Remanded

Mrs Veena Ashiya v. Karnataka State Financial Corporation

Karnataka HC6 Jul 2023MFA/8068/2014

Case brief

AI extract

What is this about?

The High Court handled a first appeal where the<Application to set aside ex parte order pending for over 12 years. The Court directed the trial court to adjudicate the pending application within four months and suspended execution of the impugned order until then.

What did the court decide?

Parties directed to appear before trial court on 02.08.2023; trial court to dispose of Misc. No. 90/2011 within four months; execution of impugned order stayed till disposal.

Mrs Veena Ashiya Vs Karnataka State Financial… — Writ and Judicial Review | Karnataka HC (2023)

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- 1 - NC: 2023:KHC:23341-DB MFA No.8068/2014

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 6^TH DAY OF JULY, 2023 PRESENT

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THE HON'BLE MRS JUSTICE K.S.MUDAGAL AND

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THE HON'BLE MR JUSTICE RAMACHANDRA D. HUDDAR MISCELLANEOUS FIRST APPEAL NO. 8068/2014 (SFC)

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BETWEEN:

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MRS. VEENA ASHIYA W/O MR GOURAV CHINDLUR AND D/O MR SESHKIRAN ASHIYA AGED ABOUT 30 YEARS R/AT NO.F-201, “ADARSH PALACE” 47^TH CROSS, 5^TH BLOCK JAYANAGAR, BANGALORE 560 041 …APPELLANT (BY SRI. S G BHAGAVAN, ADVOCATE)

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AND:

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Digitally signed by K S RENUKAMBA Location: High Court of Karnataka

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KARNATAKA STATE FINANCIAL CORPORATION A BODY CORPORATE ESTABLISHED UNDER THE STATE FINANCIAL CORPORATION ACT, 1951 (CENTRAL ACT NO.LXIII OF 1951) HAVING ITS HEAD OFFICE AT: KSFC BHAVAN, NO.1/1, THIMMAIAH ROAD NEAR CANTONMENT RAILWAY STATION BENGALURU – 560 052 REP. BY ITS DEPUTY GENERAL MANAGER (RECOVERY-1)

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M/S INDUS SACCHARIDES PRIVATE LTD., A PRIVATE LIMITED COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956 ITS OFFICE AT E2/2, SECTOR-4 VASHI, NEW BOMBAY - 400 703 REP. BY ITS MANAGING DIRECTOR

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SRI G R MANJUNATH S/O G RAMALINGAIAH CHETTY MAJOR

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R/AT NO.148/10, 16^TH MAIN BANASHANKARI 1^ST STAGE, BLOCK - 2 BENGALURU - 560 050

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DR K G CHETTY S/O K VENKATANAIAH MAJOR R/AT A/18, GROUND FLOOR PARANDUR NAGAR HOUSING SOCIETY SECTOR - 4, VASHI NEW MUMBAI - 400 703

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SRI G R VISWANATH S/O G RAMALINGAIAH CHETTY MAJOR R/AT NO.6 , 11^TH MAIN SANTRUPTINAGAR J P NAGAR, 8^TH PHASE BANGALORE - 560 078

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SMT G BHAGYA LAKSHMAMMA W/O SRI.G RAMALINGAIAH CHETTY MAJOR R/AT NO.597, 11^TH MAIN V BLOCK, JAYANAGAR BENGALURU – 560 041 … RESPONDENTS

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(BY SRI.BIPIN HEGDE, ADVOCATE FOR R1; SRI.GANESH N.M., ADVOCATE FOR R3 TO R6; NOTICE TO R2 IS HELD SUFFICIENT V/C/O DTD: 04.02.2016)

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THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 32(9) OF THE STATE FINANCIAL CORPORATIONS ACT, 1951 PRAYING TO SET ASIDE THE ORDER DATED 02.03.2009 PASSED IN MISC.NO.171/2006 ON THE FILE OF VI ADDITIONAL CITY CIVIL JUDGE, BANGALORE, ALLOWING THE PETITION FILED UNDER SECTION 31(1)(A) AND 32 OF THE STATE FINANCIAL CORPORATION ACT, 1951.

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THIS MISCELLANEOUS FIRST APPEAL COMING ON FOR FINAL DISPOSAL THIS DAY, K.S.MUDAGAL J ., DELIVERED THE FOLLOWING:

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JUDGMENT

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Heard.

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This appeal is filed challenging the order dated 02.03.2009 in Misc.No.171/2006 passed by the VI Additional City Civil Judge, Bengaluru City. The appellant was not party to Misc.No.171/2006. Respondent No.1 was the petitioner and respondent Nos.2 to 6 were respondent Nos.1 to 5 in the said case. For the purpose of convenience, the parties will be referred to henceforth according to their ranks before the trial Court.

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By the impugned order, the trial Court in exercise of powers under Section 31(1)(a) and 32 of the State Financial Corporation Act, 1951 has declared that the petitioner is entitled to recover sum of Rs.3,37,79,743/-. The trial Court has further declared that the petitioner is entitled to sell property bearing No.597 situated at 11^th main road, Jayanagar, 5^th Block, Bengaluru which consists of building and site.

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Misc.No.171/2006 was filed claiming that respondent Nos.2 to 5 are the directors of respondent No.1 industry. It was further contended that respondent No.1 borrowed term loan of Rs.85.80 lakhs and committed default in

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4 - NC: 2023:KHC:23341-DB MFA No.8068/2014

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repayment of the loan. It was further contended that respondent Nos.2 to 5 stood as guarantors to the loan and respondent No.5 being the owner of the property No.597 had mortgaged the same as security for repayment of loan.

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The impugned judgment shows that respondent

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Nos.1 to 4 did not contest the said matter. Respondent No.5 though filed statement of objection, did not cross-examine the petitioner’s witness and lead her evidence. Ultimately, the impugned judgment was passed which was virtually an exparte judgment.

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The appellant contends that respondent No.5 Smt. G. Bhagya Lakshmamma had sold the said property to her under the registered sale deed dated 25.04.2005. Despite that without making her party, the first respondent filed Misc.No.171/2006 and obtained the order.

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Admittedly, respondent Nos.1 to 5 in

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Misc.No.171/2006 have filed Misc.No.90/2011 before the VIAdditional City Civil and Sessions Judge, Bengaluru (CCH-11) under Order IX Rule 13 CPC to set aside the impugned order i.e., the order in Misc.No.171/2006.

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Learned Counsel for the appellant submits the copy of the order dated 26.07.2021 in Misc.No.90/2011 passed on I.A.4 which indicates that the present appellant got herself impleaded as petitioner No.6 in the said case.

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It is strange that the said application for setting

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aside the exparte order is pending since more than 12 years. It is also submitted that in Misc.No.90/2011 there is already an interim order not to execute the impugned order. Therefore, it is appropriate that the appellant to pursue her remedy in Misc.No.90/2011. It is submitted that Misc.No.90/2011 is fixed before the trial Court on 02.08.2023. This matter can be disposed of directing adjudication of Misc.No.90/2011 in a time bound manner. Hence, the following:

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ORDER

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The parties are hereby directed to appear before the trial Court in Misc.No.90/2011 on 02.08.2023 without any further notice.

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The trial Court shall afford reasonable opportunity to both the parties in Misc.No.90/2011 and dispose of the same as expeditiously as possible at any rate within four months from 02.08.2023.

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Till disposal of Misc.No.90/2011, respondent No.1 herein shall not precipitate the matter. The appeal is disposed of accordingly.

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Sd/JUDGE

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Sd/JUDGE

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PKN List No.: 1 Sl No.: 26

Mrs Veena Ashiya v. Karnataka State Financial Corporation

Case brief

What is this about?

What did the court decide?

Mrs Veena Ashiya v. Karnataka State Financial Corporation

Case brief

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What did the court decide?

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