P C KHANAPURI Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) The petitioners in these two Writ Petitions have questioned the legality of the direction issued by the Registrar of the Co-operative Society under Sub-section 5 of Section 12 of the Karnataka Co-operative Societies Act, 1959 (the Act for short), directing the District Central Co-operative Banks specified in the direction, to introduce a bye-law to the effect that the Managing Director of each of the Banks shall be appointed by the Government.

(2.) The petition is in the orders list. By consent of both the Counsel it is taken up for final hearing.

(3.) The facts of the case in brief are as follows : The petitioner in W.P. 9153/1985 is a General Manager of the Belgaum District Central Co-operative Bank Limited (the bank for short). The Bank is a Co-operative institution registered under the provisions of the Act. The petitioner in W.P. 9154/1985 is the Co-operative Banks' Employees Cooperative Credit Society which is a member of the Belgaum District Central Co-operative Bank. The Registrar in exercise of his power under Sub-section (5) of Section 12 has called upon the District Central Co-operative Banks of Belgaum, Bijapur, Dharwad and North Canara, to effect suitable amendment to the bye-laws of each of the banks in the matter of appointment of Managing Director, to the effect that there shall be a Managing Director for each of the Banks who shall be appointed by the State Government who shall be the Chief Executive and incharge of overall management of the bank concerned. The petitioners have presented this petition questioning the authority of the Registrar to issue such a direction.