Case Note & Summary
The case pertains to a dispute regarding the election of the Managing Committee of the fourth respondent, Hosuru Milk Producers Co-operative Society Ltd. The appellant, Sri K. Eregowda, contested the election held on 02.09.2013 and was elected as a Director of the Managing Committee. Subsequently, an application was made before the Assistant Registrar of Co-operative Societies invoking Section 29-C of the Karnataka Co-operative Societies Act, 1961, seeking the disqualification of the appellant on the ground of non-attendance of meetings. The Assistant Registrar passed an order disqualifying the appellant. The appellant challenged this order before the High Court in Writ Petitions Nos. 54384-385/2017, which were dismissed by a learned Single Judge on 13.06.2019. Aggrieved, the appellant filed the present writ appeals under Section 4 of the Karnataka High Court Act, 1961. The Division Bench, comprising the Chief Justice and Justice S.R. Krishna Kumar, heard the appeals. The court examined the scope of Section 29-C of the Karnataka Co-operative Societies Act, 1961, which deals with cessation of office of a director. The court noted that the provision only empowers the Assistant Registrar to determine whether a director has ceased to hold office under the Act, by-laws, or rules, but does not confer a power to disqualify on grounds not specified therein. The court held that non-attendance of meetings is a matter for the Managing Committee to decide under the by-laws, and the Assistant Registrar exceeded his jurisdiction by disqualifying the appellant. The court allowed the appeals, set aside the order of the Single Judge dated 13.06.2019, and also set aside the order of the Assistant Registrar. The writ petitions were allowed, and the appellant was restored to his position as a director.
Headnote
A) Co-operative Law - Election of Managing Committee - Section 29-C of Karnataka Co-operative Societies Act, 1961 - Disqualification of Director - The appellant was elected as a director of the Managing Committee of the fourth respondent Society in an election held on 02.09.2013. An application was made before the Assistant Registrar under Section 29-C seeking disqualification of the appellant on the ground of non-attendance of meetings. The Assistant Registrar passed an order disqualifying the appellant. The Single Judge upheld the order. The Division Bench held that Section 29-C does not empower the Assistant Registrar to disqualify a director on the ground of non-attendance of meetings without a prior determination by the Managing Committee. The appeals were allowed and the orders of the Assistant Registrar and the Single Judge were set aside. (Paras 3-8) B) Co-operative Law - Cessation of Office - Section 29-C of Karnataka Co-operative Societies Act, 1961 - Power of Assistant Registrar - The court interpreted Section 29-C and held that the provision only empowers the Assistant Registrar to determine whether a director has ceased to hold office under the Act, by-laws, or rules, but does not confer a power to disqualify on grounds not specified therein. Non-attendance of meetings is a matter for the Managing Committee to decide under the by-laws. (Paras 5-7)
Issue of Consideration
Whether the Assistant Registrar of Co-operative Societies has the power under Section 29-C of the Karnataka Co-operative Societies Act, 1961 to disqualify a director of a co-operative society on the ground of non-attendance of meetings without a prior determination by the Managing Committee?
Final Decision
The writ appeals were allowed. The order of the Single Judge dated 13.06.2019 in W.P.Nos. 54384-385/2017 was set aside. Consequently, the order of the Assistant Registrar disqualifying the appellant was also set aside. The writ petitions were allowed.
Law Points
- Section 29-C of Karnataka Co-operative Societies Act
- 1961
- Election of Managing Committee
- Disqualification of Director
- Non-attendance of meetings
- Power of Assistant Registrar
- Cessation of office
