Authority: High Court of Karnataka at Bengaluru

Order Date: 30 October 2026

Case Overview

  • Parties: Appellant – Kuruburu Reshme Belegarara Haagu Raithara Seva Sahakara Sangha (primary agricultural credit co‑operative society) represented by its President Venkatreddy M. Respondents – State of Karnataka (Dept. of Cooperation), State Co‑operative Election Authority, Deputy Commissioner/Election Officer Kolar, Returning Officer Kolar‑Chikkaballapur DCC Bank Ltd, and Kolar‑Chikkaballapur DCC Bank Ltd (the “Bank”).
  • Nature of dispute: The society challenged an order dated 25 September 2025 that declared it ineligible to vote in the DCC Bank’s Managing Committee election scheduled for 28 May 2025, alleging that the Bank’s disqualification under Section 20(2)(b)(iv) of the Karnataka Co‑operative Societies Act, 1959 (KCS Act) was unlawful.
  • Key allegations: The Bank issued a notice on 07 April 2025 stating the society owed a total demand of Rs 2,798.64 lakhs as of 31 March 2025 and had repaid only Rs 103.77 lakhs. The society was required to pay 50 % of the demand (Rs 1,399.32 lakhs) to be eligible. The society claimed to have tendered Rs 3 crores in cash on 06 May 2025, which the Bank could not accept, and subsequently paid Rs 2,98,64,000 via banking channels on 09 May 2025.
  • Payments record: The Court’s impugned order listed payments made between 03 April 2025 and 09 May 2025 totaling Rs 14,69,52,000, of which Rs 8,71,35,000 were paid after the notice date, exceeding the required Rs 1,399.32 lakhs.
  • Procedural history: The Single Judge initially granted an interim order allowing the society to vote (ballot kept separate) but later dismissed the writ, finding the society still ineligible because it had not paid the required 50 % by the stipulated deadline. The society appealed, seeking condonation of a 115‑day filing delay (granted) and setting aside the Single Judge’s dismissal.

Final Outcome

  • The Court, per Justice Vibhu Bakhru, allowed the appeal, held that the society had satisfied the 50 % repayment condition, and set aside the 25 September 2025 order.
  • It directed that the society’s vote, already recorded in a separate ballot box, be counted in the election result.
  • All pending interlocutory applications were disposed of.

Topics: Co-operative Society Election, Voting Disqualification