Ballekere Milk Producers Co-Operative Society Ltd. vs State Of Karnataka Department Of Co-Operative & Ors.

R. Nataraj, J

The petitioner has sought for a writ in the nature of mandamus to direct the respondent No.6 to consider its representation to become a shareholder of the respondent No.6 and to approve its membership.

It appears that the petitioner is a Milk Producers Co-operative Society, which purportedly was extending loan to its members by utilizing the assistance provided by respondent No.6. The petitioner proposed to become a member of the respondent No.6. Therefore, it subscribed to the share of the respondent No.6 and a share certificate for a sum of Rs.1,000/-was issued on 31.10.1998. The petitioner however was not admitted as a member as it did not comply the other formalities. Later the respondent No.6 increased the share amount to a sum of Rs.5,000/-. Therefore, the petitioner after a resolution at 20.03.2024 approached the respondent No.6 on 20.06.2024 to become a member by subscribing the enhanced share value. In that regard, the respondent No.6 addressed a letter dated 24.07.2024 to the petitioner to furnish necessary documents. The petitioner furnished the documents to respondent No.6 on 21.11.2024. The petitioner contends that the respondent No.6 instead of considering the representation and allowing the petitioner to become a member, addressed a letter dated 17.01.2025 calling upon the petitioner to furnish audit report and bye-laws of the society and hence returned the proposal. The petitioner is therefore before this Court, seeking for a direction to the respondent No.6 to issue the share certificate and admit it as a member. The petitioner contends that an election notification is issued proposing to hold the election on 13.09.2025.

Learned counsel for the petitioner reiterated the above contentions and prayed that a direction be issued to the respondent No.6 to consider their prayer.

Per contra, the learned Additional Government Advocate submits that the petitioner was called upon by the respondent No.6 to furnish additional documents and that the petitioner has not furnished the same. He further submits that the election notification proposing to hold elections on 13.09.2025 is withdrawn and therefore, the petitioner may be directed to furnish the documents as per the letter of respondent No.6 dated 24.07.2024. He submits that if the petitioner furnishes the same, the respondent No.6 may be directed to consider the request of the petitioner.

I have considered the submissions of the learned counsel for the petitioner and the learned Additional Government Advocate for the respondent No.6.

The petitioner being a Secondary Co-operative Society, is entitled to become a member of the respondent No.6 by subscribing to the share capital of the respondent No.6. If the petitioner is an existing society and if its bye laws allow the petitioner to subscribe to the share capital of the respondent No.6, it is entitled to become a member of respondent No.6. However, it is for the petitioner to produce all necessary documents to establish that it is entitled to become a shareholder as well as a member of the respondent No.6.

In that view of the matter, this writ petition is disposed off directing the petitioner to furnish the documents as sought for by the respondent No.6 in terms of its letter dated 24.07.2024. If the petitioner furnishes the documents as per the letter dated 24.07.2024 within a period of one week from today, the respondent No.6 shall consider the same in accordance with law within a period of two weeks thereafter.

Learned Additional Government Advocate as well as the learned counsel for the respondent No.3 are permitted to file a memo appearance within a period of ten days