- 1 - HC-KAR NC: 2026:KHC-D:379 WP No. 100232 of 2026 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 13TH DAY OF JANUARY, 2026 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI WRIT PETITION NO.100232 OF 2026 (CS-RES) BETWEEN: SAYAJI S/O. SHANAKARRAV MANE, AGE. 63 YEARS, OCC. AGRICULTURE, CHIEF PROMOTER. PROPOSED SAHYADRI VIVIDODDESH PRATHAMIK GRAMEEN KRUSHI SAHAKAR SANGH NIYAMIT, APPACHIWADI, TQ. NIPPANI, DIST. BELAGAVI-5587302. &PETITIONER (BY MISS. SANJANA S.MUDHOL, ADVOCATE FOR SRI. ANAND D.BAGEWADI, ADVOCATE) AND: 1. THE STATE OF KARNATAKA, REPRESENTED BY ITS SECRETARY DEPARTMENT OF CO-OPERATION, M.S. BUILDING, BENGALURU-560001. 2. THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETIES, CHIKKODI SUB-DIVISION, CHIKKODI, TQ. CHIKKODI, DIST. BELAGAVI, PIN-587302. &RESPONDENTS (BY SMT. GIRIJA S.HIREMATH, HCGP) Digitally signed by YASHAVANT NARAYANKAR Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC-D:379 WP No. 100232 of 2026 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF CONSTITUTION OF INDIA, PRAYING TO, 1. TO ISSUE WRIT IN THE NATURE OF CERTIORARI TO QUASH THE IMPUGNED ORDER DATED 21/11/2025 IN NO.AR-11/ RSR/ 45/2025-26 PASSED BY THE 2ND RESPONDENT VIDE ANNEXURE-B. 2. TO ISSUE WRIT IN THE NATURE OF MANDAMUS DIRECTING THE RESPONDENT NO.2 TO GRANT PERMISSION TO FLOATING OF SHARE AMOUNT FOR PRE- REGISTRATION OF THE SOCIETY IN THE NAME OF THE PROPOSED SAHYADRI VIVIDODDESH PRATHAMIK GRAMEEN KRUSHI SAHAKAR SANGH NIYAMIT APPACHIWADI TALUK, NIPPANI, DIST. BELAGAVI BY ALLOWING THIS WRIT PETITION IN THE INTEREST OF JUSTICE AND EQUITY AND ETC.,. THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI - 3 - HC-KAR NC: 2026:KHC-D:379 WP No. 100232 of 2026 ORAL ORDER The present writ petition is filed seeking the following prayer: <PRAYER: WHEREFORE, it is most humbly prayed that this Hon9ble court please to:- 1. To issue writ in the nature of certiorari to quash the impugned order dated 21/11/2025 in No. AR- 11/RSR/45/2025-26 passed by the 2nd respondent vide ANNEXURE-B. 2. To issue writ in the nature of mandamus directing the respondent No. 2 to grant permission to floating of share amount for pre-registration of the society in the name of the PROPOSED SAHYADRI VIVIDODDESH PRATHAMIK GRAMEEN KRUSHI SAHAKAR SANGH NIYAMIT APPACHIWADI TALUK: NIPPANI, DIST: BELAGAVI" by allowing this writ Petition in the interest of Justice and equity. 3. To issue any other order, directions as deems in the circumstances of the case.= 2. It is the case of the petitioner that the petitioner is an agriculturist and permanent resident of Appachiwadi village. The petitioner and other farmers of Appachiwadi village are deprived of getting government benefits such as financial assistance for development of their agriculture and cultivation of commercial crops. It is stated that the Government of Karnataka had taken a policy decision to provide financial assistance to the farmers who are the members of the primary co-operative societies without - 4 - HC-KAR NC: 2026:KHC-D:379 WP No. 100232 of 2026 charging any interest i.e., 0% interest for the economic development and agricultural improvement of the farmers in the village. The petitioner and other farmers have called Gram Sabha meeting on 29.08.2025 and in the meeting, the problems of the farmers were discussed and they have decided to have a new society in the name of <Proposed Sahyadri Vividoddesh Prathamik Grameen Krushi Sahakar Sangh Niyamit Appachiwadi Taluk: Nippani, Dist: Belagavi= for the welfare of the farmers in the village who desire to become the members of the proposed society. 3. The petitioner being the chief promoter has collected relevant documents and presented the proposal to the competent authority i.e., respondent No.2 requesting the authority to grant share collection for registration of the new co- operative society by comprising the villages with the area of the operation as provided under Rule 3 of the Karnataka Co- operative Societies Rules. It is the case of the petitioner that Appachiwadi village is very near to state highway and near to 30 to 50 kilometers, there are many sugar factories. Stating all these factors, they have approached respondent No.2. The - 5 - HC-KAR NC: 2026:KHC-D:379 WP No. 100232 of 2026 respondent No.2 by way of order impugned had rejected the proposal submitted by the petitioner. 4. Learned counsel for the petitioner submits that when the petitioner along with the villagers had gone before respondent No.2 under Rule 3 of the Karnataka Co-operative Societies Rules, respondent No.2 without considering the contents of the proposal had rejected the proposal submitted by the petitioner. It is submitted that there are no objections from other societies. It is also the case that the respondent No.2 had not verified the contents of the proposal and in fact an order is passed under Section 7 of the Co-operative Societies Act. In fact, the petitioner has not approached respondent No.2 under Section 7 of the Act. Further, learned counsel submits that in an identical set of facts WP.Nos.101599/2025, 100493/2024 and 108117/2025 were disposed of vide orders dated 23.06.2025, 06.02.2024 and 21.11.2025 respectively, the Co-ordinate Benches of this Court had quashed the order passed by respondent and directed to grant permission to collect the share amount for pre-registration of the Society, subject to petitioner satisfying other requirements of law after providing an opportunity to the petitioner. - 6 - HC-KAR NC: 2026:KHC-D:379 WP No. 100232 of 2026 5. Learned Government Advocate appearing for the respondents submits that as per Rule 3 of the Karnataka Co- operative Societies Rules, 1960, it is subject to satisfaction of the Registrar that the proposed society has reasonable chances of success and it is going to be economically viable, then only he can permit the chief promoter to collect such amount of share capital. It is submitted that basing on a report from the village accountant, respondent No.2 has observed that it is not viable. It is submitted that proceedings of respondent No.2 are in consonance with the Karnataka Co-operative Societies Rules, 1960 and no interference is called for. 6. Having heard the learned counsels on either side, perused the entire material on record. The petitioner wanted to establish a society and they have approached respondent No.2 under Rule 3 of the Karnataka Co-operative Societies Rules which reads thus: <Rule - 3. Formalities for registration (1) A group of persons not less than ten persons intending to form a cooperative society may join together and elect a chief promoter among themselves, and a few promoters to assist him and authorise him to take further steps for registration of the society. Such group of persons shall decide the name and area of - 7 - HC-KAR NC: 2026:KHC-D:379 WP No. 100232 of 2026 operation of the proposed society, adopt the bye-laws of the proposed society and also resolve to authorise the chief promoter to collect the required share capital from the persons intending to become the members of the proposed society. (2) The chief promoter shall approach the jurisdictional Registrar along with a list of persons who have joined together to form the proposed cooperative society, a copy of the proceedings of the meeting of the said group of persons containing their names, addresses and signatures, two copies of the bye-laws of the proposed society and a copy of the project report to show the proposed society has reasonable chances of su ccess and is going to be a viable organization. (3) The Registrar on being satisfied that, the proposed society has reasonable chances of success and is going to be economically viable may permit the chief promoter to collect such amount of share capital from such number of persons intending to become the members of the proposed society within such period as he may specify. (4) After getting permission from the Registrar, the chief promoter shall get a few receipts book printed in the name of the proposed society and collect the share capital from the persons intending to become the members of the proposed society. He shall issue receipts to the proposed members for the amount collected with his signature under his name and designation. The money so collected shall be deposited within seven days from the date of collection, in an account opened by the chief promoter in the name of proposed society, in a scheduled or a cooperative bank. He shall maintain a cash book, receipt book, voucher book and other accounts for the money collected and remitted to the bank. However, he shall be competent to retain such money as may be necessary and sufficient to incur incidental expenses like printing, stationery, typing, postage, etc., (5) After collecting the share capital to the extent permitte d by the Registrar from the specified number of persons, the chief promoter shall convene a meeting of the promoters of the proposed society and place the details of the particulars of receipts and expenditure incurred and the names of the proposed members from whom share capital is collected. After getting a resolution - 8 - HC-KAR NC: 2026:KHC-D:379 WP No. 100232 of 2026 passed in the promoters meeting, he shall submit a proposal to the Registrar for the registration of the society in the prescribed application along with five copies of the bye-laws of the proposed society and the list of proposed members with their names and addresses. If there is any change in the promoters list, it can be ratified by the registering authority. The application shall be signed by each one of the applicants who is an individual and by a person duly authorised on behalf of any cooperative society which is an applicant and shall be accompanied by the prescribed fee. Rule - 3A. Application for Registration and Procedure. (1) Every application for the registration of a co-operative society under Section 6 shall contain the particulars specified in and be in the form given in Schedule A appended to these Rules. The application shall also mention the name and address of one of the applicants to whom any communication may be sent by the Registrar. (2) In cases where the application for registration under Section 6 is signed by a person duly authorised on behalf of any co-operative society, which is one of the applicants, a copy of the resolution of the committee of such society giving such authority shall ac company the application. (2A) Application for registration of a Co-operative Society shall be accompanied by a treasury challan for having remitted the registration fee, as specified below.- Sl. No.?? Jurisdiction of the So ciety Amount of Rs. 1. Less than a Taluk 500/- 2. Taluk and above but less than a District 1000/- 3. District and above 2000/- Provided that in case of co-operative societies all of whose members are persons belonging to the category of scheduled castes or the scheduled tribes or the backward classes or the minority communities or - 9 - HC-KAR NC: 2026:KHC-D:379 WP No. 100232 of 2026 women, the registration fee to be paid shall be fifty percent of the amount prescribed. (3) The Registrar may, for the purpose of satisfying himself of the matters specified in Section 7, call for such further particulars or make s uch inquiry as he may deem necessary. He may permit the applicants, if so desired by them, in writing to make such alterations or additions to the proposed bye-laws submitted with the application in order to make them conform to the provisions of the Act, and the Rules thereunder. (4) If the Registrar refuses to register a co-operative society, he shall communicate the order of refusal by registered post to the applicant mentioned in the application under rule (1). Rule - 3B. Factors to be considered by Registering Authority at the time of registration. The Registering Authority, while according permission for the collection of initial share capital at the time of registration of a Co-operative Society, shall consider the following namely,- (i) population in the area of operation of the proposed Co- operative Society. (ii) assessment of economic and financial feasibility like coll ection of share, funds from the share holder. (iii) overlapping of the existing similar Co-operative Societies. (iv) whether the draft bye-laws are in accordance with the provisions of Act and Rules.= 7. A bare reading of Rule 3 makes it clear that before giving the permission to the chief promoter to collect the amount of share capital from the members, the Registrar has to be satisfied that the proposed society has reasonable chances of - 10 - HC-KAR NC: 2026:KHC-D:379 WP No. 100232 of 2026 success. It is the contention of the learned counsel for the petitioner that when the petitioner approaches the respondent for registration, then Rule 3B will come into effect, where they have to consider the population in the area of operation of the proposed Co-operative society, assessment of economic and financial feasibility like collection of share, funds from the shareholders, overlapping of the existing similar co-operative societies. According to the petitioner, it is not open to respondent No.2 to consider all these at this stage of collecting the share capital from the members. Rule 3 gives the power to the Registrar to be satisfied on the viability. It is the case of the petitioner that the petitioner has placed several other factors to show what is the viability and those aspects were not considered. In the orders that are relied on by the petitioner, the Co-ordinate Benches of this Court have considered and observed that reasonable opportunity needs to be given to the party, subject to satisfying the requirements of law. In the light of the orders passed in WP.No.101599/2025, WP.No.100493/2024 and WP.No.108117/2025 dated 23.06.2025, 06.02.2024 and 21.11.2025 by the Co-ordinate Benches of this Court, this Court is passing the following: - 11 - HC-KAR NC: 2026:KHC-D:379 WP No. 100232 of 2026 ORDER i. The impugned order dated 21/11/2025 in No.AR- 11/RSR/45/2025-26 passed by the 2nd respondent vide ANNEXURE-B, is quashed. ii. The respondent No.2 is directed to grant permission to collect the share amount for pre- registration of Society in the name Proposed Sahyadri Vividoddesh Prathamik Grameen Krushi Sahakar Sangh Niyamit Appachiwadi Taluk: Nippani, Dist: Belagavi, subject to petitioner satisfying other requirements of law, after providing an opportunity of hearing to the petitioner. iii. The petitioner shall be present before respondent No.2 on 28.01.2026, without further notice from respondent No.2. iv. Accordingly, the writ petition is allowed. v. All I.As. in this writ petition shall stand closed. Sd/- JUSTICE LALITHA KANNEGANTI MEG CT: UMD List No.: 1 Sl No.: 73