Disposed

Malnadu Areca Marketing Co-Operative Society Limited v. Sri M Pannangdar

Karnataka HC2 Apr 2024WP/57951/2017

Case brief

AI extract

What is this about?

A co-operative society challenged tribunal orders and awards passed on Section 71(1)(b) references against its areca-merchant members. Parties settled amicably via a compromise petition; the court accepted it as lawful, modified the impugned awards in terms of the settlement, and made the order executable like a decree.

What did the court decide?

Compromise accepted; impugned awards modified per settlement (Rs. 5 crore payable in 4 months); order executable as decree on default; attachment discharged on payment.

Malnadu Areca Marketing Co-Operative Society Limited… — Cooperative Societies | Karnataka HC (2024)

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1 - NC: 2024:KHC:13581 WP No. 57951 of 2017 C/W WP No. 697 of 2018

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 2^ND DAY OF APRIL, 2024

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BEFORE

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THE HON'BLE MR JUSTICE ANANT RAMANATH HEGDE

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WRIT PETITION NO. 57951 OF 2017 (CS-RES)

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C/W

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WRIT PETITION NO. 697 OF 2018 (CS-RES) IN WP NO.57951/2017:

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BETWEEN:

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MALNADU ARECA MARKETING CO-OPERATIVE SOCIETY LIMITED, A.P.M.C YARD, SHIMOGA, REPRESENTED BY ITS MANAGING DIRECTOR.

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…PETITIONER

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(BY SRI M S RUDRAIAH, ADVOCATE)

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AND:

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SRI M PANNANGDAR SINCE DECEASED BY HIS LRS

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Digitally signed by BELUR RANGADHAMA NANDINI Location: HIGH COURT OF KARNATAKA

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1(a) SMT VIMALA M P, W/O LATE M PANNANGDAR,

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1(b) SRI SACHIN M P S/O LATE M PANNANGDAR,

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1(c) SRI SURAJ M P S/O LATE M PANNANGDAR ALL ARE RESIDING AT: "SRI MARULASIDDA KRUPA" G.M.S.APARTMENTS, SAIBABA ROAD, DATTATRI NAGAR, KADUR, TALUK: KADUR, DISTRICT: CHIKKAMAGALURU.

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M/S VEERESWARA TRADERS, REPRESENTED BY: SRI M PANNANGDAR SINCE DECEASED BY HIS ABOVE LRS, ARECA MERCHANTS, APMC YARD, BIRUR,

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NC: 2024:KHC:13581 WP No. 57951 of 2017 C/W WP No. 697 of 2018

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KADUR TALUK - 577116, CHIKKAMAGALURU DISTRICT.

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THE ADDITIONAL REGISTRAR OF CO-OPERATIVE SOCIETIES (C & M) O/O REGISTRAR OF CO-OP.SOCIETIES, NO.1,ALI ASKER ROAD, BENGALURU - 560052.

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…RESPONDENTS

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(BY SRI MUNIYAPPA, ADVOCATE FOR R1(a) TO R1(c) AND R2, SRI SIDHARTH BABU RAO, AGA FOR R3)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER DTD 22.9.2017 [ANNEXURE-R] PASSED BY THE APPEAL NO.294/2011 BY THE KARNATAKA APPELLATE TRIBUNAL, BENGALURU AND THE IMPUGNED AWARD DTD 18.2.2011 [ANNEXURE-P] PASSED BY THE DRCS, ON REFERENCE BY THE ADDITIONAL REGISTRAR OF COOPERATIVE SOCIETIES [C AND M] BENGALURU U/S 71[1][b] OF THE ACT AND ETC.

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IN WP NO.697/2018

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BETWEEN:

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MALNADU ARECA MARKETING CO-OPERATIVE SOCIETY LIMITED, A.P.M.C YARD, REPRESENTED BY ITS MANAGING DIRECTOR.

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…PETITIONER

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(BY SRI M S RUDRAIAH, ADVOCATE)

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AND:

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SRI. M PANNANGDAR SINCE DECEASED BY HIS LRS.

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1(a) SMT VIMALA, W/O LATE M.PANNANGDAR,

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1(b) SRI SACHIN M.P., S/O LATE M.PANNANGDAR,

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1(c) SRI SURAJ M.P, S/O LATE M.PANNANGDAR,

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3 - NC: 2024:KHC:13581 WP No. 57951 of 2017 C/W WP No. 697 of 2018

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M/S VEERESWARA TRADERS, REPRESENTED BY SRI.M.PANNANGDAR, SINCE DECEASED BY HIS ABOVE LRS. ARECA MERCHANTS, APMC YARD,

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BIRUR, KADUR TALUK, CHIKKAMAGALURU DISTRICT.

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THE ADDITIONAL REGISTRAR OF CO-OPERATIVE SOCIETIES (C & M) O/O REGISTRAR OF CO-OP. SOCIETIES, NO.1, ALI ASKER ROAD, BENGALURU.

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…RESPONDENTS

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(BY SRI MUNIYAPPA, ADVOCATE FOR R1(a) TO R1(c) R2 IS SERVED BUT UNREPRESENTED

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SRI SIDHARTH BABU RAO, AGA FOR R3)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER DTD 22.9.2017 [ANNEXURE-M] PASSED IN THE APPEAL NO.295/2011 BY THE KARNATAKA APPELLATE TRIBUNAL, BENGALURU, AND THE IMPUGNED AWARD DTD 18.2.2011 [ANNEXURE-K] PASSED BY THE DRCS, ON REFERENCE BY THE ADDITIONAL REGISTERAR OF COOPERATIVE SOCIETIES [C AND M] BENGALURU U/S.71/[1][b] OF THE ACT AND ETC.

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THESE PETITIONS COMING ON FOR FINAL HEARING THIS DAY THE COURT MADE THE FOLLOWING:

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ORDER

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The Managing Director of the petitioner/Co-operative

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Society is present before the Court and he is identified by the

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learned counsel appearing for the petitioner.

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Respondents No.1(a), 1(b) and 1(c) are present

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before the Court. Respondent No.2 is also represented by

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4 - NC: 2024:KHC:13581 WP No. 57951 of 2017 C/W WP No. 697 of 2018

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respondents No. 2(a), 2(b) and 2(c). Respondents No. 1(a), 1(b) and 1(c) and respondents No. 2(a), 2(b) and 2(c) are the same persons. However, they represent the deceased respondent No.1 and 2 in different capacities.

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Two different petitions named above are filed challenging the two different awards passed by the respondent No.3 in exercise of power under Section 70 of the Karnataka Co-operative Societies Act, 1959.

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Parties present before the Court jointly submit that the disputes are amicably settled and they have presented a compromise petition under Order XXIII Rule 3 of the Code of Civil Procedure.

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Petitioner/Society instituted a suit for recovery of the amount from the respondents. Now the parties have amicably settled the dispute and have agreed to the repayment terms which are incorporated in the compromise petition. The settlement is in respect of both awards which are under challenge.

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This Court has inquired with the parties present before the Court.

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The parties jointly submit that they have entered into the settlement and they have agreed to the terms and conditions voluntarily without being pressurized by anyone.

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The terms of the compromise petition submitted by the parties are extracted as under:

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Memorandum of compromise petition under Order XXIII Rule 3 of the Code of Civil Procedure, 1908

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The above named Petitioner and LRs of Respondent Nos. 1 & 2 jointly submit as follows:-

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1.The petitioner Co-operative Society in the writ petition No. 57951 / 2017 (CS-RES) has prayed (a) to issue writ of certiorari or any other appropriate writ or direction quashing the impugned order dated 22-09-2017 (AnnexureR) passed in Appeal No. 294/2011 by the Hon’ble Karnataka Appellate Tribunal, Bengaluru and impugned award dated 18-02-2011 (Annexure-P) bearing No. A (C&M) / DDS / D-2 / 5562 / 2002-03 passed by the Deputy Registrar of Co-operative Societies on Departmental Arbitrator on reference by the Additional Registrar of Co-operative Societies,

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Bengaluru; (b) allow the dispute claim against respondent Nos. 1 & 2 as in the dispute petition No. A (C&M) / DDS / D-2 / 5562 / 2002-03 (Annexure-K) before the respondent No.3: Addl. RCS (C&M) and (c) consequential relief.

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2.The petitioner Co-operative Society in the writ petition No. 697 / 2018 (CS-RES) has prayed (a) to issue writ of certiorari or any other appropriate writ or direction quashing the impugned order dated 22-09-2017 (AnnexureM) passed in Appeal No. 295/2011 by the Hon’ble Karnataka Appellate Tribunal, Bengaluru and impugned award dated 18-02-2011 (Annexure-K) bearing No. A (C&M) / DIS / D-7 / 2281 / 2001-02 passed by the Deputy Registrar of Co-operative Societies on Departmental Arbitrator on reference by the Additional Registrar of Co-operative Societies, Bengaluru; (b) allow the dispute claim against respondent Nos. 1 & 2 as in the dispute petition No. A (C&M) / DIS / D-7 / 2281 / 2001-02 (AnnexureF) before the respondent No.3: Addl. RCS (C&M) and (c) consequential relief.

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3.That by intervention of well-wishers, elders and common friends both petitioners and respondent Nos. 1 & 2 in the above writ petitions have decided to settle the dispute between them amicably as per the terms mentioned herein under:

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3(a).Petitioner is a Co-operative Society registered under the KCS Act, 1959 encouraging areca growing farmer – members by acting as nodal agency between the areca growing

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NC: 2024:KHC:13581 WP No. 57951 of 2017 C/W WP No. 697 of 2018

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farmers and areca purchasing merchants. The respondent Nos. 1 & 2 in the above writ petitions are the merchant-members of the petitioner Co-operative Society.

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3(b).The above respondent Nos. 1 & 2 in the writ petitions are liable to pay Rs. 6,55,11,281.00 (+) Rs. 2,29,80,738.00 total Rs. 8,84,92,019.00 (Rupees Eight Crore Eighty Four Lakhs Ninety Two Thousand and Nineteen Only) in both the disputes preferred against them by the petitioner co-operative society. The respondent Nos. 1 & 2 in the writ petitions have come forward and agreed to pay a sum of Rs. 5,00,00,000 (Rupees Five Crore Only) to the petitioner co-operative society by settlement. The petitioner Co-operative Society in terms of settlement agreed to receive sum of Rs. 5,00,00,000 (Rupees Five Crore Only) being the claim.

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3(c). The respondent Nos. 1 & 2 requested the petitioner Co-operative Society to accept Rs. 5,00,00,000 (Rupees Five Crore Only) within a period of 4 months from the date of approval of the compromise petition by this Hon’ble High Court. The petitioner society agreed to accept Rs. 5,00,00,000 (Rupees Five Crore Only) within 4 months from the date of approval of the compromise petition by this Hon’ble High Court. The respondent Nos. 1 & 2 agreed and to refrain from alienating or creating any 3^rd party interest in the properties attached by order No. Dispute No. A (C&M) / Dis / D-2 / 5562 / 200203 dated 16-12-2002 U/s 103 of the KCS Act. The respondent Nos. 1 & 2 further agreed and

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to refrain from alienating or creating any 3^rd party interest in the properties attached by order No. Dispute No. A. C / M. D-2 / 2281 / 2001-02 dated 05-11-2001 U/s 103 of the KCS Act. Further, corrigendum dated 18-12-2001 to the order No. Dispute No. A. C / M. D-2 / 2281 / 2001-02 dated 18-12-2001 U/s 103 of the Act.

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3(d). If the respondent Nos. 1 & 2 in the said writ petitions failed to pay Rs. 5,00,00,000 (Rupees Five Crore Only) being the claim agreed to pay to the petitioner Co-operative Society within 4 months from the date of approval of the compromised petition by this Hon’ble Court, same shall amount to breach of the terms of this Compromise and in such an event, the petitioner co-operative society shall be at liberty to levy execution petition directly and take vacant possession of the schedule properties as per orders dated 16-12-2002, 0511-2001 and corrigendum dated 18-12-2001 passed U/s 103 of the KCS Act, 1959, without prior notice to the respondent Nos. 1 & 2 or any other person/s acting or claiming through respondent Nos. 1 & 2.

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3(e). If any person files any obstruction application claiming any right/s through or under respondent Nos. 1 & 2 in the above writ petitions or obstructers or related to respondent Nos. 1 & 2 in the said writ petitions in any manner whatsoever, then concession extended towards the claim as set out supra shall stand withdrawn and the above respondent Nos. 1 & 2 shall be responsible and required to pay entire amount of Rs. of Rs. 6,55,11,281 (+) Rs.

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NC: 2024:KHC:13581 WP No. 57951 of 2017 C/W WP No. 697 of 2018

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2,29,80,739 total Rs. 8,84,92,019(Rupees Eight Crore Eighty Four Lakhs Ninety Two Thousand and Nineteen Only) in both the disputes, and further interest at 19% from the date of said disputes till actual payment.

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3(f). In view of this settlement, neither of the parties i.e., petitioner co-operative society and respondent Nos. 1 & 2 to the above writ petitions have any claim against each other.

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3(g).The petitioner co-operative society and respondent Nos. 1 & 2 hereby confirm that they have obtained legal advice in the matter, understood the contents of the compromised petition which has been explained to them in the language known to them i.e., Kannada and there is no undue influence or coercion which has been brought upon them in the present compromise.

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3(h). On receipt of Rs.5,00,00,000 (Rs. Five Crore only) from the Respondents, the petitioner society shall release the properties under attachment to the Respondents.

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3(i). The petitioner co-operative society and respondent Nos. 1 & 2 in the writ petitions confirm that they are filing the above Compromise Petition as per the terms agreed upon pursuant to reaching an amicable settlement and the said Compromise Petition may be taken on record in their best interests. Both the said parties agreed to abide by terms and conditions of this Compromised Petition.

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WHEREFORE, the undersigned parties respectfully pray that this Hon’ble High Court may be pleased to record the above compromise and consequently, decree the dispute claim of the petitioner co-operative society in terms of this compromise. Further, this Hon’ble High Court be pleased to direct the office attached to this Hon’ble High Court to draw a compromise decree in the above terms and grant such other and further relief/s as are just and necessary in the interest of justice and equity.

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After going through the terms of the settlement, this Court is of the view that the terms of the compromise petition are lawful and accordingly, compromise petition is accepted. The impugned awards are modified in terms of the compromise petition presented by the parties.

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Accordingly, writ petitions are disposed of. The respondents shall make payment in terms of the settlement arrived at. In case the terms are not honoured, the petitioner is entitled to execute this order as if it is a decree of the Civil Court or the award of the arbitrator under Section 70 of the Karnataka Co-operative Societies Act, 1959.

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11 -

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On discharge of liability in terms of the compromise petition, the attachment of the immovable properties belonging to the respondents shall stand discharged.

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JUDGE

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BRN List No.: 2 Sl No.: 1

Malnadu Areca Marketing Co-Operative Society Limited v. Sri M Pannangdar

Case brief

What is this about?

What did the court decide?

Malnadu Areca Marketing Co-Operative Society Limited v. Sri M Pannangdar

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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