SHAMBU SHETTY T Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) Petitioner has questioned the legality of the nominations of respondents 4 to 6 to the Board of Directors or Committee of Management of the South Canara District Central Co-operative Bank Ltd., (hereinafter referred to as the Bank), respondent No. 3, made by the first respondent-State of Karnataka.

(2.) Briefly stated the case made out for the relief of quashing the nominations in question is as follows : Election to the Committee of Management of the Board of Directors of the Bank was held on 27-11-1987 and 13 members were elected ; of them 8 members belong to Congress (i) Party, while 4 members belong to Janata Party and one member belongs to Bharateeya Janata Party. The Secretary of the Bank issued notice of first meeting to elect the President of the Bank on 30-11-1987 fixing 11-12-1987 as the date of the meeting. By a notification dated 5-12-1987 respondents 4, 5 and 6 were nominated by the first respondent-State of Karnataka in purported exercise of its power under Section 53A of the Karnataka Co-operative Societies Act (hereinafter referred to as the 'Act'). It is alleged that the Government had initially nominated three persons prior to 22-6-1985 and one more person on 22-6-1985. It is therefore contended that the Government having nominated three more by the notification impugned has exceeded the number of nominations which it is legally permitted to make though one nomination had since been cancelled In other words six nominations have been made which are operative and the contention is having regard to the strength of the Committee of Management it is in excess of the powers conferred bv Section 53A of the Act and in any event the exercise of power of the State Government under Section 53A is colourable exercise of power and mala fide, not for the purpose of furthering the objects of the Act and the power conferred on the Government, but only to take control of the Bank with political motives in connivance or at the behest of respondent No. 2 Sri Ekanthaiah, Minister for Co-operation in the Government of Karnataka.

(3.) This Court issued emergent notice regarding Rule on 10-12 1987 and the operation of the impugned notification i.e., Annexure-A, the notification dated 5-12-1987 nominating respondents 4 to 6 was stayed till 14-12-1987. On 14-12- 1987 the interim order was clarified by this Court and respondents 4 to 6 were specifically prevented from participating in the election of the President of the Board of Directors of the third respondent Bank. Since then the respondents have entered appearance and filed their statement of objections and the matter has been heard today.