IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 9^TH DAY OF MARCH, 2026 BEFORE THE HON'BLE MR. JUSTICE ASHOK S. KINAGI WRIT PETITION NO.106550 OF 2025 (CS-RES)

BETWEEN:

1. SMT. SAINAJ W/O. DASTAGIR SAB CHICKGALGALI, AGE. 48 YEARS, R/O. EXPERT SCHOOL, NEAR BILAGI CROSS, TQ. BILAGI, DIST. BAGLAKOT-587116.

2. SRI. DASTAGIRSAB S/O. KASHIMSAB CHIKKAGALAGALI, AGE. 58 YEARS, R/O. EXPERT SCHOOL, NEAR BILAGI CROSS, TQ. BILAGI, DIST. BAGLAKOT-587116.

3. SRI. SHIVAPUTRAPPA S/O. RAMAPPA KAHANDAKI, AGE. MAJOR, R/O. DHAVALESHWAR, TQ. BILAGI, Digitally signed by DIST. BAGALKOT-587312.

MOHANKUMAR B SHELAR

4. SRI. RAFIQ Location: HIGH COURT OF S/O. HUSAINSAAB ATTAR, KARNATAKA AGE. MAJOR, R/O. SONNA, TQ. BILAGI, DIST. BAGALKOT-587116.

…PETITIONERS (BY SRI. SHARATH P.HANAMARADDI, ADVOCATE)

AND:

1. THE CO-OPERATIVE DEVELOPMENT OFFICER AND DEPARTMENTAL MEDIATOR BILAGI, TQ. BILAGI, DIST. BAGALKOT-587116.

2. THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES, (URBAN BANKS DIVISION)

#1, ALI ASKAR ROAD, BENGALURU-560051.

3. KRISHNA CO-OPERATIVE CREDIT SOCIETY LTD., BILAGI, BUSTAND BACKSIDE BILAGI, DISTRICT. BAGALKOT-587116, BY ITS AUTHORIZED REPRESENTATIVE MR. SURESH R.BATAKURKI, AGE. 47 YEARS, OCC. MANAGER, R/O. 21^ST CROSS, VIDYAGIRI, TQ. AND DIST. BAGALKOT-587103.

…RESPONDENTS (BY SMT. KIRTILATA R.PATIL, HCGP FOR R1 AND R2;

SRI. S.B. HEBBALLI, ADVOCATE FOR R3)

THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO A) QUASH THE IMPUGNED AWARD BEARING NO.U.B.C-3/D.I.S./118/2024-25 DATED 29.06.2024 VIDE ANNEXURE-A ISSUED BY RESPONDENT NO.1 UNDER 70(2)(A) OF KARNATAKA CO-OPERATIVE SOCIETIES ACT-1959, AND THEREBY SEEK TO DECLARE THAT ALL THE FURTHER PROCEEDINGS CARRIED OUT PURSUANT TO THE IMPUGNED AWARD AS NULL AND VOID. B) PASS SUCH OTHER WRIT OR DIRECTIONS OR ORDERS, AS THIS HON’BLE COURT DEEMS FIT TO GRANT IN THE FACTS AND CIRCUMSTANCES OF THE CASE, IN THE INTEREST OF JUSTICE AND EQUITY.

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

ORAL ORDER

(PER: THE HON'BLE MR. JUSTICE ASHOK S. KINAGI)

The petitioner filed this writ petition challenging the award bearing No.U.B.C.-3/D.I.S./118/2024-25 dated 29.06.2024 issued by respondent No.1 under Section 70(2)(a) of the Karnataka Co-operative Societies Act, 1959, (hereinafter referred to as 'the Act', for short).

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

2.1. The petitioners have borrowed loan from one Krishna Co-operative Credit Society Limited, Bilagi, (respondent No.3) for the purpose of building a School by name Expert International School, Bilagi. The petitioners could not repay the loan amount within the stipulated time and became defaulters. The Society raised a dispute under Section 70(2)(a) of the Act for recovery of the loan amount and respondent No.1 has passed the impugned award. The petitioners, aggrieved by the impugned award, have filed this writ petition.

4. Heard the arguments of the learned counsel for the petitioners, the learned High Court Government Pleader for respondent Nos.1 and 2 and the learned counsel for the Society-respondent No.3.

5. Learned counsel for the petitioners submitted that before passing of the impugned award, no enquiry was conducted by respondent No.1. The impugned award passed by respondent No.1 is in violation of the principles of natural justice. Hence, on these grounds, he prays to allow the writ petition and quash the impugned award.

6. Respondent No.1 is present before the Court and he submits that, no enquiry was conducted before passing the impugned awards.

7. The submission of respondent No.1 is placed on record. He has affixed his signature in the order sheet. Hence, submits no objection to remand the matter to respondent No.1 with a direction to dispose of the dispute.

8. Perused the records and considered the submissions of the learned counsel for the parties.

9. It is an undisputed fact that the petitioners have borrowed loan from the Society an