BABU RAO Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) Heard. Rule issued. In this petition filed under Article 226 of the Constitution, the petitioners have applied for a writ of certiorari challenging Annex. C, the notification dated 2-2-1983 bearing No. RDC 16 COF 83 issued by the State Government (1st respondent herein) reconstituting the Board of Management of the Society -- Sri Halasiddanath Sahakarl Sakfiar Karkhana Ltd., Nipani (hereinafter referred to as the society) and for a writ of mandamus directed against the 1st respondent preventing it from interfering with the management of the society by the board of directors appointed on 26-8-1982 under Annexure B, the notification dated 26-8-1982 bearing No. RDC 95 COF 82.

(2.) The petitioners are members of the Society. The 1st petitioner was also one of the members of the Board of Directors (referred to hereinafter as the Committee) constituted under Annex. B.

(3.) The Society is registered under Karnataka Co-operative Societies Act. 1959 (the Act). It has come into being having as its object "to encourage proper development of Agricultural Industries amongst members on co-operative lines by introducing modern methods of agriculture and by promotion of principles and the methods of co-operation and joint farming methods so as to secure best advantage of modern large scale agricultural production to the owner or tenant cultivators of land". The Society proposes to establish a Sugar Factory at Nipani in Belgaum District. It has secured the licence for that purpose and civil works to establish the factory are in progress. The authorised share capital of the Society is Rs. 3 crores 50 lakhs. Out of that rupees 1 crore will have to be raised by producers (Sugarcane growers.) by selling 10,000 shares of Rs. 1,000/- each; Rs. 2 Crores will have to be contributed by the State, Government by obtaining 20,000 redeemable preferential shares of Rs. 1,000/- each; and the rest will have to be raised by non-growing members and by some financial institutions in the manner and as provided in the bye-laws of the Society.