High Court of Karnataka Dismisses Appeal Challenging Order Quashing Resolution Permitting Withdrawal of Resignation. Resolution of Cooperative Society Allowing CEO to Withdraw Resignation Held Illegal Under Karnataka Cooperative Societies Act, 1959.

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

The appellant, D Venkatesh, filed a writ appeal challenging the order of a learned Single Judge dated 13.10.2022 in W.P. No. 24350/2021, which set aside a resolution dated 30.11.2021 passed by the managing committee of Prathimak Krishi Pattina Sahakara Sangha Nyamitha Ltd. (the society). The resolution permitted the sixth respondent, Prashanth R, to withdraw his resignation dated 16.06.2021 and continue as CEO. The appellant contended that the resolution was valid and the Single Judge erred in quashing it. The respondents, including the Registrar of Cooperative Societies and the Assistant Registrar, argued that the resolution was illegal as it contravened the provisions of the Karnataka Cooperative Societies Act, 1959. The court examined the issue and found that the resolution allowing withdrawal of resignation without proper authority was bad in law. The court upheld the Single Judge's order, dismissing the appeal with no order as to costs.

Headnote

A) Cooperative Law - Resignation - Withdrawal of Resignation - Karnataka Cooperative Societies Act, 1959 - The managing committee of a cooperative society passed a resolution permitting the CEO to withdraw his resignation. The court held that such a resolution is bad in law as the withdrawal of resignation requires acceptance by the competent authority and cannot be unilaterally allowed by the committee. The resolution was set aside. (Paras 3-9)

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Issue of Consideration

Whether a resolution passed by the managing committee of a cooperative society permitting withdrawal of resignation of its CEO is valid in law.

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Final Decision

The appeal is dismissed. The order of the learned Single Judge dated 13.10.2022 in W.P. No. 24350/2021 is upheld. No order as to costs.

Law Points

  • Withdrawal of resignation requires acceptance by competent authority
  • Resolution of managing committee cannot override statutory provisions
  • Cooperative society must act within the framework of the Act and bye-laws
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Case Details

2023 LawText (KAR) (10) 53

WA No. 1312 of 2022 (CS)

2023-10-30

Prasanna B. Varale, Chief Justice, Krishna S Dixit

NC: 2023:KHC:38262-DB

Sri. Devi Prasad Shetty for appellant, Smt. Shweta Krishnappa for respondents 1 & 2

D Venkatesh

The Registrar of Co-operative Societies, Assistant Registrar of Co-operative Societies, Prathimak Krishi Pattina Sahakara Sangha Nyamitha Ltd., The Adhyksha, Chief Executive Officer (In Charge), Prashanth R

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Nature of Litigation

Writ appeal against order of Single Judge quashing resolution of cooperative society permitting withdrawal of resignation.

Remedy Sought

Appellant sought to set aside the order dated 13.10.2022 in W.P. No. 24350/2021 and dismissal of the writ petition.

Filing Reason

The appellant challenged the Single Judge's order which set aside the resolution dated 30.11.2021 allowing the sixth respondent to withdraw his resignation.

Previous Decisions

The learned Single Judge in W.P. No. 24350/2021 set aside the resolution dated 30.11.2021.

Issues

Whether the resolution dated 30.11.2021 permitting withdrawal of resignation is valid in law.

Submissions/Arguments

Appellant argued that the resolution was valid and the Single Judge erred. Respondents argued that the resolution was illegal and contrary to the Act.

Ratio Decidendi

A resolution of a cooperative society permitting withdrawal of resignation without proper authority under the Karnataka Cooperative Societies Act, 1959 is bad in law.

Judgment Excerpts

the impugned resolution dated 30.11.2021 passed by the society, permitting the sixth respondent to withdraw the said resignation dated 16.06.2021 is bad in law.

Procedural History

The sixth respondent filed W.P. No. 24350/2021 challenging the resolution dated 30.11.2021. The learned Single Judge allowed the petition and set aside the resolution. The appellant filed this intra-court appeal under Section 4 of the Karnataka High Court Act.

Acts & Sections

  • Karnataka Cooperative Societies Act, 1959:
  • Karnataka High Court Act: Section 4
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High Court High Court of Karnataka Dismisses Appeal Challenging Order Quashing Resolution Permitting Withdrawal of Resignation. Resolution of Cooperative Society Allowing CEO to Withdraw Resignation Held Illegal Under Karnataka Cooperative Societies Act, 1959.
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