High Court of Karnataka Quashes Suspension Order of Cooperative Society Director for Violation of Natural Justice. Deputy Registrar's Order under Section 29A of Karnataka Cooperative Societies Act, 1959 set aside as no show-cause notice or hearing was given before suspension.

High Court: Karnataka High Court Bench: DHARWAD In Favour of Accused
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Case Note & Summary

The petitioner, Prakash Ramachandra Hegde, was a director of Dodmane Group Village Seva Cooperative Society. The Deputy Registrar of Cooperative Societies, Karwar, passed an order dated 27.11.2024 suspending the petitioner as director under Section 29A of the Karnataka Cooperative Societies Act, 1959. The petitioner challenged this order by filing a writ petition under Article 226 of the Constitution of India, seeking a writ of certiorari to quash the suspension order. The main ground of challenge was that the order was passed without issuing any show-cause notice and without affording an opportunity of hearing, thereby violating the principles of natural justice. The respondents, including the Registrar and Deputy Registrar, were represented by the Additional Advocate General. The court examined the impugned order and noted that it did not indicate any notice or hearing having been given to the petitioner. The court held that even though Section 29A confers summary powers on the Registrar to suspend a director, such power must be exercised in accordance with the principles of natural justice. Since no show-cause notice was issued and no hearing was afforded, the order was unsustainable. The court allowed the writ petition, quashed the impugned order, and directed that the petitioner be reinstated as director. The court also clarified that the respondents were at liberty to proceed afresh in accordance with law after complying with natural justice.

Headnote

A) Cooperative Law - Suspension of Director - Natural Justice - Section 29A of the Karnataka Cooperative Societies Act, 1959 - The Deputy Registrar suspended the petitioner as director of a cooperative society without issuing any show-cause notice or affording an opportunity of hearing. The court held that the power under Section 29A, though summary in nature, must be exercised in conformity with principles of natural justice. The order was quashed as it was passed in violation of natural justice. (Paras 1-10)

B) Constitutional Law - Writ of Certiorari - Violation of Natural Justice - Article 226 of the Constitution of India - The court allowed the writ petition and quashed the impugned order dated 27.11.2024 passed by the Deputy Registrar, as the order was passed without any notice or hearing, thereby violating the principles of natural justice. (Paras 1-10)

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Issue of Consideration

Whether the order of suspension of the petitioner as director of a cooperative society passed by the Deputy Registrar without issuing a show-cause notice and without affording an opportunity of hearing is sustainable in law.

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Final Decision

The court allowed the writ petitions, quashed the impugned order dated 27.11.2024 passed by the Deputy Registrar of Cooperative Societies, Karwar, and directed that the petitioner be reinstated as director. The respondents were at liberty to proceed afresh in accordance with law after complying with principles of natural justice.

Law Points

  • Natural justice
  • Show-cause notice
  • Hearing
  • Suspension of director
  • Cooperative societies
  • Section 29A Karnataka Cooperative Societies Act
  • 1959
  • Writ of certiorari
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Case Details

2024 LawText (KAR) (12) 48

WP No. 107291 of 2024 (CS-RES) C/W WP No. 107287 of 2024

2024-12-06

C.M. Poonacha

Sri Jayakumar S. Patil, Senior Advocate for Sri Mallikarjunswamy B. Hiremath and Smt. Kaveri Hiremath (for petitioner); Sri Gangadhar J.M., Additional Advocate General for Smt. Mala D. Bhute, AGA for R1 to R3; Sri A.P. Hegde, Advocate for R5

Prakash Ramachandra Hegde

The Registrar of Co-operative Societies, Bengaluru; Deputy Registrar of Co-operative Societies, Karwar; Assistant Registrar of Co-operative Societies, Sirsi; Chief Executive Dodmane Group Village Seva Co-operative Society; Vivek Subraya Bhat (in WP 107291/2024) and Subraya S/o Narayan Bhat (in WP 107287/2024)

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Nature of Litigation

Writ petition under Article 226 of Constitution of India challenging suspension order passed by Deputy Registrar of Cooperative Societies.

Remedy Sought

Petitioner sought issuance of writ of certiorari to quash the order dated 27.11.2024 passed by the Deputy Registrar suspending him as director of the cooperative society.

Filing Reason

The suspension order was passed without issuing any show-cause notice and without affording an opportunity of hearing, violating principles of natural justice.

Issues

Whether the order of suspension passed under Section 29A of the Karnataka Cooperative Societies Act, 1959 without issuing show-cause notice and without hearing is valid.

Submissions/Arguments

Petitioner argued that the impugned order was passed in gross violation of principles of natural justice as no show-cause notice was issued and no opportunity of hearing was given. Respondents did not contest the violation of natural justice; the court noted that the order itself did not indicate any notice or hearing.

Ratio Decidendi

The power under Section 29A of the Karnataka Cooperative Societies Act, 1959, though summary in nature, must be exercised in conformity with the principles of natural justice. An order of suspension passed without issuing a show-cause notice and without affording an opportunity of hearing is unsustainable and liable to be quashed.

Judgment Excerpts

The impugned order does not indicate that any notice was issued to the petitioner nor does it indicate that any opportunity of hearing was afforded to the petitioner before passing the order of suspension. Even though the power under Section 29A of the Act is summary in nature, the same has to be exercised in conformity with the principles of natural justice. Hence, the impugned order is unsustainable and is liable to be quashed.

Procedural History

The Deputy Registrar of Cooperative Societies, Karwar, passed an order dated 27.11.2024 suspending the petitioner as director of Dodmane Group Village Seva Cooperative Society. The petitioner filed two writ petitions (WP 107291/2024 and WP 107287/2024) under Article 226 of the Constitution of India challenging the order. The High Court heard the matter and delivered judgment on 06.12.2024.

Acts & Sections

  • Karnataka Cooperative Societies Act, 1959: 29A
  • Constitution of India: 226
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