The court held that non-compliance with a prior court order precludes a party from challenging an award, affirming the binding nature of statutory orders under the Karnataka Co-operative Societies Act.

ORDER :

C.M. Poonacha, J.

The present Writ Petition is filed seeking for the following reliefs:

"i. Call for records in Appeal No.89/2023 on the file of the Karnataka Appellate Tribunal at Bangalore;

ii. Issue a WRIT OF CERTIORARI or any other writ, order or direction and set aside the order dated 12.04.2023 passed on IA No.I filed under Section 5 r/w Section 14 of Limitation Act (Annexure - O), I.A. No.II filed under Regulation 13 of the Karnataka Appellate Tribunal Regulations (Annexure-01) and I.A.No.III filed under section 151 of Code of Civil Procedure r/w Section 105 of Karnataka Co-operative Societies Act (Annexure 02), in Appeal No.89/2023 by the Karnataka Appellate Tribunal at Bangalore (Annexure - P);

ii(a). Issue a WRIT OF CERTIORARI or any other writ, order or direction and set aside the Order dated 24.08.2023 passed on IA No.4 and 7 in Appeal No.89/2023 by the Karnataka Appellate Tribunal at Bangalore (Annexure - U) and allow the IA No.4 filed under Regulation 4 of the Karnataka Administration Tribunal Regulations and IA No.7 filed under section 151 of Code of Civil Procedure r/w Section 105 of the Karnataka Co-operative Societies Act, 1959 (Annexures - Q & R);

iii. Declare that the proceedings in Appeal No.89/2023 pending on the file of the Karnataka Appellate Tribunal at Bangalore, is without jurisdiction and is non-est in law; and

iv. Grant such other and further reliefs as are just including the costs of this proceedings."

2. The relevant facts necessary for consideration of the present petition are that, the Petitioner-Society entered into a Land Assembling cum Development Agreement[hereinafter referred to as 'the said Agreement'] dated 15.03.2013 with Respondent No.1 who was the Proprietor of Vinayaka Builders and Developers. Due to certain disputes between the parties arising from the said Agreement, the Petitioner initiated proceedings under Section 70 of the Karnataka Co-operative Societies Act, 1959[hereinafter referred to as 'the Act'] before Respondent No.2 - Joint Registrar of Co-Operative Societies, Bengaluru. Vide order/award dated 28.04.2017, the Respondent No.2 - Joint Registrar directed Respondent No.1 to pay the Petitioner-Society a sum of Rs.17,57,87,000/- together with interest and costs. Being aggrieved, Respondent No.1 preferred W.P. Nos.26288-328/2017. Vide order dated 28.08.2017, this Court allowed the said writ petitions in part and directed the Respondent No.1 herein who was the Petitioner in the said writ petition to deposit a sum of Rs.2 crores. It was further specifically ordered that if the Respondent no.1 did not deposit the money, he would not be entitled to the benefit of the order and the Society would be entitled to execute the award dated 28.04.2017.

3. It is forthcoming from the record that Respondent No.1 did not deposit the sum of Rs.2 crores as per the said order dated 28.7.2017 passed in W.P. Nos.26288-328/2017. In view of the same, properties were attached pursuant to the award dated 28.04.2017 and sale of properties in public auctions were held on 21.6.2018, 18.07.2018 and 09.07.2018. Respondent No.1 filed I.A. No.1/2018 in W.P. Nos.26288-328/2017 for extension of time to deposit a sum of Rs.2 crores.

4. This Court vide order dated 13.11.2018, passed on I.A.1/2018 passed the following order:

"After hearing and perusing the pleadings certain facts stand crystallized. It is apparent that the parties have been carrying on transactions which in fact led to the present imbroglio and many a transaction has been based on mutual trust.

On account of certain fact beyond the control, the parties have resorted to litigation, which this Court is of the opinion, could be resolved by Mediation/Arbitration.

Learned counsel for both the parties submit that the parties are willing to resolve the issue by way of Arbitration and that the dispute which has arisen can be adjudicated by an Arbitrator mutually agreeable to the parties and the Learned Senior Counsel and the Learned Counsel for the Petition