- 1 - HC-KAR NC: 2026:KHC:31079 WP No. 19637 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF JUNE, 2026 BEFORE THE HON'BLE MR. JUSTICE M.I.ARUN WRIT PETITION NO.19637 OF 2025 (CS-RES) BETWEEN: 1. SRI. SHIVANANDA S., AGED ABOUT 57 YEARS, MEMBERSHIP NO.21311 RESIDING AT XAVIER ITI ASSAIGOLI POST, MANJANADY DAKSHINA KANNADA-574 199. …PETITIONER (BY SMT. SUSHMITHA SURESH, ADVOCATE) AND: 1. THE RECOVERY OFFICER AND ASSISTANT REGISTRAR OF COOPERATIVE SOCIETIES, KARNATAKA STATE CO-OPERATIVE URBAN BANKS FEDERATION LTD BENGALURU-560 027. 2. TEACHERS CO-OPERATIVE BANK LTD. A CO-OPERATIVE SOCIETY REGISTERED UNDER THE KARNATAKA CO-OPERATIVE SOCIETY ACT, HAVING ITS REGISTERED OFFICE AT BALIGA TOWERS, 4TH FLOOR, NEAR SERVICE BUS STOP, UDUPI- 576 103 REPRESENTED BY ITS GENERAL MANAGER. Digitally signed by V MANJUSHA BAI Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:31079 WP No. 19637 of 2025 3. SRI WILLIAM JOSEPH XAVIOR I.T.I, ASAIGOLI POST, KONAJE, MANGALORE, D.K. DISTRICT-574 199. 4. SMT. SHASHIKALA XAVIOR I.T.I, ASAIGOLI POST, KONAJE, MANGALORE, D.K. DISTRICT-574 199. …RESPONDENTS (BY SMT. SPOORTHI V., HCGP FOR R.1; SRI. DEVIPRASAD SHETTY, ADVOCATE FOR R.2; R.3 AND R.4 ARE SERVED AND UNREPRESENTED.) THIS PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE ISSUANCE DEMAND NOTICE UNDER RULE 34(3) OF THE COOPERATIVE SOCIETIES ACT BY THE RESPONDENT NO.1 IN CEP NO.25/2025-26 WHICH IS AT ANNEXURE-B, ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THROUGH PHYSICAL HEARING/VIDEO CONFERENCING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE M.I.ARUN - 3 - HC-KAR NC: 2026:KHC:31079 WP No. 19637 of 2025 ORAL ORDER 1. The petitioner has challenged the recovery proceedings initiated against him by respondent No.1 under the provisions of the Karnataka Co-operative Societies Act, 1959 (for short 'the Act'). 2. It is seen that the petitioner is having an alternative and efficacious remedy under Sections 105 and 106 of the Act. 3. However, this Court, on 04.07.2025 has passed the following interimorder: "1. Learned AGA accepts notice for respondent No.1. 2. Issue emergent notice to respondent Nos.2 to 4 returnable by 21.08.2025. 3. The submission of the Counsel for the petitioner is that due to financial stringency, the petitioner could not make payment of the due amounts. The total amount due as on - 4 - HC-KAR NC: 2026:KHC:31079 WP No. 19637 of 2025 11.06.2025 is Rs.11,64,972/-. He submits that given four weeks’ time, 25% of the said amount i.e. Rs.2,91,243/- would be deposited. 4. In view of the matter, the operation of show cause notice dated 11.06.2025 at Annexure-A and the demand notice at Annexure-B, are stayed till the next date of hearing subject to the petitioner depositing 25% of the due amount, i.e., Rs.2,91,243/- on or before 01.08.2025. 5. Process fee and copies to be furnished by end of day the 05.07.2025, failing which, the interim order would stand automatically vacated. 6. Re-list on 21.08.2025." 4. As the petitioner is having an alternative and efficacious remedy under the Act, the aforementioned writ petition is hereby dismissed reserving liberty to the petitioner to approach the appropriate authority in the manner known to law. However, the interim order granted on 04.07.2025 shall continue to be in force for a further period of four weeks from today. - 5 - HC-KAR NC: 2026:KHC:31079 WP No. 19637 of 2025 5. The petitioner shall be entitled to the benefit of Section 14 of the Limitation Act, 1963, if he were to file an appeal. 6. 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 matter on the basis of the pleadings and the evidence let-in before it. 7. If the petitioner has deposited any amount before this Court pursuant to the aforesaid interim order instead of paying the amount to respondent No.2-Society, respondent No.2-Society is at liberty to have the same withdrawn and adjust it towards the dues. Sd/- (M.I.ARUN) JUDGE hkh. List No.: 1 Sl No.: 59