Kempamma v. Bangalore Bangalore Rural and Ramanagara District Co Operative Bank Ltd

NC:(2026:KHC:16925-DB( WA(No.(1038(of(2024( ( , ,,HC-KAR( ( (

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

THDATED THIS THE 24 DAY OF MARCH, 2026

PRESENT THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE AND THE HON'BLE MR. JUSTICE C.M. POONACHA WRIT APPEAL NO. 1038 OF 2024 (CS-RES) BETWEEN:

KEMPAMMA

DEAD BY LTS

1. VENKATARAMANAIAH A

S/O LATE ARASAPPA @ KARIYAPPA, AGED ABOUT 65 YEARS, R/AT BHEEMASANDRA

MCC POST, ANJANADHRI LAYOUT, 6TH WARD, TUMKUR-572107. Digitally signedtiby

¶2SREENIVASA MURTHY NIRMALA S/O LATE ARASAPPA @ KARIAPPA DEVI AGED ABOUT 62 YEARS Location: HIGH

¶3GURUDEVA COURT0OF KARNATAKA S/O LATE ARASAPPA @ KARIAPPA AGED ABOUT 52 YEARS

APPELLANTS No.2 AND 3 ARE R/AT NO. 1906 1ST MAIN, 3RD CROSS, NEAR KHB COLONY, PRASHANTHANGAR BANGALORE-560079.

NC:(2026:KHC:16925-DB( WA(No.(1038(of(2024( ( , ,,HC-KAR( ( (

¶4SATHYABAMA W/O THIMMARAJU AGED ABOUT 49 YEARS, D/O LATE ARASAPPA @ KARIAPPA, CHANNENAHALLI, TAVAREKERE HOBLI, BANGALORE SOUTH TALUK-562130.

…APPELLANTS (BY SRI. KARUMBAIAH T.A, ADVOCATE)

AND:

¶1BANGALORE, BANGALORE RURAL AND RAMANAGARA DISTRICT - CO OPERATIVE BANK LTD (BBR AND RDCC BANK) 5TH MAIN, CHAMARAJPET, BANGALORE-560058 BY THE

¶2THE SECRETARY JAWAHAR HOUSE BUILDING, CO OPERATIVE SOCIETY LTD NO. 13,LINK ROAD, SESHADRIPURAM, BANGALORE-560020.

¶3THE JOINT REGISTRAR OF CO OPERATIVE SOCIETIES BANGALORE REGION PAMPA MAHAKAVI ROAD, CHAMARAJPET, BANGALORE 560018.

…RESPONDENTS (BY SMT. NAMITHA MAHESH B G, AGA FOR R2 & R3 SRI. SOMASHEKAR, ADVOCATE FOR R1)

THIS WRIT APPEAL IS FILED U/S 4 OF THE KARNATAKA HIGH COURT ACT PRAYING TO SET ASIDE THE ORDER DATED 04.03.2024 PASSED BY THE LEARNED SINGLE JUDGE IN WP No. 16122/2016 AND DISMISS THE SAID PETITION IN THE INTEREST OF JUSTICE AND EQUITY.

THIS APPEAL, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE and HON'BLE MR. JUSTICE C.M. POONACHA

ORAL JUDGMENT (PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE)

¶1For the reasons stated in the applications, the same are allowed.

¶2Issue notice.

¶3Sri Somashekar, learned counsel, accepts notice for respondent No.1.

¶4Learned Additional Government Advocate accepts notice for respondent Nos.2 and 3.

¶5The appellants have filed the present appeal impugning the order dated 04.03.2024 [impugned order] passed by the learned Single Judge in Writ Petition No.16122/2016 (CS-RES).

Respondent No.1 [the bank] had filed the said petition, impugning an order dated 29.01.2016, passed by the Karnataka Appellate Tribunal [Tribunal], whereby the appeal preferred by Smt. Kempamma (since deceased), who was arrayed as respondent No.2 in the writ petition, was allowed.

¶6The appellants herein are the successors in interest of late Smt.Kempamma. She had filed an appeal [APL.No.755/2009 (C.S)] before the respondent No.3 - Tribunal impugning an award dated

01.03.1997 passed by the Joint Registrar of Co-operative Societies under Section 70 of the Karnataka Co-operative Societies Act, 1959.

¶7The learned Joint Registrar had directed respondent No.2 - society, of which the late Smt.Kempamma was a member, to pay a sum of `2,38,00,497/- together with future interest at the rate of

22.5% p.a., and penal interest at the rate of 1% p.a., on the defaulted principal amount of `1,99,98,500/- from 01.01.1994 till the date of realization along with costs. The learned Joint Registrar further directed that the amount shall be recovered by attachment and sale of movable and immovable properties belonging to

respondent No.2 - society. Late Smt.Kempamma was aggrieved as the said attachment would also extend to her property, which she acquired being a member of the society.

¶8The bank had lent a sum of `2 crores to respondent No.2 - society on 06.01.1993, and the said society had executed a mortgage deed, on-demand promissory note and hypothecation agreement in favour of the bank. The said funds were released for the purchase of land for forming a layout for the benefit of the members. Respondent No.2 - society had also entered into an agreement dated 03.04.1993, with a developer, who had received a sum of `25,000/-.

¶9As noted above, late Smt.Kempamma succeeded in the appeal before the Tribunal, and the bank had filed the writ petition, which was disposed of by the impugned order.

¶10Apparently, during the course of the said proceedings late Smt.Kempamma had agreed to settle the disputes and pay `12 lakhs per acre, along with interest at the rate of 5% p.a. A copy of a letter dated 03.03.2018 has been placed on record, whereby late

Smt.Kempamma had made the said offer. The said letter is a typed letter but, bears a thumb impression, which it is stated is of late Smt.Kempamma.

¶11During the course of the proceedings before the learned Single Judge, it was contended on behalf of the bank that it was agreeable for the said proposal. In view of the statement made on behalf of the bank, the writ petition was disposed of with a direction for late Smt. Kempamma to pay the sum computed at `12 lakhs per acre along with 5% p.a., interest. The relevant extract of the said order reads as under:

"2. It is submitted that during the pendency of the proceedings, the petitioner-Bank has resolved and it is willing to accept payment of Rs.12,00,000/- per acre along with 5% interest as proposed by respondent No.2 in a letter dated 03.03.2018 at Annexure-'N' and accordingly release the attachment in favour of respondent No.2.

¶3In light of such stand as recorded in the averment at Paragraph No.15A of the petition, the petition is hereby disposed of. Respondent No.2 to pay a sum of Rs.12,00,000/- per acre along with 5% interest, as proposed by respondent No.2 in her letter dated

03.03.2018 at Annexure-'N' and on such payment, attachment in favour of respondent No.2 would stand released.

¶4In light of the above, order dated 29.01.2016 in APL No.755/2009(C.S) at Annexure-H as well as the order in the dispute No. JSB/DIS/908/93-94 passed on

01.03.1997 at Annexure-'C', insofar as respondent No.2 is concerned are set aside. "

¶12The appellants now dispute that any offer was made by the late Smt.Kempamma. They dispute that the letter dated 03.03.2018 was signed by late Smt. Kempamma or any such offer had been made.

¶13The learned counsel appearing for the bank countered the said contention. He submits that late Smt Kempamma had visited the bank's office several times with such offers. However, at that time, it was not accepted. He also points out that Smt Kempamma was represented by counsel throughout the proceedings before the learned Single Judge.

¶14We do not consider it apposite to enter into this controversy. Concededly, there is no written settlement agreement between the parties. The statement of late Smt Kempamma was also not recorded by the Court. The bank's writ petition was disposed of since the counsel appearing for the late Smt Kempamma did not dispute the letter dated 03.03.2018.

¶15In view of the above, we consider it apposite to set aside the impugned order and relegate the parties to the proceedings before the learned Single Judge.

¶16The impugned order is set aside, and the writ petition is restored to the position as pending on 04.03.2024. The Registry is directed to list the same on 06.04.2026.

¶17The parties shall file an appropriate application to implead the appellants in the writ petition, since late Smt Kempamma, who was arrayed as respondent No.2, expired on 01.04.2024.

¶18The appeal is accordingly, allowed.

¶19All the pending applications are also disposed of.

Sd/- (VIBHU BAKHRU) CHIEF JUSTICE

Sd/- (C.M. POONACHA) JUDGE

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