- 1 - HC-KAR NC: 2026:KHC:9367 WP No. 1874 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16TH DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE M.G.S. KAMAL WRIT PETITION NO. 1874 OF 2023 (GM-CFA) BETWEEN: M/S SWABHIMANI SOUHARDA CREDIT CO OPERTIVE LTD., BEING AT REGISTERED CO OPERATIVE REGISTERED UNDER THE KARNATAKA SOUHARDA SAHAKARI ACT 1997 HAVING ITS REGISTERED OFFICE AT NO 125 DIAGONAL ROAD, V.V. PURAM BENGALURU - 560 004 AND REPTD BY ITS CHIEF EXECUTIVE OFFICER S M PUJARI. …PETITIONER (BY SRI. MALLA REDDY B V.,ADVOCATE) AND: 1. THE DIRECTOR THE DEPOSIT INSURANCE AND CREDIT GUARANTEE CORPORATION RESERVE BANK OF INDIA 2ND FLOOR, OPP MUMBAI CENTRAL RAILWAY STATION, BYCULLA, MUMBAI - 400 008. 2. THE GENERAL MANAGER (UCB) RESERVE BANK OF INDIA NRUPATUNGA ROAD BENGALURU - 560 001. 3. SRI GURU RAGHAVENDRA SAHAKARA BANK NIYAMITHA NO.15, SUBRAMA CHETTY ROAD Digitally signed by SUMA B N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:9367 WP No. 1874 of 2023 NETTAKALLAPPA CIRCLE BASAVANGUDI BANGALORE - 560 004 REPTD BY ITS ADMINISTRATOR. 4. THE REGISTRAR OF CO-OPERATIVE SOCIETIES ALI ASKAR ROAD BENGALURU - 560 001. …RESPONDENTS (BY SRI. DHYAN CHINNAPPA., SENIOR COUNSEL FOR SRI. S.R. KAMALACHARAN., ADVOCATE FOR R1; SMT. KHUSHBOOKAPUR, ADVOCATE FOR SRI. RAJESH.,VELLAKKAT, ADVOCATE FOR R2; SRI. M.N. UMESH., ADVOCATE FOR R3) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECTING THE R- 1 AND 3 TO PROCESS THE APPLICATION OF THE PETITIONER IN THE LIGHT OF THE FINAL WILLINGNESS/ REPRESENTATION/ REMINDER DATED 02/01/2023 AT ANNEXURE-K AND RELEASE THE SUM OF RS. 15,00,000/- (RUPEES FIFTEEN LAKHS) ONLY FORTHWITH, IN FAVOUR OF THE PETITIONER. THIS PETITION, COMING ON FOR FURTHER HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE M.G.S. KAMAL ORAL ORDER Petitioner/Credit Co-operative Society, apparently having deposited a sum of Rs.31,36,95,843.11 with the respondent No.3/Bank in different deposit accounts, which is subject matter of the proceedings under Section 35A of the Banking - 3 - HC-KAR NC: 2026:KHC:9367 WP No. 1874 of 2023 Regulations Act, 1949, had made claims for release of an aggregate sum of 15 lakhs i.e. 5 lakhs each under the Deposit Insurance and Credit Guarantee Corporation (DICGC) Act, 1961. The combination of accounts in respect of which the said sum sought is given at para 11 of the petition which read as under; Sl. No. Account No. CC No. Name/Combination of the depositors Amount in Rs. 1 100400045107 (Joint account- Term deposit) 100028496 1. M/s Swabhimani Souharda Credit Co- operative Ltd., 2. The Asst. Registrar of Chits, Central Zone 5,00,000 2 100400044901 (Joint account- Term deposit) 100028496 1. M/s Swabhimani Souharda Credit Co- operative Ltd., 2. The Asst. Registrar of Chits, Central Zone 10,00,000 3 100400031287 (Joint account- Term deposit) 100028496 1. M/s Swabhimani Souharda Credit Co- operative Ltd., 2. The Asst. Registrar of Chits, Central Zone 10,00,000 4 100400045107 (Joint account- Term Deposit) 100031162 1. The Asst. Registrar of Chits, Central Zone 2. M/s Swabhimani Souharda Credit Co- operative Ltd., 10,00,000 5 100200016733 (Savings A/c) 100028496 M/s Swabhimani Souharda Credit Co- operative Ltd., 7,32,91,102.61 - 4 - HC-KAR NC: 2026:KHC:9367 WP No. 1874 of 2023 6 Total sum in different Term Deposits Accounts 100028496 M/s Swabhimani Souharda Credit Co- operative Ltd., 23,68,52,620 2. It appears that petitioner had also given its Willingness Form on 20.09.2021 to corresponding bank to receive and settle the amount under DICGC, which was accepted, non- consideration of the application has constrained the petitioner to file the present petition seeking following reliefs; (a) Issue a writ of mandamus or any other appropriate writ or order, directing the respondent No.1 and 3 to process the application of the petitioner in the light of the final willingness/ representation/ reminder dated 02.01.2023 at Annexure-K and release the sum of Rs.15,00,000/- (Rupees Fifteen Lakhs) only forthwith, in favour of the petitioner. (b) Pass such other writ, order of direction as this Hon'ble Court deems fit and proper in the facts and circumstances of the case." 3. Learned counsel appearing for the petitioner submits that there is no reason why the respondent/Bank is not considering the application which is statutory requirement. 4. In response, Sri. Dhyan Chinnappa, learned Senior Counsel appearing for Sri. S.R.Kamalacharan for the respondent No.1 drawing attention of this Court to paragraphs 18 and 19 of the statement of objections submit that there - 5 - HC-KAR NC: 2026:KHC:9367 WP No. 1874 of 2023 were certain issues pertaining to accounts towards which the amounts sought for as the same were 'frozen' and no explanation was provided by the petitioner for the reason of freezing the account. He also submit that besides there was a delay in filing the application, it is on these two counts the application has not been considered. 5. Heard and perused records. 6. There appears to be no dispute with regard to petitioner having deposited the amount as claimed. Petitioner is seeking release of sum of Rs.5,00,000/- each as explained in paragraph 11 of the petition extracted above under the DICGC Act, 1961. The reason as perused at para 18 and 19 of the statement of objections appears to be purported freezing of the account of the customer ID number 100028490 and the delay in filing the application. Para 19 however indicate that the belated time could be extended even as stated by respondent No.1. 7. In that view of the matter without adverting to the merits or otherwise of the case, this Court deems it appropriate to allow the petition. Hence writ petition is allowed directing the respondent No.1 to consider the application filed by the - 6 - HC-KAR NC: 2026:KHC:9367 WP No. 1874 of 2023 petitioner for release of amount as per Annexure-K. Petitioner is at liberty to furnish such additional information as may be requisitioned by the respondent No.1 for processing the application. Orders on the said application shall be passed within an outer limit of 60 days from the date of receipt of the certified copy of this order. Sd/- (M.G.S. KAMAL) JUDGE RU List No.: 1 Sl No.: 38