- 1 - HC-KAR NC: 2025:KHC:52722 CRP No. 642 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE V SRISHANANDA CIVIL REVISION PETITION NO.642 OF 2023(EX) BETWEEN: SANTHOSH KUMAR, MEM No.3285 S/O CHENNAPPA RAI AGED ABOUT 44 YEARS, R/AT LAXMI NILAYA, GANASINA KUMERU, ARYAPU VILLAGE AND POST, PUTTUR TALUK D K DISTRICT-574201 …PETITIONER (BY SRI K RAVISHANKAR, ADVOCATE) AND: 1. THE ARYAPU PRIMARY AGRICULTURAL CREDIT CO-OPERATIVE SOCIETY LTD., ARYAPU VILLAGE AND POST, PUTTUR TALUK D K DISTRICT-574201 REP BY ITS CEO 2. B GANESH RAI, MEM NO.3085 S/O SANKAPPA RAI AGED 62 YEARS, R/AT BUDIYAR HOUSE, KURIYA VILLAGE AND POST, PUTTUR TALUK D K DISTRICT-574 210 3. G MAHABALA RAI, MEM NO.1777 S/O KITTANNA RAI AGED 61 YEARS Digitally signed by MALATESH K C Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:52722 CRP No. 642 of 2023 R/AT GENASINA KUMERU ARYAPU VILLAGE AND POST, PUTTUR TALUK D K DISTRICT-574201 …RESPONDENTS (BY SRI. RAVISHANKAR SHASTRY G, ADVOCATE FOR R1; R2 AND R3 ARE SERVED) THIS CIVIL REVISION PETITION IS FILED UNDER SECTION 115 OF CODE OF CIVIL PROCEDURE, AGAINST THE ORDER DATED 22.08.2023 PASSED IN EXC.7/2019 ON THE FILE OF PRINCIPAL SENIOR CIVIL JUDGE AND JMFC, AT PUTTUR D.K. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE V SRISHANANDA ORAL ORDER Heard Sri K. Ravishankar, learned counsel for the revision petitioner and Sri Ravishankar Shastry G., learned counsel for respondent No.1 2. An affidavit came to be filed by the revision petitioner which reads as under: “AFFIDAVIT BY WAY OF UNDERTAKING I, Santhosh Kumar, S/o Chennappa Rai, aged about 40 years, R/at Laxmi Nilaya, Genasina Kumeru, Aryapu Village & Post, Puttur Taluk. - 3 - HC-KAR NC: 2025:KHC:52722 CRP No. 642 of 2023 D.K District today in Bengaluru do hereby solemnly affirm and state on oath as follows - 1. I am the petitioner in the above case. I know the facts of the case. Hence I am swearing to this Affidavit. 2. The above petition is filed seeking to set aside the order dated 22/08/2023 passed in Exc. No. 7/2019 passed by the Principal Senior Civil Judge and J.M.FC. Puttur D.K. 3. I state that I am the member of the 1st respondent-society having Membership No.3285 and I have obtained the loan of Rs.6,00,000/-under the loan account bearing No.795 maintained by 1st respondent co- operative society and I have re paid a sum of Rs 1,20,000/- I state that the 1st respondent society has raised a Dispute No. 1392/2009-10 before the Assistant Registrar Puttur sub- division Puttur. I state that the Assistant Registrar has passed the award on 28/11/2011 directing me to pay a sum of Rs.4.80,000/- towards the principal amount and interest at the rate of 12% amounting into Rs. 1,48,764 together with 3.50% penal interest and accordingly ordered to pay a sum of Rs.6,28,925/-. 4. I state that the 1st respondent society had filed Execution Case No.7/2019 before the principal Senior Civil Judge and ACJM Puttur for the - 4 - HC-KAR NC: 2025:KHC:52722 CRP No. 642 of 2023 enforcement of the said decree on 28/01/2019 for a total consideration of Rs.12,76,925/- along with future interest, I state that the above matter was listed before this Hon'ble court on 26/11/2025 on which date, I have prayed this Hon'ble court and I have shown my interest to settle the matter and accordingly this Hon'ble court was pleased to direct the parties to present before the court on 09/12/2025. 5. I state that the above petition was listed before this Hon'ble court on 09/12/2025 and on which date, I and the respondent No.1 bank official were also present before the court. I state that during the course of the hearing I have undertook before this Hon'ble court to settle the dispute amicably and as a matter of the above said settlement by paying repaying Rs 15,00,000/- I hereby undertake to pay a sum of Rs.15,00,000/- (Rupees Fifteen Lakhs Only) as full and final settlement of the loan borrowed by me from the 1st respondent co-operative society. I state that out of the said Rs.15,00,000/- I have paid Rs.5,00,000/- to the 1st respondent society which has been credited to the loan account on 10/12/2015 styled as MINAP (Non agriculture medium Term Loan) bearing No.795 (SB 1707) maintained by the 1st respondent co-operative society. I state that I have enclosed the copy of receipt for - 5 - HC-KAR NC: 2025:KHC:52722 CRP No. 642 of 2023 having been paid to show the bonafide and as a 1st installment of repayment out of the total sum of Rs. 15,00,000/- 6. I state that the balance of Rs.10,00,000/- (Rupees Ten Lakhs Only) will be paid on or before 10/06/2026 (within six months). I state that I am an agriculturist and due to the paucity of funds I am unable to arrange the huge sum of Rs.10,00,000/- at a time. I state that I have already shown my bonafide by paying Rs.5,00,000/- to the 1st respondent co- operative society which has been credited to my loan account. I state that due to the loss of crops due heavy rainfall and yellow disease to the acrecanut trees and also there is no much yielding from the agriculture source of income, I pray this Hon'ble court to grant a reasonable time of six months for the repayment of the balance amount. 7. I state that for the aforesaid reasons, this Hon'ble court may be pleased to grant six months to pay the balance consideration of Rs.10,00,000/- from today and failing which the execution petition pending before the competent civil court in Exe Case No.7/2019 may be taken to logical end. I state that by considering the above said facts and circumstances of the case I pray this Hon'ble court may pass suitable orders by taking on record this affidavit of undertaking. I state that - 6 - HC-KAR NC: 2025:KHC:52722 CRP No. 642 of 2023 the above said averment made in the affidavit are true and correct and the same is based upon information. I state that the receipt of payment of Rs.5,00,000/- may be treated as part and parcel of this affidavit. Hence I pray this Hon'ble court may pass suitable orders in the interest of justice and equity.” 8. Revision petitioner is before this Court challenging the order passed by the Executing Court in Execution Case No.7/2019 on the file of Principal Senior Civil Judge and JMFC., Puttur, Dakashina Kannada. 9. Facts in the nutshell which are utmost necessary for disposal of the present revision petition are as under. 10. Respondent/decree holder filed the Execution Case No.7/2019 to execute the decree passed by the Assistant Registrar of Co-operative Societies in respect of the loan borrowed by the revision petitioner. Said dispute ended in decreeing the suit. 11. It is noted from the decree that penal interest has been awarded by the Assistant Registrar of Co-operative - 7 - HC-KAR NC: 2025:KHC:52722 CRP No. 642 of 2023 Societies without noting that there was a security of the agricultural property. 12. It is settled principles of law and requires no emphasis that executing Court cannot go behind the decree and sit as an Appellate Court over the decree in modifying the terms of the decree. Therefore, per se the order of the Executing Court do not call for any interference. 13. However, by exercising the power vested in this Court under Article 227 of the Constitution of India, if in a case where there is a security of an immovable property, penal interest is awarded in any decree, this Court is having the power under the supervisory jurisdiction to set aside the penal interest, especially when the loan is secured by an immovable property. 14. Therefore, the offer that is made in the affidavit as referred to supra by the revision petitioner needs to be accepted to put an end to the litigation once and for all. 15. Sri Ravishankar Shastri G., learned counsel for respondent No.1 however expressed apprehension that the - 8 - HC-KAR NC: 2025:KHC:52722 CRP No. 642 of 2023 society is registered under the Karnataka Co-operative Societies Registration Act and there would be audit objection if any concession is shown by the society into the award amount. 16. Since this Court is now passing the judicial order directing the society to waive the penal interest and agree for the offer that has been made by the judgment debtor/revision petitioner, such an apprehension gets automatically quelled. Society can very well explain under what circumstances the society was compelled to receive sum of Rs.15,00,000/- as full and final settlement in respect of the outstanding amount of the revision petitioner with the respondent society. Respondent society de hors the claim in the execution petition and further interest thereof. 17. Since this Court has accepted the offer made by the judgment debtor by way of an affidavit, as a special case, the society is hereby directed to accept sum of Rs.15,00,000/- as full and final settlement of which sum of Rs.5,00,000/- is already deposited by the revision petitioner with the society and balance amount would be paid on or before 31.05.2026. - 9 - HC-KAR NC: 2025:KHC:52722 CRP No. 642 of 2023 18. It is also made clear that since it is treated as a special case, this order shall not act as a precedent insofar as the claims of the societies is concerned. 19. In view of the above, following order is passed: ORDER (i) Revision petition stands disposed of in terms of the above affidavit. (ii) Failure to adhere to the contents of the affidavit in paying the balance amount of Rs.10,00,000/- on or before 31.05.2026, decree holder/society is entitled to recover the entire decreetal claim including the interest and costs, foregoing the concession shown by this Court in this order. Sd/- (V SRISHANANDA) JUDGE MR