Violation of natural justice occurs when parties are not afforded an opportunity to present their case, leading to the annulment of the inquiry report.

ORDER :

 D K SINGH, J.

Heard Sri. Gautam S. Bharadwaj, learned counsel for the petitioners, Smt. Prathibha R.K., learned AGA for respondent Nos.1, 4 and 8, Sri. Venkatesh S. Arabatti, learned counsel for respondent Nos.2 and 3, Sri. Yogesh V. Kotemath, learned counsel representing Sri. P.H.Virupakshaiah, learned counsel for respondent Nos.6 and 7, Sri. T.Basavaraj, learned counsel for respondent No.5 and Smt. Nireeksha D., learned counsel representing Sri. Showri H.R., learned counsel for respondent No.9.

2. Petitioner No. 1 was the Sales Officer, and petitioner No. 2 was the Recovery Officer in respect of the sale of the assets of the Bhadra Sahakari Sakkare Karkhane Niyamit (hereinafter referred to as "Co-operative Sugar Factory"). The five Co-operative banks form the consortium to advance loan to the said sugar factory. Details of the principal amount which due from the sugar factory and the interest thereon and the total amount due in respect of each bank as of 30.06.2005 are given as under:

3. The consortium banks have approached the Court of Deputy Additional Registrar of Co-operative Societies, Bengaluru (CREDIT), by filing Case No. RCS:CRD:KME:8:180/2011-12 for the recovery of the amount due against the Co-operative Society. The Award dated 25.04.2015 came to be passed by the said Authority in favour of the consortium banks. In the award, it was held that the Co- operative sugar factory was in debt for Rs.25,18,64,250/- as on 30.06.2005 to the five consortium banks and the said amount with interest at 16% per annum from the date of the decree till the date of clearing the same was to be paid by the respondent factory to the banks. It was further directed that the said amount was to be recovered by the petitioner banks jointly and severally by selling the movable and immovable properties attached before the Judgment on 23.09.2006, belonging to the respondent factory. The said award came to be challenged by the Co-operative sugar factory before the Karnataka Appellate Tribunal (KAT) at Bengaluru. However, challenge to the said award was unsuccessful and the appeal was dismissed by the Karnataka Appellate Tribunal by the Order dated 04.04.2017.

4. Petitioner No.1 was appointed as the Sales Officer by petitioner No.2 to conduct the sale of the movable and immovable properties of the Co-operative Societies to satisfy the award passed by the Court of Deputy/Additional Registrar of Co-operative Societies, Bengaluru (CREDIT), dated 25.04.2015.

5. The State Government had fixed the value of the property of the Co-operative Society at Rs.150 Crores. However, the petitioner was of the opinion that the value of the property of the Co-operative Society was around Rs.76,22,50,000/- and the liabilities of the Bhadra Co-operative Sugar Factory as on 31.03.2016 were Rs.101,80,87,830.81/-. It appears that no one came forward even upto the minimum price fixed by the Government at Rs.150 Crores. One Sri. B.Karibasappa, representing the Davanagere Sugarcane Grower's Society (R), which was registered just 15 days before the date of auction, quoted a sum of Rs.54 Crores for the properties of the sugar factory which were put in auction. The petitioner brought to the notice of the banks the aforesaid facts and asked the banks either to accept the bid of Sr