Case Note & Summary
The petitioner, who is the President of a co-operative society named Meenugarara Sarvatomukha Abhivruddi Sahakara Sangha Niyamita, challenged the order of the appellate authority dated 18.09.2015 dismissing his appeal under Section 106(1)(j) of the Karnataka Co-operative Societies Act, 1959. The appeal was against the order dated 15.04.2015 passed under Section 72(2) of the Act directing winding up of the society and appointing a liquidator. The sole contention raised by the petitioner's counsel was that the order dated 15.04.2015 was passed without issuing any notice to the society, thereby violating the principles of natural justice. The court, after hearing the counsel and perusing the record, found that the order under Section 72(2) was indeed passed without notice to the society. The court held that such an order is unsustainable in law as it violates the principles of natural justice. Consequently, the court quashed both the order of the appellate authority dated 18.09.2015 and the order of winding up dated 15.04.2015, and remitted the matter to the Deputy Registrar of Co-operative Societies, Raichur (respondent No.2) for fresh consideration after giving an opportunity of hearing to the petitioner-society. The writ petition was allowed accordingly.
Headnote
A) Co-operative Law - Winding Up - Natural Justice - Section 72(2) Karnataka Co-operative Societies Act, 1959 - Order directing winding up of a co-operative society without issuing notice to the society is violative of principles of natural justice - The appellate authority erred in affirming such order - Held that the order of winding up and the appellate order are quashed, and the matter is remitted for fresh consideration after giving opportunity of hearing (Paras 1-4).
Issue of Consideration
Whether the order directing winding up of a co-operative society under Section 72(2) of the Karnataka Co-operative Societies Act, 1959, passed without issuing notice to the society, is sustainable in law.
Final Decision
The writ petition is allowed. The impugned order dated 18.09.2015 passed by the Joint Registrar of Co-operative Societies (respondent No.3) and the order dated 15.04.2015 passed by the Deputy Registrar of Co-operative Societies (respondent No.2) are quashed. The matter is remitted to respondent No.2 for fresh consideration after giving an opportunity of hearing to the petitioner-society.
Law Points
- Natural justice
- right to be heard
- mandatory notice before winding up
- Section 72(2) Karnataka Co-operative Societies Act
- 1959
- Section 106(1)(j) Karnataka Co-operative Societies Act
Case Details
2015 LawText (KAR) (10) 22
Writ Petition No.205189/2015 (CS-RES)
Sri Ashoka S/o Duragappa Jalahalli
The State of Karnataka, The Deputy Registrar of Co-operative Societies, Raichur, The Joint Registrar of Co-operative Societies, Kalaburagi Region, The Assistant Registrar of Co-operative Societies, Raichur, The Co-operative Extension Officer, Deodurga
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Nature of Litigation
Writ petition under Articles 226 and 227 of the Constitution of India challenging the order of the appellate authority affirming the winding up order of a co-operative society.
Remedy Sought
Quashing of the appellate order dated 18.09.2015 and the winding up order dated 15.04.2015.
Filing Reason
The winding up order was passed without issuing notice to the society, violating principles of natural justice.
Previous Decisions
The Deputy Registrar of Co-operative Societies passed an order under Section 72(2) of the Act on 15.04.2015 directing winding up of the society and appointing a liquidator. The appeal against that order was dismissed by the Joint Registrar (appellate authority) on 18.09.2015.
Issues
Whether the order under Section 72(2) of the Karnataka Co-operative Societies Act, 1959 directing winding up of a co-operative society without issuing notice to the society is valid.
Submissions/Arguments
The petitioner's counsel contended that the order dated 15.04.2015 was passed without issuing any notice to the society, violating principles of natural justice.
Ratio Decidendi
An order directing winding up of a co-operative society under Section 72(2) of the Karnataka Co-operative Societies Act, 1959, passed without issuing notice to the society, is violative of the principles of natural justice and is unsustainable in law.
Judgment Excerpts
The sole contention urged by the learned counsel is that the order dtd. 15.04.2015 passed under Section 72(2) of the Act directing winding up of the petitioner-society is passed without issuing any notice to the society.
The order under Section 72(2) of the Act is passed without notice to the society. Hence, the said order is unsustainable in law as it is violative of the principles of natural justice.
Procedural History
The Deputy Registrar of Co-operative Societies, Raichur passed an order on 15.04.2015 under Section 72(2) of the Karnataka Co-operative Societies Act, 1959 directing winding up of the petitioner-society and appointing a liquidator. The petitioner appealed against that order under Section 106(1)(j) of the Act before the Joint Registrar of Co-operative Societies, Kalaburagi Region, who dismissed the appeal on 18.09.2015. The petitioner then filed the present writ petition under Articles 226 and 227 of the Constitution of India before the High Court of Karnataka, Kalaburagi Bench.
Acts & Sections
- Karnataka Co-operative Societies Act, 1959: 72(2), 106(1)(j)
