{"id":34304,"date":"2008-06-19T00:00:00","date_gmt":"2008-06-18T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/vyavasaya-seva-sahakar-bank-vs-the-state-of-karnataka-on-19-june-2008"},"modified":"2018-10-17T14:36:53","modified_gmt":"2018-10-17T09:06:53","slug":"vyavasaya-seva-sahakar-bank-vs-the-state-of-karnataka-on-19-june-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/vyavasaya-seva-sahakar-bank-vs-the-state-of-karnataka-on-19-june-2008","title":{"rendered":"Vyavasaya Seva Sahakar Bank … vs The State Of Karnataka on 19 June, 2008"},"content":{"rendered":"
Karnataka High Court<\/div>\n
Vyavasaya Seva Sahakar Bank … vs The State Of Karnataka on 19 June, 2008<\/div>\n
Author: D.V.Shylendra Kumar<\/div>\n
HEGH COURT OF KARNATAKA HfGH_.'E.\"OURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COURI O!' KAKNAIAMI rllul-1\n\nIN THE man COURT OF KARNATAKA AT BANGALORE\nDATED THIS THE 19'\"! DAY OF 2 \nTI-IE I-ION'BLE MRJUSTIOE \n\nWRIT PE'I'ITION NO; 3105\/2603 (Os--s EL\/'M1:  \"\nBETWEEN:-\n\nVYAVASAYA SEVA.SAHAKAE'BA:'3i{'NiYAMYr,\nAKKIPAT,--HALE-\u00a7;HUB'BALLI'_TAi,UK: HUBBALLI\nDIS'I'RIC'F:;13f)I{AIx'\\V;;_ ' .   \" \nREPRES~_EN'T'E.D Biz ITs__ 'PRESIDENT\nSRI.CHANi%\u00a7API'A*-VE'ERAB}{ADRAPPA HOSUR,\nAGE':-32:, R\/TTJOLD'-HUBLi',\"AIG(IPET\n VHi.FB13TAI;LI;\"I)iSTRICF: DHARWAD.\n\n. . . PEFITIONER\n\n _ (Bvgskzz  T MANTAGANI, ADVOCATE)\n\n     \n\n1 '  STATE OF KARNATAKA\n= _ T BYTI's SECRETARY T0\n  GOVERNMENT,\n=  DEPARTMENT OF COOPERATION,\n\nM.S.BUILDING,\nBANGALORE-01.\n\n\n\nrII\\J'rr -..uu:u ur nnauvnu-tux.\u00bb nrunAg.v.,.'runI ur IMHIIIVI}-lll-\\I\\I'| rslu\ufb02 LUUKI Ur ISAKNAIAKA HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA I-{JG}-I\n\n2 THE REGISTRAR OF CO-OPERATIVE\nSOCIETIES IN KARNATAKA,\nNO. 1. ALI ASKER ROAD\nBANGALORE ~---- 52.\n\n3 ADMINISTRATOR, \nx.c.c. BANK LIMITED,  \nsums ROAD,\n\nDHARWAI).\n\n4 KARNATAKA CENTRAL   \nBANK LIMfI'ED,:\"DHARWAI},j \"   '\nBY ITS MANAGING'  AA  \n\n5 RE'1*URNmG OFFISER, %  % a \nK.C.C. BANK LIMITED,    'V \nSUBAS=RG'A_1),~ } _  \n\n% DHARWAI).\"'   \n.... 'V   RESPONDENTS\n\n(BY s'm':L ASHA M KUMTBARAGERIMATH,\n\nHCCrP'FO'R R185  \" \n\nSR1: G A K \"GOWDA, 'A}:}VOCATE FOR\n\nR3&.R4 '    %\n\nsm:N  SANJAYA__(3OWDA, ADVOCATE\n\n %k%'TH1;a~'%%WT;P. FILED UNDER AR'I'ICLES 226 & 227 05*\n\nTHE). CQNS'3f'fT1J'I'ION OF INDIA PRAYING TO DIRECT THE\n\n FIFTH RESPONDENT TO COMMENCE THE PROCESS 01:'\n\n*  'ELECI'iON AS PER RULE 14(2) PURSUANT TO THE\n\n  ~j_*f)_RD~ER DATED 6.2.2008 VIBE ANNEXURE c ISSUED BY\n. THER2.\n\nThis petition coming on for orders this day, the Court\n\n'4 made the following\u00bb\n\n\n\n\n\nORDER\n<\/pre>\n
This writ petition is \ufb01led by Taluka
\nSociety. The Vyavasaya Seva,  Niya!n’it\u00bb,p< <\/p>\n
Akkipet, Hale Hubballi,  a <\/p>\n
member of Karnataka
\nDhaxwad. The Talnlta   Bank is
\ncomplaining that elections the members of the
\nmanaging eotnntittee   – District level
\nCo-operating'  conducted for a long<\/p>\n
 'ttiatee   o\ufb01ioer has been appointed<\/p>\n
HIGH COURT OF KARNATAKA HIGI-iA_CO:UR3' OF KARNATAKA HIGH COUR? OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COURI or KAKNAIAIUI l"lIbl'1<\/p>\n
for such of events have not been<\/p>\n
pub\ufb01shed;  }ad1"m'gV"";'.st3'ator who had been appointed<\/p>\n
  the the 431 respondent has remained in<\/p>\n
   for several years to the cleteriment of<\/p>\n
V   the  petitioner bank is in a dice state of a\ufb02airs
\n' W   put in place an elected representative of the
\n of the members of the Cooperative bank to the<\/p>\n
  "management of the District Co-operative Bank.<\/p>\n
We<\/p>\n
aiuari \\..\\JI..nu ur nu-uuw-un:\\n r1:urIA\u00a3..*.\u00a7UKI Ur \u00a5\u00a3AKNA'lAKA HIGH COURT OF KARNAYAKA HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH<\/p>\n
4. Notices had been issued to the respondents, the<\/p>\n
first respondent – State of Karnataka by  the<\/p>\n
Deparment of Co-operative Soeiet;_i_es,’V_A’_:  _<\/p>\n
respondent — Registrar of  :’3:ur.._ <\/p>\n
respondent – the Administrator of 4*?
\nfunctioning eversince 10.   ‘t;’te_::i:’>*h\ufb01}:’espondent,
\nthe Returning Of\ufb01cergj-s\u00e9ho     the second
\nrespondent in terms :of~.t_.h:\u00a2,  – C dated<\/p>\n
06.12.2008,. % E:  .\n<\/p>\n
 –.   the Registrar – respondents<\/p>\n
1 8; 2 ate”   the learned Government Pleader.<\/p>\n
  counsel has \ufb01led Power for the<\/p>\n
   5\u00bb Administrator and the 4th respondent — the<\/p>\n
  Director of the Bank, and the 5%<\/p>\n
 ;- Returning O\ufb02icer is represented by Sri.Sanjay<\/p>\n
O csma.\n<\/p>\n
6. In the statement of objections filed on behalf of<\/p>\n
respondents 1 85 2, several practical dif\ufb02culties have been<\/p>\n
“‘*l\\?I’? \\avux\\-I- VI” Iv-utrur-ulrliu-I TIIIJIT uwunl VT nun
\nIVIISPIRB l’II\\.’Jl”I<\/p>\n
pleaded as excuse for not ensuring that the elections are<\/p>\n
held in time.\n<\/p>\n
7. Even in the statementil of
\nbehalf 3rd and 4th respondents
\nexplanation is not much  ‘bV1.1t”\n<\/p>\n
that steps have new    the elections
\ncan be held by providing is necessary on
\ntheir part    to conduct the<\/p>\n
elections.\n<\/p>\n
8.   on behalf of the<\/p>\n
4_..petitiodef as well  all the respondents.<\/p>\n
A-J:\n<\/p>\n
 . “er  \ufb01ie was being heard and titne had been<\/p>\n
 ‘ takenhuaby   counsel for the respondents, when<\/p>\n
i    Conrtllhad called upon the respondents to explain as to<\/p>\n
  for not holding the elections so far, as is<\/p>\n
 ire\ufb02ected in an order passed by this Court dated<\/p>\n
HKSH CCU!” DI’ IQAKNAIAER Hiurr x,-gust -ur nnmvntnru-v -ruurr \\.\\.r\\.:n| -V.- g.,……,…,.,,.,,..<\/p>\n
13.06.2008, which reads as under:-<\/p>\n
n-nun uuutu ur mmuvatnnn l”ElUl”‘iA(-.9-,J’UKF ml’ KARNATAKA HIGH COURT OF KARNATAKA FHGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA I-HGH<\/p>\n
‘List on 17.06.2008 at the
\nGovernment Pleader for respondents to   H
\nthe Court on record the actio_n…th;1t
\nhitherto by the particular }ojj’iqer.L fu.{i’.:g’   I
\nappointed as a Re1ur:fzi:_2g  to   ‘V<\/p>\n
elections.\n<\/p>\n
2. The ‘   1. to  H viewed
\nseriously by this   the duty by
\nthe  o\ufb02io\u00e9f   if no action re
\ntaken   1:  was appointed
\nasa\n<\/p>\n
10. O’ .The_ V’  as on date is that it is<\/p>\n
submitted  S or the 5th respondent – Returning<\/p>\n
 V’  _  e  of events has now been published by<\/p>\n
   and a copy of the same is produced<\/p>\n
 thee cm along with a Memo filed by the<\/p>\n
 Pleader appearing on behalf of the
\n  rxfespendents 1 & 2. It is submitted on behalf of the 5th
\n   wpeispondent that such action has been taken Within 3 days<\/p>\n
‘V of the Admi:r1isn”ator fixing the date of election to be on<\/p>\n
27.07.2008 in terms of his Resolution dated 13.06.2008.<\/p>\n
7  v -u- I\\l’l1F\\IVJ”!l’Il\\PI o\u00a2I\\Jr-1 \\.\\Ji-III! IJV !\\Hlll’I\ufb02Hl-‘\\l\\\ufb02         <\/p>\n
Copy produced as Annexure – R3 to the stateeient of<\/p>\n
objections filed on behaif of respondents 1 es  ” <\/p>\n
11. Submission is that   V o1;~.__ <\/p>\n
mandamus is now avoided asa retjuisite
\nby the respondents.    learned
\ncounsel for the 5th ‘   that
\nhaving regard to meme er bank and its
\n    Government could
\nnot pass’    under Sec.121
\nexemptirig  bank from the applicability of<\/p>\n
provisionsoi’  peculiar circumstances, the<\/p>\n
 _ admipriisiratorini  continued and the term of the
\n eadmini.st:?atorvhad been last extended on 10.06.2008 upto<\/p>\n
it  While it is true that with the publishing of the
\n‘  ealendar of events for holding elections to the managng<\/p>\n
‘4 committee of the 4*’! respondent bank, the prayer for issue<\/p>\n
of a writ of mandamus does not survive, this Court cannot<\/p>\n
&\/\/<\/p>\n
rtlurr Luum Ur KAKNAEAKA HKEHACQURY OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HiGH COURT OF KARNATAKA H16!”<\/p>\n
help noticing the inordinate delay in conducting elections to<\/p>\n
the 4th respondent District Co-operative <\/p>\n
when the erstwhile managing committee,V__ai3-.: <\/p>\n
which was managing the      <\/p>\n
superceded by the Registrar  ugtiatte
\nGovernment in terms of   ‘hes as on
\n10.12.2001. The    byviiitiie Regis\ufb01\ufb02r
\nexercising the powersyptmder  Karnataka Co-<\/p>\n
\noperative    di :'i\"'iie administrator so\nappointed    its place for a period of\n<\/pre>\n
6 mozit_i1s._ his appointment and the rule of<\/p>\n
adxnixiistrator ‘Veer;  = for a further period of six<\/p>\n
 ‘at a  such period in all cannot exceed
\n of Sec.30(1) in the case of Co-operative
\n   provides for extending such period even
\n xoonsultation with the Reserve Bank of India,<\/p>\n
V’ V’ Sec\ufb01on H’30(5) reads as undem-<\/p>\n
’30(5′): notwithstanding anything oontczined
\nin this Act, the Registrar shall, in case of Co-
\noperative Bank, if so required in writing by the<\/p>\n
.. ,,.e.,.., .,. ………..-..,… ……m Luvs! ur nnxwninnn mun noun: or-‘ KARNATAKA HIGH COURT or KARNATAKA men<\/p>\n
10<\/span><\/p>\n
Reserve Bank of menu, in public interest or for
\npreventing the qfairs of the Co-operatiggej ,,
\nbeing conducted in manner     ‘
\ninterest of the depositors J or for ‘.    V
\nproper management of the :’7’ f
\norder in writing remove the eorrimitteeof
\noperative bank and  art ‘ to
\nmanage the a\ufb01qtis of for
\nsuch period [xaocxjjag  to time, be
\nspecg\ufb01ed by the VB\u00e9;nk~.o j”ftzdia’.\n<\/p>\n
13.  V\ufb01jat’ having availed of this
\n   of elections to the 40*
\nrosponde\ufb01t  Bank has been eifectively<\/p>\n
avoided — se far’,   the statutory provisions i.e.,<\/p>\n
 the sizetutory provisions of the Act.<\/p>\n
14.  be in the gven case, there is no statutory<\/p>\n
– –. , _j’ei:o1ationz  resorting to the sub—-provisions relating to the
\n _”C.o+omretive banks and also the power of the Government<\/p>\n
VT .:’_4′:;112ci*er See.121, which reads as under\u00bb<\/p>\n
Section 121:- Power to exempt societies:
\nThe State Government may, by general or special<\/p>\n
11<\/span><\/p>\n
order published in the O_\ufb02’ie-ial Gazette, exe\ufb01rgot
\nany co-operative society or any class of.,<\/p>\n
from any of the provisions of this Ac\u20ac,:—  <\/p>\n
direct that such promsims shall apply}: 1 i  <\/p>\n
society or ciass of   4′ 1.’
\nmodi\ufb01cations as may izespecgl\ufb01ed in    <\/p>\n
15. But it camlot    aii democratic
\nset up, Institutions     managed by
\ndemocratically ‘ ‘  _  and should
\nnot be ‘ and by invoicing a Rule,<\/p>\n
though   should not be continued<\/p>\n
nu.-arr: uuunu ur nnxnlnlnnn rllb\ufb02 (…L)URl OI” KARNATAKA HIGH COUR? OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COUR1’ OF KARNATAKII l’IiGl-<\/p>\n
inde\ufb01niteiy. : 4. In   case, it appears that a<\/p>\n
combination of sevetalfactors has resulted in the current<\/p>\n
ssituatioh  petitioner to approach this Court<\/p>\n
 authorities were in dereliction of duty<\/p>\n
:   to ensure  of elections in time to elect the managing
\n‘* ‘,”3V’?m.mittee…Aof the 4th respondent bank for not discharging.
\n =\u00a3’sponsibi1ities in a proper manner and there is<\/p>\n
  of duty on their part. This Court cannot help but in<\/p>\n
 “obscuring that it looks the position is such. Not conducting<\/p>\n
rllurl LUUKI Ur KAKNAIAKA HiGH (;C3._URT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COUR? OF KARNATAKA HIGH<\/p>\n
13<\/span><\/p>\n
elections with the administrator not \ufb01xing a fjdatte for
\nconducting elections to the 4*’! respondenp  :5″
\nrespondent Returning Of\ufb01cer who had
\nin the month of February was
\ncould not publish the calexidgr of
\npublication of calendar of    terms of
\nRule 14(2) of the Ru1ess(%j.’e95o . :  e  V
\n17- %1se[eee41%ev-w%’%I;   co–operative
\nSocieuies__Vv}:\u00a7u1esV;V~:  –\n<\/p>\n
   \ufb02y appointed
\n_undef=. su.z>}ruz\u00e9{i publish a calendar of
\n~  fVof~the__Tprurpose of conduct of elections of<\/p>\n
   of the committee, at least twenty one<\/p>\n
A’  E\u00e9\ufb01ofe the date ofelectian’. ‘<\/p>\n
“i\u00a73__f~ The Joint Regstrar of Co—operative Society who<\/p>\n
   ._in<:identaI1y present before the Court today and this
\n  : _MQ\u00a7fflCeX' is the one who acts as a Registrar of Co-operatives<\/p>\n
V' Societies in the State, and who has the responsibility for<\/p>\n
conducting elections to the Co—ope-raiives Societies and Co-<\/p>\n
– \\f’V”\\ll\\l \\lI Iv-|z\\Ivr’Ill”II\\D-I rlI\\.’Il” I-\\J\\J\ufb01F LII” RHKIVHIIHRB “fl’.7!”‘        <\/p>\n
14<\/span><\/p>\n
operative Banks of the State, has stated thatthe <\/p>\n
normally appoints the Returning Of\ufb01eer <\/p>\n
of election is fixed later by the  <\/p>\n
administrator as the case may be.\n<\/p>\n
19. The present    that
\nappointing a   the date of
\nelection is really of 113.   ‘iliajlipened on earlier
\noccasions is   committee not<\/p>\n
ready __t:o_     or with a busy<\/p>\n
admir\ufb01suator like ‘lieputy Commissioner who<\/p>\n
may not \ufb01nd’ e..timeVxto’4V to this function and in the<\/p>\n
vV..absenr3ai:.:of __lilxiv11gV”tl1e..\u20ac1\u20actt\u00bbe of election, the Ietuming of\ufb01cer\n<\/p>\n
 -.  jobless. The election process already
\n c,__t delayetl’gets delayed if such practical dif\ufb01eulties<\/p>\n
it   20. As the Registrar is the Statutory O\ufb02ieer who has
\nV    overall responsibility of ensuring that the functioning of<\/p>\n
  the Co-operative Societies and Banks in the State is in<\/p>\n
ar-nun I…-uuxi ur RAKNAERKR Hl(:HA{.–..$,.)’UK’|’ OF KARNATAKA HEG}-I COURT OF KARNATAKA HIGH COURT OF KARNATAKA HJGH COURT OF KARNATAKA H16?!<\/p>\n
15<\/span><\/p>\n
order and continuing to the statutory pmvisionsghhas also<\/p>\n
the responsibility to ensure that elections <\/p>\n
promptly on time to elect the managing O <\/p>\n
Societies. Ensuring fixing of  da:teni.’oi’– <\/p>\n
promptly is a part of these,\u00bbresponsil_:iilities.
\nMerely appointing a   is not the
\nend. The Registrar  Returning
\nOfficer will be’. ab1e:..lto.:’_   Eresponsibility by
\nensuring      of elections is also
\n\ufb01xed.   is that the managng
\ncommittee  first \ufb01xes the date of<\/p>\n
election A    steps in appointing a<\/p>\n
 _g   the date of election has not been fixed,<\/p>\n
  ,  should first ensures that the managing<\/p>\n
 administrator fixes the date of election so<\/p>\n
   Retuming Oi\ufb01oer can publish the calendar of<\/p>\n
it Offeiiprents and ensure that the election process is successfully<\/p>\n
‘V”‘|5|’|H’-P”\\Fv”‘ “Iv” uuum ur nnnlvalnnn ruur! LUUIH Ur :\\AnNAu.us,n nu,’-g<\/p>\n
HIGH COURT OF KARNAIAKA Hfb\ufb02 L..u_uurI ur nmtwusmun mun Luunl ur<\/p>\n
16<\/span><\/p>\n
21. It is accordingly impressed upon the statutory<\/p>\n
authorities that it is their responsibility to ensozwe’  to<\/p>\n
fix the date of election unless, managing <\/p>\n
administrator voluntarily \ufb01xes thebddeieetjon s\ufb01hitg   1′.  <\/p>\n
as is envisaged under the Act. Atdilzddisz  <\/p>\n
further proceedings would hadiieifo bev.te.ke’I1. <\/p>\n
22. The writ  .1s-mace of with these
\nobservations  =i   = su\ufb02xorities functioning
\nunder the   etisure that elections are
\ncondueted.   eiected body is put in place at<\/p>\n
the earliest,’    of accordingly.\n<\/p>\n
Sd\/-\n<\/p>\n
Judge<\/p>\n","protected":false},"excerpt":{"rendered":"
Karnataka High Court Vyavasaya Seva Sahakar Bank … vs The State Of Karnataka on 19 June, 2008 Author: D.V.Shylendra Kumar HEGH COURT OF KARNATAKA HfGH_.’E.”OURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COURT OF KARNATAKA HIGH COURI O!’ KAKNAIAMI rllul-1 IN THE man COURT OF KARNATAKA AT BANGALORE DATED THIS THE 19′”! DAY OF 2 […]<\/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-34304","post","type-post","status-publish","format-standard","hentry","category-high-court","category-karnataka-high-court"],"yoast_head":"\nVyavasaya Seva Sahakar Bank ... vs The State Of Karnataka on 19 June, 2008 - 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-sahakar-bank-vs-the-state-of-karnataka-on-19-june-2008\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Vyavasaya Seva Sahakar Bank ... vs The State Of Karnataka on 19 June, 2008 - 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