KURUBURU RESHME BELEGARARA HAAGU RAITHARA SEVA SAHAKARA SANGHA NIYAMITHA vs THE STATE OF KARNATAKA

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WA No. 607 of 2026


TH
RESERVED ON 28 OCTOBER 2026

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

TH
DATED THIS THE 30 DAY OF OCTOBER, 2026

PRESENT

THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE

AND

THE HON'BLE MRS. JUSTICE K.S. HEMALEKHA

WRIT APPEAL NO. 607 OF 2026 (CS-EL/M)

BETWEEN:












1. KURUBURU RESHME BELEGARARA HAAGU RAITHARA
SEVA SAHAKARA SANGHA NIYAMITHA
KURUBURU
CHINTAMANI TALUK
CHIKKABALLAPURA DISTRICT
REPRESENTED BY ITS DELEGATE/PRESIDENT
VENKATAREDDY M
S/O MUNISHAMAPPA
AGE 77 YEARS
…APPELLANT
(BY SRI JAYAKUMAR S. PATIL, SENIOR ADVOCATE A/W
SRI DEVIPRASAD SHETTY, ADVOCATE)

AND:







Digitally
signed by
AMBIKA H B
Location:
High Court
of Karnataka

1. THE STATE OF KARNATAKA
DEPARTMENT OF CO-OPERATION
M.S BUILDING
DR. B.R. AMBEDKAR VEEDHI
BENGALURU - 560 001
REPRESENTED BY ITS
PRINCIPAL SECRETARY

2. THE STATE CO-OPERATIVE
ELECTION AUTHORITY
RD
3 FLOOR, T.T.M.C. 'A' BLOCK
SHANTHI NAGAR, BANGALORE - 560 027
REPRESENTED BY ITS SECRETARY

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3. DEPUTY COMMISSIONER/ ELECTION OFFICER
KOLAR DISTRICT
KOLAR - 563 101

4. RETURNING OFFICER
KOLAR-CHIKKABALLAPUR DCC BANK LTD.
DCC BANK ROAD
KOLAR - 563 101

5. KOLAR-CHIKKABALLAPUR DCC BANK LTD.
DCC BANK ROAD
KOLAR - 563 101
REPRESENTED BY ITS
CHIEF EXECUTIVE OFFICER
(SOCIETY REGISTERED UNDER KARNATAKA
CO-OPERATIVE SOCIETIES ACT, 1959)

6. KOLAR-CHIKKABALLAPUR DCC BANK LTD.
CHINTAMANI BRANCH
OPP. TO POST OFFICE
CHINTAMANI
CHIKKABALLAPURA DISTRICT - 563 125
REPRESENTED BY ITS MANAGER
(SOCIETY REGISTERED UNDER KARNATAKA
CO-OPERATIVE SOCIETIES ACT, 1959)

7. SRI N. NAGIREDDY
S/O T. NAREPPA
AGED ABOUT 60 YEARS
R/O DIRECTOR
KALLAHALLI SFSCS
CHINATAMANI TALUK
CHIKKABALLPAURA DISTRICT - 563 125
…RESPONDENTS
(SMT. PRATHIMA HONNAPURA, AAG
A/W SMT. NAVYA SHEKAR, AGA FOR R-1 & 3;
SRI A. DEVARAJA, ADVOCATE FOR R-2 &
SRI P.N. MANMOHAN, ADVOCATE FOR
SRI SUMUKHA C.G., ADVOCATE FOR C/R-7)

THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE
KARNATAKA HIGH COURT ACT PRAYING TO SET ASIDE THE
ORDER DATED 25/09/2025 PASSED IN W.P. NO.14706/2025 BY THE
LEARNED SINGLE JUDGE OF THIS HON'BLE COURT & ETC.

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THIS WRIT APPEAL HAVING BEEN HEARD AND RESERVED
FOR JUDGMENT, COMING ON FOR PRONOUNCEMENT THIS DAY,
JUDGMENT WAS PRONOUNCED AS UNDER:

CORAM: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE
and
HON'BLE MRS. JUSTICE K.S. HEMALEKHA

CAV JUDGMENT

(PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE)
1. For the reasons stated in the application, I.A No.1/2026, the
same is allowed. The delay of 115 days in filing the appeal is
condoned.

2. The appellant, a primary agricultural credit co-operative
society registered under the Karnataka Co-operative Societies Act,
1959 [ KCS Act ], has filed the present appeal impugning an order
dated 25.09.2025 passed by the learned Single Judge of this Court
in Writ Petition No.14706/2025 (CS-EL/M).

inter alia,
3. The appellant had filed the said petition, praying as
under:
"i. Issue a writ of mandamus directing the
respondent no.3 to 5 to accept the delegation
form of petitioner society and permit the
petitioner society to cast their vote in the election
scheduled to be held on 28/05/2025 to the
respondent no.5 DCC Bank.

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ii. Such other direction or order writ as may
deem fit to this Hon'ble Court may kindly be
issued."

4. The appellant is a member of respondent No.5 [hereafter
DCC Bank ], which is a federal society providing assistance to
Taluk Agricultural Societies and Primary Societies. The dispute in
the present appeal essentially relates to the appellant being
considered ineligible to participate in the elections of DCC Bank,
which were held on 28.05.2025.

5. DCC Bank had issued a notice dated 07.04.2025 alleging
that the appellant was a defaulter under Section 20(2)(b)(iv)(a) and
(b) of the KCS Act, as a total demand of Rs.2798.64 lakhs was
outstanding as on 31.03.2025. The appellant was called to pay a
sum of ` 1295.55 lakhs by 5.00 p.m. on 06.05.2025, failing which it
would be disqualified to contest or cast a vote in the ensuing
elections.

6. The appellant claims that it made payments after receipt of
the notice. It also attempted to pay ` 3 crores on 06.05.2025 in
cash. However, DCC Bank could not accept the same on account
of its limitation to accept cash beyond a specified limit.
Accordingly, the appellant paid ` 2,98,64,000/- through banking

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channels on 09.05.2025. Notwithstanding that the appellant had
made the aforesaid payments, the appellant was named in the list
of ineligible voters on account of suffering disqualification under
Section 20(2)(b)(iv) of the KCS Act. As noted above, the appellant
disputed this and accordingly filed the writ petition.

7. The learned Single Judge had passed an interim order
permitting the appellant to participate in the election and directed
that its vote be kept in a separate ballot box.

8. The learned Single Judge, after hearing the parties,
dismissed the petition as the court found that the appellant was
ineligible to cast the vote as it had incurred a disqualification under
Section 20(2)(b)(iv) of the KCS Act. The learned Single Judge
found that the appellant failed to pay 50% of the outstanding
demand as demanded under the notice dated 07.04.2025 and
therefore, the decision of the DCC Bank to include the appellant's
name in the list of ineligible voters did not warrant any interference.

9. The relevant extract of the impugned order is set out below:
"11. A perusal of the notice dated 07.04.2025
issued by the respondent No.5, shows that the
petitioner was liable to repay a sum of
Rs.27,98,64,000/- to respondent No.5 as on
31.03.2025. Therefore, to be eligible to cast the
vote at the elections to the Managing Committee

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of the respondent No.5, the petitioner was bound
to pay 50% of the said amount namely, a sum of
Rs. 13,99,32,000/-. In a notice under Section
20(2)(b)(iv)(a) of the Act of 1959, it was stated by
the respondent No.5 that as on 07.04.2025, the
petitioner has paid a sum of Rs.1,03,77,000/- and
was liable to pay a sum of Rs.12,95,55,000/- by
06.05.2025 to become eligible to vote and contest
the elections to the Managing Committee of
respondent No.5. The petitioner has furnished the
details of payment made to the respondent No.5
in Annexure D. The same is extracted below:-
ಸಂ ೆ ಾಂಕ ಾೆ ಸಂೆ ತ
1. 05.04.2025 125004603320 6900000
2. 03.05.2025 125004603320 4380000
3. 05.04.2025 125004605033 6909000
4. 03.05.2025 125004605033 5264000
5. 05.04.2025 125001345757 6560000
6. 03.05.2025 125001345757 1245000
7. 05.04.2025 125001665937 7143000
8. 03.05.2025 125001665937 2582000
9. 05.04.2025 125003149863 12332000
10. 03.04.2025 125004604743 6275000
11. 09.04.2025 125003149863 13811000
12. 09.04.2025 125003923498 13260000
13. 09.05.2025 125002749475 9900000
14. 05.04.2025 125004605599 8850000
15. 03.05.2025 125004605599 3919000
16. 05.04.2025 125002803944 2148000
17. 03.05.2025 125002803944 2910000
18. 09.05.2025 125004539635 29864000
14,69,52,000
ಒಟು 

12. If we exclude the payments made
by the petitioner, prior to 07.04.2025, it is evident
that the petitioner had repaid Rs.8,71,35,000/- as
on 09.05.2025 as against Rs.12,95,55,000/-
payable by 06.05.2025. Therefore, the action of
the respondent No.5 in including the name of the
petitioner in the ineligible list of voters is just and
proper and does not warrant any interference."

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10. It is apparent from the above that the learned Single Judge
accepted the DCC Bank's contention that the appellant was a
defaulter, since it had repaid only ` 8,71,35,000/- after 07.04.2025
against the demand of ` 12,95,55,000. It is important to note that
the learned Single Judge did not reject the appellant’s contention
that it had tendered ` 3 crores on 06.05.2025 and that the same
could not be excluded for the purpose of calculating the amounts of
default.

11. The learned counsel appearing for DCC Bank rightly pointed
out that the learned Single Judge had taken into account the
amounts paid up to 09.05.2025. However, the court found that the
payments made by the appellant fell short of the amount
demanded and, therefore, there was no error in including the
appellant’s name in the list of ineligible voters. The appellant
disputes the finding that it had not paid the amounts as demanded
under the notice dated 07.04.2025.

12. Thus, the limited question to be examined is whether the
appellant had discharged 50% of the amount outstanding as on
31.03.2025 on being put to notice of the said default by the notice
issued by DCC Bank dated 07.04.2025.

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REASONS AND CONCLUSIONS
13. We may note, at this stage, that there is no dispute that the
appellant had sought to tender ` 3 crores in cash on 06.05.2025 to
avoid ineligibility under Section 20(2)(b)(iv) of the KCS Act. DCC
Bank was not in a position to accept the said payment on account
of its limitation to receive cash over a specified limit. Therefore, the
appellant had paid the sum of ` 2,98,64,000/- through banking
channels immediately thereafter on 09.05.2025. We are unable to
accept that the tender of ` 3 crores in cash was not a valid tender
and as required by DCC Bank, the appellant had made the
payments through banking channels on 09.05.2025. Thus, the
payment made on 09.05.2025 is required to be reckoned as the
payment on or before the cut off date. Having stated the above, we
may note that this is not an issue in the present appeal. There is
no serious dispute as to this question as the learned Single Judge
had also taken into account the payments made up to 09.05.2025
to determine whether the appellant incurred disqualification under
Section 20(2)(b)(iv) of the KCS Act. As noted above, the learned
counsel appearing for DCC Bank also argued on the premise that
the appellant was ineligible for the reason that the payments made

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up to 09.05.2025 did not satisfy the demand under the notice dated
07.04.2025.

14. Thus, the principal question to be addressed is whether the
payments made by the appellant up to 09.05.2025 satisfied the
notice dated 07.04.2025 to overcome the condition of ineligibility
under Section 20(2) (b)(iv) of the KCS Act.

15. At this stage, we may refer to Section 20(2)(b)(iv) of the KCS
Act which is reproduced:
“ 20. Votes of members.

xxx xxx xxx

(2) The following shall not have the right to
vote at a general meeting or an election of the
members of the board of the co-operative society
in which they are members, namely.−

xxx xxx xxx

(b) a co-operative society.-
(i) xxx xxx xxx
(ii) xxx xxx xxx
(iii) xxx xxx xxx
(iv) whose principal object is to advance
loans and whose percentage of
recovery is.-
(a) less than fifty percent of its total
demand for the Co-operative year
immediately preceding the Co-
operative year during which the
meeting or election is held; or

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(b) which fails to pass on to the
financing bank or the credit
agency, as the case may be, fifty
percent of the demand or the entire
portion of the recovered amount of
the demand of the financing bank
or credit agency, whichever is
higher, at least fifteen days before
the date of the general meeting or
the date of election, after a notice
of not less than thirty days in this
regard has been issued to that
society."
16. Although the notice dated 07.04.2025 alleges that the
appellant is a defaulter as per Section 20(2)(b)(iv)(a) and (b) of the
KCS Act, a plain reading of the notice indicates that the allegation
is that the appellant is a defaulter under sub-clause (a) or (b) of
Section 20(2)(b)(iv) of the KCS Act.

17. The allegation is that it had not paid the demand as on
31.03.2025. The English translation of the contents of the said
notice is set out below:
"With regard to above subject and
reference, election to the management board of
the Kolar and Chikkaballapur District co-
operative Central Bank Limited, Kolar is
scheduled to be held as per reference (1) and
your co-operative society has borrowed
KCC/MTL/SHG/ Other loans from the bank. As
per the information provided by the Branch
Manager and Supervisor of the branch of the
bank within the jurisdiction of your society, your
are defaulter as per section 20(2)b4(a) (b) of
KCS Act, 1959.

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Wherefore, total demand as on
31/03/2025 is Rs.2798-64 Lakhs, whereas you
have repaid only a sum of Rs. 103.77 Lakhs and
hence, you are directed to repay the balance
sum of Rs.1295-55 Lakhs 5-00 PM on
06/05/2025 to the undersigned. Failing which,
you would be disqualified to contest/ cast vote in
the election prescribed as per Reference (1)."

18. The appellant paid an aggregate amount of ` 14,69,52,000/-
between 03.04.2025 and 09.05.2025, as set out in the tabular
statement in the impugned order. Although the appellant paid
more than the amount demanded ( ` 1295.55 lakh), the learned
Single Judge found that the amount paid prior to 07.04.2025 had to
be excluded from the amount paid. The learned counsel appearing
for DCC Bank also supports the said view.

19. The notice dated 07.04.2025 cannot be read in disregard of
the provisions of Section 20(2)(b)(iv) of the KCS Act. The appellant
would be ineligible to vote if its percentage of recovery is less than
50% of its total demand for the co-operative year immediately
preceding the co-operative year during which the meeting or
election is held, or if it fails to pass on to the financing bank or the
credit agency 50% of the demand at least fifteen (15) days before
the date of the general meeting or the date of election, after a
notice of not less than 30 days in that regard has been issued to

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that society. Thus, the appellant was required to pay at least 50%
of the demand as on 31.03.2025. The tenor of the notice dated
07.04.2025 is also to the same effect. On examining the notice, we
find that the total demand as on 31.03.2025 was stated to be
` 2798.64 lakhs. Thus, the appellant was required to discharge at
least ` 1,399.32 lakhs, being 50% of the said amount on or before
the cut-off date. The notice dated 07.04.2025 acknowledged that
the appellant had paid a sum of ` 103.77 lakhs and after adjusting
the said amount from ` 1399.32 lakhs, the appellant was called
`
upon to pay the balance amount of 1295.55 lakhs. Thus, there is
no cavil that the notice dated 07.04.2025 proceeded on the basis
that the appellant was required to pay 50% of the amount
outstanding as on 31.03.2025. As noted above, there is no dispute
that the payments made by the appellant against the said demand
were as reflected in the tabular statement in the impugned order
and acknowledged by DCC Bank in its letter dated 16.05.2025,
`
which in any event, exceed 1399.32 lakhs. The learned Single
Judge had clearly erred in proceeding on the basis that the amount
paid prior to the notice was required to be excluded.

20. The tabular statement set out in the impugned order
indicates that the appellant had paid more than ` 103.77 lakhs prior

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to the notice. However, the notice only acknowledges receipt of
` 103.77 lakhs prior to the said notice. However, by a letter dated
16.05.2025, the DCC Bank had acknowledged the payments as
reflected in the impugned order.

21. Since the appellant was required to discharge 50% of the
demand outstanding as on 31.03.2025, the amounts paid before
the date of the notice and after 31.03.2025 had to be taken into
account to determine whether the appellant was ineligible to cast
its vote.

22. In view of the above, we find merit in the appellant’s
contention that it was not ineligible to vote in the elections
scheduled to be held on 28.05.2025.

23. This Court is informed that the elections have been held and
that the results of the relevant constituency have not been declared
as yet. In view of the above, we direct that the vote cast by the
appellant’s delegate, which has been recorded separately, be
taken into account, and the result be declared accordingly.

24. The appeal is allowed in the aforesaid terms, and the
impugned order is set aside.

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25. The pending interlocutory applications also stand disposed
of.



Sd/-
(VIBHU BAKHRU)
CHIEF JUSTICE


Sd/-
(K.S. HEMALEKHA)
JUDGE


AHB