Bhavani and Others vs Deputy Registrar of Co-Operative Societies, Mangalore and Others

B.S. Patil, J.—Learned Counsel for the applicant who has filed I.A. No. 1 of 2014 seeking to implead, submits that I.A. No. 1 of 2014 is not pressed.

Hence application is dismissed as not pressed.

Petitioners are the Elected Directors of 3rd respondent-Co-operative Society. They have been disqualified from continuing as Directors of the 3rd respondent-Co-operative Society by exercising the power under Section 29-C of Karnataka Co-operative Societies Act, 1959 (''Act'' for short) by the Assistant Registrar of Co-operative Societies, Puttur Sub-Division, Puttur.

Aggrieved by the same, petitioners preferred statutory appeal before the Deputy Registrar of Co-operative Societies, Dakshina Kannada District, Mangalore. Petitioners along with the appeal memo, filed applications for interim order of stay of the order passed by the Assistant Registrar Co-operative Societies. The Deputy Registrar has rejected the applications of the petitioners on the ground that grant of interim order would amount to granting the main relief and therefore no stay as prayed for could be granted. Aggrieved by the same, present writ petitions are filed.

I have heard the learned Senior Counsel appearing for the petitioners, Sri K.M. Nataraj, Senior Counsel and Sri N.K. Harish, learned Counsel appearing for the respondent 3-Co-operative Societies.

The Deputy Registrar has proceeded wrongly holding that grant of interim order would amount to granting the main relief. The Deputy Registrar of Co-operative Societies has not appreciated the prima facie case made out by the petitioners. Indeed it is contented by the learned Senior Counsel that if a case is made out showing any error or illegality in the order passed by an original Authority, the Appellate Authority while admitting the matter for consideration has to grant an order of stay as otherwise the disqualification order would come into effect and the petitioners would be deprived from exercising their duties and functions as Directors. In such circumstances, appropriate orders to be passed in the instant case is to set aside the orders passed by the Deputy Registrar Co-operative Societies and remit the matter for fresh consideration. Until fresh order is passed there shall be an interim order of stay of the operation of the orders passed by the Assistant Registrar of Co-operative Societies. The Deputy Registrar Co-operative Societies is directed to consider the applications filed by the petitioners and to pass appropriate orders on the applications filed by the petitioners as expeditiously as possible or on the main matter itself depending on expediency and convenience.

Ordered accordingly.