Case Note & Summary
The petitioners, three milk producers' cooperative societies, filed a writ petition under Articles 226 and 227 of the Constitution of India before the High Court of Karnataka at Bengaluru. They sought to quash an order dated 29.11.2024 passed by the Joint Registrar of Cooperative Societies, Bangalore Division (respondent no.2), appointing an Administrator for the Kolar District Cooperative Milk Producers Union (respondent no.3) under Section 12(6) of the Karnataka Cooperative Societies Act, 1959. The petitioners contended that the impugned order was passed without affording them any opportunity of hearing, thereby violating principles of natural justice. The respondents, including the State of Karnataka and the Joint Registrar, were represented by government advocates and senior counsel. The court, after hearing the parties, observed that the order was indeed passed without any notice or hearing to the petitioners. The court noted that the power under Section 12(6) to appoint an Administrator is a drastic measure that affects the rights of member societies, and thus, principles of natural justice require that affected parties be heard before such an order is passed. Consequently, the court quashed the impugned order and remitted the matter back to the Joint Registrar for fresh consideration, directing that the petitioners and other affected parties be given an opportunity of hearing before any decision is taken. The court also directed that the Administrator appointed shall continue to manage the affairs of the union until a fresh order is passed, but the petitioners' rights would be protected by the hearing requirement.
Headnote
A) Cooperative Law - Appointment of Administrator - Section 12(6) Karnataka Cooperative Societies Act, 1959 - Natural Justice - Petitioners, three milk producers' cooperative societies, challenged the order of the Joint Registrar appointing an Administrator for the Kolar District Cooperative Milk Producers Union without hearing them - Court held that the order was passed in violation of principles of natural justice as no notice or opportunity was given to the petitioners before removal of the elected board - Order quashed and matter remitted for fresh consideration after hearing all parties (Paras 1-5).
Issue of Consideration
Whether the order passed by the Joint Registrar of Cooperative Societies appointing an Administrator under Section 12(6) of the Karnataka Cooperative Societies Act, 1959, without affording an opportunity of hearing to the petitioners, is sustainable in law.
Final Decision
The High Court allowed the writ petition, quashed the order dated 29.11.2024 passed by the Joint Registrar of Cooperative Societies, Bangalore Division, and remitted the matter back to the Joint Registrar for fresh consideration after affording an opportunity of hearing to the petitioners and other affected parties. The Administrator appointed shall continue to manage the affairs until a fresh order is passed.
Law Points
- Natural justice
- Right to be heard
- Section 12(6) Karnataka Cooperative Societies Act
- 1959
- Writ of certiorari
- Quashing of administrative order
