Karnataka High Court
Shantappanna Mirji Urban vs The Department Of Co-Operation on 24 November, 2023
Author: S.Sunil Dutt Yadav
Bench: S.Sunil Dutt Yadav
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NC: 2023:KHC-D:13752-DB
WA No. 100288 of 2023
C/W WA No. 100289 of 2023
IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
DATED THIS THE 24TH DAY OF NOVEMBER, 2023
PRESENT
THE HON'BLE MR JUSTICE S.SUNIL DUTT YADAV
AND
THE HON'BLE MR JUSTICE VIJAYKUMAR A.PATIL
WRIT APPEAL NO. 100288 OF 2023 (CS-RES)
C/W
WRIT APPEAL NO. 100289 OF 2023 (CS-RES)
IN WA NO. 100288 OF 2023:
BETWEEN:
1. SHRI. SHANTAPPANNA MIRJI URBAN
CO-OPERATIVE BANK LTD.,
CHIKKODI, ADMINSTRATIVE OFFICE,
TQ. CHIKKODI-591201, DIST. BELAGAVI,
R/BY ITS NOW GENERAL MANAGER,
SHRI. KUMAR S/O NARASINGH KUMBAR,
AGE. 59 YEARS, OCC. GENERAL MANAGER.
2. SHRI. SHANTAPPANNA MIRJI URBAN
CO-OPERATIVE BANK LTD.,
CHIKKODI, NASALAPUR BRANCH,
SHIVAKUMAR
HIREMATH TQ. RAIBAG-591317, DIST. BELAGAVI.
R/BY ITS BRNACH MANAGER,
Digitally signed by KUMARI VRINDADEVI D/O RAMCHANDRA SHIRALKAR,
SHIVAKUMAR
HIREMATH AGE. 54 YEARS, OCC. BRANCH MANAGER.
Date: 2023.12.05
14:53:57 +0530
3. SHRI. SHANTAPPANNA MIRJI URBAN
CO-OPERATIVE BANK LTD.,
CHIKKODI, ADMINSTRATIVE OFFICE,
TQ. CHIKKODI-591201, DIST. BELAGAVI,
R/BY ITS SALES OFFICER,
MR. MOULA S/O HUSSEN HAVARE,
AGE. 51 YEARS, OCC. SALES OFFICER.
... APPELLATNS
(BY SRI. SANJAY S. KATAGERI, ADVOCATE)
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WA No. 100288 of 2023
C/W WA No. 100289 of 2023
AND:
1. THE DEPARTMENT OF CO-OPERATION,
R/BY ITS SECRETARY,
THE GOVERNMENT OF KARNATAKA,
VIDHAN SOUDHA, BENGALURU,
PIN CODE-560001.
2. THE DEPUTY REGISTRAR OF CO-OPERATIVE
SOCIETIES, BELAGAVI, SAHAKAR BHAVAN,
NEAR RAILWAY OVER BRIDGE, KHANAPUR ROAD,
TILAKWADI, BELAGAVI-590006.
3. THE ASSISTANT REGISTRAR OF CO-OPERAITIVE
SOCIETIES AND SALES OFFICER COURT,
KARNATAKA STATE CO-OPERATIVE URBAN
FEDERATION LTD., REGIONAL OFFICE,
HUBBALLI, NO.1, 9/10, DOLLARS COLONY,
GOKUL ROAD, HUBBALLI-580023.
4. THE CHIEF EXECUTIVE OFFICER,
LAXMI CREDIT SOUHARDH SAHAKARI LTD.,
MANJARI, NOW KNOWN AS SHRI. K.P. MAGENNAVAR
LAXMI CREDIT SOUHARD SANGH LTD., MANJARI,
TQ. CHIKKODI, DIST. BELAGAVI, PIN CODE-591213.
5. SHRI. MAHAVEER S/O JINADATTA KANTE,
AGE. 53 YEARS, OCC. BUSINESS,
R/O. PLOT NO.2, SY.NO.47/2,
5TH CROSS, BHAGYANAGAR,
ANAGOL, BELAGAVI, PIN CODE-590006.
... RESPONDENTS
(BY SMT. GIRIJA HIREMATH, HCGP FOR R1-R3;
SRI. CHETAN MUNNOLI, ADVOCATE FOR R4;
SRI. ABHILASH HANAMANNAVAR, ADVOCATE FOR R5)
THIS WRIT APPEAL IS FILED U/S.4 OF KARNATAKA HIGH
COURT ACT, 1961, PRAYING TO SET-ASIDE THE IMPUGNED ORDER
DATED 16-12-2022 PASSED IN WRIT PETITION NO.107773/2016 BY
THE LEARNED SINGLE JUDGE AND THE IMPUGNED ORDER DATED
10-06-2016 IN REVISION PETITION NO.CO/07/CAP/2014 PASSED BY
THE RESPONDENT NO.1 AS PER ANNEXURE-Z IN THE SAID WRIT
PETITION, BY ALLOWING THIS WRIT APPEAL AND CONSEQUENTLY
ALLOWING THE SAID WRIT PETITION NO.107773/2016 AS PRAYED
THEREIN BY THE APPELLANTS, WITH COSTS UPON RESPONDENT
NO.5 HEREIN, IN THE INTEREST AND EQUITY.
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NC: 2023:KHC-D:13752-DB
WA No. 100288 of 2023
C/W WA No. 100289 of 2023
IN WA NO. 100289 OF 2023:
BETWEEN:
1. SHRI. SHANTAPPANNA MIRJI URBAN
CO-OPERATIVE BANK LTD.,
CHIKKODI, ADMINSTRATIVE OFFICE,
TQ. CHIKKODI-591201, DIST. BELAGAVI,
R/BY ITS NOW GENERAL MANAGER,
SHRI. KUMAR S/O NARASINGH KUMBAR,
AGE. 59 YEARS, OCC. GENERAL MANAGER.
2. SHRI. SHANTAPPANNA MIRJI URBAN
CO-OPERATIVE BANK LTD.,
CHIKKODI, NASALAPUR BRANCH,
TQ. RAIBAG-591317, DIST. BELAGAVI.
R/BY ITS BRNACH MANAGER,
KUMARI VRINDADEVI D/O RAMCHANDRA SHIRALKAR,
AGE. 54 YEARS, OCC. BRANCH MANAGER.
3. SHRI. SHANTAPPANNA MIRJI URBAN
CO-OPERATIVE BANK LTD.,
CHIKKODI, ADMINSTRATIVE OFFICE,
TQ. CHIKKODI-591201, DIST. BELAGAVI,
R/BY ITS SALES OFFICER,
MR. MOULA S/O HUSSEN HAVARE,
AGE. 51 YEARS, OCC. SALES OFFICER.
... APPELLATNS
(BY SRI. SANJAY S. KATAGERI, ADVOCATE)
AND:
1. THE DEPARTMENT OF CO-OPERATION,
R/BY ITS SECRETARY,
THE GOVERNMENT OF KARNATAKA,
VIDHAN SOUDHA, BENGALURU,
PIN CODE-560001.
2. THE DEPUTY REGISTRAR OF CO-OPERATIVE
SOCIETIES, BELAGAVI, SAHAKAR BHAVAN,
NEAR RAILWAY OVER BRIDGE, KHANAPUR ROAD,
TILAKWADI, BELAGAVI-590006.
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WA No. 100288 of 2023
C/W WA No. 100289 of 2023
3. THE ASSISTANT REGISTRAR OF CO-OPERAITIVE
SOCIETIES AND SALES OFFICER COURT,
KARNATAKA STATE CO-OPERATIVE URBAN
FEDERATION LTD., REGIONAL OFFICE,
HUBBALLI, NO.1, 9/10, DOLLARS COLONY,
GOKUL ROAD, HUBBALLI-580023.
4. THE CHIEF EXECUTIVE OFFICER,
LAXMI CREDIT SOUHARDH SAHAKARI LTD.,
MANJARI, NOW KNOWN AS SHRI. K.P. MAGENNAVAR
LAXMI CREDIT SOUHARD SANGH LTD., MANJARI,
TQ. CHIKKODI, DIST. BELAGAVI, PIN CODE-591213.
5. SHRI. SHARAD S/O DHANAPAL SHETTI,
AGE. 57 YEARS, OCC. PRIVATE SERVICE,
R/O. PLOT NO.2, SY.NO.47/2,
5TH CROSS, BHAGYANAGAR,
ANAGOL, BELAGAVI, PIN CODE-590006.
... RESPONDENTS
(BY SMT. GIRIJA HIREMATH, HCGP FOR R1-R3;
SRI. CHETAN MUNNOLI, ADVOCATE FOR R4;
SRI. ABHILASH HANAMANNAVAR, ADVOCATE FOR R5)
THIS WRIT APPEAL IS FILED U/S.4 OF KARNATAKA HIGH
COURT ACT, 1961, PRAYING TO SET-ASIDE THE IMPUGNED ORDER
DATED 16-12-2022 PASSED IN WRIT PETITION NO.107774/2016 BY
THE LEARNED SINGLE JUDGE AND THE IMPUGNED ORDER DATED
10-06-2016 IN REVISION PETITION NO.CO/08/CAP/2014 PASSED BY
THE RESPONDENT NO.1 AS PER ANNEXURE-Z IN THE SAID WRIT
PETITION, BY ALLOWING THIS WRIT APPEAL AND CONSEQUENTLY
ALLOWING THE SAID WRIT PETITION NO.107774/2016 AS PRAYED
THEREIN BY THE APPELLANTS, WITH COSTS UPON RESPONDENT
NO.5 HEREIN, IN THE INTEREST AND EQUITY.
THESE APPEALS, COMING ON FOR PRELIMINARY HEARING,
THIS DAY, S.SUNIL DUTT YADAV, J., DELIVERED THE FOLLOWING:
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WA No. 100288 of 2023
C/W WA No. 100289 of 2023
JUDGMENT
The memorandum of compromise petition under
Order XXIII Rule 1 and 3 of CPC has been filed.
2. Learned counsel for the parties identify the
signatories to the said compromise petition.
3. The memorandum of compromise petition reads
as follows:
"MEMORANDUM OF COMPROMISE PETITION
UNDER ORDER 23 RULE 1 & 3 AND SECTION 151
OF CPC R/W. SECTION 4 OF KARNATAKA HIGH
COURT ACT,1961
(1) The top-noted Writ Appeals are filed as against
the Common Order Dated: 16-12-2022 passed by the
Learned Single Judge in Writ Petitions No. 107773/2016
and 107774/2016, wherein the Writ Petitions filed by
the Appellants herein as against Order dated: 10-06-
2016 passed in Revision Petition No.CO/07/CAP/2014
and No. CC/08/CAP/2014 by the Respondent No.1 as
per Annexure-Z herein came to be confirmed, by
Disposing the Writ Petitions. Hence, this Writ Appeals
by the Writ Petitioners- Bank.
(2) That, during pendency of these Writ Appeals,
both the parties i.e. the Appellants and the
Respondents No. 4 and 5 herein have agreed for
settlement of the dispute in respect of the said Loan
transactions and Auction of the properties. This Hon'ble
Court has directed the parties to sort out the said
dispute in view of narrow difference in this regard.
Thus, the Appellants Bank, as well as the borrower in
both the Appeals and the Auction Purchaser of the
property by the society, have resolved to settle the said
dispute amicably.
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(3) Thus, in this regard, the Appellants Bank has
passed the Resolution bearing No.6.2 dated:21-11-
2023 in this regard. So also, the said borrowers-
Respondent no.5 in both the Appeals have agreed for
the said terms of the Appellants bank as per the said
Resolution, which in respect of payment of loan amount
is concerned pertaining to Award No. 682/2001-02 in
consonance with the E.P No. 26/2002. Further, the
Respondent no.4 society- Auction Purchaser has also
agreed for the terms in respect of refund of the said
Auction Amount with interest.
Thus, all the parties have agreed for the following
Terms and Conditions;
(a) That, the Appellants Urban Co-operative Bank
which has secured three Awards as against the
Respondent No. 5 in both the Writ Appeals. Thus, the
said Award were put for Execution, and out of it, one
was before the Civil Court. The said Award, Interest
etc. are as follows.
SL. LOAN AWARD NO. PRINCIPAL TOTAL
NO. ACCOUNT NO. AMOUNT+
INTEREST
1 MTL-AC No.47 4959/2000-01 Rs.1,55,262+19% Rs.9,04,464/-
Interest
Rs.7,48,975/-
2 LTC-AC No.9 682/2001-02 Rs.1,08,716+20% Rs.9,63,868/-
in E.P 26/02 interest
Rs.8,55,152/-
3 MTL-AC No.46 4944/2000-01 Rs.62,892+19% Rs.4,15,688/-
Respondent-5 interest
Rs.3,46,796/-
TOTAL Rs.22,84,020/-
Thus, after the said Auction, the E.P. No. 26/2002 as
filed before the Senior Civil Court at Chikkodi as against
the Mahaveer S/o Jinadatta Kante, in respect of Award
No. 682/2001-02 pertaining to Loan Amount No.LTL-AC
No.9, which was due for Rs.5,83,177/- was adjusted
and therefore the said E.P. came to be closed on 23-10-
2013 which is not disputed by the Respondent No.5
herein as per the documents produced in his objection
statements in the said Writ Petition No. 107773/2016.
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(b) That, now the Respondent No. 5- Mahaveer
s/o Jinadatta Kante has agreed to deposit the said
Amount of Rs. 6.02.476/- by way DD No. 088189 dated
23-11-2023 drawn through Punjab National Bank,
Infantry School Branch Belagavi payable to the
Appellant Bank Shantappanna Minji Urban Co-operative
Bank Ltd Chikkodi, in respect of the Award No
JRL/B/DDS/682/2001-02 dated 15-11-2001 and the E.P
No. 26/2002 filed in this regard, as Full and Final
Settlement. The copy of the said DD is produced, Since,
in respect of other two Awards, the Respondents no.5
in both the Appeals have already deposited the Amount
of Rs 7,74,288/- and Rs.3,23,017/- towards full and
final satisfaction of the said two Awards Amount as
passed by the Respondent No.2, before this Hon'ble
Court in the Registry, stating that, the said Amount
includes the Interest at the Rate of 19% from the date
of Award till its payment.. So also, the copy of Letter of
Acceptance of the said settlement as agreed by
Respondents no.5 herein is produced and the copy of
the said Resolution is produced in this regard.
(c) That, the said DD No. 088189 dated: 23-11-
2023 for Rupees 6,02,476/- has been received by the
Appellant Bank through its In-charge General Manager
of Appellant Bank by name Shri. Rajendra S/o Surendra
Vandure, as present before this Hon'ble Court.
(d) The Appellants Bank shall withdraw the said
Award Amount as Deposited by the Respondent No. 5
in the said Writ Petitions before this Hon'ble Court and
the Respondents no. 4 and 5 shall not object for the
same. So also, the Appellants Bank request to this
Hon'ble Court be please to direct the Registry to
transfer the said Deposited Amount with any accrued
Interest to the Account of the Appellants Bank at
Chikkodi, as the particulars of the Bank Details in this
regard are furnished. The copy of the Appellants Bank
details is produced
(e) Thus, the Respondent no.5 in both Appeals
i.e.. Mahaveer S/o Jinadatta Kante and his cousin
Brother Sharad Dhanpal Shetti have satisfied their legal
liability of its full and final in respect of all the three
Awards passed in favour in the Appellants Bank. So
also, the Appellants Bank has no claim in this regard as
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against the both the Respondents no.5 in these Writ
Appeals. So, also by the Respondent No. 4- Auction
Purchaser in this regard as against any parties. Thus,
the Appellants Bank has fully realized the said Award
Amount and the same is approved through its Board of
Management Resolution.
(f) That in respect of Auction Amount and interest
on in the payable by the Appellants Bank, as ordered
by the Learned Single Judge in the Writ Petitions to
repay the said Auction Amount with interest @ 8% P.A
from the date of Appellants Bank, as ordered by the
Learned Single Judge Registration of Sale Deed dated:
26-08-2013 till actual payment to the Auction Bidder
i.e. Respondent no.4. That, in this regard, Now the
Respondent no.4. Auction Purchaser has agreed to
receive the said amount of Rs.22,00,100/-with interest
@ 7% p.a. from the date of said Registration of Sale
deed till actual payment by the Appellants Bank and the
same is agreeable to the Appellants Bank. The said
Amount will be paid by the Appellants Bank within 10
days from today i.e., 24-11-2023 to the Respondent
No. 4- Shree Laxmi Credit Souhardh Sahakari Ltd.
Manjari, Tq. Chikoddi, Dist: Belagavi. The Copy of the
said Memo of calculation is Produced in this regard of
Respondent No. 4. (now renamed as K. P. Magennavar
Laxmi credit Souhardh sahakari sangh ltd. Manjari.)
(g) That, in respect of Stamp Duty and
Registration Charge with interest @ 8% p.a. as ordered
in the Writ Petitions, will be paid by the Respondent no.
5 in both the Writ Appeals to the Respondent no.4
herein- Auction Purchaser. That, if the said Amount
has been deposited in the Registry of this Hon'ble Court
by the Respondent no.5 herein, then the Respondent
no.4 herein- Shree Laxmi Credit Souhardh Sahakari
Ltd, Manjari, Tq. Chikkodi is permitted to withdraw the
said amount i.e., Stamp Duty and Registration Charge
on the said Registered Sale deed dated: 26-08-2013.
(h) That, all the parties in this Writ Appeals Shall
Co-operate in case of Cancellation of the said
Registered Sale Deed dated: 26-08-2013 before the
concerned Authorities. Since, in the impugned order
under Appeals, the learned single judge has set aside
the said sale in favour of the Auction Purchaser. So
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also, directed the revenue Authorities to restore the
name of the borrower in respect of the said properties.
Thus, all the parties shall act and co-operate in this
regard before the concerned Authorities, if it is required
for any parties.
(i) That, the Representative Appellants Bank, So
also the Representative of Respondent no.4 Society and
the Respondent No.5 in both Writ Appeals (Mahaveer J
Kante, on behalf of Respondent No. 5- Sharad Dhanpal
Shetti Also) have signed for this Compromise Petition in
this Writ Appeals and there is No Coercion or
Inducement or Misrepresentation or any other factor for
this Settlement/Compromise Petition. Hence, this
Compromise Petition be kindly Accepted by taking on
Record and the Writ Appeals be kindly disposed of by
this Hon'ble Court as per the terms and conditions in
this Compromise Petition in between the Parties.
For the reasons stated above, it is most humbly
prayed by the Appellants Bank and Respondents No. 4
and 5 to this Hon'ble Court be please to Accept this
Compromise Petition and thereby Modify the Impugned
Common Order dated: 16-12-2022 passed by the
Learned Single Judge in the Writ Petitions No.
107773/2016 and 107774/2016, by Allowing these Writ
Appeals as per the terms and Conditions of this
Compromise Petition in between the said Parties,
without costs throughout the proceedings, in the
interest of justice and equity."
4. The parties admit that they have signed the
memorandum of compromise after going through the
contents and on their own volition. The said compromise
is found to be lawful. In light of the same, the appeals are
disposed of recording the terms of the compromise
petition.
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5. It is noticed that the amount has been
deposited by the respondent No.5 an amount of
Rs.7,74,288/- and Rs.3,23,017/- in the Registry.
Consequent to the compromise, the said amount is
required to be remitted to the appellants-Bank. The
details for the purpose of remittance are found at page
No.14 of the compromise petition. Registry to transfer
the amount in deposit as referred above to the Bank
[Sri.Shantappanna Miraji Urban Cooperative Bank
Limited, Chikodi] as per the details furnished for the
purpose of RTGS found at page No.14 of the compromise
petition.
6. Needless to state the transfer would be of the
amount deposited with interest, if any, as accrued on the
same.
7. Learned counsel for the appellant submits that
in light of the compromise entered into, no due certificate
would be furnished to respondent No.5 with respect to the
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loan accounts, which is the subject matter of the present
proceedings.
8. Insofar as Clause-G of the compromise petition
is concerned, the respondent No.4 is permitted to
withdraw the amount paid in lieu of Stamp Duty and
Registration Charge with interest as ordered in the writ
petition, which is deposited in the Registry.
Sd/-
JUDGE
Sd/-
JUDGE
BSR
CT:BCK
