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Judgment
One of the members of 13th respondent Society,
namely, Kyatumkere Milk Producers Women''s Co-
ooperative Society Ltd. (hereinafter referred to as
''Society'' for the sake of brevity), has come up in this
writ petition impugning the order of second respondent
dated 06.05.2017 in permitting the 13th respondent
Society for conducting its Annual General Meeting
(A.G.M.) within 30 days therefrom for the year 2014-15.
Admittedly, the directors of the said Society are
respondent Nos. 3 to 12. The records would disclose
that 13th respondent Society was required to conduct its
A.G.M. on or before 25.09.2015 as prescribed under
law.
The learned Additional Government Advocate
would bring to the notice of this Court that earlier there
was scope for the Societies to seek extension of time for
conducting A.G.M. by seeking permission from the
competent authority and on such application the Society
would be normally sanctioned upto 6 months'' time for
conducting its A.G.M. It is stated that the said
procedure/practice is given up by virtue of amendment
to Section 27 of the Karnataka Co-operative Societies
Act, 1959.
Admittedly, the Directors of the 13th respondent
Society, namely, respondent Nos. 3 to 12 were required
to conduct A.G.M. for the said Society on or before
25.09.2015. The records would indicate that the same
is not conducted. It is seen that there is a letter sent to
the Registrar of Co-operative Societies by the Secretary
of 13th respondent Society on 26.09.2015 informing that
inspite of intimation being given to the Directors of 13th
respondent Society no steps are taken for conducting of
A.G.M. on or before 25.09.2015.
It is in that background, an order dated
07.01.2016 was passed by the second respondent
based on a representation of respondent Nos. 3 to 12,
granting permission to them to conduct A.G.M. of 13th
respondent Society, within 30 days from 07.01.2016.
While grating such permission, has imposed a fine of
Rs.500/- to each of them for not conducting the A.G.M.
within the prescribed time.
The said order, which is at Annexure C dated
07.01.2016, was the subject matter of appeal before
the first respondent herein by the petitioner in
DRY/DAP-10/2015-16 wherein respondent Nos. 2 to 11
were the Directors of 13th respondent Society and 12th
respondent was the Secretary of the said Society. The
first respondent, after hearing the petitioner and
another person as appellants and respondent Nos. 3 to
12 herein as respondent Nos. 2 to 11 in the said
proceedings, set aside the order dated 07.01.2016 of
the Assistant Registrar of Co-operative Societies and
directed him to initiate proceedings against the
Directors under Section 27 of the Co-operative Societies
Act, 1959, by his order dated 31.03.2017. It is clearly
indicated therein that the order dated 07.02.2016 which
was passed permitting respondent Nos. 3 to 12 herein
to conduct A.G.M. for 13th respondent Society within 30
days is set aside and order imposing fine for giving such
permission is also set aside.
It is seen that the second respondent has
passed further order on 06.05.2017 under Section 27(3)
of the Co-operative Societies Act, 1959 permitting
respondent Nos. 3 to 12 herein to conduct A.G.M. of
13th respondent Society for the year 2014-15, within 30
days from the said date on the premise that pursuant to
order dated 07.01.2016 of the very same officer
respondent Nos. 3 to 12 herein have already deposited
the fine amount. Therefore, they are permitted to
conduct the A.G.M. within 30 days from the said date.
It is this order of second respondent dated 06.05.2017,
which is challenged in this writ petition.
In these proceedings, after service of notice,
respondent Nos. 3 to 12 and 13 have entered
appearance through learned counsel Sri Krishnappa,
who has filed statement of objections stating that there
was in fact an attempt on the part of respondent Nos. 3
to 12 to conduct the A.G.M. of 13th respondent Society
prior to 25.09.2015. However, they could not do it for
non-cooperation of the then Secretary, against whom
they have issued suspension order dated 13.12.2015.
Stating that as an excuse, respondents are trying to
substantiate the order of first respondent dated
07.01.2016 in permitting them to conduct the A.G.M.
belatedly on payment of cost of Rs.500/-.
After hearing learned counsel for the petitioner,
learned Government Advocate appearing for respondent
Nos. 1 and 2 and Sri Krishnappa for respondent Nos. 3
to 13, this Court would observe that there is no such
provision under the Co-operative Societies Act, 1959
for extension of time to conduct the A.G.M. either by
colleting fine or in any other manner. The rule is very
clear that the A.G.M. of every co-operative society will
have to be completed on or before 25th September of
that year.
In the instant case, the A.G.M. of 13th
respondent Society is pertaining to the year 2014-15,
which was required to be completed on or before
25.09.2015, which has not been done and the same is
confirmed by the letter, dated 26.09.2015 sent by the
Secretary of the 13th respondent Society to the
Registrar of Co-operative Societies, wherein it is clearly
stated by her that despite intimation to the Directors
and President of 13th respondent Society, steps are not
taken for conducting the A.G.M. for the year 2014-15.
In this background, the order dated
07.01.2016 passed by the second respondent and
modified order of the same respondent dated
06.05.2017 requires to be set aside as inspite of an
order being passed by the 1st respondent setting aside
the order of second respondent dated 07.01.2016, he
passed order dated 06.05.2017 which clearly indicates
that there is total violation of the provision of law by
second respondent Assistant Registrar of Co-operative
Societies and also respondent Nos. 3 to 12, who are the
Directors of 13th respondent Society in conducting
A.G.M. of the Society for the year 2014-15.
Even for one more reason also these orders
requires to be set aside. The second respondent being
dishonest in passing orders impugned on one hand by
order dated 26.07.2016 in AR39/MHA/PR-11/2016-17
he supersede several societies for very same default in
respect of various Societies of Mandya District as could
be seen in the list which is produced at Annexure-M.
When it comes to the 13th respondent Society he would
pass altogether different orders, which is nothing but
dishonest act on his part which clearly shows that he is
not only irresponsible but also dishonest to his office in
passing different orders to different Societies for
extraneous considerations.
In that view of the matter, while setting aside
the order dated 07.01.2016 vide Annexure C and also
the order dated 06.05.2017 vide Annexure-L, this Court
would direct the second respondent herein to issue an
order disqualifying the said Society under Section
27(2)(a) of the Co-operative Societies Act, 1959 and to
appoint an administrator to 13th respondent Society
within 10 days form the date of receipt of the copy of
this order.
Accordingly, this petition is disposed of.
While disposing of this petition, the Registrar
of Co-operative Societies is directed to hold an enquiry
against the officer who has passed the order under
Annexure-C and also of Annexure-M in disqualifying the
directorship of 10 Societies as seen in Annexure-M and
who has taken a contrary view in so far as the 13th
respondent Society is concerned to favour respondent
Nos. 3 to 12 in these proceedings.