SHRI D RAMESH v. M/S MARGADARSHI CHITS (KAR) PVT LTD
WP/52014/2018 · 2026-01-28
M G S Kamal
body2026
DailyLaw.ai
[ 2026 DAILYLAW 47492 (KAR) · dailylaw.ai ]
DailyLaw.ai
[ 2026 DAILYLAW 47492 (KAR) · dailylaw.ai ]
Judgment text
Extracted from the PDF above. The PDF is authoritative.
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HC-KAR NC: 2026:KHC:4562 WP No. 52014 of 2018 C/W WP No. 37146 of 2018 WP No. 51067 of 2019
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF JANUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE M.G.S. KAMAL WRIT PETITION NO. 52014 OF 2018 (GM-CFA) C/W WRIT PETITION NO. 37146 OF 2018 (GM-CFA) WRIT PETITION NO. 51067 OF 2019 (GM-CPC)
IN WP No. 52014/2018 BETWEEN:
SHRI D RAMESH S/O M. DUGGAPPA AGED ABOUT 35 YEARS, AUTO CONSULTANCY, NO.115 POOJA NILAYA, DEVARAJ URS LAYOUT
"A" BLOCK, DAVANAGERE R/O #115, POOJA NILAYA, 8TH CROSS, "A" BLOCK, DEVARAJ URS LAYOUT, DAVANAGERE - 577 006. …PETITIONER (BY SRI. RUDRAPPA P.,ADVOCATE) AND:
1.
M/S MARGADARSHI CHITS (KAR) PVT LTD 2ND FLOOR, D.NO. 273/4-12 MALLIKARJUNA TOWER,
Digitally signed by SUMA B N Location:
HIGH COURT OF KARNATAKA
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PRAVASI MANDIR ROAD, DAVANAGERE - 577 001.
REPRESENTED BY ITS MANAGER.
2.
MR. S PRASANNA S/O S.VEERABHADRAPPA AGED ABOUT 47 YEARS, AUTO CONSULTANCY AND BROKERAGE COMMISSION AGENT BHOOMIKA AUTO CONSULTANCY, P.B.ROAD, DAVANAGERE R/O #1760/1, 3RD MAIN, 1ST CROSS, VINOBA NAGAR, DAVANAGERE - 577 001.
3.
T. M. UMAPATHAIAH S/O T M RACHOTAIAH AGED ABOUT 49 YEARS, PARTNER, GURURENUKA AGRO CENTRE N.R.ROAD, DAVANAGERE R/O #524, 3RD MAIN, 12TH CROSS, NEAR AMRUTHA VIDHYALAYAM NIJALINGAPPA LAYOUT, DAVANAGERE - 577 006.
4.
MR. SHABBEER KHAN S/O MAQBAL KHAN AGED ABOUT 53 YEARS, SCRAP MERCHANT KUNDAWADA ROAD, DAVANAGERE - 577 006.
R/O #106, C BLOCK, 3RD MAIN, 3RD CROSS, DEVRAJ URS LAYOUT
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DAVANAGERE - 577 006.
5.
M/S P KANCHANA W/O S PRASANNA (SINCE DECEASED AND THEREFORE ABATED)
…RESPONDENTS (BY SRI. JAYAKUMARA P P.,ADVOCATE FOR R1;
SRI. HAREESH BHANDARY T., ADVOCATE FOR R2;
R-3 IS SERVED AND UNREPRESENTED SRI. D.S. JAYARAJ, ADVOCATE FOR R4)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO CALL FOR ENTIRE RECORDS IN EXECUTION PETITION NO.29/2015, ON THE FILE OF THE PRINCIPAL SENIOR CIVIL JUDGE AND CJM DAVANAGERE; SET ASIDE THE
ORDER DATED 18.08.2018 (ANNEXURE-A) IN EXECUTION PETITION NO.29/2015, ON THE FILE OF THE PRINCIPAL SENIOR CIVIL JUDGE AND CJM DAVANAGERE, ISSUING ATTACHMENT WARRANT IN RESPECT OF MOVEABLE PROPERTIES AGAINST THE PETITIONER IS CONCERNED. IN WP NO. 37146/2018 BETWEEN:
T.M. UMAPATHAIAH S/O T M RACHOTAIAH A/A 49 YEARS, PARTNERS GURURENUKA AGRO CENTRE N R ROAD, DAVANAGERE R/O # 524, 3RD MAIN 12TH CROSS. NR AMRUTHA VIDHYALAM NIJALINGAPPA LAYOUT DAVANAGERE - 577 001. - 4 -
HC-KAR NC: 2026:KHC:4562 WP No. 52014 of 2018 C/W WP No. 37146 of 2018 WP No. 51067 of 2019
...PETITIONER (BY SRI. SANTOSH S GOGI.,ADVOCATE) AND:
1. M/S MARGADRASHI CHITS (KAR) PVT LTD., 2ND FLOOR, D NO.273/4-12, MALLIKARJUNA TOWER, PRAVASI MANDIR ROAD, DAVANAGERE - 577 001. REPRESENTED BY ITS MANAGER. 2. MR S PRASANNA S/O S VEERABHADRAPPA A/A 47 YEARS, AUTO CONSULTANCY AND BROKERAGE COMMISSION AGENT BHOOMOKA AUTO CONSULTANCY P B ROAD, DAVANAGERE R/O No.1760/1, 3RD MAIN 1ST CROSS, VINOBA NAGAR DAVANAGERE - 577 001. 3. MR D RAMESH S/O M DUGGAPPA A/A 35 YRS AUTO CONSULTANCY # 115 POOJA NILAYA DEVRAJ URS LAYOUT A BLOCK, DAVANAGERE R/O # 115, POOJA NILAYA 8TH CROSS, "A" BLOCK DEVRAJ URS LAYOUT DAVANAGERE - 577 001. 4. MR SHABBER KHAN
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S/O MAQBAL KHAN A/A 53 YEARS, SCRAP MERCHANT KUNDAWADA ROAD, DAVANAGERE- 577 001. R/O # 106, C BLOCK, 3RD MAIN, 3RD CROSS, DEVRAJ URS LAYOUT DAVANAGERE - 577 001. M/S P KANCHANA W/O S PRASANNA (SINCE DECEASED AND THEREFORE ABATED)
...RESPONDENTS (BY SRI. JAYAKUMARA P P.,ADVOCATE FOR R1;
SRI. HAREESH BHANDARY T., ADVOCATE FOR R2;
SRI. G.J. SUNKAPUR, ADVOCATE FOR R3;
R4 IS SERVED AND UNREPRESENTED)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO CALL FOR RECORDS IN EXECUTION PETITION NO.29/2015 ON THE FILE OF THE PRINCIPAL SENIOR CIVIL JUDGE AND CJM, DAVANAGERE; DIRECT AND SET ASIDE THE ORDER DATED 18.08.2018 [ANNEXURE-A] IN EXECUTION PETITION NO.29/2015, ON THE FILE OF THE PRINCIPAL SENIOR CIVIL JUDGE AND CJM, DAVANAGERE ISSUING ATTACHMENT WARRANT IN RESPECT OF MOVEABLE PROPERTIES AGAINST JUDGEMENT DEBTORS NO.1 TO 4 THEREIN. IN WP NO.
IN WP NO. 51067/2019 BETWEEN:
SRI SHABBEER KHAN
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S/O MAQBUL KHAN AGED ABOUT 54 YEARS R/A NO.106, C BLOCK, 3RD MAIN, 3RD CROSS DEVARAJ URS LAYOUT DAVANAGERE-577 006. ...PETITIONER (BY SRI. JAYARAJ D S.,ADVOCATE) AND:
1. M/S MARGADARSHI CHIT (K) PVT LTD No. 273/4-12, 2ND FLOOR, SRI. MALLIKARJUNA TOWERS PRAVASI MANDIRA ROAD DAVANAGERE-577 001 REP BY ITS MANAGER. 2. SRI. S PRASANNA S/O S VEERABHADRAPPA AGED ABOUT 51 YEARS AUTO CONSULTANCY AND BROKERAGE COMMISSION AGENT BHOOMIKA AUTO CONSULTANCY P B ROAD, DAVANAGERE R/O NO.1760/1, 3RD MAIN IST CROSS, VINOBA NAGAR DAVANAGERE-577 004. 3. T M UMAPATHAIAH S/O T M RACHOTAIAH AGED ABOUT 50 YEARS PARTNER AT GURURENUKA AGRO CENTRE N R ROAD DAVANAGERE-577 001 R/A 524, 3RD MAIN ROAD
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12TH CROSS NR. AMRUTHA VIDHYALAM NIJALINGAPPA LAYOUT DAVANAGERE-577 004. 4. SRI. D RAMESH S/O M DUGGAPPA AGED ABOUT 39 YEARS AUTO CONSULTANCY R/A NO.115, POOJA NILAYA 8TH CROSS, A BLOCK DEVARAJ URS LAYOUT DAVANAGERE-577 006. P KANCHANA W/O S PRASANNA (SINCE DECEASED AND THERFORE ABATED) ...RESPONDENTS (BY SRI. JAYAKUMARA P P.,ADVOCATE FOR R1;
SRI. HAREESH BHANDARY T., ADVOCATE FOR R2;
SRI. G.J. SUNKAPUR, ADVOCATE FOR R3;
R4 IS SERVED AND UNREPRESENTED)
THIS WRIT PETITION IS FILED UNDER ARTICLE 227 OF THE CONSTITUTION OF INDIA PRAYING TO CALL FOR THE RECORDS PERTAINING TO THE EXECUTION PETITION NO.29/2015 PENDING ON THE FILE OF THE PRINCIPAL SENIOR CIVIL JUDGE AND CJM, DAVANAGERE; QUASH THE ORDER DATED 31.10.2019 IN ISSUING AN ARREST WARRANT AGAINST THE JUDGMENT DEBTOR/PETITIONER HEREIN, PRODUCED AT ANNEXURE-A IN EXECUTION PETITION NO.29/2015 PENDING ON THE FILE OF THE PRINCIPAL SENIOR CIVIL JUDGE AN CJM, DAVANAGERE. THESE PETITIONS, COMING ON FOR FURTHER HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
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HC-KAR NC: 2026:KHC:4562 WP No. 52014 of 2018 C/W WP No. 37146 of 2018 WP No. 51067 of 2019
CORAM: HON'BLE MR. JUSTICE M.G.S. KAMAL
ORAL ORDER
This Court after hearing learned counsel for the parties on 21.01.2026 passed the following:
ORDER '' 1. These Writ Petitions are by the guarantors of a money transaction between respondent No.1 and Sri. S. Prasanna, respondent No.2 in these petitions. An Award dated 12.12.2014 has been passed by the Deputy Registrar of Co-operative Societies, in terms of the which, petitioners who are the guarantors have been held to be jointly and severally liable to pay the said amount along with respondent No.2. In the execution proceedings Warrants of arrest have been issued to the petitioners.
2.
Learned counsel for the petitioners drawing attention of this Court to the order sheet of the Executing Court submits that on earlier occasion, an order of attachment had been issued against the petitioners as well as respondent No.2 herein which by Order dated 12.01.2017, had been withdrawn or recalled. Further in terms of the Award passed by the Deputy Registrar of Co-operative Societies, there is a direction to recover the money by public auction of the property belonging to the respondent No.2. Thus learned counsel submits that in the light of these factual aspects of the matter, the impugned order presently passed issuing warrant of attachment to the petitioners is unsustainable unless the remedy available to recover the money by public auction of the property of the respondent No.2 is exhausted. 3. In response, learned counsel appearing for respondent No.1 submits that, respondent No.1 had indeed made an application seeking sale of the immovable property, which application came to be rejected by the Executing Court on the premise that the immovable property has been mortgaged in favour of Central Bank by the respondent No.2-Judgment Debtor No.1 and as such the said property was not available for public auction. He insists that, in the circumstances, the petitioners herein being the guarantors are liable to satisfy Award amount. 4. On a query by this Court as to the date on which the order of attachment was issued before the Award was passed by the Deputy Registrar of Co-operative Societies and the date on which the subsequent charge created by Central Bank, learned counsel seeks a week's accommodation to furnish the details. 5. List the matter for further hearing on 28.01.2026, enabling the respondent No.1 to furnish details as noted above. - 9 -
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6. Interim order granted earlier is extended till the next date of hearing.''
2. In furtherance to the above order learned counsel appearing for the respondent No.1-Decree holder files a memo along with synopsis and the documents. He draws attention of this Court to the Award passed by the Assistant Director of Co- operative Societies and Chit Fund, Davanagere District. The operative portion of order reads as under:
ಆೇಶ ಆೇಶ ಆೇಶ ಆೇಶ
"ಪ ಾವ
ೆಯ ಕಂಡು ಬಂದ ಅಂಶಗಳ ೕೆೆ ಪಾಗಳ 1 !ಂದ 5 - ಪಾಗಳ ಾ ಸಂ ೆ#ೆ ಬ$% ೇ!
ರೂ.19.27,556/- (ೊಡ)ೇ(ಾ*ರುವ+ದು ಾಖ-ೆಗಳ ಪ!ೕ.ೕಲ
ೆ0ಂದ ದೃಢಪ34ರುವ+ದ!ಂದ 5ಾಗೂ
ಾಂಕ: 21-08- 2014 !ಂದ ಸದ! 6ತವ+ ವಸೂ8ಾಗುವವೆಗೂ ರು.15.19,999/- ೕ-ೆ 9ೇಕಡ 24% ರಂ:ೆ ಬ$% 5ಾಗೂ ಈ ಾೆಯ ೆಚ=. ರೂ. 34,828/->ಾವಸಲು ಎ-ಾ ಪಾಗಳ ಪ:ೆ@ೕಕಾ* ಮತು ಜಂ38ಾ* ಜಾ)ಾCರಾ*ದುC ಮತು ಸದ! ಾ@ಜ@ದ ಹಣವನುG ಮರು>ಾವಸ)ೇ(ೆಂದು DzÉò¸À¯ÁVzÉ. MAzÀÄ ¥ÀPÀë ಪಾಗಳ ಾೆ >ಾವ Hಾಡ)ೇ(ಾದ 6ತವನುG ಬ$% ಸೕತ 'ಪIಣJ >ಾವ Hಾಡೇ ಇದC ಾಯು ಪಾಗLೆ ೇ!ದ ಆಾಯ ಅಥಾ ೇತನ ಅNಾ@O ಂP ಮತು ಚರ ಮತು Q#ರ ಆQಗಳನುG ಜR 5ಾಗೂ ಹಾಜು Hಾಡುವ+ದರ ಮೂಲಕ )ಾS ವಸೂ Hಾ$(ೊಳTಲು ಆೇ.ಸ-ಾ*ೆ. ಮತು ಾಂಕ 10-10-2014 ರಂದು 1
ೇ ಎದುರುಾರರ ಪಡೂ@U ಆQಯನುG ೕಪ+J ಪIವJ ಜಪ ಆೇಶ Hಾ$ದುC ಅದನುG VಾಯಂೊLಸ-ಾ*ೆ. ಸದ! 1
ೇ ಎದುರುಾರರ >ೆಡೂ@U ಆQ ಆQಯನುG ಹಾಜು Hಾಡುವ+ದರ ಮೂಲಕ )ಾS ವಸೂ Hಾ$(ೊಳTಲು ಆೇ.ಸ-ಾ*ೆ". 3. Referring to the said order, he submits that the order is in three fold. Firstly, it directs the Principal borrower and the Guarantors to be jointly and severally liable to repay the due
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amounts. Secondly, it also directs that in the event of failure on their part, to attach their movable and immovable properties and recover the decretal amount by auctioning the same. Thirdly, since an order of attachment before judgment was passed, attaching the property belonging to the principal borrower, to sell the same in auction and to recover the proceeds thereafter. 4. He submits that the attempts were made by the decree holder to implement the third portion of aforesaid order by making an application. However, it was subsequently found that after the order of attachment, principal borrower-respondent No.2 had gifted the property in favour of his wife in terms of a deed of gift dated 24.02.2015, in favour of his wife Smt. Kanchana. After the execution of the gift deed, said Smt. Kanchana passed away.
After demise of his wife the principal borrower-Respondent No.2 himself and along with his daughter sold the property by executing a deed of sale dated 17.05.2018 in favour of one Sunitha Chandrakanth Revanakar. Thus, he submits that the principal borrower-respondent No.2 herein has deliberately with ulterior intention alienated the property to deny and defraud the decretal amount to be recovered by the respondent No.1-decree holder. He also refers to the memo of
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calculation, according to which as on this date an aggregate sum of Rs.60,45,583/– is due and liable to be paid. He submits in the light of the said facts the only way left out to recover the decretal amount is to seek assistance of the Executing Court against the petitioners herein who are the guarantors. 5. Learned counsel for the petitioners in response, though do not dispute the petitioners being the guarantors however make two fold submissions. Firstly, That the Executing Court did not follow the requirement of issuing a show case notice as contemplated under Order 21 Rule 37 of CPC before issuing the warrant of attachment against the petitioners. Secondly, they insists that respondent No.1-decree holder has to exhaust his remedy firstly against the respondent No.2- principal borrower, only thereafter should look at the petitioners. 6. Heard and perused the records. 7. Award extracted herein above having been passed and attained finality, without there being any challenge either by respondent No.2- principal borrower and the petitioners herein as the guarantor. The only other issue requires consideration is,
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whether the order passed by the Execution Court impugned in this petition requires interference. 8.
As rightly pointed out by the learned counsel for the petitioners that before issuing the warrant of attachment, the Executing Court was required to issue show cause notice unless it was satisfied otherwise, that there was likelihood of petitioners absconding from the jurisdiction of the Court, which is not the case on hand. 9. Order 21 Rule 37 of CPC reads as under:
37. Discretionary power to permit judgment-debtor to show cause against detention in prison.-(1) Notwithstanding anything in these rules, where an and detention in the civil prison of a judgment-debtor who is liable to be arrested in application is for the execution of a decree for the payment of money by the arrest pursuance of the application, the Court [shall], instead of issuing a warrant for his arrest, issue a notice calling upon him to appear before the Court on a day to be specified in the notice and show cause why he should not be committed to the civil prison: [Provided that such notice shall not be necessary if the Court is satisfied, by affidavit, or otherwise, that, with the object or effect of delaying the execution of the decree, the judgment- debtor is likely to abscond or leave the local limits of the jurisdiction of the Court.]
10. Perusal of the order sheet of the Executing Court indicates that no such compliance is made. In that view of the matter, the impugned order issuing warrant of arrest against petitioners is therefore quashed. - 13 -
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11. Matter is remitted to the Executing Court. The parties shall appear before the Executing Court on the next date of hearing and shall submit their response/cause as contemplated under Order 21 Rule 37 of CPC and on consideration of the same the Executing Court shall proceed to pass appropriate order. 12.
Needless to mention, if the parties are advised to arrive at the amicable resolution in the matter, they are permitted to do the same. With the above observations, petition is disposed of. SD/- (M.G.S. KAMAL) JUDGE
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