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2026 DAILYLAW 50617 (KAR)

SADASHIVA SHETTY v. DEPUTY REGISTRAR OF COOPERATIVE SOCIETIES

WP/30975/2025 · 2026-02-02

Ashok S Kinagi

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Judgment text

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- 1 - HC-KAR NC: 2026:KHC:6048 WP No. 30975 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2ND DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE ASHOK S.KINAGI WRIT PETITION NO. 30975 OF 2025 (CS-RES) BETWEEN: SADASHIVA SHETTY S/O SHANKAR SHETTY AGE 61 YEARS, R/O POSARMA BOLA KARKALA TALUK UDUPI DISTRICT …PETITIONER (BY SRI. DEVIPRASAD SHETTY, ADVOCATE) AND: 1. DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETIES RAJATADRI ROAD, MANIPAL UDUPI. 2. ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES KUNDAPURA SUB-DIVISION, KUNDAPURA, UDUPI DISTRICT -576 201. 3. BOLA VYAVASAYA SEVA SAHAKARA SANGHA NIYAMITHA BOLA, KARKALLA TALUK, UDUPI DISTRICT-574 110. REPRESENTED BY ITS IN CHARGE CHIEF EXECUTIVE OFFICER. Digitally signed by KIRAN KUMAR R Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:6048 WP No. 30975 of 2025 (RESPONDENT NO.3 ARE REGISTERED UNDER THE KARANATAKA CO-OPERATIVE SOCIETIES ACT 1959). 4. K. MURALIDHAR SHARMA S/O VAMANA SHARMA, AGED ABOUT 62 YEARS, 5. SURYAKANTH SHETTY S/O GOPALA SHETTY, AGED ABOUT 61 YEARS, 6. JAYARAMA SALIAN S/O KITTA POOJARI, AGED ABOUT 59 YEARS, 7. PRAVEEN SALIAN, S/O BHOJA POOJARI, AGED ABOUT 50 YEARS, 8. GANAPATHI BHAT, S/O PUNDALIKA BHAT AGED ABOUT 62 YEARS, 9. DIVYA NAYAK W/O ANAND RAYA NAYAK AGED ABOUT 38 YEARS, R4 TO R9 ARE THE DIRECTORS OF BOLA VYAVASAYA SEVA SAHAKARA SANGHA NIYAMITHA, BOLA, KARKALLA TALUK, UDUPI DISTRICT - 574110. …RESPONDENTS (BY SRI. YOGESH D NAIK, AGA FOR R1 AND R2, SRI. RAKSHITH KUMAR, ADVOCATE FOR C/R5, R3, R4, R6, R7, R8 AND R9 ARE SERVED) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER PASSED BY THE RESPONDENT NO.2 DATED 12.09.2025 IN SANI/38/SAMANYA/13/ANAHARTHE/2023-24 INSOFAR AS PETITIONER CONCERNED PRODUCED AS ANNEXURE-L. AND TO - 3 - HC-KAR NC: 2026:KHC:6048 WP No. 30975 of 2025 QUASH THE ORDER PASSED IN APPEAL. NO.03/2025-26 PASSED BY THE RESPONDENT NO.1 DATED 03.10.2025 PRODUCED AS ANNEXURE-P, ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE ASHOK S.KINAGI ORAL ORDER The petitioner filed this writ petition seeking the following reliefs: i) Issue a writ in the nature of certiorari quashing the order passed by the respondent no 2 dated 12/09/2025 in Sani/38/samanya/13/ anaharthe/2023-24 insofar as petitioner concerned produced as Annexure L. ii) Issue a writ of certiorari quashing the order passed in Appeal No 03/2025-26 passed by the respondent no 1 dated 03/10/2025 produced as Annexure P. iii) Such other direction or order writ as may deem fit to this Hon'ble Court may kindly be issued. 2. Brief facts leading rise to the filing of this petition are as follows: 2.1. The petitioner was elected as the Director of respondent No.3-Society on 12.08.2023 and the President - 4 - HC-KAR NC: 2026:KHC:6048 WP No. 30975 of 2025 election was held on 19.08.2023. Respondent No.3- Society was doing well under the leadership of the petitioner. Some of the Directors filed a complaint before respondent No.2 to disqualify the petitioner under Section 29C of the Karnataka Co-operative Societies Act, 1959 (‘Act of 1959’ for short). Respondent No.4 issued a notice to the petitioner under Section 29C(7) of the Act of 1959. The petitioner submitted a reply to the notice. Respondent No.2, without providing an opportunity to the petitioner, has passed an order of disqualification on 16.04.2025 under Section 29C(8)(d) of the Act of 1959 for a period of 5 years. The petitioner, aggrieved by the order passed by respondent No.2, preferred a writ petition in WP No.12773/2025 before this Court. The said writ petition was allowed by this Court vide order dated 12.06.2025 and remitted the matter to respondent No.2. Respondent No.2 passed a final order on 12.09.2025 upholding the order of disqualification. The petitioner, aggrieved by the order passed by respondent No.2, preferred an appeal - 5 - HC-KAR NC: 2026:KHC:6048 WP No. 30975 of 2025 before respondent No.1 along with an application to stay the execution and operation of order of disqualification. Respondent No.1 rejected the said application. Hence, this petition. 3. Heard the arguments of learned counsel for the petitioner, learned AGA for respondent Nos.1 and 2, and learned counsel for respondent No.5. 4. Learned counsel for the petitioner submits that, respondent No.2, without providing any opportunity of being heard to the petitioner, has passed an order of disqualification. The said order of disqualification passed by respondent No.2 is contrary to the proposition of law laid down by this Court in the case of Appa Saheb R. Kerakalamatti Vs. Addl. Registrar of Co-operative Societies in Karnataka1. He also submits that, respondent No.1 has committed an error in rejecting the stay application. Hence, on these grounds, he prays to allow the writ petition. 1 1985 SCC OnLine Kar 107 - 6 - HC-KAR NC: 2026:KHC:6048 WP No. 30975 of 2025 5. Per contra, learned counsel for respondent No.5 supported the impugned order. He submits that, respondent No.1, after considering the entire evidence on record, has rightly rejected the application for staying the execution and operation of the order of disqualification. Hence, on this ground, he prays to reject the writ petition. 6. Perused the records and considered the submissions of the learned counsel for the parties. 7. The undisputed facts are, the petitioner was elected as a Director of respondent No.3-Society and he was also elected as a President of the said Society. Some of the directors of the respondent No.3-Society lodged a complaint against the petitioner regarding the irregularities being committed by the petitioner. Respondent No.2 issued a notice to the petitioner and the petitioner replied to the show-cause notice. Respondent No.2 passed an order of disqualification. The said order was challenged before this Court in WP No.12773/2025. The said writ petition was allowed vide order dated - 7 - HC-KAR NC: 2026:KHC:6048 WP No. 30975 of 2025 12.06.2025 and the matter was remitted to respondent No.2. Respondent No.2, again passed a similar order i.e., order of disqualification of the petitioner from the membership of respondent No.3-Society for a period of 5 years. The petitioner, aggrieved by the order of disqualification, preferred an appeal before respondent No.1 along with an application to stay the operation and execution of the order of disqualification. The said application was rejected by respondent No.1. 8. This Court, vide dated 24.10.2025, stayed all further proceedings pursuant to the representation dated 16.10.2025 submitted by respondents Nos.4 to 9 to respondent No.3. 9. As this Court has granted an interim order, if the interim order granted by this Court is continued till the disposal of the appeal by respondent No.1, no injustice would be caused to the respondents. In the facts and circumstances of the case, I proceed to pass the following: - 8 - HC-KAR NC: 2026:KHC:6048 WP No. 30975 of 2025 ORDER i. The writ petition is allowed; ii. Annexure-P is hereby quashed; iii. The application filed by the petitioner in Appeal No.3/2025-26 is allowed; iv. The petitioner and other private respondents are directed to co-operate with respondent No.1 for early disposal of the appeal; v. All the contentions of the parties are kept open; vi. Pending application(s) in this writ petition, if any, shall stand disposed of accordingly. Sd/- (ASHOK S.KINAGI) JUDGE PA List No.: 1 Sl No.: 6