Karnataka High Court
M/S. Safe vs State Of Karnataka on 8 January, 2024
Author: M.Nagaprasanna
Bench: M.Nagaprasanna
-1-
NC: 2024:KHC:1044
WP No. 14581 of 2021
C/W WP No. 14583 of 2021
WP No. 14584 of 2021
WP No. 14592 of 2021
WP No. 14611 of 2021
WP No. 14617 of 2021
WP No. 14649 of 2021
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 8TH DAY OF JANUARY, 2024
BEFORE
THE HON'BLE MR JUSTICE M.NAGAPRASANNA
WRIT PETITION NO. 14581 OF 2021 (GM-CFA)
C/W
WRIT PETITION NO. 14583 OF 2021 (GM-CFA)
WRIT PETITION NO. 14584 OF 2021 (GM-CFA)
WRIT PETITION NO. 14592 OF 2021 (GM-CFA)
WRIT PETITION NO. 14611 OF 2021 (GM-CFA)
WRIT PETITION NO. 14617 OF 2021 (GM-CFA)
WRIT PETITION NO. 14649 OF 2021 (GM-CFA)
IN WRIT PETITION NO. 14581 OF 2021
BETWEEN:
Digitally signed by
PADMAVATHI B K
1. M/S SAFE LEARNING CENTER
Location: HIGH
COURT OF REP. BY ITS PROPRIETOR,
KARNATAKA
DR.T.N.CHANDRAKANTH,
OFFICE AT NO.89,
CHARLES CAMPBELL ROAD,
COX TOWN, BENGALURU - 560 005.
2. DR.T.N.CHANDRAKANTH
AGED ABOUT 64 YEARS,
S/O T.G.NARAYANAPPA,
R/AT NO.13, 'SAI CHANDANA',
1ST CROSS, ESHWARI LAYOUT,
-2-
NC: 2024:KHC:1044
WP No. 14581 of 2021
C/W WP No. 14583 of 2021
WP No. 14584 of 2021
WP No. 14592 of 2021
WP No. 14611 of 2021
WP No. 14617 of 2021
WP No. 14649 of 2021
LBS NAGAR, INDIRA NAGAR II STAGE,
BENGALURU - 560 038.
...PETITIONERS
(BY SRI. M V.CHANDRASHEKARA REDDY, ADVOCATE)
AND:
1. STATE OF KARNATAKA
REP. BY ITS SECRETARY,
DEPARTMENT OF CO-OPERATION,
M.S.BUILDING, BENGALURU - 560 001.
2. THE JOINT REGISTRAR OF
CO-OPERATIVE SOCIETIES
BANGALORE ZONE, SAHAKARA SOUDHA,
3RD FLOOR, 3RD MAIN, 8TH CROSS,
MARGOSA ROAD, MALLESHWARAM,
BENGALURU - 560 003.
3. THE DEPUTY REGISTRAR OF
CO-OPERATIVE SOCIETIES AND CHIT FUNDS-1
3RD ZONE, SAHAKARA SOUDHA,
MARGOSA ROAD, MALLESHWARAM,
BENGALURU - 560 003.
4. M/S SURABHI CHITS PRIVATE LIMITED
NO.5, GAJENDRA TOWERS, 1ST FLOOR,
11TH MAIN, 4TH BLOCK,
JAYANAGAR, BENGALURU - 560 011
REP. BY ITS ASSOCIATE VICE PRESIDENT/
GPA HOLDER SRINIVASA RAO.
...RESPONDENTS
(BY SRI.T.P.VIVEKANANDA, ADVOCATE FOR R-4)
-3-
NC: 2024:KHC:1044
WP No. 14581 of 2021
C/W WP No. 14583 of 2021
WP No. 14584 of 2021
WP No. 14592 of 2021
WP No. 14611 of 2021
WP No. 14617 of 2021
WP No. 14649 of 2021
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO CALL
FOR ENTIRE RECORDS ON THE FILE OF THE R-3 IN DISPUTE
NO.DRB-C/CFS/DIS/122/2015-16 AND ENTIRE RECORDS ON
THE FILE OF THE R-2 AND ON PERUSAL ISSUE WRIT ORDER/S
BY GRANTING THE FOLLOWING RELIEFS. a) QUASH THE
IMPUGNED ORDER DTD 23.03.2021 PASSED BY THE R-2 VIDE
ANNX-BD BY DECLARING THE SAME AS ILLEGAL, WITHOUT
JURISDICTION AND OPPOSED TO LAW AND CONSEQUENTLY
AND ETC.
IN WRIT PETITION NO. 14583 OF 2021
BETWEEN:
1. M/S. SAFE LEARNING CENTER
REP. BY ITS PROPRIETOR,
DR.T.N.CHANDRAKANTH,
OFFICE AT NO.89,
CHARLES CAMPBELL ROAD,
COX TOWN, BENGALURU - 560 005.
2. DR. T.N.CHANDRAKANTH
AGED ABOUT 62 YEARS
S/O. T.G.NARAYANAPPA,
R/AT NO.13, 'SAI CHANDANA',
1ST CROSS, ESHWARI LAYOUT,
LBS NAGAR, INDIRA NAGAR II STAGE,
BENGALURU - 560 038.
... PETITIONERS
(BY SRI. M V.CHANDRASHEKARA REDDY, ADVOCATE)
-4-
NC: 2024:KHC:1044
WP No. 14581 of 2021
C/W WP No. 14583 of 2021
WP No. 14584 of 2021
WP No. 14592 of 2021
WP No. 14611 of 2021
WP No. 14617 of 2021
WP No. 14649 of 2021
AND:
1. STATE OF KARNATAKA
REP. BY ITS SECRETARY,
DEPARTMENT OF CO-OPERATION,
M.S.BUILDING,
BENGALURU - 560 001.
2. THE JOINT REGISTRAR OF
CO-OPERATIVE SOCIETIES
BANGALORE ZONE,
SAHAKARA SOUDHA,
3RD FLOOR, 3RD MAIN,
8TH CROSS, MARGOSA ROAD,
MALLESHWARAM,
BENGALURU - 560 003.
3. THE DEPUTY REGISTRAR OF
CO-OPERATIVE SOCIETIES AND CHIT FUNDS -1
3RD ZONE, SAHAKARA SOUDHA,
MARGOSA ROAD,
MALLESHWARAM,
BENGALURU - 560 003.
4. M/S. SURABHI CHITS PRIVATE LTD.,
NO.5, GAJENDRA TOWERS,
1ST FLOOR, 11TH MAIN ,
4TH BLOCK, JAYA NAGAR,
BENGALURU - 560 011
REP. BY ITS ASSOCIATE VICE PRESIDENT /
GPA HOLDER SRINIVASA RAO.
... RESPONDENTS
(BY SRI.T.P.VIVEKANANDA, ADVOCATE FOR R-4)
-5-
NC: 2024:KHC:1044
WP No. 14581 of 2021
C/W WP No. 14583 of 2021
WP No. 14584 of 2021
WP No. 14592 of 2021
WP No. 14611 of 2021
WP No. 14617 of 2021
WP No. 14649 of 2021
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO CALL
FOR ENTIRE RECORDS ON THE FILE OF THE R-3 IN DISPUTE
NO.DRB-C/CFS/DIS/125/2015-16 AND ENTIRE RECORDS ON
THE FILE OF THE R-2 AND ON PERUSAL ISSUE WRIT ORDER/S
BY GRANTING THE FOLLOWING RELIEFS.
a) QUASH THE IMPUGNED ORDER DTD 23.03.2021 PASSED BY
THE R-2 VIDE ANNX-BD BY DECLARING THE SAME AS ILLEGAL,
WITHOUT JURISDICTION AND OPPOSED TO LAW AND
CONSEQUENTLY AND ETC.,
IN WRIT PETITION NO. 14584 OF 2021
BETWEEN:
1. M/S.SAFE LEARNING CENTER
REP. BY ITS PROPRIETOR
DR.T.N. CHANDRAKANTH
OFFICE AT NO.89
CHARLES CAMPBELL ROAD
COX TOWN, BENGALURU - 560 005.
2. DR.T.N.CHANDRAKANTH
AGED ABOUT 62 YEARS
S/O T.G.NARAYANAPPA
R/AT NO.13, 'SAI CHANDANA'
1ST CROSS, ESHWARI LAYOUT
LBS NAGAR
INDIRA NAGAR II STAGE
BENGALURU - 560 038.
... PETITIONERS
(BY SRI. M V.CHANDRASHEKARA REDDY, ADVOCATE)
-6-
NC: 2024:KHC:1044
WP No. 14581 of 2021
C/W WP No. 14583 of 2021
WP No. 14584 of 2021
WP No. 14592 of 2021
WP No. 14611 of 2021
WP No. 14617 of 2021
WP No. 14649 of 2021
AND:
1. STATE OF KARNATAKA
REP. BY ITS SECRETARY
DEPARTMENT OF CO-OPERATION
M.S.BUILDING
BENGALURU - 560 001.
2. THE JOINT REGISITRAR OF
CO-OPEATIVE SOCITIES
BANGALORE ZONE
SAHAKARA SOUDHA
3RD FLOOR, 3RD MAIN, 8TH CROSS
MARGOSA ROAD, MALLESHWARAM
BENGALURU - 560 003.
3. THE DEPUTY REGISTRAR OF
CO-OPERATIVE SOCITIES AND CHIT FUNDS-1
3RD ZONE, SAHAKARA SOUDHA
MARGOSA ROAD,
MALLESHWARAM
BENGALURU - 560 003.
4. M/S. SURABHI CHITS PRIVATE LTD.,
NO.5, GAJENDRA TOWERS,
1ST FLOOR, 11TH MAIN,
4TH BLOCK, JAYA NAGAR
BENGALURU - 560011
REP. BY ITS ASSOCIATE VICE PRESIDENT/
GPA HOLDER SRINIVASA RAO.
... RESPONDENTS
(BY SRI.T.P.VIVEKANANDA, ADVOCATE FOR R-4)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO CALL
FOR ENTIRE RECORDS ON THE FILE OF THE R-3 IN DISPUTE
-7-
NC: 2024:KHC:1044
WP No. 14581 of 2021
C/W WP No. 14583 of 2021
WP No. 14584 of 2021
WP No. 14592 of 2021
WP No. 14611 of 2021
WP No. 14617 of 2021
WP No. 14649 of 2021
NO.DRB-C/CFS/DIS/119/2015-16 AND ENTIRE RECORDS ON
THE FILE OF THE R-2 AND ON PERUSAL ISSUE WRIT ORDER/S
BY GRANTING THE FOLLOWING RELIEFS.
a) QUASH THE IMPUGNED ORDER DTD 23.03.2021 PASSED BY
THE R-2 VIDE ANNX-BD BY DECLARING THE SAME AS ILLEGAL,
WITHOUT JURISDICTION AND OPPOSED TO LAW AND
CONSEQUENTLY AND ETC.,
IN WRIT PETITION NO. 14592 OF 2021
BETWEEN:
1. M/S. SAFE
REP. BY ITS PROPRIETOR,
S. NARMADA,
W/O. DR. T.N. CHANDRAKANTH,
NO.271/1, 14TH CROSS, C.M.H. ROAD,
INDIRANAGAR, BENGALURU - 560 038.
2. S. NARMADA
AGED ABOUT 59 YEARS,
W/O. DR. T. N. CHANDRAKANTH,
R/AT NO. 13, 'SAI CHANDANA',
1ST CROSS, ESHWARI LAYOUT,
LBS NAGAR, INDIRA NAGAR, II STAGE,
BENGALURU - 560 038.
... PETITIONERS
(BY SRI. M V.CHANDRASHEKARA REDDY, ADVOCATE)
AND:
1. STATE OF KARNATAKA
REP. BY ITS SECRETARY,
DEPARTMENT OF CO-OPERATION,
-8-
NC: 2024:KHC:1044
WP No. 14581 of 2021
C/W WP No. 14583 of 2021
WP No. 14584 of 2021
WP No. 14592 of 2021
WP No. 14611 of 2021
WP No. 14617 of 2021
WP No. 14649 of 2021
M.S. BUILDING,
BENGALURU-560 001.
2. JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES
BANGALORE ZONE,
SAHAKARA SOUDHA,
3RD FLOOR, 3RD MAIN,
8TH CROSS, MARGOSA ROAD,
MALLESHWARAM,
BENGALURU - 560 003.
3. THE DEPUTY REGISTRAR OF
CO-OPERATIVE SOCIETIES AND CHIT FUNDS-I
3RD ZONE, SAHAKARA SOUDHA,
MARGOSA ROAD, MALLESHWARAM,
BENGALURU - 560 003.
4. M/S. SURABHI CHITS PRIVATE LTD.,
NO.5, GAJENDRA TOWERS, 1ST FLOOR,
11TH MAIN, 4TH BLOCK, JAYANAGAR,
BENGALURU-560 011
REP. BY ITS ASSOCIATE VICE PRESIDENT/
GPA HOLDER, SRINIVASA RAO.
... RESPONDENTS
(BY SRI.T.P.VIVEKANANDA, ADVOCATE FOR R-4)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO CALL
FOR ENTIRE RECORDS ON THE FILE OF THE R-3 IN DISPUTE
NO.DRB-C/CFS/DIS/129/2015-16 AND ENTIRE RECORDS ON
THE FILE OF THE R-2 AND ON PERUSAL ISSUE WRIT ORDER/S
BY GRANTING THE FOLLOWING RELIEFS.
a) QUASH THE IMPUGNED ORDER DTD 23.03.2021 PASSED BY
THE R-2 VIDE ANNX-BD BY DECLARING THE SAME AS ILLEGAL,
-9-
NC: 2024:KHC:1044
WP No. 14581 of 2021
C/W WP No. 14583 of 2021
WP No. 14584 of 2021
WP No. 14592 of 2021
WP No. 14611 of 2021
WP No. 14617 of 2021
WP No. 14649 of 2021
WITHOUT JURISDICTION AND OPPOSED TO LAW AND
CONSEQUENTLY AND ETC.
IN WRIT PETITION NO. 14611 OF 2021
BETWEEN:
1. M/S SAFE LEARNING CENTER
REP. BY ITS PROPRIETOR,
DR.T.N. CHANDRAKANTH,
OFFICE AT NO.89,
CHARLES CAMPBELL ROAD, COX TOWN,
BENGALURU - 560 005.
2. DR.T.N.CHANDRAKANTH
AGED ABOUT 64 YEARS,
S/O T.G.NARAYANAPPA,
R/AT NO.13, 'SAI CHANDANA',
1ST CROSS, ESHWARI LAYOUT,
LBS NAGAR, INDIRA NAGAR II STAGE,
BENGALURU - 560 038.
... PETITIONERS
(BY SRI. M V.CHANDRASHEKARA REDDY, ADVOCATE)
AND:
1. STATE OF KARNATAKA
REP. BY ITS SECRETARY,
DEPARTMENT OF CO-OPERATION,
M.S.BUILDING,
BENGALURU - 560 001.
2. THE JOINT REGISTRAR OF
CO-OPERATIVE SOCIETIES
BANGALORE ZONE,
- 10 -
NC: 2024:KHC:1044
WP No. 14581 of 2021
C/W WP No. 14583 of 2021
WP No. 14584 of 2021
WP No. 14592 of 2021
WP No. 14611 of 2021
WP No. 14617 of 2021
WP No. 14649 of 2021
SAHAKARA SOUDHA,
3RD FLOOR, 3RD MAIN,
8TH CROSS, MARGOSA ROAD,
MALLESHWARAM, BENGALURU - 560 003.
3. THE DEPUTY REGISTRAR OF
CO-OPERATIVE SOCIETIES AND CHIT FUNDS-1
3RD ZONE, SAHAKARA SOUDHA,
MARGOSA ROAD,
MALLESHWARAM,
BENGALURU - 560 003.
4. M/S SURABHI CHITS PRIVATE LTD.,
NO.5, GAJENDRA TOWERS,
1ST FLOOR, 11TH MAIN, 4TH BLOCK,
JAYA NAGAR, BENGALURU - 560 011
REP. BY ITS ASSOCIATE VICE PRESIDENT/
GPA HOLDER SRINIVASA RAO.
... RESPONDENTS
(BY SRI.T.P.VIVEKANANDA, ADVOCATE FOR R-4)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO CALL
FOR ENTIRE RECORDS ON THE FILE OF THE R-3 IN DISPUTE
NO.DRB-C/CFS/DIS/124/2015-16 AND ENTIRE RECORDS ON
THE FILE OF THE R-2 AND ON PERUSAL ISSUE WRIT ORDER/S
BY GRANTING THE FOLLOWING RELIEFS.
a) QUASH THE IMPUGNED ORDER DTD 23.03.2021 PASSED BY
THE R-2 VIDE ANNX-BD BY DECLARING THE SAME AS ILLEGAL,
WITHOUT JURISDICTION AND OPPOSED TO LAW AND ETC.,
- 11 -
NC: 2024:KHC:1044
WP No. 14581 of 2021
C/W WP No. 14583 of 2021
WP No. 14584 of 2021
WP No. 14592 of 2021
WP No. 14611 of 2021
WP No. 14617 of 2021
WP No. 14649 of 2021
IN WRIT PETITION NO. 14617 OF 2021
BETWEEN:
1. M/S. SAFE
REP. BY ITS PROPRIETOR,
S. NARMADA,
W/O. DR. T.N. CHANDRAKANTH,
NO.271/1, 14TH CROSS,
C.M.H. ROAD, INDIRANAGAR,
BENGALURU - 560 038.
2. S. NARMADA
AGED ABOUT 59 YEARS,
W/O. DR. T. N. CHANDRAKANTH,
R/AT NO. 13, 'SAI CHANDANA',
1ST CROSS, ESHWARI LAYOUT,
LBS NAGAR, INDIRA NAGAR, II STAGE,
BENGALURU - 560 038.
... PETITIONERS
(BY SRI. M V.CHANDRASHEKARA REDDY, ADVOCATE)
AND:
1. STATE OF KARNATAKA
REP. BY ITS SECRETARY,
DEPARTMENT OF CO-OPERATION,
M.S. BUILDING,
BENGALURU - 560 001.
2. THE JOINT REGISTRAR OF
CO-OPERATIVE SOCIETIES
BANGALORE ZONE, SAHAKARA SOUDHA,
3RD FLOOR, 3RD MAIN,
8TH CROSS, MARGOSA ROAD,
MALLESHWARAM, BENGALURU - 560 003.
- 12 -
NC: 2024:KHC:1044
WP No. 14581 of 2021
C/W WP No. 14583 of 2021
WP No. 14584 of 2021
WP No. 14592 of 2021
WP No. 14611 of 2021
WP No. 14617 of 2021
WP No. 14649 of 2021
3. THE DEPUTY REGISTRAR OF
CO-OPERATIVE SOCIETIES AND CHIT FUNDS-1
3RD ZONE, SAHAKARA SOUDHA,
MARGOSA ROAD, MALLESHWARAM,
BENGALURU - 560 003.
4. M/S. SURABHI CHITS PRIVATE LTD.,
NO.5, GAJENDRA TOWERS,
1ST FLOOR, 11TH MAIN,
4TH BLOCK, JAYANAGAR,
BENGALURU - 560 011,
REP. BY ITS ASSOCIATE VICE PRESIDENT/
GPA HOLDER SRINIVASA RAO.
... RESPONDENTS
(BY SRI.T.P.VIVEKANANDA, ADVOCATE FOR R-4)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO CALL
FOR ENTIRE RECORDS ON THE FILE OF THE R-3 IN DISPUTE
NO.DRB-C/CFS/DIS/130/2015-16 AND ENTIRE RECORDS ON
THE FILE OF THE R-2 AND ON PERUSAL ISSUE WRIT ORDER/S
BY GRANTING THE FOLLOWING RELIEFS.
a) QUASH THE IMPUGNED ORDER DTD 23.03.2021 PASSED BY
THE R-2 VIDE ANNX-BD BY DECLARING THE SAME AS ILLEGAL,
WITHOUT JURISDICTION AND OPPOSED TO LAW ETC.,
IN WRIT PETITION NO. 14649 OF 2021
BETWEEN:
1. M/S SAFE LEARNING CENTER
REP. BY ITS PROPRIETOR
DR.T.N.CHANDRAKANTH
OFFICE AT NO.89, CHARLES CAMPBELL ROAD
COXTOWN, BENGALURU - 560 005.
- 13 -
NC: 2024:KHC:1044
WP No. 14581 of 2021
C/W WP No. 14583 of 2021
WP No. 14584 of 2021
WP No. 14592 of 2021
WP No. 14611 of 2021
WP No. 14617 of 2021
WP No. 14649 of 2021
2. DR.T.N.CHANDRAKANTH
AGED ABOUT 64 YEARS
S/O T.G.NARAYANAPPA
R/AT NO.13, 'SAI CHANDANA'
1ST CROSS, ESHARI LAYOUT
LBS NAGAR, INDIRA NAGAR II STAGE
BENGALURU - 560 038.
... PETITIONERS
(BY SRI. M V.CHANDRASHEKARA REDDY, ADVOCATE)
AND:
1. STATE OF KARNATAKA
REP. BY ITS SECRETARY,
DEPARTMENT OF CO-OPERATION,
M.S. BUILDING,
BENGALURU - 560 001.
2. THE JOINT REGISTRAR OF
CO-OPERATIVE SOCIETIES
BANGALORE ZONE
SAHAKRA SOUDHA
3RD FLOOR, 3RD MAIN, 8TH CROSS
MARGOSA ROAD, MALLESHWARAM
BENGALURU - 560 003.
3. THE DEPUTY REGISTRAR OF
CO-OPERATIVE SOCIETIES AND CHIT FUNDS -1
3RD ZONE, SAHAKARA SOUDHA
MARGOSA ROAD, MALLESHWARAM
BENGALURU - 560 003.
4. M/S SURABHI CHITS PRIVATE LTD.,
NO.5, GAJENDRA TOWERS
1ST FLOOR, 11TH MAIN, 4TH BLOCK
JAYANAGAR,
- 14 -
NC: 2024:KHC:1044
WP No. 14581 of 2021
C/W WP No. 14583 of 2021
WP No. 14584 of 2021
WP No. 14592 of 2021
WP No. 14611 of 2021
WP No. 14617 of 2021
WP No. 14649 of 2021
BENGALURU - 560011
REP. BY ITS ASSOCIATE VICE PRESIDENT /
GPA HOLDER SRINIVASA RAO
... RESPONDENTS
(BY SRI.T.P.VIVEKANANDA, ADVOCATE FOR R-4)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO CALL
FOR ENTIRE RECORDS ON THE FILE OF THE R-3 IN DISPUTE
NO.DRB-C/CFS/DIS/121/2015-16 AND ENTIRE RECORDS ON
THE FILE OF THE R-2 AND ON PERUSAL ISSUE WRIT ORDER/S
BY GRANTING THE FOLLOWING RELIEFS.
a) QUASH THE IMPUGNED ORDER DTD 23.03.2021 PASSED BY
THE R-2 VIDE ANNX-BD BY DECLARING THE SAME AS ILLEGAL,
WITHOUT JURISDICTION AND OPPOSED TO LAW AND
CONSEQUTNTLY AND ETC.,
THESE WRIT PETITIONS, COMING ON FOR ORDERS, THIS
DAY, THE COURT MADE THE FOLLOWING:
ORDER
Learned counsel appearing for respondent No.4 would
submit that the issue in the lis stands answered by the
judgment rendered by the co-ordinate Bench against, which the
Special Leave Petition filed is also not entertained. The
co-ordinate Bench of this Court in W.P.No.10260/2021 and
- 15 -
NC: 2024:KHC:1044
W.A.No.1207/2021, and the Apex Court in Special Leave
Petition (Civil) Diary No(s).21845/2023, has held as follows:
2. Respondent No.4 is a Chit company.
Second petitioner and her husband
Dr.T.N.Chandrakanth subscribed for several chits.
They were successful bidder and received money
from fourth respondent. Petitioners defaulted in
repayment. Parties entered into a memorandum
of understanding dated 14.10.2015
(Annexure-R9).
3. It is recorded in the MOU that second
petitioner and her husband had defaulted in
repaying 3,71,00,000/-.They agreed to pay a sum
of Rs.3,50,00,000/- and issued ten cheques. The
fourth respondent agreed to release the property
in favour of second petitioner and her husband.
Thus, parties amicably settled sixteen disputes.
4. Petitioners did not honour the
commitment of repayment. The cheques issued
by the petitioners were dishonoured for want of
sufficient funds. Fourth respondent issued a legal
- 16 -
NC: 2024:KHC:1044
notice. In their reply dated
30.04.2016,petitioners contended that fourth
respondent having initiated proceedings before
the Deputy Registrar of Chits, it should proceed
under Chit Funds Act, 1882 and not under the
Negotiable Instruments Act.
5. Petitioners filed an application to set-
aside the compromise arrived at between the
parties on 29.10.2015 and to
re-open the case. By order dated 05.01.2017
(Annexure-AW) the Deputy Registrar of Chits
dismissed the said application holding that
petitioners had failed to prove that the
compromise was arrived at by threat and
misrepresentation. Petitioners challenged the
same in the appeal. By his order dated
23.03.2021, the Joint Registrar has dismissed the
said appeal. Hence, this writ petition.
6. Shri Jaya Kumar S. Patil submitted
that the compromise was not bonafide and
petitioners have signed the compromise petition
due to coercion andmisrepresentation.
- 17 -
NC: 2024:KHC:1044
7. Shri Vivekananda submitted that though
the outstanding amount was Rs.3.71 Crores, in
order to settle the dispute fourth respondent
agreed to receive Rs.3.5Crores and settled the
dispute on 14.10.2015. Immediately thereafter,
second petitioner has sold the property.
Thereafter, petitioners have turned around and
failed to fulfill their commitment by honouring the
cheques. He submitted that the compromise
petition was prepared on13.10.2015 and the
orders were passed on 29.10.2015.
8. He further admitted that, if the
compromise was not acceptable to the
petitioners, petitioners could have immediately
approached the authorities.
9. Admittedly, the cheques issued by
the petitioners have been dishonoured. This Court
under Article 226 of the Constitution cannot hold
a roving enquiry into the facts of the case.
Therefore, the writ petition is liable to be
dismissed.
10. I have carefully considered rival
contentions and perused the records.
- 18 -
NC: 2024:KHC:1044
11. In the affidavit filed in support of
application to recall the compromise, the second
respondent has stated in para (m) that she was
busy in making arrangement for marriage of her
daughter which was fixed on 01.11.2015.Fourth
respondent had obtained attachment order in
respect of her property. Taking advantage of the
situation, the managing director and directors of
fourth respondent, cornered her and her husband
settled the dispute bypassing Rs.50 lakhs towards
full and final settlement. They have taken her
signature on blank stamp paper and other blank
sheets. By believing their representation, she has
signed the blank papers. Second petitioner and
her husband have issued blank cheques on trust.
12. Thus, in substance, petitioners' case is
that the compromise arrived at between the
parties is based on misrepresentation. The
Deputy Registrar has rejected petitioners'
application to re-open the case. The Joint
Registrar has recorded that petitioners have
appeared for enquiry on 29.09.2015 and
thereafter, second petitioner has paid Rs.50 lakhs
through her advocate.
- 19 -
NC: 2024:KHC:1044
13. Thus, petitioners' case hinges around
their claim of signing the compromise and issuing
the cheques based on misrepresentation. These
are all matters of fact. Both authorities below
have concurrently held that petitioners' have
appeared for enquiry and payment of Rs.50 Lakhs
has been made through an advocate. The original
and the appellate authority are the fact finding
authorities. It is settled that in proceedings under
Article 226 of Constitution, this court cannot
conduct enquiry with regard to facts of the case.
Resultantly, this writ petition fails and it is
accordingly dismissed.
No costs."
" JUDGMENT IN W.A.No.1207/2021
This intra Court appeal emanates from an
order dated 16.09.2021 passed by the learned
Single Judge by which writ petition preferred by
the appellants has been dismissed and the orders
dated 05.01.2017 and 23.03.2021 passed by the
Deputy Registrar and Joint Registrar of
Co-operative Societies, have been upheld.
- 20 -
NC: 2024:KHC:1044
2. Facts giving rise to filing of this appeal
briefly stated are that M/s. Surabhi Chits Private
Limited (hereinafter referred to as 'the Company')
is a chit Company. The appellant No.2 and her
husband Dr.T.N.Chandrakanth subscribed for
several chits and were successful bidders. The
appellants received money from the Company
and defaulted in repayment of the amount.
3. The appellants thereupon entered into
a compromise with the Company. Under the
aforesaid agreement, the appellants agreed to
pay a sum ofRs.3,50,00,000/- and issued ten
Cheques. The Company thereupon agreed to
release the property in favour of the appellants.
However, the appellants did not annul the
commitment of repayment and the Cheques
issued by the appellants were dishonored on
account of insufficiency of funds. Thereupon, the
Company issued a notice. The appellants sent a
reply on 30.04.2016 in which it was stated that
the Company should infact initiate the
proceedings under the Chit Funds Act, 1882
inspite of initiating proceedings under the
Negotiable Instruments Act, 1881. The
appellants, after a period of ten months from
- 21 -
NC: 2024:KHC:1044
entering into compromise with the Company i.e.
some time in August2016, filed an application
seeking to set aside the compromise arrived at
between the parties on29.10.2015. The Deputy
Commissioner, by an order dated 05.01.2017,
dismissed the application preferred by the
appellants. The aforesaid order was affirmed in an
appeal by an order dated 23.03.2021 passed by
the Joint Registrar. The appellants thereupon
challenged the order in a writ petition. The
learned Single Judge, by an order dated
16.09.2021, has dismissed the writ petition. In
the aforesaid factual background, this appeal
arises for our consideration.
4. Learned Senior counsel for the appellants
submitted that the appellants are willing to
deposit the remaining amount of Rs.40,00,000/-
as directed by this Court by an order dated
21.07.2022. Learned Senior counsel for the
appellants, at the outset, submitted that the
attempts to arrive at an amicable settlement,
have failed. It is further submitted that the
appellants be granted time till 13.03.2023 and
the appellants shall deposit the remaining amount
of Rs.40,00,000/- as directed vide order dated
- 22 -
NC: 2024:KHC:1044
21.07.2022. It is further submitted that the order
passed by the Deputy Registrar and the Joint
Registrar are cryptic and suffer from the vice of
non-application of mind. It is contended that in
the facts of the case, the claim of the appellants
seeking recall of the compromise arrived at
between the parties deserves to be enquired into.
5. On the other hand, learned counsel for
the Company has submitted that the appellants
had entered into a compromise with the Company
which is in their own volition and it is not the case
of the appellants that either threat, coercion or
misrepresentation was effected by the Company
while entering into a compromise. It is pointed
out that after a period of ten years by way of an
after thought, appellants had filed a petition
before the Deputy Registrar seeking recall of the
order. It is also urged that having taken
advantage of the compromise and having sold the
property which was released in favour of the
appellants in pursuance of the compromise, the
appellants are not justified in seeking to recall the
compromise arrived at between the parties.
- 23 -
NC: 2024:KHC:1044
6. We have considered the submissions
made on both sides and have perused the record.
Admittedly, in the proceedings before the Deputy
Registrar of Co-operative Societies, an application
under Order 23 Rule3 which was duly signed by
the parties, was filed on13.10.2015. The
compromise arrived at between the parties was
recorded by the Deputy Registrar. Acting under
the compromise, the appellants got the property
situated at Malleshwaram, released on
15.10.2015 and within a period of two days, sold
the same on17.10.2015. Thereafter, it is also
pertinent to note that the appellants had entered
into a memorandum of understanding with the
Company on 14.10.2015. In the aforesaid
memorandum of understanding, the appellants
had clearly admitted that they are defaulters and
they owed a sum of Rs.3,50,00,000/- to the
Company. The aforesaid memorandum of
understanding was an independent contract apart
from the compromise.
7. It is pertinent to note that it is not the
case of the appellants that any fraud,
misrepresentation or coercion was exercised on
them by the Company while entering into either
- 24 -
NC: 2024:KHC:1044
the compromise or memorandum of
understanding. The appellants had taken
advantage of the compromise and got released
the property at Malleshwaram and immediately
within two days, sold the same. After a period of
ten months, sometime in the month of August
2016, the appellants filed an application seeking
recall of the compromise. Thus, the aforesaid
application was clearly based on an afterthought.
It is pertinent to note that a Bench of this Court,
by an order dated 21.07.2022, had directed the
appellants to pay a further sum of Rs.50,00,000/-
before the Joint Registrar. However, despite
opportunities being granted to the appellants, the
appellants have only deposited a sum of
Rs.10,00,000/- and till today has not deposited
the amount of Rs.40,00,000/-. Therefore, the
appellants have not complied with the interim
order passed by this Court. The Deputy Registrar
as well as the Joint Registrar who are the fact
finding authorities, have concurrently found that
no case for setting aside the compromise petition
between the parties is made out. The aforesaid
concurrent finding of fact has not been
demonstrated to be perverse in this intra Court
appeal which has also been upheld by the learned
- 25 -
NC: 2024:KHC:1044
Single Judge. The conduct of the appellants, in
taking advantage of the compromise and in
alienating the property and thereafter not
complying with the interim order passed by this
Court on 21.07.2022 disentitles to any relief in
exercise of extraordinary jurisdiction of this
Court.
For the aforementioned reasons, we do not
find any ground to differ with the conclusion
arrived at by the learned Single Judge.
In the result, the appeal fails and is hereby
dismissed.
Consequently, the pending interlocutory
application is also dismissed."
" ORDER IN SLP (Civil) Diary No(s).21845/2023
Delay condoned.
We find no ground to interfere with the
impugned order(s) passed by the High Court. The
Special Leave Petitions are, accordingly,
dismissed.
- 26 -
NC: 2024:KHC:1044
Pending interlocutory application(s), if any,
is/are disposed of."
2. In the light of the issue standing answered by the
co-ordinate Bench as affirmed by the Division Bench and the
special leave petition being dismissed, these petitions stand
rejected, as issue in the subject lis is identical.
Sd/-
JUDGE
KG
