- 1 - HC-KAR NC: 2025:KHC:25531 WP No. 12956 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 12956 OF 2024 (CS-RES) BETWEEN: SMT. ARATHI, W/O. M. SANDEEP KUMAR, AGED ABOUT 51 YEARS, R/AT NO. 3-100/4, DEVARA PADAVU, VAMANJOOR, ST. JOSEPH ENGINEERING COLLEGE, THIRUVAIL VILLAGE, VAMANJOOR POST, MANGALORE TALUK, D.K. - 575 028. …PETITIONER (BY SRI. RAJARAMA S, ADVOCATE) AND: 1. THE CHIEF EXECUTIVE OFFICER, MATHRA BHOOMI SOUHARDA SAHAKARI NIYAMITHA LTD., KAIKAMBA BRANCH - 574 757. 2. THE ASSISTANT REGISTRAR OF CO-OPERATIVE SOCIETY, RECOVERY OFFICER, KARNATAKA RAJYA SOUHADRA SAHAKARA SANGA NIYAMITHA, MALLESHWARAM, BANGALORE - 570 006. …RESPONDENTS (BY SRI. HARISH A.S, AGA FOR R2) Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:25531 WP No. 12956 of 2024 THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED NOTICE TO E-AUCTION / SALE NOTICE DATED 13/03/2024 ISSUED BY THE RESPONDENT VIDE ANNEXURE-A AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ ORAL ORDER 1. Despite the order dated 13.06.2025, process-fee has not been paid as also the interim order has not been complied. In that view of the matter, the petition stands dismissed. 2. It is observed that the present matter is not an isolated or exceptional instance but is reflective of a recurring pattern witnessed in several cases coming before this Court. In a significant number of matters, the award passed by the Registrar, which forms the basis for initiating auction proceedings under the relevant statutes governing co-operative societies - 3 - HC-KAR NC: 2025:KHC:25531 WP No. 12956 of 2024 and banks, is first challenged by the aggrieved party before the Karnataka Administrative Tribunal (KAT). Upon being unsuccessful in securing any relief from the Tribunal, the parties then approach this Court by way of writ petitions under Article 226 of the Constitution of India. 3. This Court, while mindful of the hardship that may be caused to borrowers and with a view to ensure fairness, routinely exercises its equitable and discretionary jurisdiction to grant interim relief, usually by staying the auction proceedings. However, such interim relief is invariably granted subject to specific conditions imposed by the Court, which may include depositing a portion of the outstanding amount or furnishing security within a stipulated time. Unfortunately, it is found that after securing an interim order, the petitioners often do not comply with these directions of the Court. Thereafter, they abstain from appearing before the Court, resulting in - 4 - HC-KAR NC: 2025:KHC:25531 WP No. 12956 of 2024 the dismissal of the writ petition either for non- prosecution or for failure to comply with the conditional orders. 4. What is of greater concern is that once the property is again brought for sale by the concerned co- operative bank, the very same petitioners, or sometimes persons claiming through them, file fresh writ petitions challenging the fresh auction notice. In doing so, they deliberately suppress the material facts of the earlier litigation, including the fact of dismissal of the previous writ petition and the circumstances under which such dismissal took place. Once again, by presenting the matter as if it were a fresh cause of action, they persuade the Court to grant interim relief. This cycle repeats itself, often multiple times, resulting in a protracted obstruction of the auction process. - 5 - HC-KAR NC: 2025:KHC:25531 WP No. 12956 of 2024 5. This pattern amounts to an abuse of the process of law and unduly hampers the right of the co-operative banks and financial institutions to recover dues through the auction of secured assets. Such conduct, if left unchecked, undermines both the authority of the judicial process and the integrity of court orders, apart from causing prejudice to the other stakeholders, including genuine bidders and depositors whose funds are at stake. 6. In view of the above, this Court deems it necessary to introduce institutional safeguards to prevent such repeated abuse of process. Accordingly, the Registrar (Judicial) is hereby directed to ensure that if the petitioner or any person claiming under them files any subsequent writ petition before this Court challenging any auction notice issued by Respondent No.2 in respect of the loan account of Respondent No.1, the entire record of the present petition, along with a copy of this order and other orders passed - 6 - HC-KAR NC: 2025:KHC:25531 WP No. 12956 of 2024 herein, shall be mandatorily placed before the Bench hearing the subsequent writ petition. This shall ensure that the Court is apprised of the history of litigation and can appropriately exercise its discretion. 7. Further, the Registrar (General) and Registrar (Judicial) are directed to examine this recurring issue at an institutional level and issue standing instructions to the Registry. The instructions shall ensure that whenever any writ petition challenging auction proceedings or recovery proceedings is dismissed—whether for non-prosecution, on account of non-compliance with conditional orders, or due to withdrawal of the petition—if a subsequent writ petition is filed involving the same property, loan account or auction notice, the details of the earlier petition(s), the dates and grounds of dismissal, and copies of the relevant orders shall be mandatorily - 7 - HC-KAR NC: 2025:KHC:25531 WP No. 12956 of 2024 placed on record before the Bench hearing the subsequent petition. 8. 8. Such a mechanism shall be implemented on lines similar to the practice followed in criminal jurisprudence, where successive bail applications or subsequent petitions under Section 482 of the Cr.P.C. are invariably accompanied by details and records of the earlier petitions and the orders passed thereon. This measure is essential to safeguard the sanctity of the judicial process and to deter attempts at forum shopping, concealment of material facts, and repetitive litigation. 9. The Registrar (General) shall coordinate with the Registrar (Judicial) and other concerned sections of the Registry to draft and issue the necessary standing instructions, incorporate the required changes in the case management software and filing process, and ensure compliance. A detailed - 8 - HC-KAR NC: 2025:KHC:25531 WP No. 12956 of 2024 compliance report, setting out the steps taken and instructions issued, shall be filed before this Court within a period of two weeks from today. 10. Though the present writ petition stands dismissed for non-prosecution, it is directed to be re-listed on 31.07.2025 for the limited purpose of reporting compliance with the directions issued in paragraphs 6, 7, 8 and 9 above. Sd/- (SURAJ GOVINDARAJ) JUDGE DH List No.: 1 Sl No.: 33