- 1 - HC-KAR NC: 2025:KHC:28713 WP No. 21727 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 21727 OF 2025 (CS-RES) BETWEEN: 1. SRI VEERESHKUMAR, SON OF SRI. RENUKAIAH H.R, AGED ABOUT 60 YEARS, RESIDING AT HALANUR, TUMKUR TALUK, TUMKUR 572103. …PETITIONER (BY SRI. N BHARGAV.,ADVOCATE) AND: 1. THE DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETY, KARNATAKA STATE SOUHARDA FEDERAL COOPERATIVE LTD. SOUHARDA SAHAKARI SOUDHA, NO.68, 1ST FLOOR, E MAIN ROAD, MARGOSA ROAD, MALLESWARAM, BENGALURU - 560055. (CO OPERATIVE SOCIETY REGISTERED UNDER KARNATAKA SOUHARDHA SAHAKARI ACT, 1997) 2. SHIVASHREE SOUHARDA PATTINA SAHAKARI SANGHA NIYAMITHA, SHIVASHREE, 1ST FLOOR, 7TH CROSS, ASHOKNAGAR, TUMKUR 572-103, REP. BY THE CHIEF EXECUTIVE OFFICER (CO OPERATIVE SOCIETY REGISTERED UNDER CO-OPERATIVE SOCIETIES ACT, 1912) 3. DR. ANAND G.S, S/O. SHIVAPRASAD G, AGED ABOUT 50 YEARS, RESIDING AT NO.253, Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:28713 WP No. 21727 of 2025 17TH CROSS, SADASHIVANAGAR, BENGALURU-560 080 …RESPONDENTS (BY SRI. YOGESH D NAIK.,AGA FOR R1; V/O DT 25/07/2025 NOTICE TO R2 & R3 ARE D/W) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI OR ANY OTHER WRIT, ORDER OR DIRECTION QUASHING THE ORDER DATED 09.05.2025 PASSED ON IA NO. IV IN APPEAL NO. 122/2025 PASSED BY THE KARNATAKA APPELLATE TRIBUNAL (ANNEXURE - F) AND ALLOW THE IA NO. IV FOR WAIVER OF PRE-DEPOSIT OF 25 PERCENT OF AWARD AMOUNT 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. The learned Additional Government Advocate accepts notice for respondent No.1 2. Notice to respondents No.2 and 3 is dispensed with in view of the proposed order to be passed. 3. Respondent No.3 had availed of financial assistance from respondent No.2 as regards which, the petitioner was a guarantor to an extent of ₹3,00,00,000/- [Rs.Three crores only] plus interest. The payments not having been made by respondent No.3, a dispute having been raised, the JRCS in Dispute No.230/2023-24 had passed an - 3 - HC-KAR NC: 2025:KHC:28713 WP No. 21727 of 2025 award for recovery of a sum of ₹10,69,56,544/- along with cost and interest. 4. The submission of learned counsel for the petitioner is that the said award comprises of two loan transactions. The petitioner is not concerned with the second loan transaction where an amount of ₹6,09,56,544/- [Rs.Six crores nine lakhs fifty six thousand five hundred and forty four only] and the petitioner is only concerned with the award in respect of ₹4,60,00,000/- [Rs.Four crores sixty lakhs only]. As such, he submitted that the challenge made to the award before the Karnataka Appellate Tribunal pertains only to the said award for a sum of ₹4,60,00,000/- [Rs.Four crores sixty lakhs only] and not to ₹6,09,56,544/- [Rs.Six crores nine lakhs fifty six thousand five hundred and forty four only], the appeal being restricted to ₹4,60,00,000/- [Rs.Four crores sixty lakhs only], the petitioner is willing to make a pre-deposit of 25% as regards the challenge to the award of ₹4,60,00,000/- [Rs.Four crores sixty lakhs only]. 5. A similar submission was made by respondent No.3 in WP No.21210 of 2025, and respondent No.3-borrower has - 4 - HC-KAR NC: 2025:KHC:28713 WP No. 21727 of 2025 filed an affidavit in the said matter, wherein he has clearly and categorically stated that the appeal is restricted to the award amount in respect of one of the loans i.e. Rs.4,60,00,000/- and that respondent No.3 is not disputing the award in respect of the other loan and on that basis, respondent No.3 has submitted that the pre-deposit may be restricted to the disputed award of the amount of Rs.4,60,00,000/-. 6. 6. Taking into consideration that the challenge in the appeal filed by the petitioner in Appeal No.122 of 25 is only to an extent of ₹4,60,00,000/- [Rs.Four crores sixty lakhs only] and not as regards the entire award, it would be required that the pre-deposit of the amount is restricted to the challenge made and not for the entire award. As such, I pass the following: ORDER i. The petition is allowed. ii. A writ of certiorari is issued, the order dated 09.05.2025 passed on IA No.4 in Appeal No.122 of - 5 - HC-KAR NC: 2025:KHC:28713 WP No. 21727 of 2025 25 by the Karnataka Appellate Tribunal at Annexure-F is quashed. iii. The Karnataka Appellate Tribunal is directed to consider IA No.4 afresh by taking into consideration the above submission of the learned counsel for the petitioner that the appeal is limited to the challenge in respect of the award for a sum of ₹4,60,00,000/- [Rs.Four crores sixty lakhs only]. SD/- (SURAJ GOVINDARAJ) JUDGE BKM List No.: 1 Sl No.: 31