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2026 Supreme(Online)(Kar) 21337

THE HIGH COURT OF KARNATAKA
Ashok S. Kinagi, J
Kanchana – Appellant
Versus
Assistant Registrar Of Co-operative Societies – Respondent
WP No. 79676 of 2013|WP No. 79677 of 2013|WP No. 79678 of 2013|WP No. 79679 of 2013|WP No. 79680 of 2013|WP No. 80325 of 2013



Advocates:
For the Appellants/Petitioners: Shivaraj P. Mudhol
For the Respondents: Kirtilata R. Patil

The court held that where new, material evidence—specifically an official report stating that the petitioners were never members of the society and never availed the alleged loans—is produced after tribunal proceedings, the matter must be remanded for reconsideration to ensure justice, especially when previous orders lacked detailed reasoning.

Headnote:(A) Co-operative Societies - Dispute regarding loan liability - Arbitrator passed award against petitioners - Appellate Tribunal confirmed award without assigning adequate reasons - Subsequent enquiry report by Assistant Registrar of Co-operative Societies stated petitioners were not members of society and did not avail loans - Matter requires reconsideration.

Table of Content
1. overview of the legal disputes and arbitration history regarding alleged loan defaults. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8)
2. arguments concerning fabricated loan documents and lack of membership within the cooperative society. (Para 9 , 10 , 11 , 12 , 13)
3. court observed that evidence of forgery necessitates remanding the dispute to the arbitrator for fresh adjudication. (Para 14 , 15 , 16 , 17 , 18 , 19 , 20)

ORAL ORDER

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

1. The petitioners in Writ Petition No.79676/2013 have challenged the order dated 13.11.1998 passed in Appeal No.405/1997 by the Karnataka Appellate Tribunal, Bengaluru vide Annexure–A, and the award dated 08.04.1997 passed in Panchayath Dispute No.5753/96-97 by the Arbitrator vide Annexure-B.

2. The petitioners in Writ Petition No.79677/2013 have challenged the order dated 13.11.1998 passed in Appeal No.407 of 1997 by the Karnataka Appellate Tribunal, Bengaluru vide Annexure-A, and the award dated 08.04.1997 in Panchayath Dispute No.5755/96-97 by the Arbitrator vide Annexure-B.

3. The petitioners in Writ Petition No.79678/2013 have challenged the order dated 13.11.1998 passed in Appeal No.578 of 1997 by the Karnataka Appellate Tribunal, Bengaluru vide Annexure-A, and award dated 22.07.1997 in Panchayath Dispute No.AR-10-D-DDS-5747/96-97 by the Arbitrator vide Annexure-B.

4. The petitioners in Writ Petition No.79679/2013 have challenged the order dated 13.11.1998 passed in Appeal No.579 of 1997 by the Karnataka Appellate Tribunal, Bengaluru vide Annexure-A, and award dated 22.07.1997 in Panchayath Dispute No.AR-10-D-DDS-5748/96-97 by the Arbitrator vide Annexure-B.

5. The petitioners in Writ Petition No.79680/2013 have challenged the order dated 13.11.1998 passed in Appeal No.580 of 1997 by the Karnataka Appellate Tribunal, Bengaluru vide Annexure-A, and award dated 22.07.1997 in Panchayath Dispute No.AR-10-D-DDS-5749/96-97 by the Arbitrator vide Annexure-B.

6. The petitioners in Writ Petition No.80325/2013 have challenged the order dated 12.11.1998 passed in Appeal No.406 of 1997 by the Karnataka Appellate Tribunal, Bengaluru vide Annexure-A and award dated 08.04.1997 in Panchayath Dispute No.AR-10-D-DDS-5754/96-97 by the Arbitrator vide Annexure-B.

7. Brief facts, leading rise to the filing of these writ petitions are as follows:

8. Respondent No.2 raised a dispute before respondent No.1, alleging that petitioner have availed loan from respondent No.3-Bank which was referred to the Arbitrator for disposal of the dispute by respondent No.1. The Arbitrator, after enquiry, passed awards against the petitioners vide Annexure-B. Aggrieved by the same, the petitioners preferred appeals before the Karnataka Appellate Tribunal, Bengaluru. The Karnataka Appellate Tribunal, vide judgments dated 12.11.1998 and 13.11.1998 vide Annexure-A, dismissed the appeals. Hence, these writ petitions.

9. Respondents No.1 and 2 filed a statement of objections raising several grounds and prayed for dismissal of writ petition.

10. Heard the arguments of the learned counsel for the petitioner, and the learned Government Advocate.

11. Learned counsel for the petitioners submits that the petitioners are not residents within the jurisdiction of respondent No.3–Society, and are not its primary members. It is submitted that they have not availed any loan from the said Society. He submits that, the officials of respondent No.3 created documents and obtained loans in the name of the petitioners. He further submits that during the pendency of the appeals before the Karnataka Appellate Tribunal, an enquiry was conducted by the Assistant Registrar of Co-operative Society who submitted a report to respondent No.2 stating that the petitioners had not obtained any loan and that the loans in their names were secured by third parties by way of impersonation and fabrication of documents. He submits that the said report could not be produced before the Karnataka Appellate Tribunal. He furt

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