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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 8^TH DAY OF JULY, 2021

PRESENT

THE HON’BLE MRS. JUSTICE B.V.NAGARATHNA

AND

THE HON’BLE MR. JUSTICE HANCHATE SANJEEVKUMAR

WRIT APPEAL No.7/2019 (GM-KSFC)

BETWEEN:

1.

KARNATAKA STATE FINANCIAL CORPORATION

BY ITS MANAGING DIRECTOR,

NO.1/1, HEAD OFFICE, THIMMAIAH ROAD,

BANGALORE – 560 052.

2.

THE ASST. GENERAL MANAGER,

KARNATAKA STATE FINANCIAL CORPORATION,

MYSORE BRANCH OFFICE,

NO.2716, L-4, I FLOOR,

SOWRABHA CHAMBERS, SRI HARSHA ROAD,

LASHKAR MOHALLA, MYSORE – 570 001.

3.

THE SPECIAL TAHSILDAR,

KARNATAKA STATE FINANTIAL CORPORATION,

MYSORE BRANCH OFFICE,

NO.2716, L-4, I FLOOR,

SOWRABHA CHAMBERS,

SRI HARSHA ROAD, LASHKAR MOHALLA,

MYSORE – 570 001.

... APPELLANTS

(BY SRI.BIPIN HEGDE, ADVOCATE)

AND:

1.

M/S. CHAMUNDESWARI DIAMOND

TOOLS PVT. LIMITED,

REGD. OFFICE AT NO.59,

KAMAL, TELECOM LAYOUT,

BHOGADI I STAGE, MYSORE – 570 006,

REP.BY ITS MANAGING DIRECTOR,

SRI. S.M. SURYAPRAKAH.

2.

SRI S.M.SURYAPRAKASH,

AGED ABOUT 51 YEARS,

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S/O. LATE S.S. MARKANDAIAH,

R/O. MAHAVEER ROAD,

SALIGRAMA, K.R.NAGAR TALUK,

MYSORE DISTRICT – 571 601.

3.

THE DEPUTY COMMISSIONER,

MYSORE DISTRICT,

OFFICE OF THE DEPUTY COMMISSIONER,

MYSORE – 570 001.

... RESPONDENTS

(BY SRI.HARSHA D. JOSHI, ADVOCATE FOR R2;

SMT. VANI H, ADVOCATE FOR R3;

R1 SERVED AND UNREPRESENTED)

THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE

KARNATAKA HIGH COURT ACT PRAYING TO SET ASIDE THE

ORDER DATED 26.10.2018 PASSED BY THE LEARNED SINGLE

JUDGE IN W.P.NO.31686/2010 AND ALLOW THE WRIT APPEAL

AND AWARD THE COST OF PROCEEDINGS.

THIS WRIT APPEAL COMING ON FOR PRELIMINARY

HEARING THIS DAY, NAGARATHNA J., DELIVERED THE

FOLLOWING:

JUDGMENT

Though, this appeal is listed for preliminary hearing,

with consent of learned counsel on both sides, it is heard

finally.

The Karnataka State Financial Corporation and

others have filed this appeal assailing the order dated

26.10.2018 passed by the learned Single Judge of this

Court in W.P.No.31686/2010. By the said order, writ

petition was allowed and the impugned notices at

Annexure-P

dated

24.12.2008,

Annexure-R

dated

03/08.06.2010, Public Auction Notices dated 15.09.2010 at

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Annexure-AF and dated 16.03.2011 at Annexure-AG were

quashed and liberty was reserved to the petitioners to take

such action under the Act or the law, as is legally available

to it.

2.

Briefly stated the facts are that the appellant -

Karnataka State Financial Corporation issued a notice

under Section 32G of the State Financial Corporation Act,

1951 (hereinafter referred to as the “Act” for the sake of

brevity) seeking recovery of amount due to the appellant-

Financial Corporation as arrears of land revenue. The said

notice is dated 24.12.2008 at Annexure-P. In the said

notice, time was granted to show cause as to why action

should not be initiated under Section 32G of the Act. On

receipt of the show cause notice, reply was given on

05.01.2009 on behalf of father of respondent No.2 herein

through his advocate noting the fact that the show cause

notice was issued under Section 32G of the Act.

3.

Thereafter, communication was issued by the

Assistant

General Manager of

the Karnataka State

Financial Corporation to the Deputy Commissioner, Mysore

District, Mysore, on 31.03.2010 to take further steps

pursuant to the notice issued under Section 32G of the

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Act. A copy of the said communication has been made

available by a memo dated 29.03.2021 by learned counsel

for the appellants. On receipt of the said communication,

the Office of the Deputy Commissioner - respondent No.3

herein

issued

Official

Memorandum

on

08.04.2010,

wherein it was stated in the “subject column” that recovery

of

Rs.1,29,17,109/-

due

from