- 1 - HC-KAR NC: 2026:KHC:34802 WP No. 14063 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF JULY, 2026 BEFORE THE HON'BLE MR. JUSTICE M.I.ARUN WRIT PETITION NO.14063 OF 2026 (CS-RES) BETWEEN: 1. KASABA PRIMARY AGRICULTURAL CREDIT CO-OPERATIVE SOCIETY LTD., T. NARASIPURA TALUK, MYSURU DISTRICT-571 124, REP. BY ITS PRESIDENT, SRI. MALLANNA, S/O LATE MADAPPA, AGED ABOUT 54 YEARS REGISTERED UNDER CO-OPERATIVE SOCIETY ACT. …PETITIONER (BY SRI. VARUN J. PATIL, ADVOCATE FOR SRI. MAHAMMED TAHIR A., ADVOCATE) AND: 1. THE STATE OF KARNATAKA DEPARTMENT OF CO-OPERATION, M.S. BUILDING, BANGALORE-560 001, REP. BY ITS PRINCIPAL SECRETARY. 2. THE REGISTRAR OF CO-OPERATIVE SOCIETIES NO.1, ALI ASKER ROAD, BENGALURU-560 052. 3. THE DEPUTY REGISTRAR CO-OPERATIVE SOCIETIES, Digitally signed by V MANJUSHA BAI Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:34802 WP No. 14063 of 2026 MYSURU, MYSURU DISTRICT-571 125. 4. THE ASSISTANT REGISTRAR CO-OPERATIVE SOCIETIES, MYSURU SUB-DIVISION, MYSURU, PUBLIC OFFICE BUILDING, NEW SAYYAJI RAO ROAD, MYSURU-570 024. 5. BELIGEREHUNDI PRIMARY AGRICULTURAL CREDIT CO-OPERATIVE SOCIETY LTD., BELIGEREHUNDI VILLAGE, T. NARASIPURA TALUK, MYSURU DISTRICT-571 124 REPRESENTED BY ITS CEO, (A SOCIETY REGISTERED UNDER KARNATAKA CO-OPERATIVE SOCIETIES ACT, 1959.) …RESPONDENTS (BY SRI. YOGESH D. NAIK, AGA FOR R.1 TO R.4; SRI. SUMANTH KUMAR S., ADVOCATE FOR C/R.5.) THIS PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED NOTICE/DIRECTION BEARING NO.SANI-41/C- 3/BY.THI/PACS/CR/2024-25 DATED 07.11.2024 PASSED BY THE RESPONDENT NO.4 VIDE ANNEXURE-B, ETC. THIS PETITION COMING ON FOR ORDERS, THROUGH PHYSICAL HEARING/VIDEO CONFERENCING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE M.I.ARUN - 3 - HC-KAR NC: 2026:KHC:34802 WP No. 14063 of 2026 ORAL ORDER 1. The petitioner is a Primary Agricultural Credit Co-operative Society Limited. Respondent no.5 is a newly constituted Primary Agricultural Credit Co-operative Society Limited. For the sake of operations, certain villages which were part of the petitioner-Society has been included in the area of operation of respondent no.5- Society by deleting the same from the area of operation of the petitioner-Society. Aggrieved by the same, the present petition is filed. 2. In the course of the arguments, learned counsel for the petitioner fairly submits that the petitioner has no objection for the said villages to be deleted from its area of operation and included in the area of operation of respondent no.5-Society as per the impugned orders. However, he submits that the members who seek to join respondent no.5-Society should be entitled to do so only upon clearing the dues of the petitioner-Society. - 4 - HC-KAR NC: 2026:KHC:34802 WP No. 14063 of 2026 3. In this regard, reliance is placed upon the judgment of this Court in W.P.No.1098/2024 [DD 02.05.2025], wherein at paragraph Nos.16.14 and 16.15, it has been held as under: "16.14. It would not require an existing PACS to delete from its area of operation a particular gram panchayat to enable the establishment of a PACS in that gram panchayat. It is for the member of an existing PACS to comply with all his obligations to the PACS of which he is a member, thereafter resign and join the new PACS. 16.15. If a person is not a member, The discretion would always be of such person to join such Co-operative Society as he or she wishes to join." 4. The learned AGA and the learned counsel appearing for respondent no.5 have no objection for the same. 5. Hence, the following: ORDER (i) The writ petition is disposed of by upholding the actions of respondent No.4 in demarcating - 5 - HC-KAR NC: 2026:KHC:34802 WP No. 14063 of 2026 the area of operation of the petitioner-Society and the area of operation of respondent No.5- Society; (ii) However, respondent no.5-Society will admit any member of the petitioner-Society upon clearing of the dues of the petitioner-Society by the intending member. Sd/- (M.I.ARUN) JUDGE hkh. List No.: 1 Sl No.: 17