Case Note & Summary
The judgment pertains to two writ petitions filed by the President and a member of The Aircraft Employees' House Building Co-operative Society Ltd. challenging a show cause notice dated 14.08.2018 issued by the Joint Registrar of Co-operative Societies, Bengaluru Region. The notice alleged irregularities in the election of the Board of Directors and called upon the petitioners to show cause why action under Section 29A of the Karnataka Co-operative Societies Act, 1959 should not be taken. The petitioners contended that the Registrar had no jurisdiction to initiate suo motu proceedings as there was no dispute regarding the election, and the notice was issued without any application of mind. The court examined the scope of Section 29A and held that the Registrar's power to intervene is triggered only when there is a dispute concerning the election. Since no such dispute existed, the notice was quashed. The court also noted that the notice violated principles of natural justice as it was issued without any prior complaint or opportunity of hearing. The writ petitions were allowed, and the show cause notice was set aside.
Headnote
A) Co-operative Law - Jurisdiction of Registrar - Section 29A of Karnataka Co-operative Societies Act, 1959 - Suo Motu Powers - The Joint Registrar issued a show cause notice to the President of a co-operative society alleging irregularities in the election of the Board of Directors. The court held that the Registrar's suo motu powers under Section 29A can only be exercised when there is a dispute regarding the election, and in the absence of any dispute raised by any party, the notice was without jurisdiction. (Paras 1-10)
B) Natural Justice - Show Cause Notice - Validity - The show cause notice was issued without any prior complaint or dispute, and the Registrar failed to apply his mind to the facts. The court quashed the notice as it violated principles of natural justice and was arbitrary. (Paras 11-15)
Issue of Consideration
Whether the Joint Registrar of Co-operative Societies had jurisdiction to initiate suo motu proceedings under Section 29A of the Karnataka Co-operative Societies Act, 1959, and whether the show cause notice dated 14.08.2018 was valid.
Final Decision
The writ petitions are allowed. The show cause notice dated 14.08.2018 issued by the Joint Registrar of Co-operative Societies, Bengaluru Region, is quashed.
Law Points
- Natural Justice
- Jurisdiction
- Co-operative Societies Act
- Show Cause Notice
- Suo Motu Powers
Case Details
2018 LawText (KAR) (11) 4
Writ Petition No.39484/2018 (CS RES) and WP No.37225/2018 (CS RES)
Prof. Ravivarma Kumar, Sri. M.R.Rajagopal, Sri. A.K.Vasanth, Sri. Bipin Hegde, Sri. Devi Prasad Shetty, Sri. G.Krishnamurthy, Sri. Chandrakanth Patil K
Sri. A. M. Kushalappa and Shri S. Sadashivappa
The State of Karnataka, The Joint Registrar of Co-operative Societies, The Aircraft Employees' House Building Co-operative Society Ltd., Sri B K Doddaiah, Sri B S Manjunath, Sri H J Keerthiprasad
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Nature of Litigation
Writ petitions challenging a show cause notice issued by the Joint Registrar of Co-operative Societies under Section 29A of the Karnataka Co-operative Societies Act, 1959.
Remedy Sought
Quashing of the show cause notice dated 14.08.2018 issued by the 2nd respondent Joint Registrar.
Filing Reason
The petitioners alleged that the show cause notice was without jurisdiction and violated principles of natural justice.
Issues
Whether the Joint Registrar had jurisdiction to issue the show cause notice under Section 29A of the Karnataka Co-operative Societies Act, 1959.
Whether the show cause notice was valid and in compliance with principles of natural justice.
Submissions/Arguments
Petitioners argued that the Registrar cannot initiate suo motu proceedings under Section 29A without any dispute regarding the election.
Respondents contended that the Registrar has powers to intervene to prevent irregularities in co-operative societies.
Ratio Decidendi
The Registrar's power under Section 29A of the Karnataka Co-operative Societies Act, 1959 to decide disputes regarding election of Board of Directors can only be invoked when there is a dispute. In the absence of any dispute, the Registrar has no jurisdiction to issue a show cause notice suo motu. The notice was also violative of principles of natural justice.
Judgment Excerpts
The Registrar's power under Section 29A is to decide disputes regarding election of Board of Directors. In the absence of any dispute, the Registrar cannot initiate proceedings suo motu.
The show cause notice is quashed as it is without jurisdiction and violative of principles of natural justice.
Procedural History
The petitioners filed writ petitions under Articles 226 and 227 of the Constitution of India challenging the show cause notice dated 14.08.2018 issued by the Joint Registrar of Co-operative Societies. The court heard both petitions together and delivered a common judgment.
Acts & Sections
- Karnataka Co-operative Societies Act, 1959: 29A
- Constitution of India: 226, 227
