Case Note & Summary
The petitioners, Smt. Kamalamma and Smt. Jayasheelamma, were elected directors of the Ballekere Mahila Milk Producers Co-operative Society Ltd. (respondent No. 3). A complaint was filed against them on 28.10.2024, based on which the Assistant Registrar of Co-operative Societies (respondent No. 2) issued a show cause notice on 11.11.2024 under Section 29C of the Karnataka Co-operative Societies Act, 1959, read with Byelaw 38(8). The notice required the petitioners to show cause why they should not be suspended. However, without waiting for their response or granting them a hearing, respondent No. 2 passed an order on 21.11.2024 suspending the petitioners. The petitioners challenged this order by filing a writ petition under Articles 226 and 227 of the Constitution of India, seeking a writ of certiorari to quash the suspension order. The court observed that the procedure adopted by respondent No. 2 was in gross violation of principles of natural justice, as the petitioners were not given an opportunity to be heard before the adverse order was passed. The court noted that the show cause notice and the impugned order were issued within a short span, effectively denying the petitioners any meaningful chance to respond. Consequently, the court allowed the writ petition, set aside the impugned order dated 21.11.2024, and directed respondent No. 2 to provide a hearing to the petitioners before passing any fresh order under Section 29C of the Act.
Headnote
A) Cooperative Law - Suspension of Directors - Section 29C of Karnataka Co-operative Societies Act, 1959 - Natural Justice - The petitioners, elected directors of a cooperative society, were suspended by the Assistant Registrar based on a complaint and show cause notice issued on the same day as the impugned order, without granting them an opportunity of hearing. The court held that the procedure adopted violated principles of natural justice and set aside the suspension order, directing the respondents to provide a hearing before passing any fresh order. (Paras 1-5) B) Cooperative Law - Show Cause Notice - Section 29C of Karnataka Co-operative Societies Act, 1959 - The show cause notice dated 11.11.2024 and the impugned order dated 21.11.2024 were passed without giving the petitioners a chance to respond. The court found that the notice and order were issued in quick succession, effectively denying the petitioners their right to be heard. The court quashed the order and remitted the matter for fresh consideration after hearing the petitioners. (Paras 2-5)
Issue of Consideration
Whether the order of suspension passed under Section 29C of the Karnataka Co-operative Societies Act, 1959, without affording an opportunity of hearing to the petitioners, is sustainable in law.
Final Decision
The writ petition is allowed. The impugned order dated 21.11.2024 passed by respondent No. 2 in case No. SaNe40/Dispute/29C/18/2024-25 is set aside. Respondent No. 2 is directed to provide an opportunity of hearing to the petitioners before passing any fresh order under Section 29C of the Karnataka Co-operative Societies Act, 1959.
Law Points
- Natural justice
- right of hearing
- Section 29C Karnataka Co-operative Societies Act
- 1959
- Byelaw 38(8)
- suspension of directors
- show cause notice
- writ of certiorari
