Case Note & Summary
The petitioners, who were members of the Primary Agricultural Credit Co-operative Society Ltd., Yelenavadagi, challenged the order dated 27.06.2017 passed by the Assistant Registrar of Co-operative Societies (respondent No.2) appointing respondent No.4 as Special Officer to manage the society. The petitioners contended that the appointment was made without first drawing up an election schedule and without affording any opportunity of hearing to the elected managing committee, in violation of Section 28A of the Karnataka Co-operative Societies Act, 1959. The court heard the learned counsel for the petitioners, the Additional Advocate General for respondents 1-3 and 6, and the counsel for respondent No.5. The court observed that Section 28A permits appointment of a Special Officer only after the election schedule is drawn and in exceptional circumstances, and that the elected board must be given an opportunity of hearing before such appointment. Since the impugned order did not comply with these requirements, the court quashed the order and directed that the society be managed by the elected managing committee until the elections are held. The court allowed the writ petitions with no order as to costs.
Headnote
A) Co-operative Law - Appointment of Special Officer - Section 28A of Karnataka Co-operative Societies Act, 1959 - The Assistant Registrar appointed a Special Officer to manage the society without first drawing up an election schedule and without hearing the elected board. The court held that such appointment is illegal and contrary to the statutory scheme, as Section 28A contemplates appointment only after election schedule is drawn and in exceptional circumstances. (Paras 3-5) B) Co-operative Law - Opportunity of Hearing - Section 28A of Karnataka Co-operative Societies Act, 1959 - The court held that before appointing a Special Officer, the elected managing committee must be afforded an opportunity of hearing, as the appointment effectively removes them from office. Failure to do so violates principles of natural justice. (Para 5) C) Constitutional Law - Writ Jurisdiction - Articles 226 and 227 of Constitution of India - The court exercised its writ jurisdiction to quash the order appointing Special Officer, as the order was passed without jurisdiction and in violation of statutory provisions. (Para 5)
Issue of Consideration
Whether the appointment of a Special Officer to manage the affairs of a Primary Agricultural Credit Co-operative Society without first drawing up an election schedule and without affording an opportunity of hearing to the elected managing committee is valid under Section 28A of the Karnataka Co-operative Societies Act, 1959.
Final Decision
The court allowed the writ petitions, quashed the order dated 27.06.2017 appointing the Special Officer, and directed that the society be managed by the elected managing committee until elections are held. No order as to costs.
Law Points
- Appointment of Special Officer under Section 28A of Karnataka Co-operative Societies Act
- 1959 is permissible only after election schedule is drawn and in exceptional circumstances
- Appointment without prior notice or hearing to elected board is illegal
- Writ of Certiorari lies against administrative orders violating statutory provisions
