Case Note & Summary
The High Court of Karnataka dealt with multiple writ petitions filed by various primary agricultural credit co-operative societies and individuals challenging a government notification dated 27.09.2013. This notification, issued under Section 121 of the Karnataka Co-operative Societies Act, 1959, exempted all primary agricultural credit co-operative societies from the disqualifications provided under Section 20(2)(b)(iv)(a) & (b), which bars defaulters from voting. The petitioners contended that the blanket exemption rendered the legislative criteria meaningless and was contrary to other provisions such as Section 98-Y apart from being arbitrary. Earlier, on 10.10.2013, the court had granted an interim stay of the notification but clarified that eligible societies could vote if they met the criteria under Section 20 after giving credit for loan waiver amounts even if reimbursement had not occurred. In light of this order, election authorities postponed the election by eight days to prepare fresh voters lists, leading to further challenges against the postponement and the altered lists. After a preliminary hearing on 7.11.2013, the court heard senior counsel for the petitioners who argued that Section 121 could not be used to nullify the statutory disqualification. The court refrained from finally deciding the matter and instead directed the continuation of the interim arrangement with modifications. It ordered the returning officer to prepare a voters list strictly in accordance with the interim order, regarding loan waiver credit, and further allowed defaulting societies an opportunity to pay outstanding amounts within one week to be included. The court directed immediate publication of the list and the conduct of elections. All writ petitions were disposed of with these directions, leaving the substantive challenge to the notification open for future consideration.
Headnote
A) Cooperative Law - Exemption from Voting Disqualification - Validity of Government Notification - Karnataka Co-operative Societies Act, 1959, Sections 20, 121 - The State Government issued a notification exempting all primary agricultural credit co-operative societies from the voting disqualifications for defaulters; the notification was challenged as arbitrary and beyond the scope of Section 121. The court, without finally adjudicating validity, continued an interim order dated 10.10.2013 with modifications, directing the returning officer to prepare the voters list by giving credit for loan waiver amounts and allowing defaulting societies one week to clear dues before inclusion, and ordered publication of the list and conduct of elections accordingly (Paras 1-7).
Issue of Consideration
Whether the State Government could, under Section 121 of the Karnataka Co-operative Societies Act, 1959, exempt all primary agricultural credit co-operative societies from the voting disqualifications contained in Section 20(2)(b)(iv)(a) & (b), and whether the subsequent postponement of elections and preparation of fresh voters list was valid.
Final Decision
The court, after hearing preliminary arguments, did not finally quash the notification but directed the interim order to continue with modifications, requiring the returning officer to prepare the voters list as per the interim order (considering loan waiver credit and giving defaulters a chance to pay within a week), and directed publication of the list and conduct of elections accordingly; all writ petitions were disposed of with these directions.
Law Points
- Legal points not extracted
Case Details
2013 LawText (KAR) (11) 14
W.P.Nos.46689-692/2013 c/w W.P.Nos.49158-161/2013, W.P.No.49109/2013, W.P.No.49257/2013, W.P.Nos.49266-49267/2013
Jayakumar S. Patil, Deviprasad Shetty, Suresh M., M. Krishnappa, A.G. Shivanna, R.S. Ravi, Pruthvi Wodeyar
N.Begur Primary Agricultural Credit Co-operative Society Ltd., Antharasante Primary Agricultural Credit Co-operative Society Ltd., Madapura Primary Agricultural Credit Co-operative Society Ltd., Madegowdanahundi Primary Agricultural Credit Co-op. Society Ltd., Hulibele Agricultural Service Co-operative Society, Hirikyathanahalli Primary Agricultural Credit Co-operative Society, Amblikal Primary Agricultural Credit Co-op Society Ltd., Mallanayakanahalli Primary Agricultural Credit Co-op Society Ltd.
State of Karnataka, State Election Commission for Co-operation, Deputy Commissioner (Revenue), Assistant Commissioner/Returning Officer, Registrar of Co-op. Societies, Mysore Chamarajanagar District Central Co-op Bank, Kolar District Central Co-op Bank, Hasandahalli Vyavasaya Seva Sahakara Sangha Niyamitha, Nootway Seva Sahakara Sangha Niyamitha, Bhairanahalli Sericulturist cum Farmer Service Co-op Ltd.
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Nature of Litigation
Writ petitions under Articles 226 and 227 of Constitution challenging government notification exempting defaulting cooperative societies from voting disqualification and consequential election-related directions.
Remedy Sought
Petitioners sought to quash the notification dated 27.09.2013 and to restrain the conduct of election based on it; some also challenged postponement of election and preparation of fresh voters list.
Filing Reason
Petitioners alleged that the notification arbitrarily removed the bar on defaulters voting, contrary to the Act and the power under Section 121.
Previous Decisions
On 10.10.2013, an interim order was passed staying the impugned notification but permitting eligible societies to vote after giving credit for loan waiver; the authorities postponed elections by eight days to prepare fresh voters list.
Issues
Whether the State Government could, under Section 121 of the Karnataka Co-operative Societies Act, 1959, exempt all primary agricultural credit co-operative societies from the voting disqualifications under Section 20(2)(b)(iv)
Whether the subsequent postponement of elections and preparation of fresh voters list was justified
Submissions/Arguments
Petitioners' counsel argued that power under Section 121 cannot be used to nullify the legislative criteria in Section 20, and the blanket exemption is arbitrary.
Ratio Decidendi
Ratio not explicitly mentioned
Judgment Excerpts
the notification dated 27.09.2013 issued by the State Government in exercise of the powers conferred under Section 121 of the Karnataka Co-operative Societies Act, 1959 exempting all the Primary Agricultural Credit Co-operative Societies in Karnataka from the rigor contained under Section 20 (2) (b) (iv) (a) & (b) of the Act, till 31.12.2013.
the power under Section 121 of the Act cannot be used to remove the legislative criteria laid down under Section 20 (2) (b) (iv) (a) & (b) of the Act to enable the defaulter to participate or cast his/its vote in the election.
Procedural History
The petitioners filed writ petitions challenging the notification and seeking interim orders. On 10.10.2013, an interim stay was granted. The authorities postponed elections to redo voters list, leading to further challenges. All petitions were clubbed and heard together on 7.11.2013. The court disposed of the matters with directions continuing the interim arrangement.
Acts & Sections
- Karnataka Co-operative Societies Act, 1959: 20(2)(b)(iv)(a), 20(2)(b)(iv)(b), 121, 98-Y
- Constitution of India: 226, 227
