IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13TH DAY OF NOVEMBER, 2019 BEFORE THE HON'BLE MR.JUSTICE P.S. DINESH KUMAR WRIT PETITION No.50644 OF 2019 (CS-RES) BETWEEN :
KARNATAKA POSTAL AND TELECOM EMPLOYEES HOUSING CO-OPERATIVE SOCIETY LTD, NO.7, SANDESH BHAVAN 3RD MAIN, 1ST STAGE, POSTAL COLONY SANJAY NAGAR, BENGALURU-560 094 REPRESENTED BY ITS SECRETARY SRI. MAHESH M.N S/O NAGABHUSHANA CHARI AGED ABOUT 32 YEARS …PETITIONER (BY SHRI. K. SUMAN, ADVOCATE) AND :
1. STATE OF KARNATAKA BY ITS PRINCIPAL SECRETARY CO-OPERATION DEPARTMENT M.S.BUILDING, VIDHANA VEEDHI BENGALURU-560 001 2. THE REGISTRAR OF CO-OPERATIVE SOCIETIES IN KARNATAKA, NO.1 ALI ASKAR ROAD BENGALURU-560 052 3. THE ADDL. REGISTRAR OF CO-OPERATIVE SOCIETIES (HOUSING AND MISCELLANEOUS) OFFICE OF THE REGISTRAR OF CO-OPERATIVE SOCIETIES NO.1, ALI ASKAR ROAD BENGALUR-560 052 4. THE DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETIES NORTH RANGE (4TH CIRCLE) BENGALURU CITY DISTRICT NO.146, SAHAKARA SOUDHA 3RD FLOOR, 3RD MAIN ROAD 8TH CROSS, MARGOSA ROAD MALLESHWARAM BENGALURU-560 003 ... RESPONDENTS (BY SMT. H.C. KAVITHA, HCGP) . . . .
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER DATED 12.10.2019 PASSED BY THE ADDL. REGISTRAR OF CO-OPERATIVE SOCIETIES (HOUSING AND MISCELLANEOUS)/R-3 ANNEXURE-A AS ARBITRARY, ILLEGAL AND UNJUST AWARD COSTS.
THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER Learned HCGP accepts notice for respondents-State.
2. Heard Shri.K.Suman, learned Advocate for petitioner and Smt.H.C.Kavitha, learned HCGP for State.
3. Petitioner is aggrieved by order dated 12th October 2019 passed by the Additional Registrar of Co-operative Societies to hold an inspection under Section 65 of Karnataka Co-operative Societies Act, 1959 (‘the Act’ for short) with reference to 10 allegations contained in the order.
4. Shri.K.Suman, learned Advocate for petitioner submitted that though Section 65 of the Act does not prevent the Registrar of Co-operative Societies from holding either a suo moto inspection or upon an application made by a creditor, no charges can be framed prior to inspection.
5. Learned HCGP submitted that Registrar has power to initiate even suo moto proceedings. However, she did not dispute the submission that charges cannot be framed before inspection.
6. In substance, petitioner’s grievance is that as many as 10 allegations have been recorded in the order, pursuant to which inspection under Section 65 of the Act is proposed.
7. Section 65(2)(a) of the Act requires the Society to take necessary action for rectification of defects on receipt of an inspection report. Therefore, recording allegations before inspection cannot be countenanced.
8. In the circumstances, the order dated 12th October 2019 shall be treated as Notice under Section 65 of the Act to conduct the inspection in accordance with law by following the procedure contemplated in the said provision without reference to the 10 allegations recorded therein.
Petition is accordingly disposed of.
No costs.
Sd/- JUDGE SPS