IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26^TH DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE ASHOK S.KINAGI WRIT PETITION NO. 38239 OF 2025 (CS-RES)

BETWEEN:

M/S SURABHI SOUHARDA CREDIT CO-OPERATIVE SOCIETIES LTD NO.270, 1^ST FLOOR SAIRAM COMPLEX

5^TH CROSS , 5^TH BLOCK KATRIGUPPE BANASHANKARI 3^RD STAGE BENGALURU-560 085 REP BY ITS CEO POOJASHREE P.V REGD UNDER KARNATAKA CO-OPERATIVE SOCIETIES ACT 1959 … PETITIONER Digitally signed by SUNITHA K S (BY SRI. N SUKUMAR JAIN.,ADVOCATE)

Location:

AND:

HIGH COURT OF KARNATAKA

1. JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES (R-441), KSSSF LTD NO.246, 17 & 18^TH CROSS MIDDLE MARGOSA ROAD MALLESHWARAM BENGALURU -560 055

2. SRI. K.S. ASHWATHANARAYANA S/O LATE SRINIVAS RAO AGED ABOUT 56 YEARS OCC BUSINESS R/AT NO 572, SHIVAM 2^ND CROSS NGEF LAYOUT' NAGARABHAVI BENGALURU – 560 072

3. SRI. K.S. UMESH BABU S/O LATE SRINIVAS RAO AGED ABOUT 53 YEARS OCC BUSINESS R/AT NO 914, 3^RD MAIN ROAD VIJAYANAGAR BENGALURU -560 058 …RESPONDENTS (BY SRI.A.DEVARAJA .,ADVOCATE FOR C/R-2;

SRI.YOGESH D.NAIK., AGA FOR R-1;

SRI. VENUGOPAL M.S. FOR R3)

THIS WP IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER DATED 29.10.2025 IN APPEAL NO. 355/202 PASSED BY THE KARNATAKA APPELLATE TRIBUNAL BENGALURU MARKED AS ANNX-H.

THIS PETITION, COMING ON FOR PRELIMINARY HEARING, IN ‘B’ GROUP., THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE ASHOK S.KINAGI

ORAL ORDER

1. The petitioner filed this petition challenging the order dated 29.10.2025 passed in Co.Op.Appeal No. 355 of 2024 by the Karnataka Appellate Tribunal (for short ‘the KAT’), Bengaluru vide Annexure-H.

2. Brief facts, leading rise to the filing of this petition are as follows:

3. Respondent Nos.2 and 3 availed a loan of Rs.1.00 crore from the petitioner on 17.09.2013 by mortgaging house property of respondent No.2. Respondent Nos.2 and 3 committed a default in payment of the loan amount with interest. The petitioner raised a dispute under Section 70 of the Karnataka Co-operative Societies Act before the Registrar. The Registrar has passed the award under Section 39 of the Karnataka Souharda Sahakari Act, and the award came to be passed on 27.02.2017 and directed the respondent Nos.2 and 3 to pay the pay sum of Rs.1,47, 21,617/- with interest and costs etc.

Despite passing an award, respondent Nos.2 and 3 did not repay the award amount. The petitioner filed an execution petition. Thereafter respondent Nos. 2 and 3 aggrieved by the award preferred an appeal before the KAT along with an application for condonation of delay. The KAT allowed the application and condoned the delay of 7 years 7 months 20 days in preferring the appeal. Consequently, appeal was allowed and the award dated 27.02.2017 passed by the authority was set aside and the matter was remitted to respondent No. 1 therein. The petitioner aggrieved by the judgment passed by the Karnataka Appellate Tribunal in Co-op.Appeal No. 355 of 2024 filed this petition.

4. Heard the arguments of the learned counsel for the petitioner, and learned counsel for the respondent Nos.2 and 3 and learned Additional Government Advocate for respondent No.1.

5. Learned counsel for the petitioner submits that the respondent Nos.2 and 3 obtained the loan from the petitioner's society and failed to repay the loan amount. The petitioner raised a dispute before the concerned authority. The concerned authority has passed an award on 27.02.2017. Respondent Nos.2 and 3 did not repay the award amount. The petitioner filed the execution petition. During the pendency of the execution petition, respondent Nos.2 and 3 filed a memo undertaking to repay the award amount. Despite submitting an undertaking before the executing court, respondent Nos.2 and 3 did not repay the award amount. Respondent Nos.2 and 3 approached the KAT by filing an appeal along with an application for condonation of delay of 7 years 7 months and 20 days. The KAT allowed the appeal by condoning the del