High Court of Karnataka Quashes Registrar's Endorsement in Co-operative Society Dispute — Lack of Hearing Violates Natural Justice. Joint Registrar's refusal to entertain dispute under Section 70 of Karnataka Co-operative Societies Act, 1959 set aside for non-compliance with principles of natural justice.

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

The petitioners, members of a co-operative society, raised a dispute under Section 70 of the Karnataka Co-operative Societies Act, 1959 before the Joint Registrar of Co-operative Societies. The Joint Registrar, by an endorsement dated 21/22.2.2014 (Annexure-A), declined to entertain the dispute without providing any hearing to the petitioners. Aggrieved, the petitioners filed writ petitions under Articles 226 and 227 of the Constitution of India seeking quashing of the endorsement. The High Court of Karnataka, in an oral order by Justice H.G. Ramesh, held that the Joint Registrar's action violated the principles of natural justice as the petitioners were not heard before the adverse order was passed. The court set aside the impugned endorsement and directed the Joint Registrar to hear the petitioners and pass appropriate orders in accordance with law. The court did not examine the merits of the dispute, confining itself to the procedural irregularity.

Headnote

A) Administrative Law - Principles of Natural Justice - Right to be Heard - Joint Registrar's refusal to entertain dispute under Section 70 of Karnataka Co-operative Societies Act, 1959 without hearing petitioners violates principles of natural justice - Held that any order adverse to a party must be preceded by an opportunity of hearing (Para 2).

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Issue of Consideration

Whether the Joint Registrar of Co-operative Societies could decline to entertain a dispute under Section 70 of the Karnataka Co-operative Societies Act, 1959 without affording a hearing to the petitioners.

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Final Decision

The writ petitions are allowed. The impugned endorsement dated 21/22.2.2014 (Annexure-A) is quashed. The Joint Registrar of Co-operative Societies is directed to hear the petitioners and pass appropriate orders in accordance with law, without being influenced by the earlier endorsement.

Law Points

  • Principles of natural justice
  • Right to be heard
  • Section 70 of Karnataka Co-operative Societies Act
  • 1959
  • Writ jurisdiction under Articles 226 and 227 of Constitution of India
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Case Details

2015 LawText (KAR) (03) 50

WP Nos.38933/2014 & 639-640/2015 (CS-RES)

2015-03-19

H.G. Ramesh

Sri G. Balakrishna Shastry (for petitioners), Sri Tharanath Poojary (AGA for R1), Sri P. Karunakar (for R4)

K. Gopal Krishna Bhat, Shambunumbudari, Ram Kumar Hebbar

The Joint Registrar of Co-operative Societies, Mysore Regional Office; Dakshina Kannada Krishikara Maarata Sangha Niyamita; Dakshina Kannada Krishikara Maarata Sangha Niyamita Administrative Office; M/s M.A. Smart Builders and Developers Private Limited; Balakrishna D.B; P.G. Sathyanarayana Prasad; Sanjeeva Moily; M.S. Marathe

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Nature of Litigation

Writ petitions challenging an endorsement by the Joint Registrar of Co-operative Societies declining to entertain a dispute under Section 70 of the Karnataka Co-operative Societies Act, 1959.

Remedy Sought

Quashing of the endorsement dated 21/22.2.2014 (Annexure-A) and direction to the Joint Registrar to entertain the dispute.

Filing Reason

The Joint Registrar declined to entertain the dispute without affording a hearing to the petitioners, violating principles of natural justice.

Previous Decisions

The Joint Registrar passed the impugned endorsement on 21/22.2.2014.

Issues

Whether the Joint Registrar's refusal to entertain the dispute without hearing the petitioners violates principles of natural justice.

Submissions/Arguments

The petitioners argued that the Joint Registrar passed the adverse order without giving them an opportunity of being heard, violating natural justice.

Ratio Decidendi

An order adverse to a party cannot be passed without affording that party an opportunity of being heard. The Joint Registrar's failure to hear the petitioners before declining to entertain the dispute under Section 70 of the Karnataka Co-operative Societies Act, 1959 violated the principles of natural justice.

Judgment Excerpts

By the impugned endorsement at Annexure-A, the joint Registrar has declined to entertain the dispute raised by the petitioners under Section 70 of the Karnataka Co-operative Societies Act, 1959 on the ground that the dispute is not maintainable. As the impugned endorsement is made without hearing the petitioners, it is in violation of the principles of natural justice. Hence, the impugned endorsement is liable to be set aside.

Procedural History

The petitioners filed a dispute under Section 70 of the Karnataka Co-operative Societies Act, 1959 before the Joint Registrar. The Joint Registrar, by endorsement dated 21/22.2.2014, declined to entertain the dispute. The petitioners then filed writ petitions under Articles 226 and 227 of the Constitution of India before the High Court of Karnataka.

Acts & Sections

  • Karnataka Co-operative Societies Act, 1959: Section 70
  • Constitution of India: Articles 226, 227
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