IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23rd DAY OF JANUARY 2019 BEFORE THE HON’BLE MR. JUSTICE ALOK ARADHE WRIT PETITION NOS.2965-2966 OF 2019 (GM-KSR) BETWEEN:
1. Vidyabirudhi Sangha (Reg) Nisarani, Soraba Taluk, Shivamogga District.
Rep by its Secretary, Sri. B.K. Ragavendra, S/o B. Manjappa, Aged about 55 years, Banadakoppa Village, Nisarani Post, Soraba Taluk, Shivamogga District – 577 201.
2. Sri. N.H. Shripad Rao, S/o late Devappa, President, Nisarani, Soraba Taluk, Shivamogga District – 577 201.
(By Sri. S. R. Hegde Hudlamane, Advocate) AND:
1. Chief Secretary Department of Co. Operation, M.S. Building, Vidhana Soudha, Bengaluru – 560 001.
… Petitioners 2. Proposed Administrator and Assistant Registrar of Co-operative Societies, Sagar Sub Division, Shivamogga District – 577 201.
3. Sri. K.N. Narayanappa S/o late Nagappa, Aged about 50 years, R/o Kerekoppa, Soraba Taluk, Shivamogga District – 577 201.
4. Sri. K.V. Gowda S/o late Bangarappa Gowda, Aged about 60 years, R/o Kasaraguppe Village, Hosabale Post, Soraba Taluk, Shivamogga District – 577 201.
5. Sri. M.R. Ashok Bin Ramachandraiah, Aged about 55 years, R/o Malalagadde Village, Soraba Taluk, Shivamogga District – 577 201.
6. Sri. H.B. Sathyanarayana Bin Bangarappa, Aged about 55 years, R/o Hodabatee Village, Dodderi Post, Soraba Taluk, Shivamogga District – 577 201.
7. Sri. Ademane Subba Rao S/o late Goplaiah, Aged about 60 years, R/o Muntuguppe Village, Soraba Taluk, Shivamogga District – 577 201.
… Respondents (By Smt. H.C. Kavitha, HCGP for R1 & R2;
Sri. M. Jai Prakash Reddy, Advocate for R3 to R7 (C/R) in C.P.No.432/2019) These Writ Petitions are filed under Article 227 of the Constitution of India, praying to quash the impugned order passed by the R1 on 11.01.2019 as per Annexure-G at Government Order by issue of writ of certiorari or any other appropriate order as the case may be and etc.
These Petitions coming on for Preliminary Hearing, this day, the Court made the following:-
ORDER Sri.S.R. Hegde Hudlamane, learned counsel for the petitioners.
Smt. H.C. Kavitha, learned HCGP for respondent Nos.1 and 2.
Sri. M. Jai Prakash Reddy, learned counsel for respondent Nos.3 to 7.
Petitions are admitted for hearing. With the consent of the parties, the same is heard finally.
3. In these petitions under Article 227 of the constitution of India, petitioners have assailed the validity of the order dated 11.01.2019, passed by the Court in exercise of powers under Section 27-A of the Karnataka Societies Registration Act, 1960 (hereinafter referred to as ‘the Act’ for short).
4. The facts giving rise to the filing of these writ petitions briefly stated are that Vidyabirudi Sangha is a Society registered under the Karnataka Societies Registration Act, 1960. It is the case of the petitioners that on 28.09.2017, election of the Board of Directors consisting 16 members was scheduled and was held, in which 16 members had participated and had unanimously elected. It has been averred that respondent No.3 was not present and respondent Nos.4 to 7 were present and had signed the resolution. However, respondent No.3 thereafter, submitted a complaint in which 3 charges were leveled against the petitioners. Thereafter, Co-operative Development Officer was appointed as Enquiry Officer on 28.04.2018. Out of 3 charges, the Enquiry Officer found that only 1 charge was formed to be moved unanimously when the elections were not held in accordance with law.
5. State Government on receipt of the report, issued notice to the Secretary of the Society and by the impugned order dated 11.01.2019, in exercise of powers under Section 27-A of the Act, appointed an Administrator and directed him to hold fresh election of the Society. In the aforesaid factual background, the petitioners have filed these writ petitions.
6. Learned counsel for the petitioners submitted that the State Government neither issued any notice nor gave an opportunity of hearing to the elected Directors of the Society and has only issued a notice to the Secretary of the Society. It is further submitted that condition precedent for invoking Section 27-A of the Act has not been fulfilled by the State Government in passing the impugned order and the impugned order is suffered by vice of non application of mind.
7. On the other hand, learned counsel for the State Government supported the order passed by the State Government.
8. Learned counsel for respondent Nos.3 to 7 submitted that no Returning Officer for conducting the elections was appointed by the competent authority as per bye-law 10(9). It is further submitted that the agenda of election was not placed in the general body meeting and resolution was passed without holding the election and in violation of the Rules prescribed. It is urged that only Society was required to be heard and therefore, notice was rightly issued to the Secretary. It is further submitted that the committee of the Society was not duly constituted.
9. I have considered the submissions made by the learned counsel for the parties and have perused the records.
10. Section 27-A of the Act provides that where the term of the office of the members of the governing body of a Society has expired and a new governing body has not for any reason been constituted or where on a report made by the Registrar or otherwise, on enquiry, the State Government considers it necessary in public interest so to do, the State Government may, by an order published in an official Gazette, appoint an Administrator for such Society, for such period, not exceeding six months, as may be specified in the order, to manage the affairs of the Society. Thus, from the clause of Section 27-A of the Act, it is evident that the condition precedent for invoking the powers under Section 27-A have to be fulfilled before the Administrator is appointed. In the instant case, the relevant extract of the impugned order is as under:
“After verifying the above contentions, it is noticed, though there were more candidates, than that of elected candidate, and hence, in spite of that, contrary to the byelaw, election was conducted, and they did not produce proper documents, in support of their contentions. Accepting the report of enquiry officer, and also Registrar recommendation, the Government thought fit to appoint an Administrator to Vidyabirudhi Sangha, Nisarani Soraba Taluk, Shimoga District.”
11. Even otherwise, it is well settled in law that the jurisdiction of this Court under Article 227 of the Constitution cannot be exercised to correct all errors of a judgment of a Court acting within its limitation. It can be exercised where the order is passed in grave dereliction of duty or in flagrant abuse of fundamental principles of law and justice. [See: ‘JAI SINGH AND OTHERS VS. M.C.D. AND OTHERS’, (2010) 9 SCC 385, ‘SHALINI SHYAM SHETTY VS. RAJENDRA SHANKAR PATIL’, (2010) 8 SCC 329 and ‘RADHE SHYAM AND ANOTHER VS. CHABBI NATH AND OTHERS’, (2015) 5 SCC 423]. In the instant case, the impugned order is not passed in violation of fundamental principles of law and justice warranting interference of this Court under Article 227 of the Constitution.
12. In view of the aforesaid analysis of the law by the Hon’ble Supreme Court, it is evident that Registrar of Co-operative Societies while passing the impugned order has only recorded the conclusions and has not assigned any reasons. The impugned order even fails to indicate that the appointment of the Administrator is necessary in the public interest. Therefore, the condition prescribed under Section 27-A (i)(c) of the Act has not been fulfilled. Besides that, the impugned order suffers with vice of non application of mind and has been passed in cryptic and cavalier manner.
13. The impugned order is quashed and set aside. Registrar of Co-operative Society is directed to afford an opportunity of hearing to all the parties and decide the issue with regard to the appointment of the Administrator afresh by a speaking order within a period of six weeks from the date of receipt of certified copy of the order passed today in the light of the statutory requirements contained under Section 27-A of the Act.
Accordingly, petitions are disposed of.
Sd/- JUDGE Mds/-