LAWS(KAR)-1986-4-23

KARNATAKA BANK LTD Vs. S NARAYANA BHATTA

Decided On April 04, 1986
KARNATAKA BANK LTD Appellant
V/S
S Narayana Bhatta Respondents

JUDGEMENT

(1.) THIS appeal by the Karnataka Bank, the unsuccessful plaintiff, directed against the judgment and decree dated September 12, 1983, passed in O.S. No.13 of 1981 on the file of the Civil Judge, Srirangapatna, dismissing its suit for recovery of money advanced on the security of a contract vehicle, raises certain interesting questions couching on the extent of the bar of civil court's jurisdiction under the Karnataka Contract Carriages (Acquisition) Act, 1976.

(2.) THE plaintiff, Karnataka Bank Ltd., on August 1, 1972, agreed to advance a sum of Rs. 1,08,000 to S. Narayana Bhatta, the first defendant, to enable him to purchase a new Ashok Leyland bus to be used as a contract carriage. The first defendant's father was a surety. His legal representatives are defendants NOs. 2 to 8. The state Government is defendant No.9.

(3.) ON January 30, 1976, the Karnataka Contract Carriages (Acquistion) Ordinance, 1976 (Karnataka Ordinance NO. 7 of 1976), was promulgated. By section 4 of the Ordinance, every contract carriage owned by a contract carriage operator along with the permit stood vested in the State Government absolutely free from all encumbrances. The first defendant's vehicel, accordinagly, was acquired by, and stood vested in, the State Government. The vehicle was also seized by the Government on January 31, 1976. The Ordinance was later replaced by the Karnataka Contract Carriages (Acquisition) Act, 1976 ('the Act', for short).