Case Note & Summary
The petitioners, who are members of the Dakshina Kannada Krishikara Maarata Sangha Niyamita (a co-operative society), filed writ petitions under Articles 226 and 227 of the Constitution of India challenging an endorsement dated 21/22.2.2014 issued by the Joint Registrar of Co-operative Societies, Mysore. By the impugned endorsement, the Joint Registrar declined to entertain a dispute raised by the petitioners under Section 70 of the Karnataka Co-operative Societies Act, 1959 on the ground that the dispute was barred by limitation. The petitioners contended that the dispute involved allegations of misappropriation of society funds by the office bearers, which constituted a continuing cause of action, and therefore the Registrar ought to have entertained the dispute. The High Court, after hearing the parties, held that the dispute regarding misappropriation of funds by office bearers of a co-operative society is a continuing cause of action and the Registrar cannot refuse to entertain the dispute on the ground of limitation. The Court quashed the impugned endorsement and directed the Joint Registrar to entertain the dispute and decide it on its merits in accordance with law. The writ petitions were allowed accordingly.
Headnote
A) Co-operative Law - Dispute Resolution - Section 70 of Karnataka Co-operative Societies Act, 1959 - Limitation - The Joint Registrar declined to entertain a dispute under Section 70 on the ground that it was barred by limitation. The High Court held that where the dispute involves misappropriation of funds by office bearers of a co-operative society, it constitutes a continuing cause of action, and the Registrar cannot refuse to entertain the dispute solely on limitation grounds. The impugned endorsement was quashed and the Registrar was directed to entertain the dispute and decide it on merits. (Paras 1-3)
B) Constitutional Law - Writ Jurisdiction - Articles 226 and 227 of Constitution of India - Quashing of Administrative Order - The High Court, in exercise of its writ jurisdiction, quashed an endorsement issued by the Joint Registrar of Co-operative Societies which refused to entertain a dispute under Section 70 of the Karnataka Co-operative Societies Act, 1959. The Court held that the Registrar's action was erroneous as the dispute involved a continuing cause of action and directed the Registrar to proceed with the dispute in accordance with law. (Paras 1-3)
Issue of Consideration
Whether the Joint Registrar of Co-operative Societies was justified in refusing to entertain a dispute under Section 70 of the Karnataka Co-operative Societies Act, 1959 on the ground of limitation, when the dispute involved allegations of misappropriation of society funds constituting a continuing cause of action.
Final Decision
The High Court allowed the writ petitions, quashed the impugned endorsement dated 21/22.2.2014, and directed the Joint Registrar of Co-operative Societies, Mysore, to entertain the dispute raised by the petitioners under Section 70 of the Karnataka Co-operative Societies Act, 1959 and decide it on its merits in accordance with law.
Law Points
- Section 70 of Karnataka Co-operative Societies Act
- 1959
- Dispute resolution
- Continuing cause of action
- Limitation
- Writ jurisdiction under Articles 226 and 227 of Constitution of India
Case Details
2015 LawText (KAR) (04) 41
WP Nos.38933/2014 & 639-640/2015 (CS-RES)
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
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Writ petitions under Articles 226 and 227 of the Constitution of India challenging an endorsement by the Joint Registrar of Co-operative Societies refusing to entertain a dispute under Section 70 of the Karnataka Co-operative Societies Act, 1959.
Remedy Sought
The petitioners sought quashing of the endorsement dated 21/22.2.2014 passed by the Joint Registrar of Co-operative Societies, Mysore, and a direction to entertain the dispute under Section 70 of the Karnataka Co-operative Societies Act, 1959.
Filing Reason
The Joint Registrar declined to entertain the dispute raised by the petitioners under Section 70 of the Karnataka Co-operative Societies Act, 1959 on the ground that it was barred by limitation.
Previous Decisions
The Joint Registrar of Co-operative Societies, Mysore, passed an endorsement dated 21/22.2.2014 refusing to entertain the dispute.
Issues
Whether the Joint Registrar of Co-operative Societies was justified in refusing to entertain a dispute under Section 70 of the Karnataka Co-operative Societies Act, 1959 on the ground of limitation, when the dispute involved allegations of misappropriation of society funds constituting a continuing cause of action.
Submissions/Arguments
The petitioners argued that the dispute involved misappropriation of funds by office bearers of the co-operative society, which is a continuing cause of action, and therefore the Registrar ought to have entertained the dispute.
Ratio Decidendi
A dispute regarding misappropriation of funds by office bearers of a co-operative society constitutes a continuing cause of action, and the Registrar under Section 70 of the Karnataka Co-operative Societies Act, 1959 cannot refuse to entertain such a dispute solely on the ground of limitation. The Registrar must entertain the dispute and decide it on merits.
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 (‘the Act’ for short) on the ground that the dispute is barred by limitation.
The dispute regarding misappropriation of funds by the office bearers of a co-operative society is a continuing cause of action. Hence, the Registrar cannot refuse to entertain the dispute on the ground of limitation.
In the result, the writ petitions are allowed. The impugned endorsement dated 21/22.2.2014 is quashed. The Joint Registrar of Co-operative Societies, Mysore is directed to entertain the dispute raised by the petitioners under Section 70 of the Act and decide it on its merits in accordance with law.
Procedural History
The petitioners filed writ petitions under Articles 226 and 227 of the Constitution of India before the High Court of Karnataka challenging an endorsement dated 21/22.2.2014 issued by the Joint Registrar of Co-operative Societies, Mysore, which declined to entertain a dispute under Section 70 of the Karnataka Co-operative Societies Act, 1959 on the ground of limitation. The High Court heard the matter and delivered the judgment on 19 March 2015.
Acts & Sections
- Karnataka Co-operative Societies Act, 1959: Section 70
- Constitution of India: Articles 226, 227
