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2026 DAILYLAW 26048 (KAR)

PUNADAHALLIKOPPALU MILK PRODUCERS CO OPERATIVE SOCIETY LTD., v. THE STATE OF KARNATAKA

WP/1953/2026 · 2026-06-30

M I Arun

body2026

Judgment text

Extracted from the PDF above. The PDF is authoritative.

- 1 - HC-KAR NC: 2026:KHC:32355 WP No. 1953 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30TH DAY OF JUNE, 2026 BEFORE THE HON'BLE MR. JUSTICE M.I.ARUN WRIT PETITION NO. 1953 OF 2026 (CS-RES) BETWEEN: PUNADAHALLIKOPPALU MILK PRODUCERS CO-OPERATIVE SOCIETY LTD., PUNADAHALLIKOPPALU VILLAGE AND POST, HARANAHALLI HOBLI, PIRIYAPATTANA TALUK, MYSURU DISTRICT-570001. REPRESENTED BY ITS CEO, THE SOCIETY IS REGISTERED UNDER THE KARNATAKA CO-OPERATIVE SOCIETIES ACT-1959. …PETITIONER (BY SRI. SANDESH T.B., ADVOCATE) AND: 1. THE STATE OF KARNATAKA, DEPARTMENT OF CO-OPERATION, M. S. BUILDING, BANGALORE-560 001, REPRESENTED BY ITS SECRETARY. 2. THE DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETIES, MYSURU SUB-DIVISION, MYSURU-570001. 3. THE ASSISTANT REGISTRAR OF COOPERATIVE SOCIETIES, HUNSURU SUB-DIVISION, Digitally signed by V MANJUSHA BAI Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:32355 WP No. 1953 of 2026 HUNSURU TALUK, MYSURU-571105. 4. P K VASANTH KUMAR S/O LATE KRISHNEGOWDA, AGED ABOUT 60 YEARS, PRESIDENT OF PUNADAHALLI M.P.C.S HARNALLI HOBLI, PRIYAPATTANA TALUK. …RESPONDENTS (BY SRI. YOGESH D. NAIK, AGA FOR R1 TO R3; SRI. V.R. SARATHY, ADVOCATE FOR R4) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER DATED 13.01.2026 IN APPEAL NO.DRM.DAVA.C7/APPEAL/07/2023-24 PASSED BY THE RESPONDENT NO.2 VIDE ANNEXURE-K AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP THROUGH VIDEO CONFERENCING / PHYSICAL HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE M.I.ARUN ORAL ORDER The registration of the petitioner's Society has been cancelled by respondent No.2- the Deputy Registrar of Co- operative Societies (vide Annexure-K to the writ petition). Aggrieved by the same, the present writ petition is filed. - 3 - HC-KAR NC: 2026:KHC:32355 WP No. 1953 of 2026 2. The petitioner was registered as a Milk Producers Co-operative Society Limited and is shown to be situated at Punadahallikoppalu Village, Haranahalli Hobli, Piriyapattana Taluk. The said Punadahallikoppalu Village adjoins to Punadahalli Village and it is submitted that already there exists a Milk Producers Co-operative Society in Punadahalli Village and respondent No.4 is the President of the said Punadahalli Milk Producers Co-operative Society. 3. Respondent No.4 aggrieved by the registration of the petitioner's society, filed an appeal before respondent No.2 and respondent No.2 on the ground that, most of the members of Punadahalli Milk Producers Co- operative Society are shown to be the members of Punadahallikoppalu Milk Producers Co-operative Society at the time of registration, and that the headquarters of both the Societies are very near to each other has passed the impugned order under Section 106 of the Karnataka Co- operative Societies Act, 1959 (for short, 'the Act'), wherein - 4 - HC-KAR NC: 2026:KHC:32355 WP No. 1953 of 2026 the registration of the petitioner's Society has been cancelled. Aggrieved by the same, the present writ petition is filed. 4. The petitioner though admits that most of its members also happened to be the members of the Punadahalli Milk Producers Co-operative Society and the registered office of both the Societies are situated close to each other and that they perform the same function and have the same objectives, submits that the order passed is erroneous, because it is passed under Section 106 of the Act, and if respondent No.4 was aggrieved, he ought to have approached the authorities concerned under Section 70 of the Act. Though the specific ground is not taken in the pleadings to the writ petition, that is the only ground urged by the learned counsel for the petitioner at the time of arguments. 5. Admittedly, the petitioner's Society came to be registered under the provisions of Section 7 of the Act. - 5 - HC-KAR NC: 2026:KHC:32355 WP No. 1953 of 2026 6. Section 7 of the Act reads as under: "7. Registration.- (1) If the Registrar is satisfied,— (a) that the application complies with the provisions of this Act [, rules and the provisions of any other law for the time being in force]; (b) that the objects of the proposed society are in accordance with section 4; (c) that the aims of the proposed society are not inconsistent with the principles of social justice; (d) that the proposed bye-laws are not contrary to the provisions of this Act and the rules; and (e) that the proposed society complies with the requirements of sound business and has reasonable chances of success; the [Registrar shall, within a period of three months from the date of receipt of the application, register] the co-operative society and its bye-laws [and send by registered post, a certificate of registration and the original registered bye-laws signed with date and seal by him to the chief promoter mentioned in the - 6 - HC-KAR NC: 2026:KHC:32355 WP No. 1953 of 2026 application or to the chief executive of the Cooperative which is converted] [[(2) If the Registrar is unable to dispose of such application within the period specified in sub- section (1), the society and the bye-laws shall be deemed to have been registered.] (3) Where the Registrar refuses to register a proposed co-operative society, he shall forthwith communicate his decision, with the reasons therefor, to the person making the application and if there be more than one to the person who has signed first in the application. (4) The Registrar shall maintain a register of all co-operative societies registered or deemed to be registered under this Act.]" 7. Section 70 of the Act pertains to disputes which may be referred to the Registrar for decision and it reads as under: "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,— - 7 - HC-KAR NC: 2026:KHC:32355 WP No. 1953 of 2026 (a) among members, past members and persons claiming through members, past members and deceased members, or (b) between a member, past member or person claiming through a member, past member or deceased member and the society, its *board* or any officer, agent or employee of the society, or (c) between the society or its *board* and any past *board*, any officer, agent or employee, or any past officer, past agent or past employee or the nominee, heirs, or legal representatives of any deceased officer, deceased agent, or deceased employee of the society, or (d) between the society and any other co- operative society, [or a credit agency] such dispute shall be referred to the Registrar for decision and [no civil or labour or revenue court or Industrial Tribunal] shall have jurisdiction to entertain any suit or other proceeding in respect of such dispute. (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:— - 8 - HC-KAR NC: 2026:KHC:32355 WP No. 1953 of 2026 (a) a claim by the society for any debt or demand due to it from a member or the nominee, heirs or legal representatives of a deceased member, whether such debt or demand be admitted or not; (b) a claim by a surety against the principal debtor where the society has recovered from the surety any amount in respect of any debt or demand due to it from the principal debtor, as a result of the default of the principal debtor whether such debt or demand is admitted or not; (c) [XXX] [(d) any dispute between a co-operative society and its employees or past employees or heirs or legal representatives of a deceased employee, including a dispute regarding the terms of employment, working conditions and disciplinary action taken by a co-operative society [notwithstanding anything contrary contained in the Industrial Disputes Act, 1947 (Central Act 14 of 1947)]; (e) a claim by a co-operative society for any deficiency caused in the assets of the cooperative society by a member, past member, deceased member or deceased officer, past agent or deceased agent or by any servant, past servant or - 9 - HC-KAR NC: 2026:KHC:32355 WP No. 1953 of 2026 deceased servant or by its *board*, past or present whether such loss be admitted or not.] (3) If any question arises whether a dispute referred to the Registrar under this section is a dispute touching the constitution, management or the business of a co-operative society, the decision thereon of the Registrar shall be final and shall not be called in question in any court. [(4)XXX (5) XXX]]" 8. Section 106(1)(a) of the Act read as under: "106. Appeals to other authorities.- (1) [Subject to the provisions of section 108A, an appeal shall lie under this section] against,— [(a) an order of the Registrar under section 7;" 9. Perusal of the aforementioned Sections makes it clear that, the Registrar can either register a new Co- operative Society or reject the same as per Section 7 of the Act. Question of challenging his actions before himself under Section 70 of the Act does not arise. Section 106(1)(a) specifically authorizes filing of an appeal against - 10 - HC-KAR NC: 2026:KHC:32355 WP No. 1953 of 2026 the order passed by the Registrar under Section 7 of the Act. The same has been done in the instant case. 10. As no arguments are advanced assailing the merits or demerits of the impugned order and the only ground that is argued by the petitioner for setting aside the impugned order is that, an order could not have been passed on an appeal filed under Section 106(1)(a) of the Act, I do not see any infirmity in the impugned order. 11. For the aforementioned reasons, the Writ Petition stands dismissed. SD/- (M.I.ARUN) JUDGE CH List No.: 1 Sl No.: 62