- 1 - HC-KAR NC: 2025:KHC:40278 WP No. 49528 of 2018 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MRS. JUSTICE M G UMA WRIT PETITION NO. 49528 OF 2018 (CS-RES) BETWEEN: 1. SRI. AMBARISH. P, S/O. LATE. PILLAPPA, AGED ABOUT 42 YEARS, 2. SMT. LATHA .R., W/O. AMBARISH .P, AGED ABOUT 37 YEARS, 3. SMT. THIMMAKKA W/O. LATE. PILLAPPA, AGED ABOUT 72 YEARS, ALL ARE RESIDING AT NO.650, MUNITHIMMAIAH LAYOUT, KUDLU VILLAGE, MADIWALA POST, BANGALORE - 560 068. (SENIOR CITIZEN NOT CLAIMED) …PETITIONERS (BY SRI. ADINARAYANAPPA, ADVOCATE) AND: 1. THE JOINT REGISTRAR, CO-OPERATIVE SOCIETIES, C-RULE-441, NO.132, 2ND FLOOR, K.H. ROAD, BANGALORE - 560 027. 2. THE NATIONAL CO-OPERATIVE BANK LIMITED, NO.73/1, GANDHI BAZAAR MAIN ROAD, BANGALORE - 560 004, REPRESENTED BY ITS Digitally signed by NANDINI B G Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:40278 WP No. 49528 of 2018 CHIEF EXECUTIVE OFFICER. …RESPONDENTS (BY SMT. CHANDINI .S., HCGP FOR R1 SRI. CHETAN KUMAR, ADVOCATE FOR R2) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO CALL FOR THE RECORDS FROM THE FILE OF LEARNED DISTRICT JUDGE MEMBER AND CO-OPERATION MEMBER, KARNATAKA APPELLATE TRIBUNAL AT BANGALORE IN APPEAL NO. 9/2016 AND ALSO FROM THE FILE OF R- 1 IN DISPUTE AND ETC., THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING - B GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MRS. JUSTICE M G UMA ORAL ORDER The petitioners are seeking to set aside the judgment dated 31.10.2018 passed in Appeal No.9/2016, on the file of the Karnataka Appellate Tribunal, Bangalore and also the judgment & award dated 19.09.2014 passed by respondent No.1 produced as per Annexure-'A' & 'B' respectively. 2. Heard Sri Adinarayanappa, learned counsel for the petitioners, Smt. Chandini S, learned High Court Government Pleader for respondent No.1 and Sri Chetan Kumar, learned counsel for respondent No.2. - 3 - HC-KAR NC: 2025:KHC:40278 WP No. 49528 of 2018 3. It is the contention of learned counsel for the petitioners that, petitioner No.1 had availed loan of Rs.20,00,000/- on 19.03.2011. Petitioner Nos.2 and 3 stood as guarantors for the said loan, which was obtained by petitioner No.1 by deposit of title deeds of his immovable property bearing No.650 situated at Munithimmaiah Layout, Kudlu village, Madiwala post, Bengaluru. He was required to repay the loan amount with 150 Equal Monthly Installments with interest @ 15% per annum, with 2% penal interest. Now, it is the contention of the petitioners that, they have made certain payments as highlighted in paragraph No.5(a) of Annexure-D of the claim petition, totaling to Rs.18,67,000/-, but the same was not given deduction while claiming the amount, imposing interest and the penal interest. 4. Learned counsel for respondent No.2 has produced the statement of accounts for the loan account pertaining to petitioner No.1. As on the date when the claim was made, an amount of Rs.19,08,406/- was due with interest. Whatever the amount that is paid by the petitioners as stated in paragraph No.5(a) of Annexure - D was given deduction in the accounts statement as and when it is paid, and an amount of - 4 - HC-KAR NC: 2025:KHC:40278 WP No. 49528 of 2018 Rs.53,13,993/- was due to be paid by the petitioners as on 14.02.2023. Taking into consideration these facts, an award came to be passed and the same was confirmed by KAT as per order dated 31.10.2018. 5. Learned counsel for the petitioners even though contends that, the payments made by them as referred to in the claim statement were not given deduction by respondent No.2, the same was not substantiated with reference to the accounts statement produced by respondent No.2. Prima facie, the account statement discloses that, all those payments were given deduction, and as on 14.02.2023, an amount of Rs.53,13,933/- was due along with interest. Under such circumstances, I do not find any substance in the contention raised by the petitioners. 6. It is submitted by learned counsel for the petitioners that, as per the impugned order passed by the KAT, Annexure-A, an amount of Rs.20,78,455/- with interest @ 17.5% per annum and penal interest @ 2% per annum from 01.11.2013 was imposed, which is patently illegal. - 5 - HC-KAR NC: 2025:KHC:40278 WP No. 49528 of 2018 7. Learned counsel for the respondents conceded to this fact that, the petitioners are liable to pay interest @ 15.5% per annum and penal interest @ 2% per annum and accordingly, the impugned order passed by the KAT could be modified. 8. In view of the above, I am of the opinion that, the petition filed by the petitioners could be allowed in part only with regard to the rate of interest referred to in Annexure-A. Accordingly, I pass the following: ORDER a. The writ petition is allowed in part. b. The impugned order at Annexure-A dated 31.10.2018 passed by the KAT is modified as under: Petitioner Nos.1 to 3 are jointly and severally liable to pay Rs.20,78,455/- with interest @ 15.5% per annum and with 2% penal interest from 01.11.2013 till payment of the entire due amount. The other portion of the award is confirmed. - 6 - HC-KAR NC: 2025:KHC:40278 WP No. 49528 of 2018 At this stage, learned counsel for the petitioners submits that, during pendency of the writ petition, a sum of Rs.4,00,000/- was paid by the petitioners. The respondents shall take into consideration any such amount if paid by the petitioners, as and when the payment is made. Sd/- (M G UMA) JUDGE SPV CT:VS List No.: 2 Sl No.: 13