- 1 - HC-KAR NC: 2025:KHC:23622 WP No. 25014 of 2024 C/W WP No. 26249 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2ND DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 25014 OF 2024 (GM-CPC) C/W WRIT PETITION NO. 26249 OF 2024 (GM-CPC) IN WP No.25014/2024 BETWEEN: 1. MR. CHAKOLI APPALAL @ APPALAL CHAKOLI, S/O MR.J.A.CHAKOLI, AGED ABOUT 63 YEARS, R/AT NO.107, 4TH CROSS, KENCHANAPURA CROSS ROAD, JAGAJYOTHI LAYOUT, BANGALORE – 560 056. 2. MR. SHASHIDHAR K. HIREMATH, S/O LATE K.V.HIREMTH, AGED ABOUT 64 YEARS, R/AT NO.381, 9TH CROSS, 6TH BLOCK, NAGARBHAVI II STAGE, BANGALORE – 560 072. 3. MR. GIRISH B.G., S/O MR.B.R.GOPAL RAJ URS, AGED ABOUT 46 YEARS, R/AT NO.125, SAISURYA COMFIRTS, Digitally signed by NAGAVENI Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:23622 WP No. 25014 of 2024 C/W WP No. 26249 of 2024 SF-1, II MAIN ROAD, I STAGE, NEAR SAIBABA TEMPLE, VASANTHA VALLABHA NAGAR, BANGALORE – 560 061. 4. MR.RAMESH.R., S/O MR.RANGA REDDY, AGED ABOUT 45 YEARS, R/AT NO.121, T1, SHIVAGANGA RIDGE, II CROSS, HARSHA LAYOUT, YELACHENAHALLI, J.P.NAGAR, BANGALORE – 560 078. 5. MR.NIKESH A. SHAH, S/O MR.ASHOK SHAH, AGED ABOUT 51 YEARS, R/AT NO.A3, 1801, ELITA PROMENADE, 18TH MAIN ROAD, BEERESHWARANAGAR, J.P. NAGAR 7TH PHASE, BANGALORE – 560 078. …PETITIONERS (BY SRI. KESHAVA MURTHY B., ADVOCATE) AND: 1. MR. MANAMOHAN V, S/O NOT KNOWN TO PETITIONERS, AGED ABOUT 69 YEARS, R/AT NO.G-4, SMR DEVAMUKHA APARTMENT, 9TH MAIN, VIJAYA BANK LAYOUT, BILEKAHALLI, BANGALORE – 560 076. - 3 - HC-KAR NC: 2025:KHC:23622 WP No. 25014 of 2024 C/W WP No. 26249 of 2024 2. MRS.CHANDRIKA, W/O MR.V.MANAMOHAN, AGED ABOUT 65 YEARS, R/AT NO.70, C-1, II MAIN, DOLLARS COLONY, J.P.NAGAR, 4TH PHASE, BANGALORE – 560 078. 3. M/S.SIRIVAIBHAVA SOUHARDA PATTINA SAHAKARI NIYAMITHA, NO.18/19, I FLOOR, MUNIRAMASWAMY BUILDING, OPP. MASALA HOTEL, UTTARAHALLI MAIN ROAD, CHIKKALASANDRA, BANGALORE – 560 061. 4. SMT.NAGAVALLI V.R., PRESIDENT, "LAXMI NIVASA" B, NO.397, JAWAHARLAL NEHRU ROAD, BEML LAYOUT, 3RD STAGE, R.R.NAGAR, BANGALORE – 560 098. 5. MR.RAJESH V.R., THE C.E.O. "LAXMI NIVASA" B, NO.397, JAWAHARLAL NEHRU ROAD, BEML LAYOUT, 3RD STAGE, R.R.NAGAR, BANGALORE - 560 098. 6. MR.KRISHNA B.U., EX. C.E.O., S/O MR.UDAYA SHANKAR T.B., NO.4/47, BENAKA NILAYA, - 4 - HC-KAR NC: 2025:KHC:23622 WP No. 25014 of 2024 C/W WP No. 26249 of 2024 6TH CROSS ROAD, 30TH MAIN ROAD, HOYSALA NAGARA, BSK III STAGE, BANGALORE – 560 085. 7. MR.SUBRAMANYA.T., THE DIRECTOR, NO.747, 6TH 'B' MAIN ROAD, OPPOSITE SRINAGARA POST OFFICE, BANGALORE – 560 050. 8. MR.GOPAL.M., THE DIRECTOR, NO.12/2, 100 FEET ROAD, RANGAPPA LAYOUT, OPP. TO ANNAPURNESWARI TEMPLE, KATHRIGUPPE, BANGALORE – 560 085. 9. MRS. YASHASWINI B.M., THE DIRECTOR, NO.61/1, 9TH CROSS, BENRENAGARA, KADIRENAHALLI, BANGALORE – 560 070. 10. MR.R.SRIDHAR B.S., THE EX. DIRECTOR, NO.374, 9TH MAIN, OPP. GOVT. SCHOOL, VIJAYANAGARA, BANGALORE – 560 040. 11. MRS.PUSHPA V. MAYYA, THE EX.DIRECTOR, NO.31, NEW NO.19, - 5 - HC-KAR NC: 2025:KHC:23622 WP No. 25014 of 2024 C/W WP No. 26249 of 2024 6TH CROSS, 4TH MAIN, SARVABHOUMA NAGARA, CHIKKALLASANDRA, BANGALORE – 560 061. 12. MRS. REKHA B.M., THE EX-DIRECTOR, NO.389, 7TH B MAIN, 5TH CROSS, VIJAYANAGARA II STAGE, BANGALORE – 560 040. …RESPONDENTS (BY MS. NISHA TIWARI, ADVOCATE FOR R1 AND R2; NOTICE TO R3 TO R12 IS NOT NECESSARY VIDE ORDER DATED 19.09.2024) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO CALL FOR THE ENTIRE RECORDS IN EX.NO.1405/2023 PENDING ON THE FILE OF VII ADDITIONAL CITY CIVIL JUDGE AND SESSIONS JUDGE, BANGALORE JMFC, BANGALORE AND ETC. IN WP NO. 26249/2024 BETWEEN: 1. MR. CHAKOLI APPALAL @ APPALAL CHAKOLI, S/O MR.J.A.CHAKOLI, AGED ABOUT 63 YEARS, R/AT NO.107, 4TH CROSS, KENCHANAPURA CROSS ROAD, JAGAJYOTHI LAYOUT, BANGALORE – 560 056. 2. MR.SHASHIDHAR K. HIREMATH, S/O LATE K.V.HIREMTH, - 6 - HC-KAR NC: 2025:KHC:23622 WP No. 25014 of 2024 C/W WP No. 26249 of 2024 AGED ABOUT 64 YEARS, R/AT NO.381, 9TH CROSS, 6TH BLOCK, NAGARBHAVI II STAGE, BANGALORE – 560 072. 3. MR. GIRISH B.G., S/O MR.B.R.GOPAL RAJ URS, AGED ABOUT 46 YEARS, R/AT NO.125, SAISURYA COMFIRTS, SF-1, II MAIN ROAD, I STAGE, NEAR SAIBABA TEMPLE, VASANTHA VALLABHA NAGAR, BANGALORE – 560 061. 4. MR.RAMESH.R., S/O MR.RANGA REDDY, AGED ABOUT 45 YEARS, R/AT NO.121, T1, SHIVAGANGA RIDGE, II CROSS, HARSHA LAYOUT, YELACHENAHALLI, J.P.NAGAR, BANGALORE – 560 078. 5. MR.NIKESH A. SHAH, S/O MR.ASHOK SHAH, AGED ABOUT 51 YEARS, R/AT NO.A3, 1801, ELITA PROMENADE, 18TH MAIN ROAD, BEERESHWARANAGAR, J.P.NAGAR 7TH PHASE, BANGALORE – 560 078. …PETITIONERS (BY SRI. KESHAVA MURTHY B., ADVOCATE) - 7 - HC-KAR NC: 2025:KHC:23622 WP No. 25014 of 2024 C/W WP No. 26249 of 2024 AND: 1. MR. MANAMOHAN V., S/O LATE VIJAYENDRA RAO, AGED ABOUT 76 YEARS, 2. MRS.M.ANUPAMA, W/O MR.C.N.DHARANSIH, AGED ABOUT 46 YEARS, 3. MR.C.N.DHARANISH, S/O MR.C.S.NARASIMHAIAH, AGED ABOUT 48 YEARS, RESPONDENT NOS.1 TO 3 ARE R/AT NO.70, MAHARAJA ENCLAVE, II MAIN, DOLLAR COLONY, J.P.NAGAR 4TH PHASE, BANGALORE – 560 078. 4. M/S.SIRIVAIBHAVA SOUHARDA PATTINA SAHAKARI NIYAMITHA, NO.18/19, I FLOOR, MUNIRAMASWAMY BUILDING, OPP. MASALA HOTEL, UTTARAHALLI MAIN ROAD, CHIKKALASANDRA, BANGALORE – 560 061. (CO-OPERATIVE SOCIETY REIGSTERED IN C0-OPERATIVE (SOCIETY ACT) ACT) 5. SMT.NAGAVALLI V.R., PRESIDENT, "LAXMI NIVASA" B, NO.397, JAWAHARLAL NEHRU ROAD, - 8 - HC-KAR NC: 2025:KHC:23622 WP No. 25014 of 2024 C/W WP No. 26249 of 2024 BEML LAYOUT, 3RD STAGE, R.R.NAGAR, BANGALORE – 560 098. 6. MR. RAJESH V.R., THE C.E.O. "LAXMI NIVASA" B, NO.397, JAWAHARLAL NEHRU ROAD, BEML LAYOUT, 3RD STAGE, R.R.NAGAR, BANGALORE - 560 098. 7. MR.KRISHNA B.U., EX. C.E.O., S/O MR.UDAYA SHANKAR T.B., NO.4/47, BENAKA NILAYA, 6TH CROSS ROAD, 30TH MAIN ROAD, HOYSALA NAGARA, BSK III STAGE, BANGALORE – 560 085. 8. MR.SUBRAMANYA.T., THE DIRECTOR, NO.747, 6TH 'B' MAIN ROAD, OPPOSITE SRINAGARA POST OFFICE, BANGALORE – 560 050. 9. MR.GOPAL.M., THE DIRECTOR, NO.12/2, 100 FEET ROAD, RANGAPPA LAYOUT, OPP. TO ANNAPURNESWARI TEMPLE, KATHRIGUPPE, BANGALORE – 560 085. - 9 - HC-KAR NC: 2025:KHC:23622 WP No. 25014 of 2024 C/W WP No. 26249 of 2024 10. MRS. YASHASWINI B.M., THE DIRECTOR, NO.61/1, 9TH CROSS, BENRENAGARA, KADIRENAHALLI, BANGALORE – 560 070. 11. MR.R.SRIDHAR B.S., THE EX. DIRECTOR, NO.374, 9TH MAIN, OPP. GOVT. SCHOOL, VIJAYANAGARA, BANGALORE – 560 040. 12. MRS.PUSHPA V. MAYYA, THE EX.DIRECTOR, NO.31, NEW NO.19, 6TH CROSS, 4TH MAIN, SARVABHOUMA NAGARA, CHIKKALLASANDRA, BANGALORE – 560 061. 13. MRS. REKHA B.M., THE EX-DIRECTOR, NO.389, 7TH B MAIN, 5TH CROSS, VIJAYANAGARA II STAGE, BANGALORE – 560 040. …RESPONDENTS (BY MS. NISHA TIWARI, ADVOCATE FOR R1 AND R2; SRI. ADITYA CHATTERJEE, ADVOCATE A/W SMT. SOWMYA R. NAIR, ADVOCATE FOR R3; NOTICE TO R4 TO R13 IS DISPENSED WITH VIDE ORDER DATED 28.10.2024) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO i) CALL FOR THE - 10 - HC-KAR NC: 2025:KHC:23622 WP No. 25014 of 2024 C/W WP No. 26249 of 2024 ENTIRE RECORDS IN EX. NO.1404/2023, PENDING ON THE FILE OF VII ADDL. CITY CIVIL JUDGE AND SESSIONS JUDGE, BANGALORE; AND ETC. THESE PETITIONS, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA ORAL ORDER The petitioners-judgment debtor Nos.5 to 9 are at the doors of this Court calling in question proceedings in Execution No.1405/2023 with particular reference to an order dated 17.08.2024. 2. Heard Sri. B. Keshava Murthy, learned counsel appearing for the petitioners in both the cases, Ms.Nisha Tiwari, learned counsel appearing for respondent Nos.1 and 2 in both the cases, Sri. Aditya Chatterjee, learned counsel along with Smt. Sowmya R. Nair, learned counsel appearing for respondent No.3 in W.P.No.26249/2024. 3. Facts adumbrated are as follows: Respondent Nos.1 and 2 in both these cases are decree holders, said to have deposited or invested certain amounts in - 11 - HC-KAR NC: 2025:KHC:23622 WP No. 25014 of 2024 C/W WP No. 26249 of 2024 respondent No.3 - Sirivaibhava Souharda Pattina Sahakari Niyamitha (‘the bank’ for short). The said deposits were not returned. Therefore, the decree holders institute a dispute before the Competent Authority invoking Section 39 of the Karnataka Souharda Sahakara Act, 1997 ('the Act' for short). The petitioners – judgment debtors did not appear before the concerned Authority and suffered an ex-parte award on 27.03.2022. 4. The decree holders then seek to execute the said award dated 27.03.2022. Long after the passage of the award and institution of the execution proceedings as noted supra, the Government of Karnataka issues a notification concerning persons who are seeking return of amounts invested into the bank and the claimants who have not registered any claims shall also approach the competent authority for registering their claims. The Notification reads as follows: "NOTIFICATION It has come to the notice of the Government, that the financial establishments viz., Siri Vaibhava Souharda Pattina Sahakari Niyamita, Bengaluru is involved in the fraudulent transactions and failed to return deposits to their depositors. Hence, the Government has decided to initiate action as per the provisions specified under the - 12 - HC-KAR NC: 2025:KHC:23622 WP No. 25014 of 2024 C/W WP No. 26249 of 2024 Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004 (Karnataka Act 30 of 2005). It was reported that properties belonging to the said financial entity may have spread over in various districts and depositors are scattered throughout the State of Karnataka and possibly in other States also. In order to avoid duplication of efforts, necessity has arisen to authorize Competent Authority to call for claims from all the depositors of Siri Vaibhava Souharda Pattina Sahakari Niyamita, Bengaluru. Therefore, in exercise of the powers conferred by Section 5(1) of The Karnataka Protection of Interest of Depositors in Financial Establishments Act. 2004 (Karnataka Act.30 of 2005), the Government of Karnataka, hereby appoint Joint Registrar of Cooperative Societies, Cooperative Election Authority, TTMC Building, K.H Road, Shanthinagar, Bengaluru as the 'Competent Authority' in respect of Siri Vaibhava Souharda Pattina Sahakari Niyamita, Bengaluru with immediate effect. By Order and in the name of the Governor of Karnataka sd/- (Anwar Basha) Deputy Secretary to Government, Revenue Department (Services-1, SSLR & Special Cell) To: The Compiler, Karnataka Gazette, Govt. Press, Vikasa Soudha, Bengaluru. (For publication in the E Gazette) Copy to: 1. The Chief Secretary to Government, Vidhana Soudha, Bengaluru. 2. Additional Chief Secretary to Government, Finance Department, Vidhana Soudha, Bengaluru.' 3. The Additional Chief Secretary to Government, Home Department, Vidhana Soudha, Bengaluru. - 13 - HC-KAR NC: 2025:KHC:23622 WP No. 25014 of 2024 C/W WP No. 26249 of 2024 4. The Secretary to Government (Fiscal Reforms), Finance Department. 5. Regional Commissioner, Bengaluru Division and Nodal Officer and Ex-Officio Secretary Economic Offences, K.H Road, Shanti Nagar, Bengaluru. 6. Registrar of Co-operative Societies, No.1, Ali Askar Road, Bengaluru. 560 052 7. The Deputy Commissioner, Bengaluru. 8. Director General and Inspector General of Police, Karnataka, Nrupatunga Road, Bengaluru-560 001. 9. Inspector General of Police, Economic offences, CID, Carlton, House, Palace Road, Bengaluru. 10. Joint Registrar of Cooperative Societies, Cooperative Election Authority, TTMC Building, Κ.Η Road, Shanthinagar, Bengaluru and Competent Authority for Siri Vaibhava Souharda Pattina Sahakari Niyamita, Bengaluru to take necessary action as per the provisions of the KPIDFE Act 2004. 11. Deputy Superintendent of Police, CID Bengaluru and Investigation Officer for Siri Vaibhava Souharda Pattina Sahakari Niyamita, Bengaluru to take necessary action as per the provisions of the KPIDFE Act 2004. 12. The Regional Director for Karnataka, Reserve Bank of India, MI Unit, DNBS, Nrupatunga Road, Bengaluru. 13. PS to The Principal Secretary to Government, Revenue Department, M.S.Building, Bengaluru. 14. PA to Deputy Secretary to Government, Revenue Department (Services-1, SSLR & Special Cell), M.S.Building, Bengaluru. 15. Private Secretary to Hon'ble Minister for Revenue, Vidhana Soudha, Bengaluru. - 14 - HC-KAR NC: 2025:KHC:23622 WP No. 25014 of 2024 C/W WP No. 26249 of 2024 16. Under Secretary to Government, Finance Department (Exp-7/8), Vidhana Soudha, Bengaluru. 17. Under Secretary to Government, Home Department (Crimes). 18. Spare Copy/Guard File." Taking cue from the afore-quoted notification, the petitioners – judgment debtors 5 to 9 move the concerned Court contending that the concerned Court should transfer the execution case to the competent authority on the score that the concerned Court had no jurisdiction. The concerned Court which did had jurisdiction, rejects the application filed by the petitioners seeking transfer. The order of the concerned Court reads as follows: “I have perused the above said Order, Notification, Resignation tendered by JDr No.13 and also I have perused the provisions of law relied by both the sides. No doubt it is clearly observed by the Government of Karnataka that the interest of the depositors is to be safeguarded under the KPID Act. 2004 and was pleased to appoint a competent authority in that regard, but the fact remains is the present Decree Holders have approached the concerned authority U/s 39 of the Karnataka Souharda Sahakari Act 1997 prior to the date of appointment of either Special Officer or the competent authority. By considering the claim of the Decree Holders, the Arbitrator/Joint Registrar of Co-Operative Societies has acted U/s 39 of Karnataka Souharda Sahakari Act 1997. No doubt such order may be an Exparte Order by - 15 - HC-KAR NC: 2025:KHC:23622 WP No. 25014 of 2024 C/W WP No. 26249 of 2024 the concerned authority, but such order remained unchallenged before the proper Forum. As per Sec.41 of the said Karnataka Souharda Sahakari Act 1997, the Award passed by the Joint Registrar of Co-operative Societies was certified by the Recovery Officer and by virtue of the said Certificate, the Award Holders were permitted to execute the said Award before the Civil Court at Bangalore. The said Certificate also remained unchallenged till date. This Court being the Executing Court cannot go beyond the Decree/Award to hold that the Award passed against either the Judgment Debtor No.13 for the reason of his resignation to the post of Director is not correct or cannot hold that the said Award is nullified because of the appointment of either Special Officer as per the order of Managing Director dated 21.09.2022 or because of the Nofication of appointment of competent authority by virtue of Notification of the Karnataka State dated 15.09.2023. As stated above as on today a valid order passed by the Arbitrator U/s 39 of Karnataka Souharda Sahakari Act-1997 is in existence and as per Sec.43 of the said Act such Award is to be executed as if it is a Civil Decree as clearly stated in Sec.43(1)(a) of the Karnataka Souharda Sahakari Act 1997. Hence in my view the objections raised by the learned counsels for the JDr with regard to the maintainability of this Execution Petition before this Court will not sustain and the Execution Petition is maintainable before this Court unless and until such order under Execution is either varied, modified or reversed by the concerned Forum. Hence I proceed to hold the Point No.1 in the Affirmative. Point No.2:- For the foregoing reasons, I proceed to pass the following: ORDER The Execution Petition filed U/o 21 Rule 11 by the Award Holders is maintainable before this Court. - 16 - HC-KAR NC: 2025:KHC:23622 WP No. 25014 of 2024 C/W WP No. 26249 of 2024 Sd/- 13.06.2024 VII ACC & SJ, Bengaluru.” (Emphasis added) Therefore, the petitioners – judgment debtors are before this Court in the subject petition. 5. This Court on the submissions made by the learned counsel appearing for the petitioners, had granted an interim order of stay. The decree holders have filed an application seeking vacation of the interim order. 6. Learned counsel appearing for the petitioners would take this Court through the afore-quoted notification dated 15.09.2023 to contend that the directions in the notification is applicable to the proceedings irrespective of the stage and irrespective of the fora that the matter is before. It is therefore the submissions that the execution proceedings should not be permitted to continue and it should be transferred before the competent authority. Learned counsel would further submit that the concerned Court cannot even continue the execution - 17 - HC-KAR NC: 2025:KHC:23622 WP No. 25014 of 2024 C/W WP No. 26249 of 2024 proceedings. On the strength of the said Notification, the entire edifice of the submission of the petitioners are built. 7. Learned counsel appearing for the respondents, Sri. Aditya Chatterjee and Ms. Nisha Tiwari would in unison submit that the decree holders long before the issuance of the Notification had secured an award before the competent Court, which is said to be competent Court upto 15.09.2023. The notification issued by the government on 15.09.2023, which is neither retrospective not is retroactive. Therefore, both the learned counsel for the respondents submit that the execution proceedings should not be stalled at the instance of judgment debtors and the proceedings must be permitted to be continued. They would seek dismissal of the petition. 8. I have given my anxious consideration to the respective submissions made by the learned counsel and have perused the material on record. 10. The afore-narrated facts, link in the chain of events, are all a matter of record, they would not require any reiteration. The solitary submission of the learned counsel for - 18 - HC-KAR NC: 2025:KHC:23622 WP No. 25014 of 2024 C/W WP No. 26249 of 2024 the petitioners-judgment debtor Nos.5 to 9 is based upon a Notification, which is quoted supra. The Notification comes into existence on 15.09.2023. The Notification is indicative of the fact that, whether in order to avoid duplication of efforts, necessity has arisen to authorise the Competent Authority to call for claims from all the depositors of respondent No.3- bank. 11. Learned counsel appearing for the petitioners seeks to contend that the execution proceedings also would have to be transferred before the Competent Authority. This submission is noted only to be rejected. 12. On a plain reading of the Notification dated 15.09.2023, which is issued in terms of the power conferred under the Act does not have retrospective effect in and is neither retroactive for the petitioners to contend that the proceedings that had culminated in passage of an award on 27.03.2022 should be transferred to the Competent Authority in furtherance of a Notification issued on 15.09.2023, is his submission is sans countenance. - 19 - HC-KAR NC: 2025:KHC:23622 WP No. 25014 of 2024 C/W WP No. 26249 of 2024 13. The execution proceedings that have emanated from an award that is passed long before the issuance of the notification cannot be stonewalled on the ground that the notification directs cases that at any stage to be transferred before it to avoid multiplicity of proceedings. Those are best applicable only to pending proceedings. In the case at hand, the decree passed against the petitioners - judgment debtors has become final. In that light, execution proceedings cannot be permitted to be stalled at the instance of the judgment debtors on the aforesaid erroneous plea. 14. With the above observations, the petitions deserve to be rejected and are accordingly rejected. Interim order of any kind subsisting in these petitions, shall stand dissolved. Sd/- (M.NAGAPRASANNA) JUDGE SJK List No.: 1 Sl No.: 10