K RAJESH KUMAR Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THIS writ petition is filed challenging the order of attachment dated 30.01.2014 of the property belonging to the petitioners in the proceedings initiated under Section 70 of the Karnataka Co -operative Societies Act, 1959 (for short, 'the Act') by the 3rd respondent Karnataka State Co -operative Apex Bank Limited, Bangalore (for short, 'Cooperative Bank'). The order of attachment is passed under Section 103 of the Act.

(2.) FACTS involved in the case, briefly stated, are that petitioners are husband and wife. 1st petitioner is the Managing Director and the 2nd petitioner is the Director of the 4th respondent M/s. Construction Solution (Bangalore) Private Limited. The 3rd respondent Cooperative Bank is registered under the Act.

(3.) THE 4th respondent Company availed loan of rupees eight crores from the 3rd respondent - Co -operative Bank by executing a Mortgage Deed mortgaging property bearing BBMP khatha No.47 situated at Vishwanatha Nagenahalli Village, R.T.Nagar Post, Bangalore. Petitioners have executed a letter of undertaking, continuing guarantee by way of an agreement apart from irrevocable and personal guarantee. Having availed loan, the 4th respondent Company committed default in paying the installments. Therefore, the respondent Co -operative Bank raised a dispute and sought recovery of loan amount along with interest totally in a sum of Rs. 9,18,67,602/ -.