- 1 - HC-KAR CNR: KAHC010322162026 NC: 2026:KHC:39524 WP No. 15203 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF JULY, 2026 BEFORE THE HON'BLE MR. JUSTICE M.I.ARUN WRIT PETITION NO.15203 OF 2026 (CS-RES) BETWEEN: 1. NERALAKERE PRIMARY AGRICULTURAL CREDIT CO-OPERATIVE SOCIETY LTD. SRIRANGAPATNA TALUK, MANDYA DISTRICT-571415, REP. BY ITS PRESIDENT, SRI. N.M. KUMAR, S/O LATE MADEGOWDA, AGED ABOUT 50 YEARS. …PETITIONER (BY SRI. VARUN JAYKUMAR PATIL, ADVOCATE) AND: 1. THE STATE OF KARNATAKA DEPARTMENT OF CO-OPERATION, M.S. BUILDING, BANGALORE-560001, REP. BY ITS PRINCIPAL SECRETARY. 2. THE REGISTRAR OF CO-OPERATIVE SOCIETIES NO.1, ALI ASKER ROAD, BENGALURU-560052. 3. THE ASSISTANT REGISTRAR CO-OPERATIVE SOCIETIES, PANDAVAPURA SUB-DIVISION, Digitally signed by GEETHA P G Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR CNR: KAHC010322162026 NC: 2026:KHC:39524 WP No. 15203 of 2026 PANDAVAPURA, #177, OLD SBI BANK ROAD, OPP. BABU NURSING HOME, PANDAVAPURA, MANDYA DISTRICT-571434. 4. GAMANAHALLI PRIMARY AGRICULTURAL CREDIT CO-OPERATIVE SOCIETY LTD., GAMANAHALLI VILLAGE, SRIRANGAPATNA TALUK, MANDYA DISTRICT-571478, REP. BY ITS CEO. …RESPONDENTS (BY SRI. YOGESH D. NAIK, AGA., FOR R.1 TO R.3; SRI. KUMARA SWAMY, ADVOCATE FOR R.4.) THIS PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED NOTICE/DIRECTION BEARING NO.AR40/XSN/CR 20/2025-26 DATED 02.12.2025 PASSED BY THE RESPONDENT NO.3 VIDE ANNEXURE-B AND QUASH THE IMPUGNED ORDER/DIRECTION BEARING NO.AR40/RSR/XMD/ /2025-26 DATED 02.03.2026 PASSED BY THE RESPONDENT NO.3 VIDE ANNEXURE-C, ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THROUGH PHYSICAL HEARING/VIDEO CONFERENCING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR CNR: KAHC010322162026 NC: 2026:KHC:39524 WP No. 15203 of 2026 CORAM: HON'BLE MR. JUSTICE M.I.ARUN ORAL ORDER 1. The petitioner is a Primary Agricultural Credit Co-operative Society Limited. Respondent no.4 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.4- Society by deleting the same from the area of operation of the petitioner-Society, as per the impugned orders. Aggrieved by the same, the present petition is filed. 2. The grievance of the learned counsel for the petitioner-Society is that certain persons who are residing in the territory of respondent No.4–Gamanahalli Primary Agricultural Credit Co-operative Society Ltd. and who are presently members of the petitioner-Society, have not repaid the loans due to the petitioner-Society. Further, he submits that the members who seek to join respondent - 4 - HC-KAR CNR: KAHC010322162026 NC: 2026:KHC:39524 WP No. 15203 of 2026 no.4-Society should be entitled to do so only upon clearing the dues of the petitioner-Society. 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 appearing for respondent nos.1 to 3 and the learned counsel appearing for respondent no.4 have no objection for the same. - 5 - HC-KAR CNR: KAHC010322162026 NC: 2026:KHC:39524 WP No. 15203 of 2026 5. Hence, the following: ORDER (i) The writ petition is disposed of by upholding the actions of respondent No.3 in demarcating the area of operation of the petitioner-Society and the area of operation of respondent No.4- Society; (ii) However, respondent no.4-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.: 60