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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
D.K.SINGH, VENKATESH NAIK T.
K.C. Onkarappa, Son Of Late K. Channappa – Appellant
Versus
State Of Karnataka – Respondent
| Table of Content |
|---|
| 1. details of the principal amount due from the sugar factory. (Para 2) |
| 2. allegations of misconduct leading to inquiry against petitioners. (Para 7) |
| 3. arguments regarding lack of notification to petitioners. (Para 8 , 9) |
| 4. emphasis on natural justice as a procedural requirement. (Para 10) |
| 5. outcome of the writ petition. (Para 11) |
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 princi
Violation of natural justice occurs when parties are not afforded an opportunity to present their case, leading to the annulment of the inquiry report.
Important Point : The Lokayukta lacks jurisdiction to resolve civil disputes already pending before other courts, and must adhere to principles of natural justice.
The appellate authority must provide a reasoned decision and consider all relevant materials presented in cases regarding loan recovery under cooperative societies' laws.
Clause (c) of Section 8(1) of 2nd schedule to Act excludes from jurisdiction of Lok Ayukta, cases of contracts having commercial relations.
The central legal point established in the judgment is the requirement for adherence to the principles of natural justice before passing any adverse orders by the authorities.
The court established that an auction purchaser is entitled to interest on the auction amount when delayed refunds occur due to no fault of their own.
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