Case Note & Summary
The petitioners, who are residents and members of the locality, challenged the order dated 1.9.2014 passed by the Assistant Registrar of Co-operative Societies, Chikkaballapur Sub Division, registering Dibburahally Vyavasaya Seva Sahakara Sangha Niyamitha, and the consequent registration certificate. The petitioners contended that the registration was granted without conducting a proper inquiry under Section 7 of the Karnataka Cooperative Societies Act, 1959, and without considering their objections. They argued that the proposed society's objects were contrary to law and that it was likely to be used for illegal purposes. The respondents, including the Assistant Registrar and the society, defended the registration, stating that all formalities were complied with. The court examined the provisions of Sections 6 and 7 of the Act, which require the Registrar to make an inquiry into the suitability of the proposed society and to satisfy himself that the society complies with the requirements of the Act. The court found that the impugned order did not reflect any such inquiry or satisfaction. The court also noted that the petitioners had raised objections, but no opportunity of hearing was given to them. Consequently, the court held that the registration was vitiated and quashed the order and the registration certificate. The court directed the Assistant Registrar to conduct a fresh inquiry in accordance with law, after affording an opportunity of hearing to all interested parties, and to pass a fresh order within three months.
Headnote
A) Cooperative Law - Registration of Society - Section 6, 7, 10 of Karnataka Cooperative Societies Act, 1959 - Inquiry and Hearing - The Assistant Registrar registered a cooperative society without conducting a proper inquiry under Section 7 and without affording an opportunity of hearing to the objectors. The court held that the registration was vitiated due to non-compliance with statutory requirements and principles of natural justice. (Paras 1-10) B) Cooperative Law - Registration of Society - Section 6 of Karnataka Cooperative Societies Act, 1959 - Conditions for Registration - The court held that the Assistant Registrar must satisfy himself that the proposed society complies with the requirements of the Act, including that its objects are not contrary to law, and that it is not likely to be used for illegal purposes. The impugned order did not reflect such satisfaction. (Paras 5-8) C) Constitutional Law - Writ Jurisdiction - Articles 226 and 227 of Constitution of India - Quashing of Order - The court quashed the order of registration and the registration certificate, directing the Assistant Registrar to conduct a fresh inquiry after hearing all interested parties. (Paras 9-10)
Issue of Consideration
Whether the registration of a cooperative society by the Assistant Registrar without conducting a proper inquiry under Section 7 of the Karnataka Cooperative Societies Act, 1959 and without considering the objections raised by the petitioners is valid.
Final Decision
The court allowed the writ petitions, quashed the order dated 1.9.2014 and the registration certificate, and directed the Assistant Registrar to conduct a fresh inquiry after hearing all interested parties and pass a fresh order within three months.
Law Points
- Registration of cooperative society
- Section 6 of Karnataka Cooperative Societies Act
- 1959
- Inquiry under Section 7
- Opportunity of hearing
- Natural justice
- Writ jurisdiction under Articles 226 and 227
