KARNATAKA BANK LTD Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) In this petition under Articles 226 and 227 of the Constitution of India, the petitioner has sought for quashing the order dated 23-3-1981 passed by the 2nd respondent in Case No. KCC(A) Comp. 40/1980-81 Annexure-B in so far it relates to the rate of interest on the sums paid and payable by the 4th respondent to the Bank. The petitioner has also sought for the issue of a writ of mandamus directing respondents-1 to 3 to pay to the petitioner a sum of Rs. 22,229-75 or such other sum as the Court deems fit, within a date fixed by this Court in the circumstances of the case.

(2.) The 4th respondent was the owner of the contract carriage vehicle bearing Reg. No. MYA 6149. On the security of the vehicle, the petitioner had advanced certain sum to the 4th respondent. When the amount advanced had still remained to be paid, the KARNATAKA CONTRACT CARRIAGES (ACQUISITION) ACT, 1976 (hereinafter referred to as the 'Act') came into force on 30-1-1976. As a result of the provisions contained in Section 4 of the Act and the Notification issued pursuant thereto by the State Government, the contract carriage vehicle in question bearing registration No. MYA 6149 was acquired and the same came to be vested in the State Government. The vehicle was also transferred to the Karnataka State Road Transport Corporation on 31-1-1976. As per the provisions contained in the Act, the compensation payable to the aforesaid vehicle was determined under Section 6(l)(a) by the Special Deputy Commissioner, Bangalore, who was the authorised officer under the Act, by the order dated 27/29-12-1980 in case No. CCC(A) Comp. 40/80-81 at Rs. 1,19,115/- subject to the agreement by the ex-operator - respondent-3 (see page 53 of the records of the Special Deputy Commissioner). Pursuant to it, respondent-3 filed an application dated 28-1-1981 and agreed to accept the compensation as determined by the Special Deputy Commissioner Authorised Officer - under the aforesaid order dated 27/29-12-1980. This application of the 3rd respondent is found at page 53 of the records of the Special Deputy Commissioner.

(3.) Thereafter a notice dated 7th February 1981 was issued to the petitioner as per Section 7 of the Act to file its claim as to the amount due as on 30-1-1976 with the ledger extracts on or before 15-2-1981 in respect of the vehicle in question. Accordingly, the bank submitted its claim on 16-2-1981. It claimed that a sum of Rs. 18,252-70 was due as on 16-2-1981. After notice to the petitioner and hearing its representative, the claim was decided by the Authorised Officer on 23-3-1981. The Authorised Officer held that a sum of Rs. 7045-90 together with interest at 6% per annum from 30-1-1976 upto the date of payment shall be paid to the petitioner. The determination made by the authorised officer was intimated to the petitioner through the communication dated 25-3-1981 which was received by the bank on 26-3-1981. A copy of the notice containing the endorsement made by the Manager of the petitioner Bank is found at page 66 of the records of the Special Deputy Commissioner. Thereafter the writ petition in question was presented before this court on 21-11-1982 challenging the order of the Authorised Officer dated 23-3-1981 in case No. CCC (A) Comp. 40/80-81 vide Annexure-B. In addition to this, the petitioner- Bank has also filed a civil suit for recovery of the amount due from the 4th respondent. The suit is still pending.