- 1 - HC-KAR NC: 2026:KHC:173 WP No. 14133 of 2022 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 5TH DAY OF JANUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE ASHOK S.KINAGI WRIT PETITION NO. 14133 OF 2022 (CS-RES) BETWEEN: SRINIVAS S/O LATE VENKATARAMANE GOWDA AGED ABOUT 62 YEARS HARIHARA PURA VILLAGE NAD POST KASABA HOBLI, K R PET TALUK MANDYA DISTRICT …PETITIONER (BY SRI. CHANDRAKANTH R. PATEL, ADV.) AND: 1. STATE OF KARNATAKA DEPARTMENT OF CO-OPERATION, M S BUILDING, AMBEDKAR VEEDHI BANGALORE REPRESENTED BY ITS PRINCIPAL SECRETARY 2. ADDITIONAL REGISRAR OF CO OPERATIVE SOCIETIES NO.1, ALI ASKAR ROAD BANGALORE-570052 3. JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES MYSORE PUBLIC OFFICE BUILDING, Digitally signed by SUNITHA K S Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:173 WP No. 14133 of 2022 NEW SAMYOUGI RAO ROAD MYSORE-570024 4. THE ENQUIRY OFFICER ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETY MANDYA SUB DIVISION MANDYA 5. THE MANDYA DISTRICT CO OPERATIVE BANK LTD MANDYA MANDYA DISTRICT REPRESENTED BY ITS CHIEF EXECUTIVE OFFICER 6. H S RAVI S/O SHANKAR NAIK AGED ABOUT 55 EARS MANAGER KR PET BRANCH MANDYA R/A 1ST CROSS, 1ST MAIN, VIDYARANYAPURAM MYSORE 7. SRI M.K.LOKESH S/O LATE M.C.KUMAR AGED MAJOR MANAGER MDCC BANK LTD., VITALAPURA PURA BRANCH BUKANAKERE HOBLI K.R.PET TALUK MANDYA DISTRICT 8. SRI T.K.SOMASHEKAR S/O LATE KAREGOWDA AGED MAJOR - 3 - HC-KAR NC: 2026:KHC:173 WP No. 14133 of 2022 MANAGER MDCC BANK LTD., JAKANAHALLI BRANCH MELUKOTE HOBLI K.R.PET TALUK MANDYA DISTRICT 9. SRI K.T.MAHESH S/O THIMMEGOWDA AGED MAJOR MANAGER MDCC BANK LTD., HOSAHOLALU BRANCH K R.PET TALUK MANDYA DISTRICT 10. SRI AMBAJI RAJU AGED MAJOR JUNIOR ASSISTANT MDCC BANK LTD., HOSAHOLALU BRANCH K R.PET TALUK MANDYA DISTRICT 11. SRI R.JALENDRA S/O S.R.RAJEGOWDA AGED MAJOR JUNIOR ASSISTANT MDCC BANK LTD., SOMANHALLI BRANCH AKKIHABALLU HOBLI K.R.PET TALUK MANDYA DISTRICT - 4 - HC-KAR NC: 2026:KHC:173 WP No. 14133 of 2022 12. SRI B.M.VISHWANATH S/O LATE MUDDEGOWDA AGED MAJOR JUNIOR ASSISTANT MDCC BANK LTD., BOOKANAKERE BRANCH BOOKANAKERE HOBLI K.R.PET TALUK MANDYA DISTRICT 13. SRI ADIL SHAA S/O MASID SAB AGED MAJOR JUNIOR ASSISTANT MDCC BANK LTD., SELANERE BRANCH SELANERE HOBLI, K.R.PET TALUK MANDYA DISTRICT 14. SRI M.B.SRINIVAS MURTHY S/O LATE PUTTAIAH AGED MAJOR JUNIOR ASSISTANT MDCC BANK LTD., HARVAU BRANCH HARVAU HOBLI, K.R.PET TALUK MANDYA DISTRICT 15. SMT. V.ASHWANI D/O T.VENKATESH AGED MAJOR JUNIOR ASSISTANT MDCC BANK LTD., K.R.PET NIGHT BRANCH K.R.PET TALUK, MANDYA DISTRICT - 5 - HC-KAR NC: 2026:KHC:173 WP No. 14133 of 2022 16. SRI MUJAMIL SHARIF S/O SADIQ SHARIF AGED MAJOR JUNIOR ASSISTANT MDCC BANK LTD., BOOKANAKERE BRANCH K.R.PET TALUK MANDYA DISTRICT 17. SRI A.SHIVARAM S/O ANANDANI GOWDA AGED MAJOR RETIRED EMPLOYEE KOPRANAKOPPALU VILLAGE K.SHETTY HALLI HOBLI SRIRANGAPATTANA TALUK MANDYA DISTRICT …RESPONDENTS (BY SRI. H.K.KENCHEGOWDA, AGA FOR R1, R2, R4, MISS. TARUNYA S ADV, FOR SRI. SIDDHARTH B MUCHANDI, ADV. FOR R5, R6, R7, R8, R9, R10, R11, R12, R13, R14, R15, R16 AND R17 ARE SERVED) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO- QUASH THE ORDER DTD 15.06.2022 IN DISPUTE NO.RCS/CRD/KME-8/09/2016-17 VIDE ANNX-P PASSED BY THE R-2, GRANT AN INTERIM ORDER TO STAY THE ORDER DTD 15.06.2022 IN DISPUTE NO.RCS/CRD/KME-8/09/2016-17 VIDE ANNX-P PASSED BY THE R-2 AND STAYING THE ALL FURTHER PROCEEDINGS THEREO AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 6 - HC-KAR NC: 2026:KHC:173 WP No. 14133 of 2022 CORAM: HON'BLE MR. JUSTICE ASHOK S.KINAGI ORAL ORDER The petitioner has filed this writ petition seeking for quashing the order dated 15.06.2022 in Dispute No.RCS/CRD/KEM-8/09/2016-17 passed by respondent No.2 vide Annexure-P. 2. Brief facts, leading rise to the filing of this writ petition are as follows: The petitioner was appointed as Junior Assistant to respondent No.3-Bank. The petitioner on attaining the age of superannuation retired from service on 31.01.2015. Respondent No.6 is an employee of respondent No.5- Bank. During the tenure of his office, he had misappropriated the office funds for his personal use, which was found in the yearly interim report submitted by the Bank Officials. Pursuant to the interim report, board of respondent No.5-Bank called explanation from respondent - 7 - HC-KAR NC: 2026:KHC:173 WP No. 14133 of 2022 No.6. Thereafter, respondent No.6 executed an indemnity bond on 12.01.2016 by agreeing to pay the entire misappropriated office funds. The Board of Directors of respondent No.5 and its Officials, colluding with respondent No.6 by ignoring Annexure-A, issued a show cause notice to the petitioner making some allegations regarding mis-appropriation. Further, respondent No.3 initiated a proceedings under Section 64 of the Act. A notice was issued to the petitioner. The Enquiry Officer was appointed and he submitted his report to respondent No.3. Thereafter, respondent No.3 passed an order dated 05.11.2016. The petitioner challenged the same before respondent No.2. The petitioner filed an application to implead respondent Nos.7 to 17. The said application was rejected by respondent No.2 vide Annexure-P. Hence, this writ petition. 3. Heard the learned counsel for the petitioner, learned Additional Government Advocate for respondent - 8 - HC-KAR NC: 2026:KHC:173 WP No. 14133 of 2022 Nos.1, 2 and 4, and also learned counsel for respondent No.5. 4. Learned counsel for the petitioner submits that the surcharge proceedings were initiated against the petitioner. He submits that other employees have misappropriated the funds and the petitioner has nothing to do with the surcharge proceedings. He submits that the petitioner filed an application for impleading the other respondents/employees. He submits that respondent No.2 without application of mind has passed the impugned order vide Annexure-P. He submits that the impugned order passed by respondent No.2 is not a reasoned order. Hence, on these grounds, he prays to allow the writ petition. 5. Per contra, learned Additional Government Advocate and learned counsel for the other respondents - 9 - HC-KAR NC: 2026:KHC:173 WP No. 14133 of 2022 supported the impugned order, and accordingly, prays to dismiss the writ petition. 6. Perused the records, and considered the submissions of the learned counsel for the parties. 7. It is an undisputed fact that the petitioner was working in respondent No.5-Bank. He retired from the service on attaining the age of superannuation. After retirement respondent No.5 initiated surcharge proceedings against the petitioner, and others without arraying the other proposed respondents/employees. Though there are allegations against the proposed respondents, they are necessary and proper parties to the surcharge proceedings. The petitioner has produced the records to show that there are allegations against the proposed respondents therein. Respondent No.2 without looking into the inquiry report has rejected the application of the petitioner vide order at Annexure-P. From the - 10 - HC-KAR NC: 2026:KHC:173 WP No. 14133 of 2022 perusal of the impugned order, it is evident that respondent No.2 has not assigned any reasons except perusing and considering the written argument presented by the counsel for both parties. On perusal of the interim application submitted by the petitioner, wherein he states that respondent Nos.5 to 15 i.e., respondent Nos.7 to 17 herein in his interim application are the employees and officials of the bank, who are liable under Section 64 of the Act. The inquiry officer has already conducted an inquiry, and submitted an inquiry report, and it has been observed that the report has been given by fixing the responsibility on those directly responsible for misappropriation of the funds. Further it is observed that, this appeal has come for hearing again and again and at this stage, there is no need to make respondent Nos.5 to 15 i.e., respondent Nos.7 to 17 as parties to the appeal. Respondent No.2 has rejected the application solely on the ground that this Court has directed to dispose of the case on merits. Respondent No.2 without considering the report submitted - 11 - HC-KAR NC: 2026:KHC:173 WP No. 14133 of 2022 by the inquiry officer has passed the impugned order. Respondent No.2 has not assigned any reasons for rejecting an application. The impugned order passed by respondent No.2 is arbitrary and erroneous. 8. Accordingly, I proceed to pass the following: ORDER i. The writ petition is allowed. ii. The impugned order dated 15.06.2022 in Dispute No.RCS/CRD/KEM-8/09/2016-17 passed by respondent No.2 vide Annexure-P is hereby set aside. iii. Respondent No.2 is directed to reconsider the interim application filed by the petitioner, and pass an appropriate order by assigning the detailed reasons. - 12 - HC-KAR NC: 2026:KHC:173 WP No. 14133 of 2022 iv. Pending applications, if any, stand disposed off accordingly. Sd/- (ASHOK S.KINAGI) JUDGE SSB