-Society. If the State is of
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the opinion that the Board of Director of respondent no.3- Society has committed any irregularity, in that event, the State is required to initiate appropriate action against the entire Board of Directors of the Society under Section 30 of the Act. They could not have issued a notice under Section 29C of the Act. Under the circumstances, it has to be held that the notices are without jurisdiction and arbitrary and bad in law. 8. For the aforementioned reasons, the impugned show causes notices dated 19.10.2023 issued against the petitioners are hereby set aside reserving the liberty to the State to initiate appropriate action against the Board of Directors of the Society under Section 30 of the Act, if it so desires.
The writ petition stands disposed of accordingly. Sd/- (M.I.ARUN) JUDGE
PGG List No.: 1 Sl No.: 27