Case Note & Summary
The dispute arose from a writ appeal filed by a primary agricultural credit co-operative society against an order of the learned Single Judge dismissing its petition regarding eligibility to vote in the elections of the Kolar-Chikkaballapur District Co-operative Central Bank Limited (DCC Bank). The appellant was deemed ineligible due to alleged default in payment as per a notice issued by DCC Bank. The notice claimed that the appellant had an outstanding demand of Rs. 2798.64 lakhs as of 31.03.2025 and was required to pay 50% of this amount to be eligible to vote. The appellant contended that it had made payments totaling Rs. 14,69,52,000 between 03.04.2025 and 09.05.2025, including attempts to pay Rs. 3 crores in cash, which DCC Bank could not accept due to cash limits. The learned Single Judge dismissed the petition, stating the appellant failed to meet the payment requirement. However, the appellate court found that the payments made both before and after the notice should be considered, and the appellant had indeed paid more than the required amount. The court directed that the vote cast by the appellant's delegate be counted and the results declared accordingly, thereby allowing the appeal and setting aside the previous order.
Headnote
A) Co-operative Societies Law - Disqualification to Vote - Eligibility Criteria - Karnataka Co-operative Societies Act, 1959, Section 20(2)(b)(iv) - The appellant was found to have made payments exceeding the required 50% of the outstanding demand as on 31.03.2025, thus should not have been disqualified from voting in the elections. The court held that the payments made before and after the notice must be considered to determine eligibility (Paras 22-24).
Issue of Consideration
Whether the appellant had discharged 50% of the amount outstanding as on 31.03.2025 to avoid disqualification under Section 20(2)(b)(iv) of the Karnataka Co-operative Societies Act, 1959.
Final Decision
The appeal was allowed, the impugned order was set aside, and the vote cast by the appellant's delegate was directed to be counted.
Law Points
- Eligibility to vote
- Co-operative Society elections
- Disqualification under KCS Act
- Validity of payments
- Interpretation of statutory provisions
