High Court of Karnataka Quashes Order of Registrar of Cooperative Societies in Souhardha Cooperative Dispute — Lack of Jurisdiction and Violation of Natural Justice. Registrar has no authority under Karnataka Souhardha Sahakari Act, 1997 to adjudicate disputes; such disputes must be referred to arbitration under Section 70 of the Act.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Accused
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Case Note & Summary

The petitioner, Munireddy Reddy, filed a writ petition under Articles 226 and 227 of the Constitution of India before the High Court of Karnataka at Bengaluru, seeking a writ of certiorari to quash an order dated 30.12.2023 passed by the Registrar of Cooperative Societies (Respondent No. 2) in Complaint No. SAM.SA-145/NI/BGU-0132/2023-24. The petitioner is a member of Mahayogi Vemana Sourdha Patina Sahakari Sangha Niyamitha (Respondent No. 3), a society registered under the Karnataka Souhardha Sahakari Act, 1997. The dispute pertained to certain internal affairs of the society. The Registrar of Cooperative Societies, purporting to act under the Karnataka Souhardha Sahakari Act, 1997, passed an order without jurisdiction, as the Act provides for a separate dispute resolution mechanism under Section 70, which mandates that disputes be referred to arbitration. Additionally, the impugned order was passed without affording an opportunity of hearing to the petitioner, violating the principles of natural justice. The respondents, including the Registrar and the directors of the society, opposed the petition, arguing that the petitioner had an alternative remedy. The High Court held that the Registrar lacked jurisdiction to entertain the complaint and that the order was in violation of natural justice. The court quashed the impugned order and allowed the writ petition, emphasizing that the existence of an alternative remedy does not bar the exercise of writ jurisdiction when the order is patently without jurisdiction or in violation of natural justice.

Headnote

A) Cooperative Law - Jurisdiction of Registrar - Section 70 of Karnataka Souhardha Sahakari Act, 1997 - The Registrar of Cooperative Societies has no jurisdiction to adjudicate disputes arising under the Karnataka Souhardha Sahakari Act, 1997, as the Act provides for a separate dispute resolution mechanism under Section 70, which requires disputes to be referred to arbitration. The impugned order passed by the Registrar is without jurisdiction and liable to be quashed. (Paras 1-3)

B) Natural Justice - Violation of Principles - The impugned order was passed without affording an opportunity of hearing to the petitioner, thereby violating the principles of natural justice. The order is unsustainable on this ground as well. (Paras 1-3)

C) Writ Jurisdiction - Alternative Remedy - The existence of an alternative remedy does not bar the High Court from exercising its writ jurisdiction under Articles 226 and 227 of the Constitution of India when the order is patently without jurisdiction or in violation of natural justice. (Paras 1-3)

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Issue of Consideration

Whether the Registrar of Cooperative Societies has jurisdiction to entertain a complaint under the Karnataka Souhardha Sahakari Act, 1997, and whether the impugned order dated 30.12.2023 is sustainable in law.

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Final Decision

The High Court allowed the writ petition, quashed the impugned order dated 30.12.2023 passed by the Registrar of Cooperative Societies, and held that the Registrar lacked jurisdiction and the order violated natural justice.

Law Points

  • Jurisdiction of Registrar under Karnataka Souhardha Sahakari Act
  • 1997
  • Natural Justice
  • Alternative remedy
  • Writ jurisdiction under Articles 226 and 227
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Case Details

2025 LawText (KAR) (10) 18

WP No. 16040 of 2025 (CS-RES)

2025-10-23

Suraj Govindaraj

Sri. Jayakumar S. Patil for Sri. Deviprasad Shetty (for petitioner), Sri. Yogesh D. Naik (AGA for R1), Sri. Vinay Venugopal (for R4 to R6), Sri. A. Devaraja (for R2), Sri. Deepak Naroji (for R3)

Munireddy Reddy

Registrar of Co-operative Societies, Karnataka Rajya Souharda Samyuktha Sahakari Niyamitha, Mahayogi Vemana Sourdha Patina Sahakari Sangha Niyamitha, Sampangi Reddy R, M.N. Reddy, Babu Reddy

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Nature of Litigation

Writ petition under Articles 226 and 227 of the Constitution of India seeking certiorari to quash an order of the Registrar of Cooperative Societies.

Remedy Sought

Petitioner sought a writ of certiorari quashing the order dated 30.12.2023 passed by the Registrar of Cooperative Societies (R2) in Complaint No. SAM.SA-145/NI/BGU-0132/2023-24.

Filing Reason

The impugned order was passed without jurisdiction and in violation of principles of natural justice.

Issues

Whether the Registrar of Cooperative Societies has jurisdiction to entertain a complaint under the Karnataka Souhardha Sahakari Act, 1997? Whether the impugned order dated 30.12.2023 is sustainable in law?

Submissions/Arguments

Petitioner argued that the Registrar lacked jurisdiction under the Karnataka Souhardha Sahakari Act, 1997, as disputes must be referred to arbitration under Section 70, and that the order was passed without hearing the petitioner. Respondents argued that the petitioner had an alternative remedy and the petition should be dismissed.

Ratio Decidendi

The Registrar of Cooperative Societies has no jurisdiction to adjudicate disputes under the Karnataka Souhardha Sahakari Act, 1997, as the Act provides for a separate dispute resolution mechanism under Section 70. An order passed without jurisdiction and in violation of natural justice is liable to be quashed under Articles 226 and 227 of the Constitution of India, notwithstanding the existence of an alternative remedy.

Judgment Excerpts

The Petitioner is before this Court seeking for the following reliefs: i. Issue a writ in the nature of certiorari quashing the order passed by the R2 dated 30.12.2023 in Complaint No. SAM.SA-145/NI/BGU-0132/2023-24.

Procedural History

The petitioner filed a writ petition under Articles 226 and 227 of the Constitution of India before the High Court of Karnataka at Bengaluru on an unspecified date. The petition was reserved for orders on 25.07.2025 and the court pronounced the CAV order on 23.10.2025.

Acts & Sections

  • Karnataka Souhardha Sahakari Act, 1997: Section 70
  • Constitution of India: Articles 226, 227
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