Hanumanthappa vs Assistant Registrar of Co-operative Societies, Secretary and The State of Karnataka

A.N. Venugopala Gowda, J.—In Surcharge Case No. 3/2011-2012 filed by the 2nd respondent against the petitioner, an order dated 31.08.2012 as at Annexure-A having been passed by the 1st respondent and the petitioner having been directed to pay Rs. 3,39,198/- with interest at 12% p.a., the petitioner has filed Appeal No. 658/2012 before the Karnataka Appellate Tribunal at Bangalore. Appellant-petitioner having been directed to comply with the requirement of S. 105(2) of Karnataka Co-operative Societies Act, 1959 (for short, the Act), these writ petitions have been filed to: (a) strike down S. 105(2) of the Act inserted by Karnataka Co-operative Societies (Amendment) Act, 2010, in so far as directing deposit of money in cases of order for recovery of money under S. 69 of the Act; (b) quash the proceedings in Surcharge Case No. 3/2011-2012 on the file of the Asst. Registrar of Co-operative Societies, Koppal and (c) quash the order dated 31.08.2011 passed in Surcharge Case No. 3/2011-201 2 on the file of Asst. Registrar of Co-operative Societies, Koppal. Heard Sri. G. Balakrishna Shastry, learned advocate for the petitioner and Sri. K.A. Ariga, learned Addl. Government Advocate for respondents 1 & 3.

In W.P. No. 32097/2010 filed by Badami Sugars Limited, it was contended that S. 105(2) of the Act, insisting deposit of 25% of the Award amount at the time of filing the appeal is unconstitutional. By an order dated 15.09.2011, it was held that insisting deposit of 25% of the Award amount vide S. 105 of the Act is not violative of the Constitution.

In W.P. No. 25784/2010, filed by Smt. Nirmala P. Kini, questioning the constitutional validity of S. 105(2) of the Act on the ground that it is violative of Article 14 of the Constitution of India and that it is also arbitrary and unreasonable, it was held that the provision cannot be termed as onerous and the contention that the provision is unconstitutional was rejected by an order dated 28.02.2012.

The impugned provision has thus been upheld. Following the said orders, it has to be held that the first prayer in these writ petitions, noticed supra, is devoid of merit. Seeking setting aside of the Order dated 31.08.2012 passed in Surcharge Case No. 3/2011-2012, by the Assistant Registrar of Co-operative Societies, Koppal, the petitioner has filed Appeal No. 658/2012 before the Karnataka Appellate Tribunal. It is for the Tribunal to decide the legality or otherwise of the Order put in challenge in the said appeal. Hence, the petitioner is not entitled to any of the reliefs prayed in the writ petitions.

In the result, writ petitions being devoid of merit, are rejected. However, the petitioner is granted six weeks'' time to deposit 25% of the amount as ordered by the Assistant Registrar of Co-operative Societies, Koppal, in Surcharge Case No. 3/2011-2012, with the Kamataka State Government Employees House Building Co-operative Societies Ltd., Yellaburga.

The said Society shall immediately invest the deposited sum in Fixed Deposit in any nationalized Bank for a period of one year and renew the deposit till the Appeal No. 658/2012 is decided by the Karnataka Appellate Tribunal. The deposit shall be subject to the final outcome in Appeal No. 658/2012 on the file of the Karnataka Appellate Tribunal.

No costs.