GURURAJ SEETARAM PALLEGADDLE Vs. CHANABASAYYA KOTTRAYYA DURGADAMATH

JUDGEMENT

(1.) RESPONDENT No.1 herein was the writ petitioner. He raised the loan of Rs. 4,00,000/ - in two instal lments. The agreed rate of interest is 18% per annum and in default 2% as penal interest, as against the amount in default.

(2.) RESPONDENT No.1/writ petitioner created charge over the lands bearing Sy.No.243, 794/A/5A+5B1 and Sy.No.62 of Kajari vi l lage at Ranebennur Taluka; those lands are standing in the name of Mr.Kotrayya Chanabasayya Durgadmath, who is the father of respondent No.1 herein; since the amounts with interest were not paid by the writ petitioner/respondent No.1, proceedings were initiated against him under Section 70 of the Karnataka Co -operative Societies Act, 1959 (for short 'the Act') before the Arbitrator; the award came to be passed for Rs. 6,73,382/ - with 20% p.a. interest thereon; copy of the award specifies that the properties bearing Sy.No.243 and Sy.No.794/A/5A+5B1 shal l be sold at the f irst instance; and only if the amount so generated is not suf f icient to discharge the l iabi l ity, then it is open for the decree -holder/Bank to execute the award by sel l ing other properties secured or belonging to the borrower/respondent No.1 herein. The said award dated 31.08.2002 has attained f inality.

(3.) EVEN after passing of the award, no amount was paid by the borrower. Consequently, execution proceedings were initiated; appl ication came to be fi led by the decree -holder before the Recovery Of f icer in Form No.1, as prescribed under the Act and the Rules framed thereunder; in the said appl ication, the decree -holder sought for sel l ing properties bearing Sy.No.243 and Sy.No.794/A/5A+5B1 only. However, the sale proclamation was issued only in respect of Sy.No.62 measuring 35 guntas situated at Hul ihal li vi l lage. The appel lant herein/respondent No.6 in the writ petition was the highest bidder. The bid amount (highest) was a sum of Rs. 1,28,000/ -; the Sale Certif icate was issued; the order conf irming the sale is conf irmed by the Joint Registrar of Cooperative Societies by the order dated 09.11.2004. The order relating to the sale conf irmation as wel l as the order passed by the Joint Registrar of Cooperative Societies were questioned by the Judgment -debtor before this Court in W.P. No.62482/2011 (CS -DAS), which came to be al lowed by the impugned order on 23.11.2012.