- 1 - HC-KAR NC: 2026:KHC:28169 WP No. 14889 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11TH DAY OF JUNE, 2026 BEFORE THE HON'BLE MR. JUSTICE M.I.ARUN WRIT PETITION NO. 14889 OF 2026 (CS-RES) BETWEEN: 1. SMT. YAMUNA, W/O LATE MUNDAPPA MOOLYA, AGED ABOUT 82 YEARS, 2. SMT.KAMALA, D/O LATE MUNDAPPA MOOLYA, AGED ABOUT 64 YEARS, 3. SRI.SEETHARAM M.S., S/O LATE MUNDAPPA MOOLYA, AGED ABOUT 57 YEARS, 4. SMT. LEELA, D/O LATE MUNDAPPA MOOLYA, AGED ABOUT 50 YEARS, 5. SMT. PUSHPA, D/O LATE MUNDAPPA MOOLYA, AGED ABOUT 44 YEARS, 6. SMT. BHARATHI, W/O LATE SUNDAR, AGED ABOUT 58 YEARS, 7. SRI GIRISH, S/O LATE SUNDAR, AGED ABOUT 39 YEARS, Digitally signed by V MANJUSHA BAI Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:28169 WP No. 14889 of 2026 8. SRI LOKESH, S/O LATE SUNDAR, AGED ABOUT 35 YEARS, 9. MOKSHITHA, D/O LATE SUNDAR, AGED ABOUT 32 YEARS, ALL ARE RESIDENTS OF R/OF NAILA KEMPUGUDDE HOUSE, NARIKOMBU POST AND VILLAGE, BANTWAL TALUK, SOUTH CANARA DISTRICT - 574 231. PETITIONERS NO.1, 2 AND 4 TO 9 ARE REPRESENTED BY THEIR GPA HOLDER SEETHARAM.S., THE PETITIONER NO.3 …PETITIONERS (BY SMT. J. KALADEEPA, ADVOCATE FOR SRI. PATEEL G.S., ADVOCATE) AND: 1. THE STATE OF KARNATAKA DEPARTMENT OF CO-OPERATION, M.S.BUILDING, DR. AMBEKDAR VEEDHI, BENGALURU - 560 001. REPRESENTED BY ITS PRINCIPAL SECRETARY 2. PANEMANGALURU RYTHARA SEVA SAHAKARI SANGHA LIMITED, PANEMANGALURU, BANTWAL TALUK, SOUTH CANARA DISTRICT - 574 231. REPRESENTED BY ITS PRESIDENT - 3 - HC-KAR NC: 2026:KHC:28169 WP No. 14889 of 2026 3. ASSISTANT REGISTRAR OF CO-OP SOCIETIES, MANGALURU SUB-DIVISION, KODIALABAIL, MANGALURU, SOUTH CANARA DISTRICT - 575 003. 4. DEPUTY REGISTRAR OF CO-OP SOCIETIES, JANATHA BAZAR BUILDING, GHS RAOD, MANGALURU, SOUTH CANARA DISTRICT - 575 001 5. THE RECOVERY OFFICER OF CO-OP SOCIETIES, KCSR-441, SOUTH CANARA DISTRICT CO-OP BANK LIMITED, MANGALURU - 575 003. …RESPONDENTS (BY SRI. YOGESH D. NAIK, AGA FOR R1, 3 AND 4) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE WRIT OR ORDER IN THE NATURE OF MANDAMUS DIRECTING THE RESPONDENTS TO CONSIDER THE REPRESENTATIONS DATED 17.2.2025 AND 16.7.2025 VIDE ANNEXURES-M1 AND N1 AND PROVIDE AN OPPORTUNITY TO CLEAR THE OUTSTANDING LOAN IN ONETIME SETTLEMENT SCHEME AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING THROUGH VIDEO CONFERENCING / PHYSICAL HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 4 - HC-KAR NC: 2026:KHC:28169 WP No. 14889 of 2026 CORAM: HON'BLE MR. JUSTICE M.I.ARUN ORAL ORDER The petitioners are said to have obtained a loan from respondent No.2 - Bank. It is submitted that they have committed default in repayment of the said loan and respondent No.2 - Bank has initiated recovery proceedings against them. Further, the petitioners have submitted a One Time Settlement (OTS) proposal to respondent No.2 - Bank to clear the loan. As the same has not been accepted, the present writ petition is filed with the following prayers: "(i) Issue writ or order in the nature of Mandamus directing the respondents to consider the representations dt.17.2.2025 and 16.7.2025 vide Annexures M1 and N1 and provide an opportunity to clear the outstanding loan in onetime settlement scheme; and (ii) to declare that the second respondent society is not entitled to collect interest from the petitioners in their loan accounts from 6.6.2003; and - 5 - HC-KAR NC: 2026:KHC:28169 WP No. 14889 of 2026 (iii) to grant such other reliefs as deem fit under the circumstances of the case, in the interest of justice and equity." 2. The petitioners do not have a right to claim One Time Settlement. As and when the bank offers it, they are always at liberty to claim the same. If the petitioners are aggrieved by the interest charged by the bank, then in that event, the petitioners are having an alternative and efficacious remedy to approach the appropriate authority in the manner known to law. 3. For the aforementioned reasons, the Writ Petition is hereby dismissed. Sd/- (M.I.ARUN) JUDGE CH List No.: 1 Sl No.: 8