Case Note & Summary
The petitioner, Sri Guru Raghavendra Sahakara Bank Niyamitha, a cooperative bank registered under the Karnataka Co-operative Societies Act, 1959, filed a writ petition challenging the appointment of an Administrator by the Registrar of Cooperative Societies under Section 64 of the Act. The petitioner contended that the appointment was made without giving any notice or opportunity of hearing to the petitioner, and that the Administrator was appointed without any valid reason. The respondents, including the Registrar of Cooperative Societies and the Administrator, argued that the appointment was made in the interest of the society and its members, and that the petitioner had an alternative remedy of appeal under Section 64(4) of the Act. The court examined the provisions of Section 64 of the Karnataka Co-operative Societies Act, 1959, and held that the section does not require any prior notice or hearing before appointment of an Administrator. The power under Section 64 is a preventive measure to protect the interests of the society and its members. The court also held that the writ petition is not maintainable as the petitioner had an alternative remedy of appeal under Section 64(4) of the Act. The court dismissed the writ petition, upholding the appointment of the Administrator.
Headnote
A) Cooperative Societies - Appointment of Administrator - Section 64 of Karnataka Co-operative Societies Act, 1959 - Validity - The Registrar of Cooperative Societies appointed an Administrator for the petitioner bank under Section 64(1) of the Act. The petitioner challenged the appointment on the ground that no notice or opportunity of hearing was given before appointment. The court held that Section 64 does not require any prior notice or hearing before appointment of an Administrator. The power under Section 64 is a preventive measure to protect the interests of the society and its members. The appointment was valid and the writ petition was dismissed. (Paras 1-10) B) Cooperative Societies - Alternative Remedy - Section 64(4) of Karnataka Co-operative Societies Act, 1959 - Maintainability of Writ Petition - The petitioner had an alternative remedy of appeal under Section 64(4) of the Act against the order of appointment of Administrator. The court held that the writ petition is not maintainable when an alternative remedy is available. The petitioner ought to have availed the remedy of appeal before approaching the High Court under Article 226 of the Constitution. (Paras 1-10)
Issue of Consideration
Whether the appointment of an Administrator by the Registrar of Cooperative Societies under Section 64 of the Karnataka Co-operative Societies Act, 1959, is valid and whether the writ petition is maintainable in view of alternative remedy of appeal under Section 64(4) of the Act.
Final Decision
The High Court of Karnataka dismissed the writ petition, upholding the appointment of the Administrator under Section 64 of the Karnataka Co-operative Societies Act, 1959.
Law Points
- Appointment of Administrator under Section 64 of Karnataka Co-operative Societies Act
- 1959
- is a valid exercise of power when the committee fails to manage the society properly
- No requirement of prior notice or hearing before appointment of Administrator under Section 64
- Writ petition not maintainable against appointment of Administrator when alternative remedy of appeal under Section 64(4) is available
