- 1 - HC-KAR NC: 2026:KHC:29655 WP No. 13323 of 2026 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. 13323 OF 2026 (CS-RES) BETWEEN: 1. BABY SHRI LAKSHMI D/O. SMT. PRATHIKA N. RAJ, AGED ABOUT 06 YEARS, 2. BABY SAI SRINIKA, D/O.SMT. PRATHIKA N.RAJ, AGED ABOUT 04 YEARS, BOTH ARE RESIDING AT 4TH CROSS, 1ST STAGE, VINOBHA NAGAR, SHIVAMOGGA-577201 REPRESENTED BY THEIR GUARDIAN SUJITH KUMAR, S/O. R. KESHWAMURTHY, AGED ABOUT 47 YEARS, R/AT 4TH CROSS, 1ST STAGE, VINOBHA NAGAR, SHIVAMOGGA-577201. …PETITIONERS (BY SRI. SHIVA RAJ.,ADVOCATE) AND: 1. THE STATE OF KARNATAKA BY ITS PRINCIPAL SECRETARY TO THE GOVERNMENT, DEPARTMENT OF COPERATION, 5TH FLOOR, M.S. BUILDING, BENGALURU- 560 001. Digitally signed by SHARADAVANI B Location: High Court of Karnataka - 2 - HC-KAR NC: 2026:KHC:29655 WP No. 13323 of 2026 2. THE REGISTRAR OF CO-OP. SOCIETIES IN KARNATAKA, NO.1, ALI ASKER ROAD, BENGALURU-560 052. 3. THE SHIMOGGA DCC BANK (REGISTERED UNDER SECTION 7 OF THE KARNATAKA CO-OPERATIVE SOCIETIES ACT 1959) BALARAJ URS ROAD, SHIVAMOGGA DISTRICT-577201 BY ITS MANAGING DIRECTOR AND THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (REGISTERED UNDER SECTION 7 OF THE KARNATAKA CO-OPERATIVE SOCIETIES ACT 1959) 4. THE RECOVERY OFFICER U/R.441 AND OOD ASST. REGISTRAR OF CO-OPERATIVE SOCIETIES ATTACHED TO SHIVAMOGGA DIST. CENTRAL CO-OP. BANK LTD., BULARAJURS ROAD, SHIMOGGA, PIN-577 201. 5. THE SALE OFFICER, U/R.441 ATTACHED TO THE OFFICE OF RECOVERY OFFICER U/R. 441 SHIMOGGA DISTRICT CENTRAL CO-OP. BANK LTD., BULARAJURS ROAD, SHIMOGGA, PIN-577 201. 6. K.V. SHIVAKUMAR S/O. MAJOR AUCTION PURCHASER C/O - THE SHIMOGGA DCC BANK (REGISTERED UNDER SECTION 7 OF THE KARNATAKA CO-OPERATIVE ACT 1959) BALARAJ URS ROAD, SHIVAMOGGA DISTRICT-577 201 - 3 - HC-KAR NC: 2026:KHC:29655 WP No. 13323 of 2026 BY IT'S MANAGING DIRECTOR AND THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (REGISTERED UNDER SECTION 7 OF THE KARNATAKA CO-OPERATIVE SOCIETIES ACT 1959). …RESPONDENTS (BY SMT.SPOORTHI.V.HCGP., FOR R1 AND R2; SRI.PATIL DAYANAND SUBRAYA GOWDA., ADVOCATE FOR CAV/R3) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING IMPUGNED PUBLIC AUCTION NOTICE BEARING NO.TO NO.4262/2025-26/RO NO.416/2025-26, DATED 02.03.2026, IN AWARD NO.1077/2013-14, E.P.NO.18-2017-18, 1080/2013-14, E.P.NO.19-2017-18 AND 1079/2013-14, E.P.NO.20-2017-18. ISSUED BY ERSPONDENT NO.4 VIDE ANNEXURE-C AND ETC. THIS PETITION, COMING ON FOR ORDERS THROUGH VIDEO CONFERENCING / PHYSICAL HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE M.I.ARUN - 4 - HC-KAR NC: 2026:KHC:29655 WP No. 13323 of 2026 ORAL ORDER The petitioners have challenged the recovery proceedings initiated against them by respondent No.4 for recovery of the loan advanced by respondent No.3-Society. The writ petition is filed with the following prayers: "(1) Call for relevant records pending on the file of Respondent No.3 pertaining to the Public Auction regard in bearing No. TO No.4262/2025-26/ RO No.416/2025-26, dated: 02.03.2026, and also all connected records. (II) Issue a writ of certiorari by quashing impugned public auction notice bearing No. TO No.4262/2025-26 / RO No.416/2025-26, dated: 02.03.2026, in award No. 1077/2013-14, E.P. No.18-2017-18, 1080/2013- 14, E.P. No.19-2017-18 and 1079/2013-14, E.P. No. 20-2017-18. Issued by Respondent No.4 vide Annexure-C. (III) And also pass an order quashing all further proceedings in pursuant to impugned Public Auction held on 16.04.2026, viale Paper publication in Vijayakarnataka vide Annexure-F. - 5 - HC-KAR NC: 2026:KHC:29655 WP No. 13323 of 2026 (IV) Issue an order or direction directing the recovery officer R.O. U/R 441 ARCS, respondent 4 not to create any third party interest in the schedule property. (V) Issue further direction to the Respondent No.4 to consider and hear the Memorandum of Statement of Objection raised to the Public Auction Notice vide No. 1077/2013-14, Ε.P. No.18-2017-18, 1080/2013-14, E.P. No.19-2017-18 and 1079/2013-14, Ε.Ρ. No. 20- 2017-18, vide Annexure-D, (VI) Issue further order or direction as deemed just and proper in the circumstances of the probability of the case." 2. On 25.04.2026, this Court has passed the following order: "Learned AGA accepts notice for respondent nos.1 and 2. Issue emergent notice to respondent nos.3 to 6. In the meanwhile, respondent no.4 is directed not to confirm the sale pursuant to the public auction dated 08.04.2026, till the next date of hearing." - 6 - HC-KAR NC: 2026:KHC:29655 WP No. 13323 of 2026 3. It is seen that the petitioners are having an alternative and efficacious remedy under Sections 105 and 106 of the Karnataka Co-operative Societies Act, 1959. 4. For the aforementioned reasons, the Writ petition is hereby dismissed, reserving liberty to the petitioners to approach the Appellate Authority in the manner known to law. 5. However, the respondents are directed not to precipitate the matter against the petitioners for a period of four (04) weeks from today. 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. - 7 - HC-KAR NC: 2026:KHC:29655 WP No. 13323 of 2026 6. 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 CH List No.: 1 Sl No.: 35