C. NARAYANASWAMY Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THIS writ petition is by a group of 15 petitioners all claiming to be the elected directors of two co -operative societies, viz., the Karnataka State Silk Handloom Weavers Co -op. Apex Ltd., Bangalore and the Karnataka State Cotton Handloom Weavers Co -op. Apex Ltd., Bangalore. They are seriously aggrieved by an order of the Additional Registrar of Co -operative Societies dated June 29, 1992, vide annexure 'A' under which the learned Registrar who is a party respondent in this writ petition (R2) ordered the amalgamation of the two societies referred to supra who are incidentally respondents Nos. 4 and 5 herein and in their places brought out a new society called the Karnataka Co -operative Handloom Weavers Federation Ltd., Bangalore, who is the third respondent in this writ petition. Challenging the order of the second respondent, Additional Registrar as aforesaid, the erstwhile directors of the two societies, i.e., some of them have made a serious grievance of the action taken by the second respondent to wipe out from existence the two societies, i.e., the further and fifth respondents, both of whom had been created due to the initiative of a large number of members of the two societies that had been in existence probably from quite some time.

(2.) THE second respondent has since thought it fit to order a function of the two societies referred to above on the ground that the same was essential in public interest as well as in the interest of co -operative movement. The operative portion of the second respondent's order is as follows : 'Under these circumstances, I am satisfied that it is essential in public interest and in the interest of the co -operative movement to amalgamate these two Apex Weavers Co -operative Societies and to form a single Apex Society. Hence, I pass the following order. ORDER In exercise of the power vested in me under section 14A of the Karnataka Co -operative Societies Act, 1959, I, L. R. Lewis, Additional Registrar of Co -operative Societies (Industrial and Miscellaneous), Bangalore, hereby order the amalgamation of the Karnataka State Cotton Handloom Weavers Co -operative Apex Society Ltd., 'Nekar Bhavan' No. 49, Model House Street, Basavangudi, Bangalore -4 and the Karnataka State Silk Handloom Weavers Co -operative Apex Society Ltd., Sampangiramanagar, Bangalore -27 and register the new Apex Weavers Co -operative Society in the name and style 'The Karnataka Co -operative Handloom Weavers Federation Ltd.', Nekar Bhavan, No. 18, Model House Street, Basavangudi, Bangalore -4, under registration No. IND -2/52/RGN/17338/92 -93, dated June 29, 1992. The registrations of the Karnataka State Cotton Weavers Co -operative Apex Society Ltd., Bangalore and the Karnataka State Silk Weavers Apex Society Ltd., Bangalore, are hereby cancelled.'

(3.) I may also mention section 15 of the Act with particular reference to sub -clause (2) thereof which reads : '15. Cancellation of registration certificates of co -operative societies in certain cases. - . . . (2) Where two or more co -operative societies are amalgamated into a new co -operative society in accordance with the provisions of section 14 (or section 14A), the registration of each of the amalgamating societies shall stand cancelled on the registration of the new society and each such society shall be deemed to have been dissolved and shall cease to exist as a corporate body.'