Karnataka HC Directs State To Design Common Portal To Oversee Compliances, Collect Data Under Co-operative Societies Act & Rules

The Karnataka High Court has directed the state Co-operative Department's Principal Secretary, the Registrar of Cooperative Societies and Principal Secretary of e-Governance Department to implement an IT system to verify and facilitate compliance of all requirements under the state Cooperative Societies Act and the Rules framed therein.It has further called for the creation of a "common portal" where all Co-operative Societies registered in the state can upload their compliances, and wherein the portal can gather as well as collate all data required under the Co-operative Societies Act and the Rules. Justice Suraj Govindaraj said “I am of the considered opinion that it is high time for the Principal Secretary Co-operative Department, the Registrar Cooperative Societies and the Principal Secretary e-Governance Department to implement an Information Technology System to verify and facilitate the compliance with all the requirement of the Act and the Rules.” Further it said “Towards this end, it will be required for a common portal to be established by the Principal Secretary Co-operative Department and/or the Registrar Co-operative Societies. Wherein all the Co-operative Societies registered in the State of Karnataka can upload all compliances, make necessary entry as regard the compliances required to be made by such Co-operative Society.” It said “The portal be designed in such a manner as to be able to gather and collate all the data required under the Co-operative Societies Act and the Rules. Such that even if the society is not represented, the Registrar of Co-operative Societies can by accessing the portal instruct the Government advocate appearing for the Registrar to make submissions in relation to the compliances.” Highlighting the portal's its advantages the court said that if there are any kind of compliances to be made, "automatic reminders" can be sent through the portal to the concerned Co-operative Society, intimating the requirement of compliance and reminding the date of compliance. If there is non-compliance by the date fixed, then the portal can intimate the Registrar of Co-operative Societies and/or such officer as may be designated of such non compliance, so that necessary action can be taken immediately, the court added. The court asked the authorities to consider the aspect that the cost of sending notices under Rule 13D, by registered post is very expensive, putting at distress the meagre financial resources of the Co-operative Society and as such the notices are not sent at all or sent belatedly. It also suggested the Principal Secretary Co-operative Societies and the Registrar of Co-operative Societies to come up with a more feasible methodology of serving notices on all the members, if necessary, by making use of Information Technology like e-mail, Short Messaging Services (SMS), WhatsApp, etc. Since most of the notices as regards companies are now being permitted to be served by such modes.The directions were given while allowing a petition filed by M R Rukmangadha and others who had approached the court after the authorities declared them ineligible to vote in the election to a co-operative society, without following the requirements of Rule 13D (2A) (ii) of the Karnataka Co-operative Societies Rules. Rule 13D provides issuance of notice six months prior to the date of election be served on the members by registered post and opportunity be given to them to file their objections, if any, within 15 days of service of notice. The bench on going through the records noted that the notice was issued on January 23 for the election which was scheduled for February 9. It said that the notice would not qualify the requirement of Clause (ii) of Sub-Rule 2A of Rule 13D of the Rules, as it was not issued within 6 months prior to the election date. Then it held “In that view of the matter, I am of the considered opinion that the declaration and/or holding the petitioners as ineligible is not sustainable.”Allowing the petition court thus set aside the declaration by the Respondent Society that the petitioners are ineligible voters. "The petitioners having already cast their vote, the respondents are directed to count the said votes and declare the results of the election, if not otherwise injuncted in any other proceedings, within a period of seven days from the date of receipt of copy of this order," it said. Further the court asked the State government to file a detailed project report regarding compliance of the general directions given by the court in four week. Case Title: M R Rukmangadha & Others AND State of Karnataka & othersCounsel for Petitioners: Advocate KRISHNA GOWDA BCounsel for Respondents: AGA YOGESH D.NAIKCitation No: 2025 LiveLaw (Kar) 119Case No: WRIT PETITION NO. 2246 OF 2025Click Here To Read/Download Order

Karnataka HC Directs State To Design Common Portal To Oversee Compliances, Collect Data Under Co-operative Societies Act & Rules

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