- 1 - HC-KAR NC: 2026:KHC:26157 WP No. 14918 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF JUNE, 2026 BEFORE THE HON'BLE MR. JUSTICE M.I.ARUN WRIT PETITION NO. 14918 OF 2023 (CS-RES) BETWEEN: 1. S. G. JYOTHI ACHARYA D/O LATE GOPALAKRISHNA BHAT AGED ABOUT 58 YEARS 2. SHRISHA BHAT S/O LATE GOPALAKRISHNA BHAT AGED 56 YEARS 3. SRIHARI BHAT S/O LATE GOPALAKRISHNA BHAT AGED 54 YEARS 4. SHRIRAMANA BHAT S/O LATE GOPALAKRISHNA BHAT AGED 50 YEARS 5. VITTAL BHAT S/O LATE GOPALAKRISHNA BHAT AGED 06 YEARS ALL ARE R/AT NO 301/1 BETWEETN 16 AND 17TH CROSS SAMPIGE ROAD MALLESHWARAM BANGALORE 560003 …PETITIONERS (BY SRI. PRASAD HEGDE K.B.,ADVOCATE) Digitally signed by PRAMILA G V Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:26157 WP No. 14918 of 2023 AND: 1. THE STATE OF KARNATAKA DEPARTMENT OF CO-OPERATIVE M.S.BUILDING, BANGALORE - 560 001 BY ITS SECRETARY 2. THE ASSITANT REGISTRAR OF CO OPERATIVE SOCIETIES AND RECOVERY OFFICER KUNDAPURA SUB DIVISION KUNDAPURA, UDUPI DISTRICT - 576101 3. MAHALAKSHMI CO OPERATIVE BANK LTD 1ST FLOOR,KALMANJE TOWERS LALBAHADDUR SHASHTRI ROAD AJJARKAADU, UDUPI - 576 101 BY ITS MANAGING DIRECTOR …RESPONDENTS (BY SMT. SPOORTHI.V, HCGP FOR R1 AND R2 ; SRI. T. DADAKHALANDHAR, ADVOCATE FOR R3) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTIUTUION OF INDIA PRAYING TO CALL FOR RECORDS FROM THE R-2 WHICH ULTIMATELY RESULTED IN PASSING SALE NOTICE SCHEDULED TO BE HELD ON 04/08/2023 ISSUED IN FORM NO.8 AND 9 PURSUANT TO THE AWARD NO. 596/92-93 AND EXECUTION NO. 106/93-94 BY THE R-2 AS PER ANNEXURE-A AND B AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE M.I.ARUN - 3 - HC-KAR NC: 2026:KHC:26157 WP No. 14918 of 2023 ORAL ORDER Proceedings were initiated against the petitioners by respondent No.3- Co-operative Bank on the ground that the petitioners have committed default in repayment of loan borrowed. The sale notices vide Annexures-A and B to the Writ Petition have been issued in respect of the property said to be belonging to the petitioners to recover the loan as per the award passed against the petitioners. 2. The case of the petitioners is that the award has already been satisfied and the sale notices have been issued illegally, there is no amount payable by the petitioners to respondent No.3- Co-operative Bank. 3. On 01.08.2023, this Court had passed the following order: "Learned AGA takes notice for respondents No.1 and 2. Learned Counsel Sri N.Ramachandra, who appeared for respondent No.3 in W.P.No.29195/2016 is requested to take notice for respondent No.3 in this matter also. - 4 - HC-KAR NC: 2026:KHC:26157 WP No. 14918 of 2023 In addition, issue emergent notice to respondent No.3. Learned Counsel for the petitioners is directed to serve two sets of copies of the writ petition along with Annexures on learned Counsel for respondent No.3 and a copy on the learned AGA. Learned Counsel for the petitioners draws the attention of this Court to Annexure ‘Z’, which is an order dated 24.01.2023 passed in W.P.No.29195/2016. Learned Counsel submits that proceedings were initiated in Dispute No.596/1992-93 and sale notice issued on 07.04.2016 was the subject matter of the said writ petition arising between the same parties. In the said proceedings a Demand Draft in a sum of Rs.40,000/- was tendered by the petitioners and learned Counsel for respondent No.3 accepted the same and this Court allowed the writ petition while holding that the award has been fully satisfied and therefore, the Court proceeded to quash the sale notice dated 07.04.2016 arising out of the decree passed in Dispute No.596/1992-93. However, the impugned sale notice is once again issued at Annexure ‘A’ on the same cause of action. Consequently, there shall be an ad-interim order of stay of the impugned sale notice date 21.06.2023 at Annexure ‘A’ and the auction notice dated 21.06.2023 at Annexure ‘B’, till the next date of hearing. - 5 - HC-KAR NC: 2026:KHC:26157 WP No. 14918 of 2023 4. The interim order granted above has been extended from time to time till date. 5. Learned counsel for respondent No.3 is absent. 6. However, it is seen that Section 106 of The Karnataka Co-operative Societies Act, 1959 provides for alternative and efficacious remedy to the petitioners. Hence, I am of the opinion that the petitioners have to be relegated to the Appellate Authority. 7. Hence, the following: ORDER (i) The Writ Petition is disposed of reserving liberty to the petitioners to approach the Appellate Authority as per Section 106 of the Karnataka Co-operative Societies Act, 1959 in accordance with law. (ii) If the petitioners were to prefer an appeal before the Appellate Authority, the time spent by the petitioners before this Court shall be condoned while considering the application if any, made for condonation of delay in filing the appeal. - 6 - HC-KAR NC: 2026:KHC:26157 WP No. 14918 of 2023 (iii) The ad-interim order granted by this Court on 01.08.2023 shall remain in force for a period of six weeks from today. (iv) If any appeal were to be filed by the petitioners, Appellate Authority shall decide the same in the manner known to law, without being influenced by any of the observations made herein above. Sd/- (M.I.ARUN) JUDGE GVP List No.: 1 Sl No.: 37