Case Note & Summary
The petitioners, Lingasugur Taluk Halumata Abhivrudhi Samiti (R) and its office bearers, filed a writ petition under Articles 226 and 227 of the Constitution of India before the High Court of Karnataka, Kalaburagi Bench, challenging three notices dated 23.05.2022, 16.07.2022, and 30.07.2022 issued by the Deputy Registrar of Cooperative Societies, Raichur (respondent No.2) under Section 64 of the Karnataka Cooperative Societies Act, 1959. The notices purported to initiate an enquiry into the affairs of the petitioner society. The petitioners contended that the notices were issued without any application of mind, without disclosing any prima facie case, and without specifying any allegations or irregularities. They argued that the Deputy Registrar had no jurisdiction to issue such notices mechanically. The respondents, including the State of Karnataka and the Deputy Registrar, were represented by the Additional Government Advocate. The court, after hearing the counsel for the petitioners and the AGA, examined the notices and found that they did not contain any reasons or basis for ordering the enquiry. The court held that the power under Section 64 of the Act is not to be exercised arbitrarily; there must be some material to indicate that an enquiry is necessary. Since the notices failed to disclose any such material, they were quashed. The court also noted that notice to respondent No.4 (Sharanappa) was dispensed with as per order dated 09.06.2023. The writ petition was allowed, and the impugned notices were set aside.
Headnote
A) Cooperative Societies - Enquiry under Section 64 - Jurisdiction - The Deputy Registrar issued notices dated 23.05.2022, 16.07.2022 and 30.07.2022 to the petitioner society under Section 64 of the Karnataka Cooperative Societies Act, 1959, without disclosing any prima facie case or reasons for the enquiry. The court held that the power under Section 64 is not to be exercised mechanically; there must be some material to indicate that an enquiry is necessary. The notices were quashed as they did not satisfy the requirement of application of mind. (Paras 1-10) B) Writ Jurisdiction - Certiorari - Administrative Orders - The court held that a writ of certiorari lies against orders passed without jurisdiction or in violation of principles of natural justice. Since the impugned notices were issued without any basis and without disclosing any reasons, they were liable to be quashed. (Paras 1-10) C) Cooperative Societies - Natural Justice - Notice - The court observed that the notices did not specify any particular irregularity or misappropriation, and thus the society was not given a fair opportunity to respond. The requirement of natural justice mandates that the person against whom an enquiry is ordered must be informed of the allegations. (Paras 1-10)
Issue of Consideration
Whether the notices issued by the Deputy Registrar of Cooperative Societies under Section 64 of the Karnataka Cooperative Societies Act, 1959, for conducting an enquiry into the affairs of the petitioner society are valid and sustainable in law.
Final Decision
The writ petition is allowed. The impugned notices dated 23.05.2022, 16.07.2022, and 30.07.2022 are quashed.
Law Points
- Jurisdiction of Deputy Registrar under Section 64 of Karnataka Cooperative Societies Act
- 1959
- Requirement of prima facie case for initiation of enquiry
- Notice must disclose reasons for enquiry
- Writ of certiorari lies against administrative orders without jurisdiction
