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2025 Supreme(Kar) 2364

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
M.G.UMA, J.
 
Anantharaja Charitable Trust, Represented By Its Managing Trustee Sri K.P.Acharya, S/o. Late Anantha Raja Acharya – Appellant 
Versus 
The Assistant Registrar Of Co-Operative Societies And Recovery Officer And Recovery Officer –Respondent 
Writ Petition No. 16663 Of 2025 (CS-RES) C/W Writ Petition No. 16658 Of 2025 (CS-RES), Writ Petition No. 26325 Of 2025 (CS-RES), Writ Petition No. 26326 Of 2025 (CS-RES)
Decided On : 28-11-2025
 

Advocates Appeared:
For the Appellant : Sri. Ramachandra G. Bhat, Adv.
For the Respondent: Sri. M. Chidananda Kedilaya, Adv.

Court affirmed the validity of sales under execution, emphasizing the importance of timely objections and statutory adherence in contesting such actions.

Headnote:(A) Karnataka Co-operative Societies Rules, 1960 - Rule 38 - Writ petitions challenging sale proclamations and execution proceedings - Petitioner Trust claims ownership of properties sold in execution without notice and contends no loan was obtained from respondent Society - Counterclaim asserts due process was followed in authorizing and conducting auctions - Court finds petitioners failed to challenge awards and attachment orders during proceedings, no evidence of valid claims against auction sale - Court emphasizes adherence to statutory provisions and upheld auction legality. (Paras 5-10, 18, 21-23, 36-47)

Facts of the case:
Four writ petitions contest sale proclamations issued for properties claimed by petitioners, asserting lack of due process and ownership rights, none being party to underlying loan agreements.

Findings of Court:
Validity of sale affirmatively upheld, no irregularities established, petitioners' objections failed to show merit.

Issues: Whether the Trust or individual petitioners properly challenged the execution of sale and attachment orders; the legal standing of property ownership claims amid ongoing loan disputes.

Ratio Decidendi: The court determined that prior awards and attachments were not contested by petitioners; thus, equity favored legality of auction process.

Result: Writ petitions dismissed.

Table of Content
1. details of properties owned and disputes raised. (Para 5 , 6 , 8 , 11 , 14)
2. contentions regarding ownership and legality of attachment. (Para 9 , 10 , 19 , 30)
3. arguments about auction legality and process. (Para 17 , 18 , 22 , 23)
4. respondent's counterarguments on legal grounds. (Para 20 , 21 , 24 , 29)
5. judgment on challenges to sale and auction process. (Para 37 , 40 , 43 , 46)
6. final order dismissing the writ petitions. (Para 48)

ORDER :

M. G. UMA, J.

1. The petitioner - Anantharaja Charitable Trust (for short 'the Trust') represented by its Managing Trustee - Sri K P Acharya in Writ Petition No.16663 of 2025, is seeking issuance of writ in the nature of certiorari to quash the sale proclamation dated 29.04.2025 issued in Execution No.21 of 2020-21 on the file of respondent No.1 produced as per Annexure-C, insofar as it relates to two items of properties mentioned therein.

2. The petitioner - Shwetha D Acharya in Writ Petition No.16658 of 2025, is seeking issuance of writ in the nature of certiorari to quash the very same sale proclamation produced as per Annexure-B relating to the property mentioned therein and to direct respondent Nos.1 and 2 not to sell the said property which is shown as item No.7 in Annexure-B, as the same belongs to the petitioner.

3. The petitioner - K P Acharya in Writ Petition No.26325 of 2025, is seeking issuance of writ in the nature of certiorari to quash the order dated 22.07.2025 passed in Execution No.21 of 2020-21 by respondent No.1 produced as per Annexure-C2, insofar as it relates to the properties mentioned in the petition and to direct respondent No.1 to consider the application dated 02.07.2025 produced as per Annexure-C filed under Rule 38(5)(a) of the Karnataka Co- operative Societies Rules, 1960 (hereinafter referred to as 'the KCS Rules' for short).

4. The petitioner - Shwetha D Acharya in Writ Petition No.26326 of 2025, who is also the petitioner in Writ Petition No.16658 of 2025, is seeking issuance of writ in the nature of certiorari to quash the order dated 22.07.2025 passed in Execution No.21 of 2020-21 by respondent No.1 produced as per Annexures-C3 in respect of the property referred therein and seeking issuance of writ in the nature of mandamus directing respondent No.1 to consider her application dated 02.07.2025 produced as per Annexures-C and C2 filed under Rules 38(5)(a) and 41 of the KCS Rules, respectively.

5. Facts of the case in brief in Writ Petition No.16663 of 2025 are that, the Trust referred to above has filed this petition challenging the sale proclamation dated 29.04.2025 produced as per Annexure-C, insofar as it relates to Sy.No.39/4P7, new No.39/4B5 measuring 50 cents, situated at Mallar Village, Kapu Hobli and Taluk, Udupi District and the land bearing Sy.No.40, new No.40/3B4 measuring 23 cents, situated at Mallar Village, Kapu Hobli and Taluk, Udupi District, which are shown as item Nos.3 and 4, in the sale proclamation Annexure-C. It is contented by the Trust that it is a Charitable Trust established under the provisions of Indian Trust Act registered on 04.05.1992. As per the trust deed dated 25.04.1992 produced as per Annexure-A, the Trust acquired property in Sy.No.39/4P7 measuring 0.50 cents under the sale deed dated 07.05.2004 and the RTC stands in its name. Similarly, the Trust purchased 23 cents in Sy.No.40 of Mallar Village and the RTC stands in its name. The Trust has established educational institutions by name Vidyanikethan Public School, Nursing College and PU College by constructing the buildings on the aforesaid lands.

6. It is contented that neither the petitioner - Trust nor its members have obtained any loan from respondent No.2. None of the properties referred to above belonging to the Trust were mortgaged in favour of respondent No.2. But it was learnt by the petitioner that respondent No.2 has instituted recovery proceedings by raising a dispute with respondent No.1, alleging that the petitioner - Trust, represented b

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