KALAPPA Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) In this Writ Petition, the petitioners have questioned the constitutional validity of Section 99 of the Karnataka Cooperative Societies Act, 1959, ('the Act' for short) as also an order made under the said Section on an application presented by the 3rd respondent - Society.

(2.) The facts of the case in brief as stated in the petition are as follows: The petitioners had jointly borrowed in the year 1980 a sum of Rs. 13.000/- from the 3rd respondent-Vyavasaya Seva Sahakari Sangha Niyamitha, Chowdalu, Somwarpet, which is a Co-operative Society constituted and functioning under the provisions of the Act.

(3.) On an application made by the 3rd respondent Society, the Assistant Registrar issued a notice dated 16-9-1981, under Section 99 of the Act, to the petitioners calling upon them to pay an amount of Rs. 14,820/-, together with further interest. Thereafter the petitioners presented this petition questioning the legality of the notice as also the contitutional validity of Section 99 of the Act. The contention of the petitioners is that Section 99 confers arbitrary power to recover whatever amount is claimed by the society without even verifying after notice to the parties concerned as to whether the said amount was due or not and therefore violative of Article 14 and therefore the notice issued thereunder is also invalid.