The appellate authority must provide a reasoned decision and consider all relevant materials presented in cases regarding loan recovery under cooperative societies' laws.

ORDER :

Ashok S.Kinagi, J.

These writ petitions are filed challenging the order dated 28.12.2015 passed by respondent No.2 (WP No.12667/2016) in Appeal No.1/2009-10 filed under Section 106 of the Karnataka Co-operative Societies Act, 1959 (‘Act’ for short).

2. WP No.12667/2016 is filed by the Society, WP No.18951/2016 is filed by the auction purchaser and WP No.64567/2016 is filed by the purchaser of the property under reference from the auction purchaser (petitioner in WP No.18951/2016). For convenience, the parties are referred to based on their rankings in WP No.12667/2016.

3. Brief facts leading rise to the filing of these petitions are as follows:

3.1. The petitioner is a Co-operative Society registered under the Act. Respondent No.5 obtained a loan from the petitioner-Society by mortgage in a sum of Rs.5,15,000/- on 19.12.2003. Respondent No.5 failed to repay the loan amount. The petitioner-Society invoked arbitration clause for recovery of the said amount. The Arbitrator has passed an award in Dispute No.3179/04-05 under Section 71 of the Act, which was communicated to respondent No.5 in accordance with law. Even then, respondent No.5 did not clear the overdue loan amount to the petitioner-Society. The petitioner proceeded to take a steps for recovery by filing execution petition before the respondent No.1. Thereafter, Form No.2 was issued on 22.02.2006 and the said Form No.2 was served on respondent No.5 on 07.03.2006. Since the loan amount was not cleared, Form No.6 was issued on 11.08.2006 and the same was served on respondent No.5 on 30.08.2006. Thereafter, the Sale Officer issued Form No.7 on 27.09.2006 and the same was served on respondent No.5 on 27.09.2006. Form Nos.8 and 9 were issued on 26.02.2007 and same were served on respondent No.5 on 28.02.2007. The details of the properties brought for sale were published in Kannada Daily newspaper ‘Udayavani’ on 22.03.2007. Respondent No.5 filed an appeal before the Karnataka Appellate Tribunal, Bengaluru (‘Tribunal’ for short) in Appeal No.313/2006 and obtained an interim order of stay. Respondent No.5 was unable to fulfill the conditions stated in the interim order, the same was vacated and the appeal was dismissed. Respondent No.5 filed a writ petition in WP No.11655/2007 and he has obtained an interim order of stay. Respondent No.5 also filed a civil suit in OS No.69/2007 on the file of learned Civil Judge (Junior Division) Belthangady, D.K. Form Nos.8 and 9 were issued again on 21.09.2007, since there were no auction bidders and a writ petition in WP No. 16830/2006 was filed by respondent No.5, the auction could not be taken place. On 17.01.2008, Form Nos.8 and 9 were issued, once again, which was challenged in WP No. 3281/2008 before this Court and interim order was granted. Respondent No.5 was unable to comply with the conditions of interim order passed by this court in WP No.3281/2008 and the same was vacated. A paper publication for auction was issued on 15.08.2008, and canvassing was also made in the village by distributing the pamphlets before the date of auction. Due to some technical reasons, the auction could not be held on the date fixed i.e., on 25.08.2008 and the same was postponed to 01.09.2008. Respondent No.4 was the highest bidder in the auction. Respondent No.5, after losing several rounds of litigation, filed an appeal before respondent No.2 in Appeal No.1/2009-10 challenging the auction sale and confirmation order dated 22.11.2008. Respondent No.2 allowed the appeal on 28.12.2015 and set aside the auction sale and confirmation order. Hence, this writ petition.

4. Heard the arguments of learned counsel for the petitioner, learned counsel for the auction purchaser, learned counsel for the borro