IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF APRIL 2019 BEFORE THE HON’BLE MR.JUSTICE S.N.SATYANARAYANA WRIT PETITION NO.47299/2016(CS-RES) C/W WRIT PETITION NO.6039/2014(CS-RES) IN W.P.NO.47299/2016 BETWEEN SMT. H RAVIKALA D/O SRI BHASKAR SHANBHOG, AGED ABOUT 47 YEARS, R/AT NO. 282/4-1, 14TH MAIN, 4TH T BLOCK, JAYANAGAR, BANGALORE - 41. ... PETITIONER (BY SRI R VIJAY KUMAR, ADVOCATE) AND 1. THE JOINT REGISTRAR CO-OPERATIVE SOCIETIES RULE - 441, KSUB LTD., K.H.ROAD, BANGALORE 2. THE JANATHA SEVA CO-OPERATIVE BANK LTD., RAJATHA BHAVANA, NO.14, 1ST MAIN ROAD, R.P.C.LAYOUT, VIJAYANAGAR II STAGE, BANGALORE - 04.
3. SRI B V NARASIMHA MURTHY S/O LATE VENKATANARASAIAH, AGED ABOUT 48 YEARS, R/AT NO. 202 (S-2) 2ND FLOOR, SHIRVEN LEGACY, THYAGARAJANAGARA, BANGALORE - 28. ... RESPONDENTS (BY SRI A.K.VASANTH, GOVERNMENT ADVOCATE FOR R1, SRI K.N.PUTTEGOWDA, ADVOCATE FOR R2 SRI G.CHANDRASHEKARAIAH, ADVOCATE FOR R3) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED JUDGEMENT DTD:26.8.2016 PASSED IN REVISION NO.5/2014 PASSED BY THE KARNATAKA APPELLATE TRIBUNAL [COURT HALL-5] VIDE ANNEXURE-A AND ETC.
IN W.P.NO.6039/2014 BETWEEN SMT H. RAVIKALA D/O LATE BHASKAR SHANBHOG, AGED ABOUT 44 YEARS R/A NO.282,14TH MAIN 4TH T BLOCK, 38TH CROSS JAYANAGAR BANGALORE-41 ... PETITIONER (BY SRI R.VIJAYA KUMAR, ADVOCATE) AND 1. THE JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES, RULE-441, KSUB, LTD. K H ROAD, BANGALORE – 560 001 2. JANATHA SEVA CO-OPERATIVE BANK LTD RAJATHA BHAVA, NO.14 1ST MAIN ROAD R.P.C LAYOUT VIJAYANAGAR II STAGE BANGALORE-40 REPRESENTED BY ITS SECRETARY 3. B V NARASIMHA MURTHY S/O LATE VENKATANARASAIAH, AGED ABOUT 46 YEARS, R/AT NO.202(S-2) 2ND FLOOR, SHIRVEN LEGACY, THYAGARAJNAGARA, BANGALORE-28 ... RESPONDENTS (BY SRI A.K.VASANTH, GOVT. ADVOCATE FOR R1, SRI K.N.PUTTEGOWDA, ADVOCATE FOR R2, SRI G.CHANDRASHEKARAIAH, ADVOCATE FOR R3) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO SET ASIDE THE IMPUGNED JUDGMENT DTD.28.1.2014 PASSED BY THE HON'BLE KARNATAKA APPELLATE TRIBUNAL, BANGALORE IN APPEAL NO.281/2013 VIDE ANNEXURE-A AND ETC.
THESE WRIT PETITIONS COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER The common petitioner in these two writ petitions is challenging the judgment dated 26.8.2016 passed in Revision No.5/2014 on the file of the Karnataka Appellate Tribunal, Bengaluru, in WP.No.47299/2016 and the judgment dated 28.1.2014 passed by very same Karnataka Appellate Tribunal in Appeal No.281/2013 in WP.No.6039/2014.
2. When these writ petitions were at the stage of Preliminary Hearing in ‘B’ Group, it is stated by the learned counsel appearing for the parties that the subject matter of lis is under consideration for settlement between the parties, therefore, sufficient time was granted to report the outcome of negotiation between the parties. Accordingly, this day, the learned counsel appearing for all the parties have filed compromise petition under Order 23 Rule 3 of CPC, which is common to both the writ petitions, wherein the parties are also common.
3. The learned counsel appearing for the parties would submit that instead of passing a separate order, the entire compromise petition may be culled out in the order and may accept the same. Accordingly, the compromise which is arrived at between the parties as seen in the compromise petition is culled out as under:
“Terms and conditions of compromise petition i. The 2nd respondent Bank has agreed to receive a sum of Rs.66.50 lakhs (Rupees Sixty Six Lakhs Fifty Thousand only) in full and final settlement of its claim against the Petitioner and the 3rd Respondent upon receipt of such payment made by the Petitioner and Respondent No.3 to Respondent No.2, Respondent No.2 shall forthwith but not later than 15 days thereof, execute and register a mortgage discharge shara.
ii. The petitioner has agreed to pay a sum of Rs.38.50 lakhs (Rupees Thirty Eight Lakhs Fifty Thousand only) towards her share in the above claim by way of D.D dated 02.04.2019 bearing No.089483 drawn on Canara Bank, NRI Branch, Bangalore – 560 001. The 3rd respondent has agreed to pay Rs.28.00 Lakhs (Rupees Twenty Eight Lakhs only) towards his share of the above said claim, in full and final settlement of the total dues outstanding to the 2nd respondent Bank.
iii. Out of Rs.28.00 lakhs which is the share of the 3rd respondent, the 3rd respondent has agreed to pay a sum of Rs.4.00 lakhs (Rupees Four lakhs) and accordingly paid the said amount of Rs.4 lakh by way of D.D.bearing No.822398 drawn on Canara Bank, Padmanabha nagar, Bangalore dated 02.04.2019. Thus the 2nd respondent bank is in receipt of Rs.42,50,000=00 as on the date of this compromise towards the total amount of Rs.66,50,000=00. The 3rd respondent shall pay an amount of Rs.16.00 lakhs (Rupees sixteen lakhs only) to the second respondent on or before September 2019. The respondent No.3 has also agreed to pay the balance amount of Rs.8 lakh (rupees eight Lakhs only) on or before 30.11.2019 to the 2nd respondent and towards the said balance of 8 lakh, the 3rd respondent, will hand over a cheque in favour of the petitioner, at the time of payment of Rs.16,00,000/-(Rupees Sixteen Lakhs), towards security which shall be returned to the 3rd respondent upon making payment of the said sum of Rs.8 Lakh to the 2nd respondent. In case the aforesaid amount of Rs.8 lakh is not cleared on or before 30.11.2019, the said security cheque mentioned supra may be presented for collection. At the time of payment of Rs.16,00,000.00 on or before 30.9.2019(excluding the payment of Rs.4 lakh paid earlier), the petitioner shall make necessary arrangement to withdraw the below mentioned criminal cases filed against the 3rd respondent. The aforesaid withdrawal of criminal cases by the Petitioner and payment by the Respondent No.3 shall happen simultaneously.
iv) The petitioner and the 3rd respondent have agreed to pay interest at the rate of 12.5% on Rs.24 lakhs (Twenty four lakhs) from 01.04.2019 sharing the same at 6.25% each till the repayment of the entire amount of Rs.24.00 Lakhs, being the balance amount of the share of the 3rd Respondent.
v) The 2nd respondent Bank has agreed not to proceed against the petitioner and 3rd respondent for the recovery of the outstanding dues covered under the present writ petition, in view of the above compromise reached between the parties.
vi) The Respondent No.2 has filed O.S.No.2908/2010 on the file of the Hon’ble City Civil Court shall ensure that the Petitioner should be transposed as co-plaintiff in that suit and cooperate with the Petitioner herein for the suit being taken to its logical conclusion in accordance with law. The Respondent No.2 in O.S.No.2908/2010 on the file of the Hon’ble City Civil Court shall ensure that suit is dismissed as against Respondent No.3.
vii) The Petitioner has agreed to withdraw the below mentioned civil /criminal cases filed by her against the Respondent No.3, which are pending before different Courts, at the time of payment of Rs.16 lakhs (Rupees sixteen lakhs only) to the Respondent No.2/Bank on or before September 2019, pursuant to which the Petitioner shall make arrangements to withdraw/compound the below mentioned criminal cases, after receipt of one cheque for Rs.8.00 lakhs(Rupees eight lakhs only) from Respondent No.3 as mentioned supra.
(a) C.C.NO.1313/2007(PCR NO.156/2007) & C.C.No.11487/2008 (PCR NO.4208/2008) on the file of the Hon’ble I ACMM, Bengaluru, which matter is now pending before this Hon’ble Court in Crl. Appeal No.845/2014.
(b) C.C.No.30162/2009 (PCR NO.19898/2009) on the file of the Hon’ble I ACMM, Bengaluru, which matter is now pending before this Hon’ble Court in Crl. Appeal No.1004/2011.
(c) C.C.No.32525/2009 (PCR NO.97/2007) on the file of the Hon’ble II ACMM, Bengaluru, which matter is now pending before the Hon’ble Fast Track Court in Appeal No.1612/2017.
(d) Crl.Appeal No.1656/2017 filed by the Petitioner before Hon’ble City Civil and Session Judge, Bengaluru.
(e) Crl. Appeal No.1004/2011 filed by the Petitioner before this Hon’ble Court.
viii) C.C.No.15885/2013 and 7952/2013 pending on the file of Hon’ble II ACMM, Bengaluru shall be withdrawn /compounded by the Petitioner immediately after recording of this compromise Petitioner before this Hon’ble Court. Apart from the list of criminal cases mentioned above, the Petitioner has not filed any other criminal /civil cases as against Respondent No.3, and if there is any other case, apart from the above mentioned cases, the Petitioner shall withdraw the same.
ix) In view of the Present settlement, the parties submit that, W.P.No.6039/2014, W.P.No.1967/2014 and the dispute now pending before the Hon’ble Joint Registrar of Co-operative societies vide Dispute No.JRD/UBR/617/2013-2014, does not survive for consideration and Petitioner, Respondent Nos.2 and 3 have agreed to file necessary Memo’s for disposal of those Petitions, having become infructuous, in view of the present settlement.
x) with a view to put an end to the long pending litigations, the 3rd respondent and the petitioner have agreed to settle the above matters amicably as per the above settlement.
xi) It is submitted that, after receipt of entire loan amount as agreed in this compromise petition, the Respondent No.2 shall execute the mortgage discharge deed/shara in favour of petitioner.
xii) If the Respondent No.3 not paid the balance amount of Rs.24,00,000/-(Rupees twenty four lakhs only) with in stipulated period, this compromise petition shall be treated as decree and Respondent No.2, shall proceed against immovable property belonging to Petitioner by filing Execution before competent court.”
4. In the light of recitals in the compromise petition as reproduced above, the common petitioner and 3rd respondent in both the writ petitions produced two Demand Drafts. Out of that, Demand Draft bearing No.89483, dated 2.4.2019 drawn on Canara Bank for a sum of Rs.38,50,000/- is issued by the common petitioner and Demand Draft bearing No.822398 dated 2.4.2019 drawn on very same Canara Bank for a sum of Rs.4,00,000/- is by the 3rd respondent, both in favour of 2nd respondent are accepted by the 2nd respondent. Further, the petitioner as well as 3rd respondent would submit that balance amount payable in terms of the compromise petition by the 3rd respondent will be paid to the 2nd respondent as agreed in the compromise petition.
5. Accordingly, the compromise petition is taken on record and these writ petitions are disposed of absolving the petitioner of her liability as on this day and further observing that the liability of 3rd respondent will be absolved on the date the final payment is made by him. With that, all the dues which are received by the 2nd respondent would be held discharged and consequently, it has to discharge the Mortgage Deed which is created in its favour, in favour of the petitioner subsequent to entire amounts are paid by the 3rd respondent.
6. All the parties to these proceedings who are present before the Court are directed to affix their signature to the order sheet and the same shall be countersigned by their respective counsel.
Sd/- JUDGE nd/-