Service of notice to borrowers in cooperative society proceedings must be valid, and improper service invalidates subsequent actions; equitable considerations uphold the protection of bona fide purchasers in auctions.

CAV ORDER

1. The Petitioners in W.P.No.26112/2024 are before this Court seeking for the following reliefs:

a. To issue a writ of Certiorari or any other appropriate writ or order or direction to quash the impugned order dated: 18.09.2024 vide in appeal No.364/2023 passed by the Hon’ble Karnataka Appellate Tribunal at Bengaluru and consequently quash the award/order dated: 21.12.2020 vide case No. DRD/K.R.S.S.S.L/13448/2019-20 passed by the 2^nd respondent-Deputy Registrar of Co-operative Societies and consequently quash the sale Certificate dated 14.12.2023 registered on 15.12.2023 with respect to mortgaged schedule property as per Annexure-A, B and C and;

b. To grant such other order or further relief as this Hon’ble Court may deem fit and proper including the costs of these proceedings to the petitioners.

2. The Petitioners in W.P.No.22999/2024 are before this Court seeking for the following reliefs:

i. To issue a writ of Certiorari or any other appropriate writ or order or direction to quash the impugned order dated: 02.08.2024 vide EP No. Ka.Raa.Sou.Sam.Sa.Ni/VaA/11/2021-22 issued by the 2^nd Respondent by initiating proceedings under Rule 19(3) of the Karnataka Souhardha Sahakari Rules by taking steps for eviction the Petitioner from the property in question as per Annexure-A and;

ii. To grant such other order or further relief as this Hon’ble Court may deem fit and proper including the costs of these proceedings to the petitioners.

3. The petitioners contend that the original property bearing BBMP New Municipal No.4/01 (Old No.418) BBMP PID No.62-108-4/01, Katha No.418/4-01 situated at 6th Main, 4^th cross, BBMP Ward No.65, Hombegowda Nagara, Wilson Garden, Bangalore, was acquired by one Sri.N.Gopalakrishna, the father of petitioner No.1. On his expiry, his wife Anuradhamma, petitioner No.1 and another son, H.G. Gopalakrishna, succeeded to the property. There being a registered partition on 04.07.2013, the said property came to be allotted to petitioner No.1.

4. For the purpose of putting up construction of a residential house on the said property, petitioner No.1, borrowed a sum of Rs.30 lakhs from respondent No.3-SLV Souharda Pattina Sahakari Niyamitha on 27.11.2015, agreeing to repay the same by 27.11.2025.

5. The petitioner claims to have put up construction of several houses in the said property and rented out a few of them, retaining one house for his own use. The petitioner claimed that the entire loan amount was not disbursed in favour of the petitioner, but only a sum of Rs.25,35,000/- was disbursed. The petitioners over a period of time have paid an amount of Rs.49,68,675/- to the said bank, as regards which receipts have been issued. However, contending that there are dues owed by the petitioner, respondent No.3 initiated a dispute under section 70 of the CO-OPERATIVE SOCIETY ACT before respondent No.2-Deputy Registrar, seeking for payment of a sum of Rs.39,46,551/- under the Karnataka State Souharda Co-operative Act.

6. The petitioners claim that this proceeding had been initiated behind the back of the petitioner inasmuch neither a prior notice was issued nor a notice was issued by the Deputy Registrar of Co-operative Societies and by placing the petitioners ex-parte, an award came to be passed on 21.12.2020 for a sum of Rs.39,46,551/-.

7. The above said proceeding came to the knowledge of the petitioners much later, when a notice was issued by respondent No.3 on 28.10.2023 calling upon th