- 1 - HC-KAR NC: 2025:KHC-D:11978 WP No. 105185 of 2014 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 12TH DAY OF SEPTEMBER 2025 BEFORE THE HON'BLE MR. JUSTICE S.R. KRISHNA KUMAR WRIT PETITION NO. 105185 OF 2014 (S-R) BETWEEN: SRI. BASAVANT, S/O. BASAVANNEPPA NELAGALI, AGE: 69 YEARS, OCC: RETD. EMPLOYEE, R/O. NO.CCB 93/1, WAZE GALLI, M. VADAGAON, DIST: BELGAUM. …PETITIONER (BY SRI. RAVIRAJ C.PATIL AND SRI. PRASAD J.JOSHI, ADVOCATES) AND: 1. THE JOINT REGISTRAR OF CO-OP. SOCIETIES, NO. 1-9/10, DOLLARS COLONY, GOKUL ROAD, HUBLI-580020, DIST: DHARWAD. 2. THE GENERAL MANAGER THE BELGAUM INDUSTRIAL CO-OP. BANK LTD., DR. S. P. M. ROAD, BELGAUM-590001, DITS: BELGAUM. …RESPONDENTS (BY SRI. ASHOK T.KATTIMANI, AGA FOR R1 SRI. SRINAND A.PACHCHAPURE, ADVOCATE FOR R2) Digitally signed by SAMREEN AYUB DESHNUR Location: HIGH COURT OF KARNATAKA DHARWAD BENCH - 2 - HC-KAR NC: 2025:KHC-D:11978 WP No. 105185 of 2014 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER PASSED BY THE K.A.T. BANGALORE IN APPEAL NO.71/2007 DATED 22.02.2014 VIDE ANNEXURE-C, AND CONFIRMING ORDER PASSED BY THE 1ST RESPONDENT IN NO.JRD/UBF/HUBLI/1558/2005-06 DATED 29.07.2006 VIDE ANNEXURE-A AND DIRECT THE RESPONDENT NO.2 TO RELEASE THE PROVIDENT FUND, GRATUITY AND OTHER RETIREMENT BENEFITS WITH 18% INTEREST, BY ALLOWING THE WRIT PETITIONS IN THE INTEREST OF JUSTICE AND EQUITY AND ETC. THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP THIS DAY, ORDER WAS MADE THEREIN AS UNDER: ! ORAL ORDER (PER: THE HON'BLE MR. JUSTICE S.R. KRISHNA KUMAR) Learned counsel for the petitioner has filed a memo, dated 12.09.2025, which reads as under: “ Herein the Petitioner submits as under: 1. The petitioner’s retirement amount was withheld by the Respondent nO.3 bank for the reason that the petitioner was a guarantor to loan obtained by the Petitioner’s sons. 2. The petitioner made an application for One Time Settlement of both the loan accounts which was accepted by the bank and the loans accounts are closed on receipt of payment of outstanding loan along with pending interest. 3. The bank has issued No Due Certificates in respect of both the loan accounts which are annexed herewith for kind perusal of this Hon’ble Court. - 3 - HC-KAR NC: 2025:KHC-D:11978 WP No. 105185 of 2014 4. Since there are calculations to be made in view of the fact that the petitioner has settled the entire loan, it is prayed that the matter may kindly be remanded back to the Respondent No.1 (JRCS) for specific purpose of calculations on the basis of the instalments of repayments and the OTS settlement. Therefore, it is prayed that the present petition may be disposed off by remanding the matter back to the Respondent No.1 (JRCS) in the interest of justice and equity.” 2. Learned counsel for respondent No.2 has also filed a memo, dated 12.09.2025, which reads as under: “1. Mr. Basavant has closed 2 loan accounts in Acc. 291410 and 291411 by paying entire amount with interest we have issued Loan Closure Certificates and there is dispute regarding Mr.Basvant Nelagali retirement and pension benefits. 2. Therefore, for recalculations in respect of the retirement amount to be paid after OTS, the case may kindly be remanded back to JRCS, Huballi by closing this Writ Petition. Therefore, Writ petition may be kindly remanded to the JRCS Hubli in the interest of justice.” 3. The memos are taken on record. In view of the aforesaid facts and circumstances and the memos filed by - 4 - HC-KAR NC: 2025:KHC-D:11978 WP No. 105185 of 2014 both the parties, I deem it just and appropriate to allow the present petition and set aside the order dated 22.02.2014 passed in Appeal No.71/2007 by the Karnataka Appellate Tribunal, Bangalore, as well as the order dated 29.07.2006, bearing No.JRD/UBF/Hubli/1558/2005-06 passed by respondent No.1 and remit the matter back to respondent No.1–Joint Registrar of Co-operative Societies for reconsideration afresh in accordance with law. Hence, the following: ORDER i) The petition is hereby allowed in terms of the memos referred to above filed by both the parties. The order dated 22.02.2014 passed in Appeal No.71/2007 by the Karnataka Appellate Tribunal, Bangalore, as well as the order dated 29.07.2006, bearing No.JRD/UBF/Hubli/1558/2005-06 passed by respondent No.1 are hereby quashed. ii) The matter is remitted back to respondent No.1 for reconsideration afresh in accordance with law. - 5 - HC-KAR NC: 2025:KHC-D:11978 WP No. 105185 of 2014 iii) Respondent No.1 shall consider the matter and dispose of the proceedings in accordance with law after providing sufficient and reasonable opportunity to both the parties. Sd/- (S.R. KRISHNA KUMAR) JUDGE KMS Ct:vh List No.: 1 Sl No.: 6