High Court of Karnataka Allows Writ Petition Challenging Dismissal of Dispute Under Section 70 of Karnataka Co-operative Societies Act, 1959 — Dispute Regarding Appointment of Enquiry Officer Held Maintainable Before Joint Registrar. The court quashed the order of the Joint Registrar dismissing the dispute on the ground of lack of jurisdiction and remitted the matter for fresh consideration on merits.

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

The petitioner, Revannasiddaiah, an employee of Janatha Seva Co-operative Bank Ltd. (2nd respondent), faced disciplinary proceedings initiated by the bank on 04.03.2013. He filed objections on 15.04.2013. The bank appointed K. Venkataramanaiah (3rd respondent) as Enquiry Officer on 16.04.2013. The petitioner objected to the appointment and filed an application on 17.04.2013 expressing lack of confidence in the Enquiry Officer. When the Enquiry Officer rejected the request, the petitioner filed a dispute under Section 70 of the Karnataka Co-operative Societies Act, 1959 before the Joint Registrar of Co-operative Societies (1st respondent) on 24.06.2013. The bank filed an application raising preliminary issue regarding maintainability. The petitioner sought amendment on 29.07.2013. The Joint Registrar, by order dated 29.07.2013, dismissed the dispute on the ground of lack of jurisdiction. The petitioner challenged this order by filing a writ petition under Articles 226 and 227 of the Constitution of India. The High Court heard the parties and perused the record. The court observed that the dispute regarding appointment of an enquiry officer is a dispute touching the business of the society and is maintainable under Section 70 of the Act. The Joint Registrar's order dismissing the dispute on the ground of lack of jurisdiction was erroneous. The court quashed the order and remitted the matter to the Joint Registrar for fresh consideration on merits, directing that the dispute be restored to file and decided in accordance with law. The writ petition was allowed.

Headnote

A) Co-operative Law - Jurisdiction - Section 70 of Karnataka Co-operative Societies Act, 1959 - Maintainability of Dispute - The petitioner, an employee of the 2nd respondent bank, challenged the appointment of the 3rd respondent as enquiry officer in disciplinary proceedings. The Joint Registrar dismissed the dispute on the ground of lack of jurisdiction. The High Court held that the dispute regarding the appointment of an enquiry officer is a dispute touching the business of the society and is maintainable under Section 70 of the Act. The order of dismissal was quashed and the matter remitted for fresh consideration on merits. (Paras 4-6)

B) Co-operative Law - Enquiry Officer - Appointment - Section 70 of Karnataka Co-operative Societies Act, 1959 - The court held that the appointment of an enquiry officer by a co-operative society is a matter touching the business of the society and any dispute in relation thereto falls within the jurisdiction of the Registrar under Section 70. The Joint Registrar erred in dismissing the dispute on the ground of lack of jurisdiction without considering the merits. (Paras 4-6)

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Issue of Consideration

Whether the dispute filed by the petitioner under Section 70 of the Karnataka Co-operative Societies Act, 1959, challenging the appointment of the enquiry officer, is maintainable before the Joint Registrar of Co-operative Societies.

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Final Decision

The writ petition is allowed. The order dated 29.07.2013 passed by the 1st respondent (Annexure-G) is quashed. The dispute is restored to file and the 1st respondent is directed to decide the same in accordance with law, after hearing the parties, as expeditiously as possible.

Law Points

  • Jurisdiction of Joint Registrar under Section 70 of Karnataka Co-operative Societies Act
  • 1959
  • Maintainability of dispute regarding appointment of enquiry officer
  • Power of co-operative society to appoint enquiry officer
  • Right of employee to challenge enquiry officer's appointment
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Case Details

2013 LawText (KAR) (08) 11

Writ Petition No.35652/2013(CS-RES)

2013-08-12

A.N. Venugopala Gowda

Sri A.V. Gangadharappa for petitioner; Sri K.A. Ariga for R1; Sri K.N. Puttegowda for R2

Revannasiddaiah

Joint Registrar of Co-operative Societies, Bangalore Region; Janatha Seva Co-operative Bank Ltd.; K. Venkataramanaiah

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Nature of Litigation

Writ petition under Articles 226 and 227 of Constitution of India challenging order of Joint Registrar dismissing dispute under Section 70 of Karnataka Co-operative Societies Act, 1959 on ground of lack of jurisdiction.

Remedy Sought

Petitioner sought quashing of order dated 29.07.2013 passed by Joint Registrar dismissing the dispute and restoration of the dispute for adjudication on merits.

Filing Reason

Petitioner challenged the appointment of Enquiry Officer in disciplinary proceedings and filed a dispute under Section 70 of the Act before Joint Registrar, who dismissed it on ground of lack of jurisdiction.

Previous Decisions

Joint Registrar of Co-operative Societies dismissed the dispute on 29.07.2013 on the ground of lack of jurisdiction.

Issues

Whether the dispute regarding appointment of an enquiry officer in disciplinary proceedings is maintainable under Section 70 of the Karnataka Co-operative Societies Act, 1959 before the Joint Registrar.

Submissions/Arguments

Petitioner argued that the dispute regarding appointment of enquiry officer is a dispute touching the business of the society and is maintainable under Section 70 of the Act. Respondent bank raised objection regarding jurisdiction of Joint Registrar to entertain the dispute.

Ratio Decidendi

A dispute regarding the appointment of an enquiry officer by a co-operative society in disciplinary proceedings is a dispute touching the business of the society and is maintainable under Section 70 of the Karnataka Co-operative Societies Act, 1959. The Joint Registrar has jurisdiction to entertain such a dispute and cannot dismiss it on the ground of lack of jurisdiction without considering the merits.

Judgment Excerpts

The dispute regarding appointment of an enquiry officer is a dispute touching the business of the society and is maintainable under Section 70 of the Act. The order of the 1st respondent dismissing the dispute on the ground of lack of jurisdiction is erroneous and cannot be sustained.

Procedural History

Disciplinary proceedings initiated by 2nd respondent bank on 04.03.2013. Petitioner filed objections on 15.04.2013. Enquiry officer appointed on 16.04.2013. Petitioner filed application expressing no confidence on 17.04.2013. Petitioner filed dispute under Section 70 before Joint Registrar on 24.06.2013. Bank filed application raising preliminary issue on maintainability. Petitioner sought amendment on 29.07.2013. Joint Registrar dismissed dispute on 29.07.2013 on ground of lack of jurisdiction. Petitioner filed writ petition on 12.08.2013.

Acts & Sections

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