IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4th DAY OF DECEMBER 2017 BEFORE THE HON'BLE MR.JUSTICE S.N.SATYANARAYANA W.P.Nos.38845-38850 OF 2015(CS-RES) BETWEEN:
1. Veeramaregowda, Aged about 56 years, S/o.Channamaregowda, R/at Hosahalli Village, Kasaba Hobli, Nelamangala Taluk, Bangalore rural District – 562 123.
2. Hanumantharaju, Aged about 35 years, S/o.Muniraju, Goravanahalli Village, Soladevanahalli Post, Kasaba Hobli, Nelamangala Taluk, Bangalore Rural District – 562 123.
3. Rudrappa, Aged about 46 years, S/o.Bylegowda, R/at Avalaguppe Village, Motaganahalli Post, Kasaba Hobli, Nelamangala Taluk, Bangalore Rural District – 562 123.
4. Prabhakar, Aged about 48 years, S/o.Gangaiah, Kalasegowdanapalya, Honnasandra Post, Kasaba Hobli, Nelamangala Taluk, Bangalore Rural District – 562 123.
5. Channakeshava Murthy, Aged about 52 years, S/o.Govindappa, Gorinabele Village, Yentaganahalli Post, Kasaba Hobli, Nelamangala Taluk, Bangalore Rural District – 562 123.
6. Gandhi Gram Vyvasaya Seva Sahakara Sangha, Gananayakanatandya, Manchenahalli Cross,’ Kasaba Hobli, Nelamangala Taluk, Bangalore Rural District – 562 123. Represented by its Chief Executive Officer. ... Petitioners (By Sri D.K.Sriramappa, Advocate) AND:
1. State of Karnataka, Represented by Principal Secretary, Co-operation Department, Multistoried Building, Dr.Ambedkar Veedi, Bangalore – 560 001.
2. The Registrar of Co-operative Societies in Karnataka, No.1, Aliaskar Road, Bangalore – 560 052.
3. The Deputy Registrar of Co-operative Societies, Bangalore Rural District, Assistant Registrar of Co-No.14, Navodaya Sahakara Bank Building, 15th Cross, 10th A Main Road, Malleswaram, Bangalore – 560 003.
4. Assistant Registrar of Co-operative Societies, Doddaballapura Sub-Division, Kongadiyappa Road, Doddaballapura – 562 123.
5. Sri Cheluvaraju H.P. S/o.Late K.Prabhakar, Aged about 56 years, R/of Gandhi Grama Village, Kasaba Hobli, Nelamangala Taluk, Bangalore Rural Dist. ...Respondents (By Sri Laxminarayana, AGA for R1 to R4: Sri G.Chandrashekaraiah, Advocate for R5) These writ petitions are filed under Articles 226 and 227 of the Constitution of India praying to quash the order dated 03.08.2015 passed by the R3 vide Annexure-J and recommendation made by the R4 on 30.7.2015 vide Annexure H as illegal and inoperative and for a mandamus to R1 and R2 to direct R3 and R4 to act as per the Act and Rules while discharging duties as public offices in order to save the principles of co- operative law and etc.
These writ petitions, coming on for orders, this day, the Court made the following:
ORDER Petitioner Nos. 1 to 5 are members of sixth petitioner Sangha, which is a Vyavasaya Seva Sahakara Sangha. Admittedly, the area of operation of sixth petitioner Sangha was extended to 36 villages.
2. It is seen that a resolution is said to have been passed by some members of sixth petitioner Sangha, seeking bifurcation of the same into two, that is, to create one more Sangha for 3 villages, namely, Gandhi Grama, Honnasandra and Krishnarajapura and allowing sixth petitioner Sangha to continue to be a Sangha for remaining 33 villages starting from Soladevanahalli ending with Nallayanapalya. It is seen that the said resolution is placed before the third respondent herein under Section 14 of the Karnataka Co-operative Societies Act, 1959 wherein in exercise of his power under aforesaid Section he has granted permission for dividing sixth petitioner Sangha into two Seva Sanghas based on resolution dated 17.03.2013. The said decision of the third respondent in order bearing No.DRB/R/Registration-Division/03/2015-16 dated 03.08.2015 is sought to be challenged before this Court in this writ petition by 5 of the members of the Managing Committee of sixth petitioner Sangha.
3. They bring to the notice of this Court that formation of new Sangha or division of an existing Sangha into two parts will have to be done keeping in mind the Circular of Government bearing No.RSR/187/XMC/2007-08 dated 26.02.2008 wherein several guidelines are prescribed which are pursuant to the conditions prescribed under NABARD Scheme. The conditions are that the Sangha should have minimum of 5000 acres of cultivable land within its region; the area should not exceed 8 kms.; there should not be more than one Sangha in each village; the Sangha should be able to grant loan to the tune of minimum 10 crores; the area of one Sangha should not overlap with the area of other Sangha; the Sangha should be able to fulfil the needs of minimum 600 families. In the Circular, it is made clear that only on fulfillment of aforesaid conditions the formation of new Sangha or division of an existing Sangha into two can be considered in terms of the aforesaid circular.
4. It is seen that the fourth respondent herein is informed by the Co-operative Development Officer of Nelamangala Taluk by his letter bearing No.Sa:A:A:Ne/Krupa/2013-14 dated 26.04.2013 and bring to the notice of fourth respondent the lacuna in resolution of the sixth petitioner Sangha supported by some of the members in accepting the same and agreeing for forming separate Sangha for 3 villages by giving the facts and figures on column-wise basis, wherein it is seen that the extent of cultivable land which comes under the new Sangha formed for 3 villages is 994.30 acres as against the minimum of 5000 acres, the extent is little less than 20% and as against 600 families should be members, it is seen that there is only 128 families by indicating that the percent is little more than 20% of the population. As regards the borrowers number is concerned, it is only 113 and it has disbursed the loan of Rs.12,57,000/- as against minimum requirement of Rs.10 crores which works out to only 1.27%.
5. It clearly indicates that the third respondent has failed to look into all these parameters as prescribed in the Circular which is at Annexure-B and also the recommendation of the Development Officer which is at Annexure-B1 and has taken a decision unilaterally and arbitrarily ignoring the Circular which governs the issuance of approval for formation of such Sanghas and also ignoring all other Schemes as well as recommendations of the Development Officer appears to be for extraneous reasons.
6. In that view of the matter, the order of third respondent in permitting formation of new Sangha for 3 villages namely Gandhi Grama, Honnasandra and Krishnarajapura vide order bearing No. DRB/R/ Registration-Division/03/2015-16 dated 03.08.2015 is hereby quashed. While doing so, the first respondent Principal Secretary of the Co-operation Department is directed to conduct an enquiy against the conduct of that officer in ignoring the Circular and taking an arbitrary stand contrary to the Rules governing division of Sangha and take appropriate action against him for dereliction of duty and the outcome of the same shall be reported to this Court within four months from the date of receipt of the copy of this order.
7. Accordingly, these petitions are allowed by quashing the aforesaid order.
8. In view of petitions being disposed of, I.A.Nos.
2/2017 and 3/2017 do not survive for consideration.
Sd/- JUDGE Cm/-