Smt Tulasi Vs Unnathi Co-Operative Credit Society… — Writ and Judicial Review | Karnataka HC (2026)

Smt Tulasi Vs Unnathi Co-Operative Credit Society… — Writ and Judicial Review | Karnataka HC (2026)

What the court decided

AI extract

Outcome

Liberty reserved to the petitioners to approach the Appellate Authority in the manner known to law; entitlement to the benefit of Section 14 of the Limitation Act if an appeal is filed; no opinion expressed on merits.

Issue for consideration

Whether the writ petition challenging the auction sale and recovery notices is maintainable, given that the petitioners have an alternative and efficacious remedy under Sections 105 and 106 of the Karnataka Co-operative Societies Act, 1959. +1 more

Court's answer

The writ petition is dismissed because the petitioners have an alternative and efficacious remedy under Sections 105 and 106 of the Karnataka Co-operative Societies Act, 1959, with liberty reserved to them to approach the Appellate Authority in the manner known to law.

Ratio / Principle

If the petitioners file an appeal, they shall be entitled to the benefit of Section 14 of the Limitation Act.

Key takeaways

No opinion is expressed on the merits of the case; if an appeal were filed, the Appellate Authority shall decide the same in the manner known to law without being influenced by any of the observations made herein.obiter¶42

Detailed headnote1 paragraphs

Writ petition under Articles 226 and 227 of the Constitution of India challenging recovery proceedings under the Karnataka Co-operative Societies Act, 1959 - specifically the auction sale of the schedule property in favour of respondent No.3 vide Annexure N dated 03.11.2025 (No.KRA.SUM.AR-44/CEP/07/2025-26) and the associated distraint warrant, demand notice, sale notice and public auction notice in Case No.UBC/3/DIS/2118/2022-23 - dismissed at the orders stage, counsel for petitioners being absent, on the ground that the petitioners have an alternative and efficacious remedy under Sections 105 and 106 of the Karnataka Co-operative Societies Act, 1959. Liberty reserved to approach the Appellate Authority; benefit of Section 14 of the Limitation Act extended to any such appeal; no opinion expressed on the merits and appellate authority directed to decide uninfluenced by the observations made.

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NC: 2026:KHC:29656 WP No. 32423 of 2025

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17^TH DAY OF JUNE, 2026

BEFORE

THE HON'BLE MR. JUSTICE M.I.ARUN WRIT PETITION NO. 32423 OF 2025 (CS-RES)

BETWEEN:

SMT. TULASI W/O LATE RAJU, AGED ABOUT 56 YEARS

RESIDING AT NO.38, CORPORATION QUARTERS,. MURPHY TOWN ROAD, BANGALORE-560 008.

SRI. BALA S/O LATE RAJU, AGED ABOUT 49 YEARS, RESIDING AT NO. 38, CORPORATION QUARTERS. MURPHY TOWN ROAD, BANGALORE-560 008.

Digitally signed by SHARADAVANI B Location: High Court of Karnataka

…PETITIONERS

(BY SRI.KIRAN KUMAR.P., ADVOCATE (ABSENT))

AND:

UNNATHI CREDIT CO-OPERATIVE SOCIETY LTD. REP. BY ITS SECRETARY, NO.7/3, 3013, 2^ND MAIN ROAD, MAHAKAVI KUVEMPU ROAD, "C" BLOCK, GAYATHRI NAGAR, MARIYAPPANA PALYA, BANGLAORE-560 021. REGISTERED UNDER SOCIETY REGISTRATION ACT, 1956.

2 - NC: 2026:KHC:29656 WP No. 32423 of 2025

HC-KAR

THE RECOVERY OFFICER AND

ASST. REGISTRAR OF CO-OPERATIVE SOCIETIES, ZONE NO.1, BANGALORE CITY NO. 146, 1^ST FLOOR, 3^RD MAIN ROAD, 8^TH CROSS ROAD, MALLESHWARAM, BANGALORE-560 003.

SWAPNA P W/O ANAND AGED MAJOR OCC: ANGANWADI TEACHER R/AT CORPORATION COLONY, MURPHY TOWN, HALSOOR POST, BANGALORE-560008.

…RESPONDENTS

(BY SRI.YOGESH D. NAIK., AGA FOR R1 AND R2;)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OR DIRECTION, DECLARING THE RESPONDENTS ACTION IN CONDUCTING, AUCTION SALE OF THE SCHEDULE PROPERTY IN FAVOUR OF SWAPNA.P W/O ANAND I.E., RESPONDENT NO.3 VIDE ANNEXURE N DATED 03.11.2025, BEARING NO.KRA.SUM.AR-44/CEP/07/2025-26 AS ILLEGAL, NULL, AND VOID, IN THE INTEREST OF JUSTICE AND EQUITY AND ETC.,

THIS PETITION, COMING ON FOR ORDERS THROUGH

VIDEO CONFERENCING / PHYSICAL HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

3 - NC: 2026:KHC:29656 WP No. 32423 of 2025

HC-KAR

CORAM: HON'BLE MR. JUSTICE M.I.ARUN

ORAL ORDER

The learned counsel for the petitioners is absent.

The petitioners have challenged the recovery proceedings initiated under the provisions of the Karnataka Co-operative Societies Act, 1959 for recovery of the loan advanced to them. The writ petition is filed with the following prayers:

"i) issue a Writ or direction, declaring the Respondents action in conducting, auction sale of the schedule property in favour of Swapna.P w/o Anand i.e., Respondent No.3 vide ANNEXURE N dated 03.11.2025, bearing No.Kra.Sum.AR44/CEP/07/2025-26 as illegal, null, and void, in the interest of justice and equity;

ii) Issue a Writ of Certiorari, quashing the Distraint Warrant dated 08.07.2025 bearing No. ARB44/CEP/07/2025-26, the Demand Notice dated 11.08.2025 bearing No. AR-44/CEP/07/2025-26, the Sale Notice dated 09.09.2025 bearing No.AR44/CEP/07/2025-26, and the Public Auction Notice dated 09.09.2025 bearing No.AR-44/CEP/07/2025-26

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HC-KAR

issued by the Respondents in connection with Case No.UBC/3/DIS/2118/2022-23 vide ANNEXURE L to L3.

iii) Issue a Writ, Order, or direction, permitting the Petitioners to repay the outstanding mortgage loan in monthly instalments of Rs.15,000/- towards the principal amount, with simple interest at the rate of 6% per annum from the date of orders of this Hon'ble Court;

iv) Pass any other appropriate order or direction deems fit under the facts and circumstances of the case including awarding of costs; in the interest of justice and equity."

It is seen that the petitioners are having an

alternative and efficacious remedy under Sections 105 and 106 of the Karnataka Co-operative Societies Act, 1959.

For the aforementioned reasons, the Writ petition is hereby dismissed , reserving liberty to the petitioners to approach the Appellate Authority in the manner known to law.

It is hereby made clear that no opinion is expressed on the merits of the case and if an appeal were

NC: 2026:KHC:29656 WP No. 32423 of 2025

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HC-KAR

to be filed, the Appellate Authority shall decide the same in the manner known to law without being influenced by

any of the observations made herein above.

The petitioners shall also be entitled to the

benefit of Section 14 of the Limitation Act, if any appeal were to be filed by them.

Sd/(M.I.ARUN) JUDGE

CH List No.: 1 Sl No.: 56