Digitally signed by MOHANKUMAR B SHELAR Location: HIGH COURT OF KARNATAKA

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO, ISSUE A WRIT IN THE NATURE OF CERTIORARI QUASHING THE IMPUGNED AUCTION NOTICE DATED 21.01.2023 ISSUED BY RESPONDENT NO.1 IN NO. JRD/UBF/1614/2019-20/CEP NO. 588/19-20 VIDE ANNEXURE-A & ETC.

THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

ORAL ORDER

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

1. The petitioner has filed this writ petition challenging the auction notice dated 21.01.2023 issued by respondent No.1 vide Annexure-A.

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

3. The petitioner had obtained loan from respondent No.2-Co-operative Bank and committed default. Respondent No.2 raised a dispute under Section 70 of the Karnataka Co-Operative Societies Act, 1959, the Act, 1959, which came to allowed, and an award was passed on 16.12.2019 directing the petitioner to pay Rs.5,83,215/- along with accrued interest. The petitioner failed to repay the said loan amount as per the award passed by respondent No.1.

4. Thereafter, respondent No.1 initiated the recovery proceedings by issuing the impugned auction notice dated 21.01.2023. Being aggrieved by the said notice, the petitioner has filed this writ petition.

5. Heard the arguments of the learned counsel for the petitioner, learned Government Advocate appearing for respondent No.1 and learned counsel for respondent No.2-Society.

6. Learned counsel for the petitioner submits that, due to COVID-19 pandemic, the petitioner could not be able to repay the loan amount. He further submits that, if the reasonable time is granted, the petitioner will pay the award amount along with the accrued interest. Hence, on these grounds, he prays to allow the writ petition.

7. Per contra, learned counsel for the respondent No.2 submits that the award came to be passed by the respondent No.1 and the petitioner without challenging the said award passed by respondent No.1, has filed this writ petition challenging the auction notice. He further submits that this Court had granted an interim order in 2023 i.e. on 09.03.2023, directing the petitioner to deposit 50% of the due amount along with accrued interest within four weeks. However, the petitioner has failed to comply with the said interim order. He submits that the petitioner has filed the writ petition only to obstruct the recovery proceedings. Hence, on these grounds, he prays to dismiss the writ petition.

8. Learned Government Advocate appearing for respondent No.1 adopts the argument of the respondent No.2-Society.

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

10. It is an undisputed fact that the petitioner had obtained a loan from respondent No.2–Co-operative Bank and committed default in repayment. Consequently, respondent No.2 raised a dispute under Section 70 of the Karnataka Co-operative Societies Act, 1959 before respondent No.1. After a full-fledged enquiry, respondent No.1 passed an award on 16.12.2019 directing the petitioner to pay a sum of ₹5,83,215/- along with accrued interest.

11. Despite the passing of the award, the petitioner failed to repay the amount along with accrued interest. Thereafter, respondent No.1 issued the impugned auction notice for recovery of the dues. Aggrieved by the same, the petitioner has filed the present writ petition.

12. This Court had granted an interim order on 09.03.2023, subject to the petitioner depositing 50% of the award amount with accrued interest within four weeks. Despite granting of interim order subject to condition, the petitioner has not complied with the interim order. Learned counsel for the respondent No.2 submits that the petitioner has not deposited a single pie from the date of pass