- 1 - HC-KAR NC: 2026:KHC:30127 WP No. 27672 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17TH DAY OF JUNE, 2026 BEFORE THE HON'BLE MR. JUSTICE M.I.ARUN WRIT PETITION NO. 27672 OF 2025 (CS-RES) BETWEEN: 1. MR. VISHWANATHA PAI S/O LATE K. RMANATH PAI, AGED ABOUT 56 YEARS MEMBERSHIP NO. 4101 NO. 12, SHRI RAMNAGARA, KARIMANELU, VENOOR - 574 242 DAKSHINA KANNADA DISTRICT. 2. MR. LAXMAN POOJARY S/O MR. KUNDA POOJARY, AGED ABOUT 54 YEARS, MEMBERSHIP NO.4102, SRI DAVI KRIPA, MAJALU MANE KARIMANELU, VENOOR - 574 242 DAKSHINA KANNADA DISTRICT. …PETITIONERS (BY SRI. K. SHASHIKANTH PRASAD, ADVOCATE) AND: 1. THE STATE OF KARNATAKA DEPARTMENT OF CO-OPERATIVE SOCIETY, VIDHANA SOUDHA, DR. AMBEDKAR VEEDHI, BENGALURU - 560 001, REPRESENTED BY CHIEF EXECUTIVE. Digitally signed by SHARADAVANI B Location: High Court of Karnataka - 2 - HC-KAR NC: 2026:KHC:30127 WP No. 27672 of 2025 2. THE DEPUTY REGISTRAR OF CO-OPERATIVE SOCIETY (NI 441), DAVA PANCHAYATH NAYALAYA, KARNATAKA STATE SOWHERDHA FEDERAL CO-OPERATIVE LTD., "SOHERDHA SAHAKARI SOWDHA" NO. 68, FIRST FLOOR, 17 AND 18 CROSS ROAD, MARGOSA ROAD, MALLESHWAR, BENGALURU - 560 055, REPRESENTED BY THE DEPUTY REGISTRAR. 3. PRANAVA SOUHARDHA SAHAKARI SANGHA LTD., D.NO. 3/G 21, FIRST FLOOR, CITY MAX BUILDING, NEAR VAMANJOOR BUS STOP, VAMANJOOR, MANGALURU - 575 028, REPRESENTED BY BRANCH MANAGER, REGISTERED UNDER CO-OPERATICE SOCIETY ACT. 4. MR. SUDHIR KUMAR S. S/O LATE SUBALIRAJ HEGDE, MEMBERSHIP NO. 4103 AGED ABOUT 56 YEARS, NO. 10-71(38), 3RD FLOOR, FLAT NO. 307, IRA N CLAVE, JOTHINAGAR, PRANTHYA VILLAGE, MOODBIDRI - 574 227. …RESPONDENTS (BY SMT. SPOORTHI V., HCGP FOR R1 AND R2; SRI. A. DEVARAJA, ADVOCATE FOR R3; VIDE ORDER DATED 17.06.2026, NOTICE TO R4 IS DISPENSED WITH) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE POSSESSION NOTICE BEARING NO. - 3 - HC-KAR NC: 2026:KHC:30127 WP No. 27672 of 2025 PSSSLTD/2025-26/ML-28/39 DATED 25.08.2025 IN RESPECT OF AWARD DISPUTE NO.DRD/KA.RAA.SOW.SUM.SA.NI/908/ 2024-25 DATED 02.07.2025 (ANNEXURE-D) ISSUED BY THE RESPONDENT NO.3 (ANNEXURE-A) AND ETC., THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE M.I.ARUN ORAL ORDER The petitioners have challenged the recovery proceedings initiated by respondent No.3 - Society pursuant to a default committed in respect of a loan advanced. The proceedings have been initiated under the provisions of the Karnataka Souhardha Sahakari Act, 1997 (for short, 'the Act'). 2. It is seen that the petitioners are having an alternative and efficacious remedy under Section 46 of the Act. However, this Court had passed an interim order dated 12.09.2025 which reads as under: "Learned Additional Government Advocate is directed to accept notice for respondent Nos.1 and 2. Issue emergent notice to respondent No.3. - 4 - HC-KAR NC: 2026:KHC:30127 WP No. 27672 of 2025 Notice to respondent No.4 is dispensed with for the time being. Though, this writ petition is not maintainable before this Court in view of the judgments of the Hon'ble Apex Court in the case of United Bank of India Vs. Satyawati Tondon and Ors - (2010) 8 SCC 110, and South Indian Bank Limited and Others Vs. Naveen Mathew Philip and another - (2023) SCC Online SC 432, yet, as the petitioners contend that they are willing to clear off the loan amount to the respondent No.3, this Court has entertained this petition for the limited purpose of enabling the petitioners to pay the loan amount. Hence, further proceedings pursuant to issuance of possession notice bearing No.PSSSLTD/2025-26/ML-28/39 dated 25.08.2025 by the respondent No.3 is stayed, subject to petitioners depositing 50% of the amount mentioned in the above said notice with the respondent No.3 within a period of six weeks. If any amount is kept in a fixed deposit by the petitioners, the same along with accrued interest shall be appropriated against the aforesaid 50% of the loan amount. List this petition after two weeks." - 5 - HC-KAR NC: 2026:KHC:30127 WP No. 27672 of 2025 3. Having noticed that the petitioners are having an alternative and efficacious remedy, the Writ Petition is hereby dismissed, reserving liberty to the petitioners to approach the Appellate Authority in the manner known to law. However, the interim order granted by this Court on 12.09.2025 shall continue for a further period of four (4) weeks from today. 4. It is hereby made clear that no opinion is expressed on the merits of the case and if an appeal were to be filed, the Appellate Authority shall decide the same in the manner known to law, without being influenced by any of the observations made herein above. 5. The petitioners shall also be entitled to the benefit of Section 14 of the Limitation Act, 1963, if any appeal were to be filed by them. Sd/- (M.I.ARUN) JUDGE MCR List No.: 1 Sl No.: 8