- 1 - HC-KAR NC: 2026:KHC:11077 WP No. 24467 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 24467 OF 2025 (GM-RES) BETWEEN: SURESH S C AGED ABOUT 59 YEARS NALKERI GRAMA PANCHAYATHI PONNAMPETE TALUK KODAGU DISTRICT PIN 571217. …PETITIONER (BY SRI. JAGADESHA H R.,ADVOCATE) AND: SENIOR DEPUTY DIRECTOR LOCAL AUDIT CIRCLE MADIKERI TALUK KODAGU DISTRICT - 571201. …RESPONDENT THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO- Digitally signed by RAKESH S HARIHAR Location: High Court of Karnataka, Dharwad Bench - 2 - HC-KAR NC: 2026:KHC:11077 WP No. 24467 of 2025 QUASH AUDIT REPORT OBSERVATION; 2.THE AUDIT REPORT DATED 04.11.2024 MADE PARA NO. 2 TYPE OF FUND, GENERAL OBSERVATION CATEGORY EXPENDITURE CODE NO AND NAME 14.02 BILLS NOT PRODUCED ON EXPEDITURE PASSED BY SENIOR DEPUTY DIRECTOR LOCAL AUDIT CIRCLE MADIKERI ANNEXURE-A IN SO FAR AS THE PETITIONER IS CONCERNED BEING ARBITRARY, ERRONUOUS AND OPPOSED TO LAW EQUITY AND JUSTICE WHICH IS PRODUCED AT ANNEXURE-A BEING ARBITRARY, ERRONUOUS AND OPPOSED TO LAW. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD - 3 - HC-KAR NC: 2026:KHC:11077 WP No. 24467 of 2025 ORAL ORDER The petitioner's grievance is with the audit observation in Annexure-A and the audit observation is that funds allocated for water and sewage account is transferred and spent without appropriate transfer of entries in the Books of Accounts and the amount is spent without voucher and that when opportunity is extended, the necessary documents have not been produced. At this stage, this Court must consider whether an audit observation would be justifiable and when queried, Sri Jagadesha H.R., the learned counsel for the petitioner, submits that it is not justifiable but this Court must intervene because the observations cannot be sustained in view of the terms of a gazette notification. If the observation is not justifiable at this stage, there would be no cause for the present petition and if the petitioner is prejudiced by any - 4 - HC-KAR NC: 2026:KHC:11077 WP No. 24467 of 2025 action pursuant or consequent to the impugned audit observation, he must be at liberty to urge all grounds. With such observation, the petition stands disposed of. Sd/- (B M SHYAM PRASAD) JUDGE SA ct:sr