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2025 Supreme(Kar) 2641

IN THE HIGH COURT OF KARNATAKA AT DHARWAD
M.NAGAPRASANNA, J.
Rayappa S/o Channabasappa Kittur – Appellant
Versus
The Government of Karnataka, Rep. by its Chief Secretary, Bengaluru – Respondent
Writ Petition Nos. 103508, 104280 of 2025
Decided On : 19-11-2025

Advocates Appeared:
For the Appellant : Srinand Aravind Pachapure
For the Respondents: Ramesh Chigari, M.B. Kanavi, Veeresh Budihal

A competent authority must provide clear reasoning for rejecting claims and allow for resubmission of evidence under the KPIDFE Act.

Headnote:(A) Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004 - Section 7(2) - Writ petitions challenging rejections of claim applications by the competent authority, asserting failure to provide verifiable proof - Impugned endorsements quashed due to lack of justification and opportunity for further submissions. (Paras 1-3)

(B) Authority's duty - Competent authority must provide reasons for rejection and can seek further supporting documents as necessary in decisions regarding claims. (Paras 3-4)

Facts of the case:
Petitioners, as depositors, challenged endorsements rejecting their claims on grounds of insufficient proof stipulated under Section 7(2) of the KPIDFE Act. The court found the authority failed to provide reasoning for the rejections and did not seek any additional documentation.

Findings of Court:
The court allowed the writ petitions, quashed the rejections, and remitted the matter back to the authority for reevaluation with a directive to complete the reassessment within eight weeks.

Issues: The key issue was the authority's compliance with due process in dealing with depositors' claims and the requirement for justifications in claim rejections.

Ratio Decidendi: The court held that the authority's lack of reasoning for claim rejections violated procedural fairness and mandated a fresh evaluation, allowing for the submission of additional documents.

Result: Writ Petitions allowed.

Table of Content
1. petition requests for multiple writs and endorsements inquiry. (Para 1)
2. court reviews endorsements for lack of justification in claims. (Para 2)
3. petitioners argue deceptive practices denied endorsement approval. (Para 3)
4. court emphasizes timeline for review of rejected claims. (Para 4 , 5)

ORDER :

1. The petitioners are before this Court seeking the following reliefs:

In WP 104280/2025

i) a writ of certiorari quashing the endorsements bearing No.SPLOCA/CLM-1/01/2024-25/KSR3A(1030) dated 30/01/2025, endorsement bearing No.SPLOCA/CLM-1/01/2024-25/KSR3A(4280) dated 05/03/2025, endorsement bearing No. SPLOCA/CLM-1/01/2024- 25/KSR3A(4915) DATED 10/03/2025, ENDORSEMENT BEARING NO. SPLOCA/CLM-1/01/2024-25/KSR3A (3981) DATED 03/03/2025, ENDORSEMENT BEARING NO. SPLOCA/CLM-1/01/2024-25/KSR3A(3982) DATED 03/03/2025, ENDORSEMENT BEARING NO. SPLOCA/CLM- 1/01/2024-25/KSR3A (3980) DATED 03/03/2025, ENDORSEMENT BEARING NO. SPLOCA/CLM-1/01/2024- 25/KSR3A(1645) DATED 06/02/2025, ENDORSEMENT BEARING NO. SPLOCA/CLM-1/01/2024-25/KSR3A (1344) DATED 03/02/2025, ENDORSEMENT BEARING NO. SPLOCA/CLM-1/01/2024-25/KSR3A(2807) DATED 21/02/2025, ENDORSEMENT BEARING NO. SPLOCA/CLM- 1/01/2024-25/KSR3A (1519) DATED 05/02/2025, ENDORSEMENT BEARING NO. SPLOCA/CLM-1/01/2024- 25/KSR3A(2331) DATED 15/02/2025, ENDORSEMENT BEARING NO. SPLOCA/CLM-1/01/2024-25/KSR3A (4303) DATED 05/03/2025, ENDORSEMENT BEARING NO. SPLOCA/CLM-1/01/2024-25/KSR3A(2803) DATED 21/02/2025, ENDORSEMENT BEARING NO. SPLOCA/CLM- 1/01/2024-25/KSR3A (4256) DATED 05/03/2025, ENDORSEMENT BEARING NO. SPLOCA/CLM-1/01/2024- 25/KSR3A(1912) DATED 11/02/2025, ENDORSMENT BEARING NO.SPLOCA/CLM-1/01/2024-25/KSR 3A(1431) DATED 04/02/2025 ENDORSEMENT BEARING NO.SPLOCA/CLAIM-1/01/2024-25/KSR 3A (1431) DATED 4/2/25 ENDORSEMENT BEARING NO. SPLOCA/KVSRUCS/CLAIM/01/2024-25(641) DATED 1/01/2024-25/KSR3A (2505) DATED 18/02/2025, 25/KSR3A(2484) DATED 17/02/2025, ENDORSEMENT BEARING NO. SPLOCA/CLM-1/01/2024-25/KSR3A (2483) DATED 17/02/2025, ENDORSEMENT BEARING NO. SPLOCA/ CLM-1/01/2024-25/KSR3A(2504) DATED 18/02/2025, ENDORSEMENT BEARING NO. SPLOCA/CLM- 1/01/2024-25/KSR3A (2506) DATED 18/02/2025, ENDORSEMENT BEARING NO. SPLOCA/CLM-1/01/2024- 25/KSR3A(4165) DATED 04/03/2025, ENDORSEMENT BEARING NO. SPLOCA/CLM-1/01/2024-25/KSR3A (2062) DATED 12/02/2025, ENDORSEMENT BEARING NO. SPLOCA/CLM-1/01/2024-25/KSR3A(4167) DATED 04/03/2025, ENDORSEMENT BEARING NO. SPLOCA/KVSRUCS/CLAIM/01/2024-25(173) DATED 18/01/2025, ENDORSEMENT BEARING NO. SPLOCA/ KVSRUCS/CLAIM/01/2024-25(175) DATED 18/01/2025, ENDORSEMENT BEARING NO. SPLOCA/KVSRUCS/CLAIM/01/ 2024-25(358) DATED 21/01/2025, ENDORSEMENT BEARING NO. SPLOCA/CLM- 1/01/2024-25/KSR3A(3706) DATED 01/03/2025, ENDORSEMENT BEARING NO. SPLOCA/CLM-1/01/2024- 25/KSR3A (3704) DATED 01/03/2025, ENDORSEMENT BEARING NO. SPLOCA/ KVSRUCS/CLAIM/ 01/2024- 25(176) DATED 18/01/2025, ENDORSEMENT BEARING NO. SPLOCA/KVSRUCS/CLAIM/01/2024-25(174) DATED 18/01/2025, ENDORSEMENT BEARING NO. SPLOCA/ CLM- 1/01/2024-25/KSR3A(1803) DATED 10/02/2025, ENDORSEMENT BEARING NO. SPLOCA/CLM-1/01/2024- 25/KSR3A (1702) DATED 07/02/2025, ENDORSEMENT BEARING NO. SPLOCA/CLM-1/01/2024-25/KSR3A(833) DATED 28/01/2025, ENDORSEMENT BEARING NO. SPLOCA/CLM-1/01/2024-25/KSR3A (832) DATED 28/01/2025, ENDORSEMENT BEARING NO. SPLOCA/ KVSRUCS/CLAIM/01/2024-25(404) DATED 22/01/2025, ENDORSEMENT BEARING NO. SPLOCA/KVSRUCS/CLAIM/ 01/2024-25(405) DATED 22/01/2025, ENDORSEMENT BEARING NO. SPLOCA/CLM-1/01/2024-25/KSR3A(3606) DATED 01/03/2025, ENDORSEMENT BEARING NO. SPLOCA/ CLM-1/01/2024-25/KSR3A(1057) DATED 1/01/2024-25/KSR3A(1058) DATED 30/01/2025, 25/KSR3A (1395) DATED 03/02/2025, ENDORSEMENT DATED 21/02/2025, ENDORSEMENT BEARING NO. SPLOCA/CLM-1/01/2024-25/KSR3A (1397) DATED 03/02/2025, ENDORSEMENT BEARING NO. SPLOCA/ CLM- 1/01/2024-25/KSR3A(1396) DATED 03/02/2025, ENDORSEMENT BEARING NO. SPLOCA/ CLM-1/01/2024- 25/KSR3A (805) DATED 28/01/2025, ENDORSEMENT BEARING NO. SPLOCA/CLM-1/01/2024-25/KSR3A(2827) DATED 21/02/2025

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