- 1 - HC-KAR NC: 2025:KHC:45502 WP No. 11081 of 2016 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE R. NATARAJ WRIT PETITION NO. 11081 OF 2016 (CS-RES) BETWEEN: THE MALNAD ARECA MARKETING CO OPERATIVE SOCIETY LTD., SHIMOGA BY ITS MANAGING DIRECTOR P B NO.13, A.P.M.C. YARD SHIVAMOGGA. …PETITIONER (BY SRI. DESHRAJ, ADVOCATE) AND: 1. THE ADDITIONAL REGISTRAR OF CO-OPERATIVE SOCIETIES (C & M) BANGALORE NO.1, ALI ASKAR ROAD BENGALURU-560052. 2. M/S SRI.RAMA TRADERS ARECANUT MERCHANT NO.5, A.P.M.C YARD SAGAR-577401. 3. S.T.ASHWINI KUMAR MANAGING PARTNER M/S SRI.RAMA TRADERS NO.5, APMC YARD SAGAR-577401. 4. SMT.JAYALAKSHMI W/O S.R.TIMMAPPA PARTNER M/S SRI.RAMA TRADERS NO.5, APMC YARD Digitally signed by SUMA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:45502 WP No. 11081 of 2016 SAGAR-577401. 5. 5a 5b S.T.ROOPA SINCE DEAD BY HER LRs RAJESH B BHAT S/O BALAKRISHNA G BHAT MAJOR IN AGE NO.34111, TATA NEW HAVEN HUSKUR MAIN ROAD NEAR GOLDEN PALAMS HOTEL AND SPA SHESHAGIRI RAO PLAYA DASANAPURA, BANGALORE-562123. CHINAMAYA RAJESH BHAT S/O RAJESH BHAT MAJOR IN AGE NO.34111, TATA NEW HAVEN HUSKUR MAIN ROAD NEAR GOLDEN PALMS HOTEL AND SPA SHESHAGIRI RAO PLAYA DASANPURA, BENGALURU-562123. 6. K P MAHABALESHWARA MANAGING PARTNER PARTNER M/S SRI RAMA TRADERS NO.5, APMC YARD SAGAR-577401. 7. MR TIMMAPPA S/O ASHWINIKUMAR SINCE MINOR REPRESENTED BY HIS NATURAL GUARDIAN SMT RAJASHREE ASHWINIKUMAR R/AT VINOBA NAGAR, SAGAR TOWN SAGAR, SHIMOGA DISTRICT-577401 8. SMT RAJASHREE ASHWINIKUMAR W/O ASHWINIKUMAR MAJOR R/AT VINOBA NAGAR SAGAR TOWN - 3 - HC-KAR NC: 2025:KHC:45502 WP No. 11081 of 2016 SAGAR, SHIMOGA DISTRICT-577401. [RESPONDENT NOS.4 TO 8 ARE DELETED VIDE ORDER DATED 10.11.2025] …RESPONDENTS (BY SRI.H.K.KENCHEGOWDA, AGA FOR R1: SRI.S.V.PRAKASH, ADVOCATE FOR R2 AND R3: VIDE ORDER DATED 10.11.2025 R4 TO 8 ARE DELETED) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER DATED 16.10.2015 IN APPEAL NO.13/10 PASSED BY THE HON'BLE KARNATAKA APPELLATE TRIBUNAL (VIDE ANNEXURE-U) AND CONSEQUENTLY ALLOW THE SAID APPEAL AND ETC. THIS PETITION, COMING ON FOR REPORTING SETTLEMENT, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE R. NATARAJ ORAL ORDER The petitioner has sought for following reliefs: "(i) Issue a Writ of Certiorari and quash the Order dated 16:10:2015in Appeal No. 13/10 passed by the Hon'ble Karnataka Appellate Tribunal (Vide Annexure-U) and consequently allow the said appeal; and (ii) Modify the order dated 13.11.2009 in so far awarding the full claim of the Petitioner by allowing the Dis. No.A(C:M):DIS/D2/3133/2004- 05 of the Petitioner, (Vide Annexure-T); - 4 - HC-KAR NC: 2025:KHC:45502 WP No. 11081 of 2016 2. After hearing the learned counsel for the petitioner and the learned counsel for the respondents, the parties have arrived at a settlement and filed a joint memo today, the relevant terms of which reads as follows: "6. The petitioner society filed insolvency case in Insolvency Case No.2/2004 before the Learned III Additional District Judge, Shivamogga against the second respondent firm. In terms of the Order dated 14.09.2018 passed by the Learned III Additional District Judge in the said case the second respondent deposited a sum of Rs.27,00,209/-(Rupees. Twenty Seven Lakhs Two Hundred Nine Only) by way of Demand Draft No.404317 dated 28.09.2018 drawn on State Bank of India, Sagar Branch, in favour of District and Sessions Judge, Shivamogga along with Memo dated 29.09.2018 which is the amount payable to the petitioner as per the award passed by the first respondent dated 13.11.2009 and the petitioner declined to accept the said amount on the ground that its claim remain disputed and therefore, the said amount was lying in the account of District and Sessions Judge, Shivamogga. 7. Upon intervention, guidance and the suggestion of this Hon'ble Court, parties have sit across the table and upon mutual discussions and negotiations have amicably resolved all disputes and eventually the claim of the petitioner stands fully and finally settled for Rs. 78,00,209/- covering all claims, demands actions, proceedings, rights and liabilities of the petitioner- Society - 5 - HC-KAR NC: 2025:KHC:45502 WP No. 11081 of 2016 against the respondents 2 to 8 individually and collectively and also against the third respondent in his individual capacity either past, present or future arising out of or connection with the dispute that forms the subject matter of the above captioned writ petition. It has been agreed between the parties that no further claims shall be made or entertain upon receipt of the amount as settled between the parties either collectively or individually. 8. It is agreed between the parties that a sum of Rs.27,00,209/- deposited by the second respondent in Insolvency Case No.2/2004 shall be withdrawn by the petitioner for which the respondents 2 and 3 shall provide all necessary consents, applications, and documents required to facilitate prompt release of said amount to the petitioner without obstruction or delay and the respondents 2 and 3 have agreed for the same. 9. The respondents 2 and 3 shall pay remaining Rs.51,00,000/- (Rupees Fifty One Lakhs only) in two equal installments i.e.. Rs.25,50,000/- (Rupees Twenty Five Lakhs Fifty Thousand only) on or before 31.03.2026 and Rs.25.50.000/- (Rupees Twenty Five Lakhs Fifty Thousand only) on or before 31.12.2026 by way of banker's cheque, demand draft or mutually agreed more and the petitioner shall issue receipt for having received the amount from the respondents 2 and 3. 10. It is agreed between the parties that in case of delay or default to pay the installments by the respondents 2 - 6 - HC-KAR NC: 2025:KHC:45502 WP No. 11081 of 2016 and 3 within the time mentioned supra, the petitioner shall be entitled for the interest on the said amount at the rate of 12% per annum from the due date of the installments till realization and the said interest shall be payable without prejudice to the rights of the petitioner- society to initiate appropriate legal proceedings for enforcement of terms of this joint memo for recovery of the balance principle with accrued interest. 11. 11. Upon receipt of the entire settlement amount the petitioner-society agrees and undertakes that it shall have no further claims, actions, or proceedings of any kind against the respondents in the individually or collectively whether past, present or future in respect of or arising out of the dispute forming the subject matter of the captioned writ petition and this settlement shall be a full and final discharge of all rights and liabilities of the respondents towards the petitioner-society in relation thereto. 12. The petitioner-society has agreed to withdraw the criminal appeals filed before this Hon'ble Court in Crl.A.1218/2017 and Crl.A. No.1217/2017 filed against the respondents 2 herein and also the Misc. Appeal filed before this Hon'ble Court in M.F.A.No.2743/2019 against the respondents forthwith. 13. The petitioner-society is entitled to recover the amount agreed to be paid either collectively or individually from the respondents 2 and 3 and the respondents 2 and 3 in turn undertake that they shall - 7 - HC-KAR NC: 2025:KHC:45502 WP No. 11081 of 2016 strictly adhere to the terms and conditions adumbrated in this Joint Memo including the payment schedule and procedural requirement for withdrawal of the deposited amount. 14. The parties to this joint memo hereby confirm that they shall not at any stage hereinafter dispute the Validity enforceability, or binding nature of this joint memo or raise any objections to its execution or implementation before any forum." 3. Since the compromise entered into between the parties is just and proper and is not opposed to any law, the same is accepted. The parties are identified by their respective counsel and they acknowledge and admit the terms of the joint memo. 4. Hence, this writ petition is disposed off. The order passed by respondent No.1 and confirmed by the KAT is modified and the writ petition as well as the proceedings initiated before respondent No.1 and the appeal before the KAT stand disposed off in terms of this compromise petition. Sd/- (R. NATARAJ) JUDGE BKN/List No.: 1 Sl No.: 42