{"id":164031,"date":"2010-02-26T00:00:00","date_gmt":"2010-02-25T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/vyavasaya-seva-sahakari-bank-ltd-vs-the-state-of-karnataka-on-26-february-2010"},"modified":"2018-02-11T13:53:40","modified_gmt":"2018-02-11T08:23:40","slug":"vyavasaya-seva-sahakari-bank-ltd-vs-the-state-of-karnataka-on-26-february-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/vyavasaya-seva-sahakari-bank-ltd-vs-the-state-of-karnataka-on-26-february-2010","title":{"rendered":"Vyavasaya Seva Sahakari Bank Ltd vs The State Of Karnataka on 26 February, 2010"},"content":{"rendered":"
Karnataka High Court<\/div>\n
Vyavasaya Seva Sahakari Bank Ltd vs The State Of Karnataka on 26 February, 2010<\/div>\n
Author: Subhash B.Adi<\/div>\n
. -- \u00bb   A 4. _ AND;\n\nW]? No.60804~805\/2010\n\nIN THE HIGH COURT OF KARNATAKA\n\n \n\nCIRCUIT BENCH AT DHARWAD\n\nDATED THIS THE 26TH DAY OF FEBRUARY;   \nBEFORE       C C\nTHE HONBLE MRJUSTICE    A\nWRIT PETITION No.6o8G4{L:~SQ5\/\"2'oIQ   \nBETWEEN:  C   C\n\n1. VYAVASAYA SEVA SAHAKARI {,BAI\\\"1'I<:,"I;I*I3. _\nHIREKOPPA   t  \nREP BY ITS CH-AIRM;fII~?'\u00bb~.:" " 1 I \nSR1 SANKANP;G;C}UDI4_\\ MAI.I.;LANAGOUHD_A\nKANNAPPAGOEJDAE. 'AGE 60_.'{E.ARS\nocc AGRIL R \/A'T"-H1RE':<:To?PA VILLAGE\nNARGUNETQ IGADAG DIST _ 3\n\n2. KHA1NAPI.IR'+GA.NGAPIJI'\u00e9- WAVASAYA\nSEVA SA.HAK_ARI ~EAN_K--I,,Tp\nKHANAPUR I _ A' _ _ '\nREP BY ITS CHAIRMAN\nSRI M_ALLAi'\u20acAGOUDA HANUMANTHAGOUDA\n . " '_?.'f*EEMMANAGOUD_AR, AGE 61 YEARS\n _0*Cc*=AGRI.I., R \/AT KHANAPUR VILLAGE\nI  'IIARGUND TQ GADAG DIST. ...PETITIONERS\n\n(}E\u00a7Y SE.I'.JA&*AI<UIv:AR S.PATIL, SR.ADv FOR\nSR__I.F\u00a7:';PA'H'IL, ADV)\n\n 1: _ -'_1fHi.C'. STATE OF KARNATAKA\n  REP BY SPECIAL OFFICER\/JOINT SECRETARY\n DEPT. OF COOPERATION\n" M S BUILDING\n\n\n\nWP No.60804--805\/ 20 10\n\nBANGALORE 1\n\n2. THE RETURNING OFFICER\nTO CONDUCT ELECTIONS TO THE\nTALUK AGRICULTURAL PRODUCE\nMARKETING SOCIETY NARGUND\nNARGUND TQ   \nGADAG DIST I\n\n3. THE TALUK AGRICULTURAL A I.  . _\nPRODUCE MARKETING SOCIETY NARGIIND  \nREP BY ITS MANAGER   " .  - \nNARGUND\nNARAGUND TQ\nGADAG DIST\n\n4. VYAVASAYA SEVA SA-HAI<ARI~ E'ANI<'_LTD.',\nBHAIRANHATTI,';-. _    \nREP. BY IT;<3_PR\u00a7ESIDEN'1'.'\nSR1.VIRUPAI<SHAP_PA"---.jjj---_  _\nS \/O LAXiV$APP\u00a7$ML7N;A.N'i{OP\n\n  \nAGEI:5:2I'YEARS,'*R;*O"BH-AIRA'NA'I"rI,\nTQ:NARGUN1), ..DIST:GAD_AG..'\n ' I    ...RESPONDENTS\n\n(BY SRLM.ITE:-SHIXVIXREDDNZTAGA ROR R1 AND 2,\nSRi;V.D.KAM.AR'EDDY, ADV FOR R3,\nSP:I.S_.NI.I<ALwAD;___EOR R4)\nA A If~THI--S4"PE:IITI_ON IS FILED UNDER ARTICLES 226 AND\n2271OE.TIIE~..,CO'NSTITUTION OF' INDIA PRAYING TO QUASH\n\n  THE'II\/IPDGNEjD'NOTIFICATION DTD.8\/2\/2010 BEARING NO.\n'CO28 CI':.-M2010 ISSUED BY RES.NO.1 VIDE ANNEXURE-E\n AND ETC;\n\n PETITION COMING ON FOR ORDERS, THIS DAY,\n\n   COURT MADE THE FOLLOWING:\n\n\n\nWP No.6080-4-805\/2010\n\nORDER\n<\/pre>\n
1. Sri.l\\\/l.KeshaVareddy, learned AGA takes_.\u00a7l_:lrioticei:<\/p>\n
respondents 1 and 2.\n<\/p>\n
2. This petition is directed against linoti\ufb01cation \\:l:a~ted’._
\n08.02.1010 issued by respondelr1tr:vgll\\’o.1 produced”vat\u00b0r\u00a7in’ne\u00a7lure– it<\/p>\n
E.\n<\/p>\n
3. The case of the petition_er.’i_ils: tr:’at\u00a5’;\u00a7etitioner is a C0-
\noperative Society Lregis_ter_ed’; un\u00a2i’e1~.”~ th.<f provisions of the<\/p>\n
Karnataka  "1959, with approved bye-\n<\/p>\n
laws {fora_:shor_t1 ‘the   a committee of management
\nconsistingiofg 12 me.mb:e1-sf”—..?l”‘rriembers are to be elected from<\/p>\n
“A” class category, Zlmembers are to be elected from “B” class<\/p>\n
 categovry’ and 3 .membe_rs” are ex–officio members. The period of<\/p>\n
tii.e’ll1nanagemcr1’t_’committee of the elected members is \ufb01ve<\/p>\n
  years.._ The,peri;od of existing members has come to an end and<\/p>\n
i”~.\u00ab._election to the members of the committee of the management<\/p>\n
  class and “B” class category has to be held before<\/p>\n
 ..__b3l1.(l)lg3.201O in respect of 3″; respondent~\u00bbSociety.<\/p>\n
$5<\/p>\n
WP No.60804–805\/20 10<\/span><\/p>\n
4. In all, there are 19 Vyavasaya Sahakari Banks Egiinited
\nwho are “A” class members of the 3rd
\nUnder bye law No.22 (6)(2] of the Bye Laws, to
\n“A” class members of the committee 3&1′ 00
\nrespondent, the members should hay’e__
\nthe minimum of 200 quintals   the’
\n3?” resp0ndent\u00bb~Society during the*lco=~operatiye’ ‘year; Section<\/p>\n
29 (C) (5) of the Act conferspovifer  Government to
\nissue noti\ufb01cationpto   relating to<\/p>\n
the transaction eftlie .fCo~ojp_erative Society upto monetary limit<\/p>\n
\ufb01xed by    i_sI’iie.2oo6 was issued by the
\nState Goyernrnent minimum quali\ufb01cation relating to
\ntransaction oi14\u00b0ll’i”A_’:’i Aclvavssrnemibers to the extent of 1 lakh a year
\nlat  for a._periold'””o’fl 3 years. However to gain political
\n take control over the State Cowoperative<\/p>\n
Marketingv. .i?’et1;eration which is an apex body of the 3rd<\/p>\n
 r.espond”enti~ Society, the State Government issued another<\/p>\n
   dated 08.02.2010 modifying the noti\ufb01cation dated<\/p>\n
ll’…_l:l16ig%12.2006 and thereby exempting the primary level (:0-<\/p>\n
.r%&<\/p>\n
” a<\/p>\n
WP No.60804-805\/20 10<\/span><\/p>\n
operative societies namely “A” category members from the<\/p>\n
minimum quali\ufb01cation. Being aggrieved by the’-lsaid<\/p>\n
noti\ufb01cation, the petitioners have \ufb01led this writ petition; 3  –1- <\/p>\n
5. Sri.Jayakumar S.Pati1, learnedv-senior counse1′:va_ppearin’g<\/p>\n
for the petitioner submitted that; Section<\/p>\n
confers power on the State Gov-ernment” to fix the”~-imiraimumll<\/p>\n
quali\ufb01cation relating to transactionlll:o”g1’*.?’}l*C{ _class ‘member with a
\nCooperative Society to certain.  it does not
\nconfer any power to”e;.<emp't' qzzlaliiieation. In this
\nregard, he     the minimum
\nqualification'eariij\u00e9rliiiiged   transaction by the "A"
\nclass member of three years. However,<\/p>\n
instead of f1\u00a7iingithellininim"o.rr1 quali\ufb01cation, by Annexure-E the<\/p>\n
.,State ..{\u00a7ove1'nment'=has___eXempted from the requirement of<\/p>\n
' ' Vmini'm1_,1n1_ quaii\ufb01&:a_tion.\n<\/p>\n
S   6. it  fu.rth’e_rsubmitted that it is mandatory that each Co-
\n . ._op,erative” Society to frame bye~laws as prescribed under Rule 5
\n  ofrhe liarnataka Co-operative Societies Rules, wherein the Co-<\/p>\n
 golpergative Society has to frame a bye law relating to the terms<\/p>\n
(C) is; , thgsuggii <\/p>\n
WP No.60804-805\/20 E0<\/p>\n
provisions of Section 29 (C) (5) of the Act, the noti\ufb01cationis not<\/p>\n
sustainable.\n<\/p>\n
8. On the contrary, learned counsel   –\n<\/p>\n
submitted that, the State Governmentiiihas
\nthe Act to exempt a cowoperative.s_oci6\u00a33′–.fro1n the,j.a.??,iic’ation’
\nany provisions of the Act. In consoriance izvithi  of<\/p>\n
Section 121 read with Section 29″‘(e}I’j(5Vj’;–.t.he goirernvment has<\/p>\n
exempted the Societies ‘V =:’ec;uiVI*e_’rneI_1.t of minimum
\nquaii\ufb01cation. In  that this
\nnoti\ufb01cation is; ”  that most of the co-\n<\/p>\n
operative “the fiood situation in most of<\/p>\n
the area 7–have not .ifr?_ln:\u20ac~?<1iit:e\u20ac\u00a73\\ii Iriuch business to qualify to<\/p>\n
contest the election:   these circumstances and in the<\/p>\n
. ,1arger.\u00bbinterest of thevfarrners the noti\ufb01cation has been issued.<\/p>\n
  'question that arises for consideration in this<\/p>\n
  petition is:v..ii it<\/p>\n
"Whether the Government has power to issue noti\ufb01cation<\/p>\n
 to exempt the society from minimum quali\ufb01cation under<\/p>\n
 .._hS.iection 29 (C) (5) of the Act?"  A<\/p>\n
-OK-_f’<\/p>\n
WP No.60804\u00bb805\/20 10<\/span><\/p>\n
10. Section 29 (C) (5) confers power on the State Government<\/p>\n
to \ufb01x the eligibility qualification for being appointed orVie1eict_ed<\/p>\n
as a member of the Committee of such co-operatiVei”s’ocieti:3{i.  _<\/p>\n
is in consonance with the same, the State Government. had <\/p>\n
issued noti\ufb01cation at Annexure–C <\/p>\n
this noti\ufb01cation is not in dispute even the pervert to iijssue\ufb01s.<\/p>\n
noti\ufb01cation \ufb01xing the eligibility’uuquiaii\ufb01cation also not in
\ndispute. However, what  thegovernment
\ncan exempt the requirement to contest
\nthe election. Fact’   gob-e’rn’meiithasfpower to prescribe<\/p>\n
quali\ufb01cation, it   to not prescribe the<\/p>\n
minimum quali\ufb01cation  29 (c) (5) of the Act is not
\nmandatorj”  it in nature. Under the said<\/p>\n
provision. the go:r.ernment’ may prescribe the quali\ufb01cation may<\/p>\n
  meari-s=m’ay not. Viililhough word ‘exemption’ is used in the<\/p>\n
 at Annexure-E. What is sought to be<\/p>\n
done is toV.rem_oi7e the requirement of minimum quali\ufb01cation<\/p>\n
 \u00ab.._and perrfritpiiall the members of the societies i.e., in View of the
\n  fioiod. _situation as most of the societies could not transact much<\/p>\n
 -.._i:busi}ness during this period and if minimum quali\ufb01cation is<\/p>\n
WP N0.60804–805\/2010<\/p>\n
prescribed} it may prevent large number of members. from
\ncontesting the election and may defeat the very pu.rpo,se~.,_of
\nholding election. If there is a power to
\nquali\ufb01cation under the provisions of Section  oifpvthie
\nAct, it has also power not to prescriEoe.,’.:.iIinv
\nuseful to refer to the provisions’  Sec’ti_oin 21
\nClauses Act which reads as under?” a<\/p>\n
“21. Power to issue,  addiyarnend, vary
\nor rescind noti\ufb01cations, or\u00a21\u00a2;si,i.;ii,1\u00a2\u00a7<\/p>\n
Where, by,’CenA._tra:lp  a power to<\/p>\n
issue noti\ufb01cat’ion_s”orders., rules’ oriibyvewlaws is conferred, then<\/p>\n
that power incli.iid_es,,Va,powe’r,_ exercisable in the iike manner
\nand subject to’ the lil\u00e9e–Lisanct_io’n”Jand conditions (if any), to add<\/p>\n
to, amend, vary ..or’ rescind any noti\ufb01cation, orders, rules or<\/p>\n
 ldyejlaws sdAissL.\u00a3ed.” H iiiii M<\/p>\n
iv * i’0rder.s,’or Bye laws so issued.\n<\/p>\n
In as7.muchu.”as”the authority which has power to issue, to<\/p>\n
include’ power to add, amend very or rescind noti\ufb01cation,<\/p>\n
 contesting the election by means of any bye iaw.<\/p>\n
W? NOJBOSO4-805\/2010<\/p>\n
:10:<\/span><\/p>\n
11. Provisions of Section 29 (C){5)’ of the Act is not<\/p>\n
mandatory power to be exercised by the government, this<\/p>\n
provision is directory in nature, government may issue c\u00a7r”‘may<\/p>\n
9<\/span><\/p>\n
not issue noti\ufb01cation. Further, in View of the provisioris’ pr,<\/p>\n
Section 21 of the Generai Ciauses Act, the .poi’w.erftfo K V’<\/p>\n
includes power to not to issue ie, to exempt raiso.-:’ —  v<\/p>\n
12. In so far as bye laws are concer’-ned, no,d7m.i.bt’RuIe’:’5 <\/p>\n
prescribes that every society registered under.t’hev’:proyisions of
\nthe Act requires to franie”‘bye_’;1daws;”  5 deals with the
\nnature of bye laws to be framed.  regard to the<\/p>\n
quaii\ufb01cationcvofithe  be appointed or elected<\/p>\n
is concerned ju,*s’j:;g;{g\/c;\u00bbc.g(s;,j’r;\u00a7 ‘bye law for the said purpose<\/p>\n
could be  ._ ‘VIE  Iegisiation requires the State<\/p>\n
–~.GoVerriment to do “certain. things and that power having been<\/p>\n
“‘._de\u00a3eVgated.V_toyit.,Viit__is for the State to prescribe and not for the<\/p>\n
Soci,:etyi’to’Vfr\u00e9X’me’g::.the bye law for the said purpose. Hence, the<\/p>\n
‘bye   ‘prescribing qualification which is covered u \/ s 29
\n‘:{C)”(\u00a3Et}.y_of the Act, is unenforceable. in my view, it does not give<\/p>\n
 right to the society to restrict any “A” class member from<\/p>\n
?\n<\/p>\n
r <\/p>\n
WP No.6080-4-805\/2010
\n: 11 :<\/span><\/p>\n
13. From Annexure~]?3, it is clear that] the State Government<\/p>\n
has exempted the societies from minimum quali\ufb01cation._vii’s.–a~<\/p>\n
vis has not prescribed the minimum quali\ufb01cation and .s’a_me _._is\u00bb.<\/p>\n
– v<\/p>\n
in consonance with the power conferred on it   (45). I’  <\/p>\n
do not find that there is any error in eXerc’ise”‘\u00abof’ipowerVV<\/p>\n
State Government nor there is_a_ny violation of,v–‘pro’visioifzs”vof <\/p>\n
“‘1<\/p>\n
Section 29 (C) (5); However,  far Vasidbeiction ii21 is<\/p>\n
Concerned, it may not dire(‘;t.I;y   of” the present<\/p>\n
case.-\n<\/p>\n
State Government ir1ivii_ss3.1i3ng t.he~ impugned Annexure–E. In the
\ncircumstances,’ Vepetition isfdeVo_id\u00ab “of merits and liable to be<\/p>\n
dismissed. , –Accordi11gly,~it is “dismissed.<\/p>\n
 ~Sri–;M.I{eshaiia1?eddy, AGA is permitted to file memo of<\/p>\n
  appearahnce’ within iiotir weeks.\n<\/p>\n
Sc1\/ 4
\nJUDGE<\/p>\n","protected":false},"excerpt":{"rendered":"
Karnataka High Court Vyavasaya Seva Sahakari Bank Ltd vs The State Of Karnataka on 26 February, 2010 Author: Subhash B.Adi . — \u00bb A 4. _ AND; W]? No.60804~805\/2010 IN THE HIGH COURT OF KARNATAKA CIRCUIT BENCH AT DHARWAD DATED THIS THE 26TH DAY OF FEBRUARY; BEFORE C C THE HONBLE MRJUSTICE A WRIT PETITION […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,20],"tags":[],"class_list":["post-164031","post","type-post","status-publish","format-standard","hentry","category-high-court","category-karnataka-high-court"],"yoast_head":"\nVyavasaya Seva Sahakari Bank Ltd vs The State Of Karnataka on 26 February, 2010 - Free Judgements of Supreme Court & High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/vyavasaya-seva-sahakari-bank-ltd-vs-the-state-of-karnataka-on-26-february-2010\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Vyavasaya Seva Sahakari Bank Ltd vs The State Of Karnataka on 26 February, 2010 - 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