Smt Nirmala J Shetty Vs the Joint Registrar of Cooperative Societies Bengaluru Region

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1 - NC: 2025:KHC:5522 WP No. 22761 of 2024

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 6^TH DAY OF FEBRUARY, 2025

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BEFORE

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THE HON'BLE MRS JUSTICE K.S. HEMALEKHA WRIT PETITION NO.22761 OF 2024 (CS-RES)

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BETWEEN:

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SMT. NIRMALA J SHETTY W/O. JAGANNATH SHETTY AGED 76 YEARS R/AT “DIVYA KIRAN” NO.206, SHARADA COLONY, BASAVESHWARANAGAR, BENGALURU – 560 079. ... PETITIONER

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(BY SRI ABISHEK MARLA M.J., ADVOCATE)

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AND:

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Digitally signed by MAHALAKSHMI B M Location: HIGH COURT OF KARNATAKA

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THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES BENGALURU REGION “SAHAKARA SOUDHA” MALLESHWARAM CO-OPERATIVE SOCIETY BUILDING, 8^TH CROSS, MARGOSA ROAD, MALLESHWARAM, BENGALURU-560003.

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VIJAYA BANK EMPLOYEES HOUSING CO-OPERATIVE SOCIETY LTD., BENGALURU HAVING ITS REGISTERED OFFICE AT NO.999-A IST FLOOR NEAR NAMANA GARDEN VIJAYA BANK LAYOUT, M.S.R.S NAGARA BELAKAHALLI, BENGALURU–560076 REPTD. BY ITS SECRETARY/MANAGER. DISPUTE U/S 70 OF THE KARNATAKA CO-OPERATIVE SOCIETIES ACT, 1959. ... RESPONDENTS

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(BY SRI YOGESH D. NAIK, AGA FOR R-1; SRI G. CHANDRASEKHARAIAH, ADVOCATE FOR R-2)

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2 - NC: 2025:KHC:5522 WP No. 22761 of 2024

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE JUDGMENT DATED 05.04.2024 PASSED BY KARNATAKA APPELLATE TRIBUNAL IN CO-OP APPEAL NO.167/2019 (ANNEXURE-A); CONFIRM THE ORDER DATED 02.07.2019 PASSED BY THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES BENGALURU REGION, BENGALURU (RESPONDENT NO.1 HEREIN) IN DISPUTE NO.JRB/MD/11/2018-19 (ANNEXURE-C).

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THIS WRIT PETITION COMING ON FOR FURTHER HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MRS JUSTICE K.S. HEMALEKHA

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ORAL ORDER

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The petitioner is seeking to challenge the order passed by the Karnataka Appellate Tribunal (hereinafter referred to as ‘Tribunal’ for short) in Appeal No.167/2019 dated 05-04-2024 modifying the order dated 02-07-2019 passed by the Joint Registrar of Co-operative Societies - respondent No.1, whereby the Tribunal by the impugned order allowed the appeal in part preferred by the respondent No.2 modifying the award by directing respondent - Society to pay simple interest @ 8% from the date of filing of dispute.

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3 - NC: 2025:KHC:5522 WP No. 22761 of 2024

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The petitioner was an employee of the Vijaya

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Bank and the member of the respondent No.2 – Society. The respondent No.2 Society came up with a proposal to all its members regarding formation of residential sites and the petitioner had booked a site measuring 50 x 80 feet on 20.10.2005 under membership No.0738 initially at cost of Rs.12,00,000/-. It is stated that in total the petitioner was made to total payment of Rs.18,00,000/and when the respondent - Society went on increasing the value of site without delivering the possession of the site, the petitioner issued notice calling upon the Society to refund the amount of Rs.18,00,000/-, there being no response from the respondent - Society, the petitioner raised dispute under Section 70 of the Karnataka Cooperative Societies Act, 1959 (‘Act’ for short) claiming refund of entire amount of Rs.18 lakhs with interest at the rate of 15% p.a. from the date of payment till the date of realization.

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4 -

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NC: 2025:KHC:5522 WP No. 22761 of 2024

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The respondent No.1 allowed the dispute and

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directed the respondent No.2 Society to repay the amount of Rs.18 lakhs with interest at the rate of 12% p.a. The respondent No.2 Society preferred appeal before the Tribunal, the Tribunal by the impugned order modified the interest directing the simple interest at the rate of 8% p.a. payable from the date of filing of the dispute. Being aggrieved by which the petitioner is before this Court.

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Heard the learned counsel appearing for the petitioner and the learned counsel appearing for the respondent.

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Learned counsel for the petitioner submits that

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directing the respondent No 2 - Society to pay interest @ 8% only. that too from the year of dispute is unreasonable when the petitioner has made payment from the year 2004.

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The undisputed fact is that the respondent No.2

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had offered site and the petitioner had booked a site

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5 - NC: 2025:KHC:5522 WP No. 22761 of 2024

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measuring 50 x 80 feet on 20.10.2005 with an agreed total amount of Rs.12,00,000/- as on 2005. Further for various reasons the cost of the site came to be revised and the petitioner was paying the amount as and when called by the respondent Society, ultimately on 15.03.2018 the petitioner issued notice calling upon the Society to refund the entire amount of Rs.18,00,000/- with interest at the rate of 15% p.a. The dispute was raised by the petitioner in the year 2018 and it is only then when the interest as claimed by the petitioner would arise. The JRCS awarded interest at the rate of 12% p.a. from 2004, which was rightly overturned by the Tribunal and held that the interest payable by the respondent Society has to be from the date of raising the dispute. However, the Tribunal has arrived at a conclusion that 8% p.a. interest has to be awarded instead of 12%, which this Court is of the considered opinion that as the amount of the petitioner has been denied from 2018 the interest at the rate of 10% p.a. has to be awarded and it would be from the date of

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6 -

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NC: 2025:KHC:5522 WP No. 22761 of 2024

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filing of the dispute. For the foregoing reasons this Court pass the following order-

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ORDER

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1. The writ petition is allowed in part .

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The impugned order passed by the Tribunal is modified to the extent of holding that the simple interest would be payable at the rate of 10% p.a. from the date of filing of the dispute.

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Sd/-

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________________________ JUSTICE K.S. HEMALEKHA

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YKL

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List No.: 1 Sl No.: 65

Smt Nirmala J Shetty v. the Joint Registrar of Cooperative Societies Bengaluru Region

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Smt Nirmala J Shetty v. the Joint Registrar of Cooperative Societies Bengaluru Region

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