K. Gopal Krishna Bhat and Others vs The Joint Registrar of Co-operative Societies and Others

H.G. Ramesh, J.

By the impugned endorsement at Annexure-A, the Joint Registrar has declined to entertain the dispute raised by the petitioners under Section 70 of the Karnataka Co-operative Societies Act, 1959 (''the Act'' for short) on the ground that a statutory inspection of the books of the society had been ordered under Section 65 of the Act and the said inspection relates to the questions raised for determination in the dispute. I have heard learned Counsel appearing for the parties. Learned Additional Government Advocate rightly submitted that the impugned endorsement dated 21/22-2-2014 at Annexure-A is unsustainable in law.

In my opinion, the reason given for not entertaining the dispute, namely, that a statutory inspection as per Section 65 of the Act is ordered and it relates to the questions raised in the dispute, is unsustainable in law. The consequences of adjudicating a dispute under Section 70 of the Act and the consequences of a statutory inspection of the books of a society under Section 65 of the Act are different. Adjudication of a dispute raised under Section 70 of the Act results in determination of the rights and liabilities of the parties to the dispute. That is not the consequence of inspection of the books of a society under Section 65 of the Act. No dispute raised under Section 70 of the Act can be rejected on the ground that a statutory inspection of the books of the society under Section 65 of the Act is ordered and it relates to the questions raised in the dispute. Proceeding under Section 65 of the Act has no bearing on the maintainability of a dispute under Section 70 of the Act. Therefore, respondent 1 has erroneously failed to exercise jurisdiction under Sections 70 and 71 of the Act in declining to entertain the dispute filed by the petitioners.

It is also relevant to state that, inspection of the books of the society in this case cannot result in adjudication of the dispute raised by the petitioners or determination of rights and liabilities of the parties. In view of the above, I make the following order:

The impugned endorsement dated 21/22-2-2014 at Annexure-A issued by respondent 1 is set aside. The matter is remitted to respondent 1 for adjudication of the dispute in accordance with law. Having regard to the facts of the case and the urgency pleaded by the learned Counsel for the petitioners, respondent 1 is directed to dispose of the dispute filed by the petitioners expeditiously and in any event within six months from the date of receipt of a copy of this order. The writ petitions are disposed of in the above terms. In view of disposal of the writ petitions, IA No. 2 of 2015 filed for vacating of the interim order does not survive for consideration; it stands disposed of accordingly.

Petitions disposed of.