(Prayer: This writ petition is filed under Articles 226 & 227 of the Constitution of India, praying to quash the report bearing no.drb/kalam25/cr-2/2019-20 dated 16.09.2021 passed by respondent no.2 vide annexure-p in so far finding given on issue no.1, 2nd part of direction on issue no.3, issue no.4, issue no.5, issue no.6, issue no.8, issue no.9, issue no.10, issue no.11, issue no.12, issue no.13, issue no.14, issue no.15, issue no.16, issue no.17, issue no.18, issue no.19, issue no.20, issue no.21 and consequently set aside the meeting notice bearing no.ges/ec meeting/2020-21 dated 23.10.2021 issued by respondent no.3 vide annexure-r and etc.
This writ petition is filed under Articles 226 & 227 of the Constitution of India, praying to quash the report bearing no.drb-1/kalam25/cr- 2/2019-20 dated 16.09.2021 passed by respondent no.2 vide annexure-q in so far finding given on issue no.1, 2nd part of direction on issue no.3, issue no.4, issue no.5, issue no.6, issue no.8, issue no.9, issue no.10, issue no.11, issue no.12, issue no.13, issue no.14, issue no.15, issue no.16, issue no.17, issue no.18, issue no.19, issue no.20, issue no.21 and consequently set aside the meeting notice bearing no.ues/ec meeting/2020-21 dated 23.10.2021 issued by respondent no.3 vide annexure-s and etc.
This writ petition is filed under Articles 226 & 227 of the Constitution of India, praying to direct the respondents, more particularly respondent no.4 to unblock the petitioner and allow the petitioner to operate the accounts of the educational institutions namely-1. new cambridge international public school account no.3925002100011930, 2. anupama english school account no.39250001001314163, Anupama college of education account no.3925001001313734, Anupama college of management and science account no. 3925000100008747, 5. Universal education society account no.3925002100011754, 6. Anupama pre university college account no.39250001001314897, Anupama college of pharmacy account no.39250001001314708, gayathri educational society account no.3925002100002228, 9. gayathri educational society account no.3925000100150721 (joint account with principal) 10. anupama english school (r.t.e. account) account no.3925000100139357, 11. new cambridge international publi school (r.t.e. account) account no.3925000100153357 and etc.
This writ petition is filed under Articles 226 & 227 of the Constitution of India, praying to quash the order/direction on charge no.3 and 7 in the impugned oder bearing no.drb- 1/kalam25/cr-2/2019-20 dated 16.6.2021 passed by respondent no.2 vide annexure-l and etc.
This writ petition is filed under Articles 226 & 227 of the Constitution of India, praying to quash the order on charge no.3 and 7 in the impugned order bearing no drb-/kalam25/cr- 2/2019-20 dated 16.09.2021, passed by respondent no.2, vide annexure-l and etc.)
Oral Order:
1. W.P.No.19491/2021 is filed seeking following reliefs:
"(i) Issue a writ in the nature of certiorari to quash the report bearing no. DRB-1/kalam25/CR- 2/2019-20 dated 16-9-2021 passed by the 2nd espondent vide ANNEXURE 'P' in so far finding given on Issue No. 1, 2nd part of direction on issue No. 3 Issue No. 4, Issue No. 5, Issue No. 6, Issue No. 8, Issue No, 9, Issue No. 10, Issue No. 11, Issue No. 12, Issue No. 13, Issue No. 14, Issue No. 15, Issue No. 16, Issue No. 17, Issue No. 18, Issue No. 19, Issue No. 20, Issue No. 21 AND consequently set aside the meeting notice bearing No. GES/EC meeting/2020-21 dated 23-10-202l issued by the 3rd respondent vide ANNEXURE 'R'
(i) Further direct the 3rd respondent not to proceed with holding any meeting of the Gayathri Educational Society in pursuance to the report dated 16-9-2021 issued by the 2nd respondent vide ANNEXURE ‘P'
(ii) Further direct the 2nd respondent to initiate criminal action against the 3rd respondent as the enquiry has proved that she has created bogus members and conducted an Annual General Body Meeting on the basis of bogus members and submitted a list of managing committee on the basis of bogus members.
(iii) Pass such other orders as this Hon'ble Court deems fit and proper in the facts and circumstances of the case."
2. W.P.No.19495/2021 is filed seeking following reliefs:
"(i) Issue a writ in the nature of certiorari to quash the report bearing no. DRB-1/kalam25/CR- 2/2019-20 dated 16-9-2021 passed by the 2nd respondent vide ANNEXURE 'Q' in so far finding given on Issue No. 1, 2nd part of direction on issue No. 3 Issue No. 4, Issue No. 5, Issue No. 6, Issue No. 8, Issue No, 9, Issue No. 10, Issue No. 11, Issue No. 12, Issue No. 13, Issue No. 14, Issue No. 15, Issue No. 16, Issue No. 17, Issue No. 18, Issue No. 19, Issue No, 20, Issue No 21 AND consequently set aside the meeting notice bearing No.UES/EC meeting/2020-21 dated 23-10-2021 issued by the 3rd respondent vide ANNEXURE 'S'
(ii) Further direct the 3rd respondent not to proceed with holding any meeting of the Universal Education Society in pursuance to the report dated 16-9-2021 issued by the 2nd respondent vide ANNEXURE 'Q'
(iii) Further direct the 2nd respondent to initiate criminal action against the 3rd respondent as the enquiry has proved that she has created bogus members and conducted an Annual General Body Meeting on the basis of bogus members and submitted a list of managing committee on the basis of bogus members.
(iv) Pass such other orders as this Hon'ble Court deems fit and proper in the facts and circumstances of the case."
3. W.P.No.23189/2022 is filed seeking following reliefs:
"i. Issue a writ in the nature of Certiorari to quash the order/direction on charge no.3 & 7 in the impugned order bearing no:DRB-1/KALAM25/CR- 2/2019-20, dtd:16/9/2021, passed by the respondent no.2, vide Annexure L.
ii. Pass such other orders as may be appropriate in the facts and circumstances of the case, in the ends of justice and equity."
4. W.P.No.23244/2022 is filed seeking following reliefs:
"i. Issue a writ in the nature of Certiorari to quash the order on charge no.3 & 7 in the impugned order bearing no:DRB-1/KALAM25/CR-2/2019-20, dtd:16/9/2021, passed by the respondent no.2, vide Annexure L.
ii. Pass such other orders as may be appropriate in the facts and circumstances of the case, in the ends of justice and equity."
5. Since the parties, subject matter and the issues raised are common, these petitions are taken for analogous hearing and disposal.
6. Petitioner no.1-Sri N.Yogesh and Petitioner No.2- Smt.V.C.Shweta in W.P.No.19491/2021 and W.P.No.19495/2021 are the husband and wife while respondent no.3-Smt.Krishnaveni is the mother of said N.Yogesh/Petitioner no.1. Dispute primarily appears to be personal between petitioner no.1-N.Yogesh and respondent no.3-Smt. Krishnaveni. The said Sri.N.Yogesh, claims to be the Secretary of certain Universal Education Society and Joint Secretary cum Treasurer of Gayathri Educational Society.
7. Facts narrated in these petitions stated in brief are as follows:
A Society by name Gayathri Educational Society registered under the Provisions of Karnataka Societies Registration Act, 1960 (for short 'the Act') is running several education institutions namely, (i) Anupama English School imparting education from Nursery to 10th Standard, (ii) Anupama College of Pharmacy imparting Diploma in Pharmacy and (iii) Anupama School of Nursing imparting Diploma in General Nursing courses. Said Society since inception consisted of only eight members who are also the Executive Committee Members of the said Society.
8. That the said Society and its education institutions faced certain financial crises including initiation of proceedings under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 by its banker namely, Punjab National Bank which further impacted on the performance of the said educational institutions. It is under these circumstances, it is alleged that respondent no.3- Smt.Krishnaveni, mother of petitioner no.1-N.Yogesh had requested him to take over the management of the institution which he did and revived the Society's fortune converting a loss making entity into a profit making entity.
9. It is further alleged that things stood thus, respondent no.3-Krishnaveni had on the basis of certain fabricated documents conducted Annual General Body Meeting showing 69 new members having been inducted into the Society and had also created documents expelling the petitioners from the affairs of the Society leading to acrimonious situation besides filing of cases and counter cases.
10. Ultimately an enquiry was conducted under Section 25 of the Act by the Senior Inspector of Co-operative Societies, Bengaluru Division, No.146, who submitted his report dated 08.01.2021 indicting respondent no.3 of the allegation of forging and fabricating the records. The said enquiry report is produced at Annexure-L, wherein certain recommendations were also made.
11. It is in the light of the aforesaid enquiry report and the findings given therein, the petitioner-N.Yogesh and another have filed the above writ petitions in W.P.Nos.19491/2021 and 19495/2021, whereas Gayathri Educational Institution represented by the mother-Smt.Krishnaveni as the Secretary of the said Society has filed W.P.Nos.23189/2022 and 23244/2022 seeking reliefs as noted above.
12. It also emanates from the records and the submissions made by the counsel for the parties that there are several other civil proceedings in the nature of suits as well as criminal proceedings in the nature of filing of private complaints by the parties that are pending consideration.
13. Suits in O.S.Nos.620/2018 and 621/2018 were filed by the Society against the petitioner-N.Yogesh in which apparently exparte decree was passed. Challenging the same, petitioner no.1-N.Yogesh has preferred Misc. Petition Nos.16/2019 and 17/2019 which are pending consideration. The petitioner-N.Yogesh and another have also filed suit in O.S.No.9440/2019 seeking relief of declaration and injunction to prevent the 69 members purportedly inducted subsequently from carrying on and participating in the affairs of Society. Petitioner no.1-N.Yogesh has also filed other two suits in O.S.Nos.7734/2025 and 7735/2025 seeking declaration of very inclusion of said 69 members.
14. In addition, petitioner no.1 has preferred three private complaints before the Magistrate against respondent no.3-Smt.Krishnaveni as well as his father, Sri. Nagaraj on the allegations of forging and fabricating documents and physical assault arising and pertaining to the issues relating to the aforesaid society. According to learned Counsel appearing for the Society and mother, there are about 19 proceedings pending before various Courts. Clearly parties are at acrimonious loggerhead, though unfortunate.
15. The issue which requires consideration by this Court is whether the reliefs as sought for by the parties in these petitions as noted above can be granted in the light of the provisions of the Act. It is appropriate to refer to Sections 25, 26, 27, 27A, 28 and 29 of the Act which are extracted herein for immediate perusal:
"25. Enquiry by the Registrar, etc.- (1) The Registrar may on his own motion and shall on the application of the majority of the members of the governing body or of not less than one-third of the members of the society, hold an enquiry or direct some person authorised by him by order in writing in accordance with the rules made in this behalf to hold an enquiry into the constitution, working and financial condition of a registered society.
(2) The Registrar or the person authorised by him under sub-section (1) shall have the following powers, namely,—
(a) he shall, at all reasonable times, have free access to the books, accounts, documents, securities, cash and other properties belonging to or in the custody of the society and may summon any person in possession or responsible for the custody of any such books, accounts, documents securities, cash or other properties to produce the same at any place at the headquarters of the society or any branch thereof;
(b) he may summon any person who, he has reason to believe, has knowledge of any of the affairs of the society to appear before him at any place at the headquarters of the society or any branch thereof and may examine such person on oath;
(c) (i) he may, notwithstanding anything contained in this Act or in any rule or regulation prescribing the period of notice for a general meeting of the society, require the governing body of the society to call a general meeting at such time and place at the headquarters of the society or any branch thereof and to determine such matters as may be directed by him. If the governing body of the society refuses or fails to call a meeting, he shall have power to call it himself;
(ii) any meeting called under sub-clause (i) shall have all the powers of a general meeting called under the rules or regulations of the society and its proceedings shall be regulated by such rules or regulations;
(iii) when an enquiry is made under this section, the Registrar shall communicate the result of the enquiry to the society concerned.
26. Surcharge.- (1) Where, in the course of an enquiry under section 25, it appeals that any person who had taken part in the establishment or management of the society or any past or present president, secretary, member of the governing body or officer or any member of the staff of the society has misapplied or retained or become liable or accountable for any money or property of the society, or has been guilty of misfeasance or breach of trust in relation to the society, the Registrar may, on a report received from the officer or on an application received from the governing body of the society or of his own motion, examine into the conduct of such person and after giving reasonable opportunity to the person concerned to submit his explanation, make an order requiring him to repay or restore the money or property or any part thereof, respectively with interest at such rate as the Registrar thinks just or to contribute such sum to the assets of the society by way of compensation in regard to the misapplication, retainer, misfeasance or breach of trust as the Registrar thinks just.
(2) The order of the Registrar under sub-section (1) shall be final unless it is set aside by the Karnataka Appellate Tribunal on an appeal filed before it within sixty days from the date of communication of the order. Every such appeal shall be accompanied by a fee of ten rupees.
(3) Any sum ordered under this section to be repaid to a society or recovered as a contribution to its assets may on a requisition being made in this behalf by the Registrar, be recovered by the Deputy Commissioner, in the same manner as arrears of land revenue.
(4) This section shall apply notwithstanding such person may have incurred criminal liability by his act.
27. Cancellation of registration and dissolution of certain societies.- (1) If it appears to the Registrar that any society registered or deemed to be registered under this Act, is carrying on any unlawful activity or allows unlawful activity to be carried on within any premises under the control of the society, the Registrar may hold an enquiry or authorise any officer to hold an enquiry into the activities of such society and in respect of every such enquiry, the Registrar or the authorised officer shall have the same powers as are specified in sub-section (2) of section 25. The authorised officer shall, on completion of the enquiry, submit a report to the Registrar.
(2) If on an enquiry under sub-section (1), the Registrar is satisfied that any such society has been carrying on any unlawful activity or has allowed any unlawful activity to be carried on within any premises under the control of the society, he shall, after giving reasonable notice to the society to show cause why the registration of the society should not be cancelled and the society dissolved, and after considering the representations, if any, made on behalf of the society, by order cancel the registration of the society and direct dissolution of the society; and thereupon the assets of the society shall be distributed, and the liabilities discharged, in the same manner as if the society had been dissolved under section 22.
(3) An appeal shall lie to the Karnataka Appellate Tribunal against any order passed by the Registrar under sub-section (2), within sixty days from the date of communication of the order, and the decision on such appeal shall be final.
Explanation.—For purposes of this section, an activity shall be deemed to be unlawful if such activity is an offence punishable under any provision of law for the time being in force.
27A. Appointment of Administrator.-Notwithstanding anything in this Act,—
(1)(a) where any society on account of the pendency of litigation or otherwise has not held or is unable to hold the annual general meeting; or
(b) where the term of office of the members of the governing body of a society has expired and a new governing body has not for any reason been constituted; or
(c) where on a report made by the Registrar or otherwise, on enquiry, the State Government considers it necessary in public interest so to do,-the State Government may, by order published in the official Gazette, appoint an Administrator for such society for such period, not exceeding six months, as may be specified in the order, to manage the affairs of the society:
Provided that for reasons to be recorded in writing, the State Government may, by like order, extend either prospectively or retrospectively, the said period by any further periods not exceeding six months at a time, so however subject to the provisions of clause (5), the aggregate period shall not extend beyond four years;
(2) the expenditure incurred by the State Government towards the salary and allowances of the Administrator shall be paid to the State Government from out of the funds of the society;
(3) on the appointment of the Administrator under clause (1) and during the period of such appointment the governing body of the society shall cease to exercise any powers and perform and discharge any functions or duties conferred or imposed on it by this Act, or its memorandum of association or the rules and regulations or any other law and subject to any directions which the State Government, may from time to time issue, all such functions or duties shall be performed or discharged by the Administrator;
(4) the Administrator shall, before the expiry of the period of his appointment take necessary action to convene the general body meeting of the society and hold elections for the constitution of the governing body;
(5) if the Administrator is not, for reasons beyond his control, able to convene the general body meeting or inspite of such meeting being convened, the general body fails to elect the governing body, the Administrator shall forthwith send a report to the State Government, who may pass such orders as are considered necessary, either extending the period of appointment of the Administrator for a further period or if satisfied that public interest so requires, for the dissolution of the society;
(5A) the State Government may, if it thinks fit, appoint an Advisory Council to advise and assist the administrator appointed under sub-section (1) in the exercise of the powers and performance and discharge of the duties and functions conferred or imposed on him under this Act. The members of the Advisory Council shall hold office during the pleasure of the State Government.
(6) where an order of dissolution is passed under sub-section (5) the assets of the society shall vest in and the liabilities shall devolve on the State Government.
28. Offences and penalties.- If,—
(a) the president, chairman, principal secretary or any member of the governing body or any officer of a society contravenes the provisions of sub- section (2) of section 9, or sub-section (2) of section 10, or sub-sections (1) and (2) of section 11, section 12 or section 13;
(b) the president, chairman, principal secretary or an officer or member of the governing body of society wilfully makes or furnishes a false return or makes or furnishes a return or statement which he does not believe to be true; or
(c) any person wilfully or without any reasonable excuse disobeys any summons, requisition or lawfully written order issued under the provisions of this Act or does not furnish any information lawfully required from him by a person authorised in this behalf under the provisions of this Act,
-such president, chairman, principal secretary, member or person shall, on conviction, be punishable with fine which may extend to one thousand rupees.
29. Cognizance of offences.- No court inferior to that of a Magistrate of the First Class shall try an offence under this Act."
16. From a bare perusal of the aforesaid provisions more particularly Section 25 of the Act and in the light of settled position of law, report if any submitted by the Registrar or his designate under Section 25 of the Act is only a fact finding report. Consequent actions thereupon are restricted to one contemplated under Sections 26, 27 and 27A of the Act to be taken by the Registrar or the State Government as the case may be. Any criminal action required to be initiated based on the report has to be in terms of Sections 28 and 29 of the Act and nothing beyond.
17. The suits and the private complaints referred to above have been filed/initiated admittedly in furtherance and with reference to the finding and conclusion arrived at aforesaid enquiry report dated 08.01.2021.
18. As regard relief seeking direction to the bank to operate the account in W.P.No.14618/2022, the same is based on the Resolution dated 03.04.2010 which is subject matter of the suit in O.S.No.9440/2019.
19. In the circumstances, the writ petitions as filed cannot be entertained seeking parallel reliefs.
20. Learned counsel for the parties at this juncture in unison submit that liberty be reserved for them to urge such contentions/grounds and seek such remedy as may be permissible under law. Submission taken on record.
The petitions are disposed of reserving liberty to the parties who have already before the competent Civil Court and Criminal Courts to urge such grounds and seek such remedy as may be available under law.
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