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2015 DIGILAW 73 (KAR)

Timanna v. Deputy Registrar of Co-operative Society

2015-01-12

A.N.VENUGOPALA GOWDA

body2015
Order A.N. Venugopal Gowda, J. 1. This writ petition was preferred against the orders passed by respondents 1 and 2, on 3-10-2012 and 17-3-2012 vide Annexures-A and B respectively and for grant of consequential reliefs. The question for consideration is, whether respondent 1 was justified in dismissing the appeal filed against the order passed by respondent 2, disqualifying the petitioner's membership of the 5th respondent-society, in exercise of the power under Section 29-C(8)(b) of the Karnataka Co-operative Societies Act, 1959 (for short, 'the Act'). 2. Brief reference to the facts giving rise to the question is necessary. The petitioner being a member of Adarsha Seva Sahakari Sangh, Vajaralli Taluk, Yellapur, Uttara Kannada, Karwar (for short, "the Society'), along with respondents 6 and 7, was elected as a member to the Managing Committee of the Society. Respondents 6 and 7 having made a complaint to the 2nd respondent, alleging that the petitioner has acted against the interest of the Society, 2nd respondent having issued a notice, petitioner appeared and filed statement of objections and sought dismissal of the proceeding. The 2nd respondent having passed an order, as at Annexure-B, disqualifying the petitioner from the membership of the Society, an appeal filed under Section 106 of the Act, before the 1st respondent was also dismissed as per the order as at Annexure-A. Assailing the said orders, this writ petition was preferred. 3. Heard learned Advocate for the parties and perused the writ record. 4. Operative portion of the order, as at Annexure-B, passed by the 2nd respondent, being relevant, reads as follows: 5. Relevant portion of the aforesaid provision of the Act reads as follows: "29-C. Disqualification for membership of the Board.--(1) No person shall be eligible for being elected or appointed or continued as a member of the Board of any Co-operative Society, if. -- .... (8) If any member of a Board of a Co-operative Society during the term of his office.-- (a).... -- .... (8) If any member of a Board of a Co-operative Society during the term of his office.-- (a).... (b) has acted or has been acting fraudulently or with gross negligence or in contravention of the provisions of this Act, the rules or the bye-laws of the Co-operative Society or without the sanction of the Board of the Co-operative Society where such sanction is necessary or contrary to the resolution of the Co-operative Society or its board or in any way prejudicial to the interest of the Co-operative Society or: Provided that no order shall be made under this sub-section unless a reasonable opportunity of being heard, is given to the person against whom the order is to be made". It is clear from the above provision, that a member of the Board of any Co-operative Society can be disqualified i.e., with respect to the membership of the Board and not membership of the Society. Disqualification for membership in respect of the Society can be in terms of Section 17. The order, as at Annexure-B, does not make any reference to Section 17 nor did the respondents contend that the petitioner was disqualified in exercise of the power under Section 17 of the Act. When an appeal was filed against the said order, respondent 1, without examining, whether the impugned order passed by respondent 2, as at Annexure-B, is legal or otherwise, having misdirected himself, has affirmed the said order, without any application of mind. Though, respondent 1 has narrated the sequence of events in the order passed, he has failed to appreciate the case before him and has mechanically dismissed the appeal. Lack of application of mind and non-consideration of the case of the petitioner is apparent. Both the impugned orders are arbitrary and illegal. In the result, writ petition is allowed and the impugned order as at Annexure-A is quashed. The case is remitted to respondent 2 for consideration and decision afresh by keeping in view the observation made supra and in accordance with law. No costs. Petition Allowed.