A bank cannot enforce an award for recovery against land owned by a grantee if there is no mortgage or loan transaction between them, as transactions are independent under relevant co-operative and land transfer laws.

CAV ORDER

1. The petitioner in all the above writ petitions is Bangalore, Bangalore Rural and Ramanagara District Central Co-operative Bank Ltd.(hereinafter referred to as the Bank or BBRRDCCB), seeking the following reliefs in each of the petitions. Which reads as hereunder:

In W.P. No.29196/2014:

a) Quash the impugned order No.K.SC.ST.170/2007-08 dated 26.08.2010 passed by the 1st respondent at ANNEXURE-C;

b) Set aside the order dated 25.10.2013 passed in Appeal No.SC.ST.(A)120/2010- 11 by the 7th respondent; at ANNEXURE- E; and

c) Pass such other orders as deemed fit to grant in the facts and circumstances of the case; and-

d) In the alternative the 6th respondent may please be directed to refund to the petitioner an amount of Rs.25,000/- along with interest at 18% in the interest of justice.

In W.P. No.17857/2015:

a) Quash the impugned order No.K.SC.ST.30/2007-08 dated 26.8.2010 passed by the 1st respondent at ANNEXURE-C;

b) Set aside the order dated 06.03.2014 passed in Appeal No.SC.ST.(A)122/2010- 11 by the 11th respondent; at ANNEXURE-E; and c) Pass such other orders as deemed fit to grant in the facts and circumstances of the case; OR d) In the alternative the 4th and 10th respondents may please be directed to refund to the petitioners an amount of Rs.1,05,000/- along with interest at 18% from 3.4.1993 the date of agreement till the date of payment in the interest of justice.

In W.P. No.17858/2015:

a) Quash the impugned order No.K.SC.ST.172/2007-08 dated 26.8.2010 passed by the 1st respondent at ANNEXURE-C;

b) Set aside the order dated 01.07.2013 passed in Appeal No.SC.ST.(A)117/2010- 11 by the 1st respondent; at ANNEXURE- E; and

c) Pass such other orders as deemed fit to grant in the facts and circumstances of the case; OR

d) In the alternative the 6th and 7th respondents may please be directed to refund to the petitioners an amount of Rs.75,000/- along with interest at 18% from 3.4.1993 the date of agreement till the date of payment in the interest of justice.

2. The factual background in all the above petitions more or less similar in that the petitioner-Bank claims to be a financial institution registered under the provisions of the Karnataka Co-operatives Act, 1959. The main sources of finance to the said Bank are deposits from members and the public, loans from Apex Bank, NABARD as also loan/share capital from the Government of Karnataka. It is claimed that the said Bank operates in Bangalore District, Bangalore Rural and Ramanagara District.

3. It is further claimed that respondent No.3-Javahar House Building Co-operative Society Ltd., having approached the petitioner for sanction of a loan an amount of Rs.2 crores, was sanctioned on 06.01.1993 to enable the said Society to purchase lands for the formation of layouts. There being a default in repayment of the loan, the petitioner – Bank raised a dispute before the Joint Registrar of Co-operative Societies in Dispute No.908/1993-94 against the Society for recovery of Rs.2,38,00,497/-, an award was passed on 01.03.1997 directing the payment of the said amount with interest at the rate of 22.5% and penal interest at 1% on defaulted principal amount of Rs.1,99,98,500/- from 01.01.1994 till the date of realisation.

4. In pursuance thereof, the petitioner-Bank had approached the Joint Registrar of Co-operative Societies for the execution of the award by attachment of the properties as regards which respondent No.3 had entered into various agreements of sale. By an order dated 22.09.2007, the said properties came to be attached.

5. Respondent No.6 the original owner of the property claiming to be a gr