K N REVANASIDBIAH Vs. BANDIHAL BASAVANA GOWDA

JUDGEMENT

(1.) This writ petition is filed under Art.226 of the Constitution of India. Having regard to the nature of the case, it is treated as a petition under Article 227 also.

(2.) The petitioners are constituents of a Co-operative Bank called 'the Devanagere Urban Co-operative Bank Ltd'. They have challenged in this case an interim order passed on 29-12-1973 by the Hon. Arbitrator of Co-operative Societies, who has been impleaded as the Ist Respt. in this petition, in Case Mis.3/73-74 prohibiting the holding of the meeting of the Board of Directors until further orders. Under the Bye-laws of Co-operative Bank a Committee consisting of 15 members elected by the general body is entrusted with the power to manage the affairs of the Co-operative Bank. Under Bye-law 34 it is provided that one-third of the members of the Committee should retire every year and that their successors should be elected at the annual general body meeeting held at the end of that year.

(3.) The term of five members of the Committee expired on 23-9-1973 an which date the general body meeting was held to transact the severals items of business including the election of five members in the place of five retiring members On account of the rejection of the nomination paper of one of the candidates, disputes arose regarding the holding of the election. The order of rejection of nomination paper was challenged before this Court in WP.2746 of 1973. In that case a stay order was issued prohibiting the holding of election. It is not disputed that the general body has not elected five members to succeed the five retiring members till today. When the meeting of the Board of Directors was called to transact the business of the Co-operative Bank on 26-10-1973, notices were mot sent to the five persons whose term expired on 23-9-1973. Aggrieved by the action of the Bank in not sending them the notices, of the meeting, a dispute was raised by one of them by name Dodda Rudrappa under S.70 of the Karnataka Co-operative Societies Act, 1959 before the Asst. Registrar of Co-operative Societies. His case before the Asst, Registrar of Co-operative Societies was that until his successor was elected, he was entitled to function as a member of the Committee by virtue of the proviso to sub-rule(3) of R.13 of the Karnataka Co-operative Soctieties Rules, 1960, hereinafter referred to as the Rules. The said dispute was referred to the 1st Respt. for adjudication During the pendncy of the said dispute, the 1st Respt. passed an interim order on 28-12-1973 directing that further meetings of the Board Of Directors should not be held without sending notices of meeting to the petitioner before him and to four other Directors who had also retired along with him. Although the interim order issued by the Arbitrator is is not quite happily worded, what he intended by that order was that whenever any Board meeting was held during the pendency of the said dispute before him. all the retiring members should be called to attend the said meeting. But on the next date, that is on 29-12-1973, he passed another ordpr directing that the Bank should not conduct the meetings of the Board of Directors until further orders. In view of the said interim order dt.29-12-1973, the Board of Directors could not meet and dispose of the business of the Bank which it alone could deal with It would appear that the petitioners had made applications to the Bank to, grant them loans. Those applications could not be disposed of because the Board of Directors could not meet and 'dispose, of those applications. Hence the petitioners have approached this Court by this writ petition requesting the Court to set aside the order passed on 29-12-1973 and to direct the Bank to transact its business in accordance with law.