HC strikes down ‘no confidence motion’ against co-op society office-bearers

Source: newindianexpress.com

BENGALURU: While striking down sub-rule (11) of Rule 14-AKK of Karnataka Cooperative Societies Rules, the Karnataka High Court said that office bearer of cooperative societies should vacate the office if resolution expressing want of confidence is passed with 2/3rd of the total number of elected directors in a meeting specially convened for no-confidence motion.

The division bench of Chief Justice Abhay Shreeniwas Oka and Justice HT Narendra Prasad struck down the said sub-rule while partly allowing the writ appeal filed by K Veeranna, president of JSS MVP Employees House Building Cooperative Society, Mysuru.  

“We hold that the portion of sub-rule (11) of Rule 14-AKK starting from the word ‘with’ and ending with the word ‘meeting’ is hereby declared as ultra vires the provisions of the Act and in particular sub-section (2) of Section 29-H and it is hereby struck down,” the court said. 

Thus, the mandate of law is that such a resolution must be passed by a majority of 2/3rd of all elected directors of the cooperative society in a meeting specially convened for considering no-confidence motion. However, sub-rule (11) suggests that even if motion is carried with the support of not less than 2/3rd of the elected member present in the meeting, the motion is passed. It suggests that even if the motion is not carried by 2/3rd of the total elected directors and if it is carried with the support of lesser number of elected directors constituting 2/3rd of the directors who are present at the meeting, the office-bearer concerned has to vacate his office.

“As there is no manner of doubt that the offending portion of sub-rule (11) is ultra vires the provisions of sub-section (2) of Section 29-H of the main act, the said portion will have to be struck-down,” the court said.