KUMARASWAMY Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) Whether the State Government has the power to nominate its representatives to serve as members of the committee of a co-operative society both under Secs.29 and 53A of the Karnataka Co-operative Societies Act, 1959 (hereinafter referred to as 'the Act') is the precise question that ariseg for consideration in this writ petition.

(2.) The undisputed facts of this case are as follows: The Pandavapura Sahakare Sakkare Karkhane Ltd, Pandavapura (hereinafter referred to as 'the Society') is a Society registered and functioning under the provisions of the Act. According to the bye-laws of the Society, the total number of members of the committee of management of the Society is fifteen. Sec.29 of the Act authorises the State Govt to nominate as its representatives to serve on the committee of management of a co-operative society if in respect of such co-operative society the State Govt has subscribed share capital or has rendered assistance in any other manner as specified in Sec.29 of the Act. The total number of representatives, who can be nominated by the state Govt under Sec.29 of the Act is fixed at one-third of the total number of the members of the committee or three persons whichever is less. As the State Govt has subscribed to the share capital of the society in exercise of the power conferred under Section 29 the State Govt nominated 3 persons on the committee of management of the Society. Sec.53A of the Act also authorises the State Govt to nominate its representatives to serve as members of the committee of a cooperative society to the extent of 1/3 of the total number of persons. But this power is exercisable only in respect of a society to which the State Govt has subscribed share capital to the extent of not less than 50 per cent of the total share capital or Rs.5 lakhs. There is no dispute that the State Govt is holding shares to the tune of about Rs.8 lakhs in the Society. Even as the three representatives nominated by the State Govt are continuing on the committee of management of the Society, thp State Govt by notification d| 1-4-78 (Ext.A) nominated 5 persons to serve as representatives of the Govt on the committee of management of the Society. They are respondents 3 to 7 to this writ petition. The petitioner, who is the Vice-Chairman of the Society, has questioned the legality of the noticetion issued by the State Govt nominating respondents 3 to 7 as members of the committee of management of the Society, which in the case of the Society is called the Board of Directors, over and above the three representatives already nominated.

(3.) Sri B.K.Patil, learned Counsel for the petitioner, contended tha the State Govt is empowered to nominate its representatives either under Sec.29 of the Act or under Sec.53A of the Act and cannot nominate its representatives under both the sections, in respect of the same Society.