The Hindu : Karnataka / Bangalore News : Amendment to Co-op. Act annulled

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Wednesday, Mar 19, 2008
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Karnataka

Karnataka - Bangalore

Amendment to Co-op. Act annulled

Staff Reporter

BANGALORE: The Karnataka High Court on Tuesday struck down an amendment by the State Government to the Karnataka Cooperative Societies Act, 1959, empowering chief executives (of societies) to attend every meeting of society and move any resolution or vote.

The Government on August 30, 2001 amended Section 29-G of the Act and permitted a chief executive of a society to not only cast his vote but also attend meetings and move any resolution.

This amendment was challenged by Siddapura Taluk Agri Products Cooperative Society and two others, saying that it is illegal and ultra vires.

They said the amendment would result in interference in the functioning of societies apart from conferring extra-constitutional authority on chief executives. They had urged the court to quash the amendment.

A single judge had held the amendment to be bad in law. He had observed that since the chief executive was only an employee of society, he could not vote. Besides, only the managing committee had the right to transact business under Section 29-C, 29-F and 28-A of the Societies Act of 1955. The State had appealed against the single judge order. It had said that the amendment was in order and that it had the right to frame rules for the smooth conduct of a society.

A Division Bench comprising Justice V. Gopala Gowda and Justice Arali Nagaraj upheld the single judge order.

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