Mr Shivanna a P Vs Tumkur Grain Merchants Co… — Writ and Judicial Review | Karnataka HC (2026)

Mr Shivanna a P Vs Tumkur Grain Merchants Co… — Writ and Judicial Review | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Writ petition disposed of with liberty to the petitioners to give a representation to the Bank, which the Bank shall consider in accordance with law; all pending I.As. in the writ petition stand closed

Issue for consideration

Whether the notice bearing No. TGMCB/JNR/LOANS/283/2023-24 dated 05/12/2023 issued by the respondent Bank (Annexure-H), demanding payment for regularisation of the loan account, should be quashed by way of a writ of certiorari in so far as the petitioners are concerned. +1 more

Court's answer

Finding no reasons to interfere, the writ petition was disposed of giving liberty to the petitioners to give a representation to the Bank, which the Bank shall consider in accordance with law.

Ratio / Principle

This Court cannot direct the Bank to regularise or restructure the account of the petitioners; whether to restructure/regularise rests with the Bank under its business norms and policies, and the Court finds no reasons to interfere.

Key takeaways

If the petitioners fulfil the criteria as per the business norms of the Bank, the Bank would consider their request for restructuring/regularisation.ratio¶41

Detailed headnote1 paragraphs

Writ Petition (GM-DRT) No. 29010 of 2023, filed under Articles 226 and 227 of the Constitution of India by two borrowers, sought a writ of certiorari to quash notice No. TGMCB/JNR/LOANS/283/2023-24 dated 05/12/2023 (Annexure-H) issued by Tumkur Grain Merchants Co-operative Bank Ltd. demanding Rs.3,92,40,814/- for regularisation of their loan account. At preliminary hearing on 21.12.2023 a Co-ordinate Bench had directed that no coercive steps be taken against the petitioners' property subject to deposit of Rs.50,00,000/-, which the petitioners submitted was paid. Held: this Court cannot direct a Bank to regularise or restructure the borrowers' loan account; such a course lies within the Bank's business norms and policies, and the Bank would consider the request only if the petitioners fulfil the prescribed criteria. Finding no reasons to interfere, the Court disposed of the writ petition granting liberty to the petitioners to give a representation to the Bank, to be considered in accordance with law; all pending I.As. were closed. — Lalitha Kanneganti, J.

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NC: 2026:KHC:21681 WP No. 29010 of 2023

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 21^ST DAY OF APRIL, 2026

BEFORE

THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI

WRIT PETITION NO. 29010 OF 2023 (GM-DRT)

BETWEEN:

MR SHIVANNA A.P., S/O LATE PUTTASWAMY GOWDA, AGED ABOUT 43 YEARS, RESIDING AT NO.44, ANAJAWADIKASABAHOBLI, KANAKAPURA TALUK, RAMANAGARA DISTRICT -562 117

MR VEERABHADREGOWDA A.P., S/O LATE PUTTASWAMY GOWDA, AGED ABOUT 45 YEARS, RESIDING AT NO.44, ANAJAWADIKASABAHOBLI, KANAKAPURA TALUK, RAMANAGARA DISTRICT -562 117

Digitally signed by SUVARNA T Location: HIGH COURT OF KARNATAKA

(BY SMT.SANDHYA U PRABHU, ADVOCATE)

AND:

…PETITIONERS

TUMKUR GRAIN MERCHANTS CO -OPERATIVE BANK LTD., REPRESENTED BY ITS AUTHORIZED OFFICER/MANAGER, REGISTERED UNDER CO-OPERATIVE SOCIETIES ACT ADMIN OFFICE, B H ROAD, TUMKUR -572 103

…RESPONDENT

(BY SRI. LOKESH K.V., ADVOCATE)

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NC: 2026:KHC:21681 WP No. 29010 of 2023

HC-KAR

THIS WP IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE NOTICE ISSUED TO THE PETITIONER BEARING NO. TGMCB/JNR/LOANS/283/2023-24 DATED: 05/12/2023 BY THE RESPONDENT BANK PRODUCED AT ANNEXURE-H IN SO FAR AS PETITIONERS ARE CONCERNED.

THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE SMT. JUSTICE LALITHA KANNEGANTI

ORAL ORDER

The present writ petition is filed seeking the following

prayer.

“Wherefore, the petitioner humbly prays that this Hon’ble Court may be pleased to;

a) Issue a writ of certiorari quashing the notice issued to the petitioner bearing No.TGMCB/JNR/LOANS/283/2023-24 dated 05/12/2023 by the respondent/bank produced at annexure-H in so far as petitioners are concerned.

b) Grant any other relief as this Hon’ble Court deems fit in the facts and circumstances of the case including awarding costs, in the interest of justice and equity.”

Learned counsel appearing for the petitioners

submits that the petitioners have approached the respondent and sought for restructuring/regularisation of the loan account.

3 - NC: 2026:KHC:21681 WP No. 29010 of 2023

HC-KAR

By impugned proceedings, the respondent had directed the petitioner to pay an amount of Rs.3,92,40,814/- to regularise the account.

Learned counsel for the petitioners submits that when they have sought for restructuring of the amount, the respondent cannot demand the very same amount and they could have considered the petitioners’ case. This matter came up for preliminary hearing before Co-ordinate Bench of this Court on 21.12.2023 and there was a direction not to take coercive steps against property of the petitioners subject to the petitioners depositing Rs.50,00,000/- by the next date of hearing. It is submitted by the learned counsel for the petitioners that pursuant to the order dated 21.12.2023, petitioners have paid the amount.

Learned counsel for respondent/Bank submits that there cannot be a direction on terms as sought by the petitioners to regularise/restructure the amount. It is submitted that the same will be done as per the business policies of the Bank.

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NC: 2026:KHC:21681 WP No. 29010 of 2023

HC-KAR

Having heard the learned counsels on either side, perused the material on record. There cannot be a direction to the Bank to restructure/regularise the loan account of the petitioners. If the petitioners fulfil the criteria as per the business norms of the Bank, the Bank would consider the same. This Court cannot direct the Bank to regularise or restructure the account of the petitioners. In that view of the matter, this Court do not find any reasons to interfere. This Court is passing the following:

ORDER

i. Accordingly, the writ petition is disposed of giving liberty to the petitioners to give representation to the Bank and the Bank shall consider the same in accordance with law

ii. All pending I.As., in the writ petition shall stand closed.

SD/(LALITHA KANNEGANTI) JUDGE

PKN

List No.: 1 Sl No.: 51