High Court Karnataka High Court

Sri M A Rajendra S/O Late M S … vs The Karnataka State Financial … on 19 December, 2008

Karnataka High Court
Sri M A Rajendra S/O Late M S … vs The Karnataka State Financial … on 19 December, 2008
Author: S.R.Bannurmath & Gowda
 - /. "N532:  

13% THE HIGH CGURT OF KARNATAKA AT BANGAL{§RE

DATE?) THIS me 19*" DAY or-' DECEMBEPg,«~~2{@'8__A'4'ii " 

PRESENT

THE HON'BLE MRJUSTICE :s}§. EBAN'NuIAMA~m 

& 

THE HON'BLE MR. JUSTICE A.N.VEf§'UGOPA,£A'A.GOW'DAv 

wax? APPEAL NO.11S»i[V:' zoos (keM4§EAr-6; M 
BETWEEN: ''     

SR1 M A RAJENDRA   

5/0 LATE M s ANANTHAPAA,    '

AGED ABOUT 49--YRS_  V   A 
R/AT M0369,     
BCC LAYOUT,' v1JA\;A;5:Az'3As?§ 905?,  H »

BANGALORE_:4G.g_  

 A A    AFPELUANT
(BY M/S.V'?1Qf-IAMVED Arngfgva ASSOCIATES, ADVS.)

A :1," fig KARNATAKA STATE FINANCIAL CORPORATION

 A.TH1MMI%I/Vi! ROAD.
 , N'EAaCAA:"roNMEnT, BANGALORE.
' REPRE§':ENTED BY ITS MANAGING DIRECTOR.

2 E' ..[>EE1=:::_>1.:*w GENERAL MANAGER
KARNATAKA STATE FINANCIAL coRPoRAT1o:\:

" '  MYSORE.



for the loan availed by his wife -- fourth responden_t-.fren1

the flrst respondent. The fourth respondent3V§;."!a'o--rf'o§\re.r.'--.

had committed defauit and thewtinit_rof”*~.tijeV*:fouVrtvhV V

respondent was seized and

respondent in exercise of its power tinder Sec”tioAa._’2v9iiet’ the ”

State Financiai Corporation Vrviénit was
notified for sale on difierént was ultimately
said to the fifth, respondent The fourth
respondent questioning the

action of the tfiorporation. The writ

petition: was”djisrr:Eseed«…on.,.___t’3.1.’O6.05 against which W.A. ‘

No.1291}D.6″was’V..fii5ed iancivias dismissed on 12.09.03.

Review~Petitiorvi-.vif¢Vo’;38;t}’O£i’ was also dismissed on 7.11.08.

r ._2A.–.__”«Thea.Di3e!iant had flied W.P. No.7511/06 with a

prayetr to the acceptance of the offer of fifth

‘.Vrespe’nden:t.Vt’o purchase the unit at Rs.26.20 Lakhs as

“..j_agAAain5t the assessed vaiue of Rs.35.00 Lakhs and for a

to respondents No.1 to 3 to consider the offer

“”r.VVV§¥#en by the appeiiant vide Annexures-D and E. Taking

/”gt.

into consideration the subsequent event, namel§’;«.:T:’t.he

execution of the sale deed in favour

purchaser on 08.06.06, the writ petition ash

having become lnfructuous, reeerefirie

petitioner. Assailing the saidiiorder pessed_Vb§(‘Attje~lee:rned”‘ 0

Single Judge, this writ appeal Vflejsifiled. .

3. The appellent’ to produce
additional doouzeeet tne0jtiéiomroi:’niicat:on from the
first respondent. tlemanding payment of
as.2,7a,ss3/;s(Absentee). é’._’I’.’A.:II/O8 was filed to stay
the respondent was directed

to file affidevlt expleintvngeis to howthe said demand was

.–vV.’1mac!e~§.the”””ep.p–eilant. Sri.G. Nagaraja – General

A”‘.__MeVneger,__”~Sotfth. Zone, of the first respondent –

C:.orpo:’etto:i*.V–V!$;ee’tiled affidavits dated 05.11.08, 10.11.08 8:

jV25.11u.0;8v”‘e¢lso producing the statement of acceunts. The

iiiggwpellant Nfiled memo dated 19.09.08 producing the copy of

*–«.’th’e.,it:dgment dated 12.09.08 passed in W.A. No.1291/06

enclosing the memo of calcuiations in respect of both

the loan accounts of the fourth respondent with the first

respondent. The appeliant aiso filed memo {Ldeted

12.08.08, producing the communication

received by the appeilant aiong with theV__s?i:atenjen_t’

account.

4. We have heard”iS’ri,uMoharn’ed At:h’egj-!»..¢.i.ea§;neVfd

counsel for the appeiiant an_di:”‘:S:ri.~E$ipin.”i=!!:e§:de_,:? iearned

counsel for the respond’en’:sAe«nd;_perused”the records.

5. to.1…’the”vi’ii~ir§t.___V:’Vi)etition is dated

04.0735, ‘– “of a representation of the

appeiiant Vérddi*ess”e.d’Vto”th:e second respondent, wherein he

&_ nad»’-i?equ’estedV”to cpneider the fresh proposai of Rs.34.50

Leichs one Mr. Ashanthakumar. Annexure-E

is the copy of a representation Mr.A.

Shahnthavkuniar addressed to the Managing Director ef the

“:j=.fitrsi:i:-respondent — Corporation, wherein it was requested

« reconsider the offer given by the eariier bidder in a sum

Rs.26.50 Lakhs and to accept his offer mi’ Rs.34.50

Lakhs.

6. In the judgment dated 12.os..«os,»VVv.iotmieo

dismissing W.A. No.1291/06 fiied by the ..

herein, with regard to the very samélitissusl,
as foiiows:- : ” ” i

18. However, taking’ __into considera’t§von.._’vt!1e
submissions made by v’53:i”:’V.h1ad’h-aifa'”Ready,

lea med counsel. fat resp’on’t3a4r.tV’»’tio.4, Vite” déem

it appropriate to”a’dir’ectt._i’f}1V§; ti’5v’.V_r9.spondent to

pay to the 3.” raspoijderatfiorfioration a total

sum jiaichs ..:V(‘i-.é.,——Vw:the amount

o”f’fé”rédV?t7y §}’.»..:Shantha’kumar, to purchase
the” oendency of the writ
petitiéori vvbéforo’.thaiéarned singie Judge) as

; ‘ tho cons.i<_1e'ratio'n for purchase of the industrial
t:,.nit…'4"*"'raspondent shat! pay within a

—_pgfiod..’:’of_ six weeks from today to the 1″
résioondiéhtt, towards borrowers ioan account,
the oifierence amount of Rs.9.30 iakhs (i.e.,
“Rs;135.50 — Rs.26.20 =2 9.30 iakhs) aiong with

” ”«._interest on 9.30 iakhs @ 12% 13.3. from

22.2.2005 til! the date of actuai payment. It is
maée clear that after the remittance of the
aforesaid amount by the 4″‘ respondent to the

/i

15′ respondent — Corporation and

adjustment to the loan account

petitioner / appeiiant, if any amount__’rerne§_nst’4_

in surplus, such amount-ishaii. A
be refunded by the respon:den_tse~ t’o~.3″t_o
petitioner / appellant,’ -This Verr’angers1v”en;tv:h_VaVs
been made by us tatkinfi» intotconsée’-ereagion

the submission mede-. the ‘ieerned
counsei for the”‘«e”$.reLsp.ond”en’;t.::and also to
avoid any inJuAs_tir;:e=,b’eing to the

appeiiant’.’-Ed.’- _

7, …. _pCZ’o.n’si’ii;eringjtbthve “di’smi§saI of the Writ Petition
and the writ the fourth respondent wherein

the very e’er_fne..issne*§yitn”..’iregard to the sale of the unit in

favonirtvvoi’ the nfifthvrespondent herein was considered and

order.mépde.__as noticed hereinabove, it cannot be said

ttthat,’th’e’a”§’r;*ipAu§ned order passed by the learned Single

V –V Jude:-:,..cvaiis’iior any interference.

it Though no interference is caiied for, we were

‘ .._/”,A:L$_t_.irprised with the demand of Rs.2,?8,563/- made by the

V ifbfirst respondent vide Annexure–G. Hence, wefiailed upon

/

the Corporation to fiie the affidavits explai*riV§r:;;j’L:’–.l:the

position. The affidavits filed by the Genera-if::’Ma-na§er’.o’fA

the first respondent ~– Corporation»..did–‘_” it

correct calculations. The erroneous?’.’_ep’proa~g’h

been adopted by the first reeoo-n_dent”~:_CorooratiVo’n'”in the” V

matter of accounting of the rerruttances /’ hayment by the
fourth and fifth res;$ondentsf’:~.’and’Vr’.’:_a.lVso_ calculation of
interest, the erro*rv_cornrnitt’eti the demand
made as per Thereafter, the
first respelident found that the appellant
is not:*.,_liabieAV.Vto’.pay .ai2$r_:”‘an1ount towards the two loan
accounts ‘ofuthel to which he had stood

as th;e”gAuarantor.Vavndeon the contrary as per the revised

_of..calAt*elatlon, the fourth respondent is entitled to

certain sum. There is still a dispute with

V if . regard toiithellactual amount which the fourth respondent is

ifHK:”.v4A””‘V.t,.entitl’edVV’to be refunded with by the first respondent –

‘Corporation. Since it is not the appellant who should get

if the refund and as he was only a guarantor and now that

V if the Corporation has made it clear that the log amount of

‘z

the fourth respondent has stood discharged and th_’ai:f_i_’s

entitled to be refunded with certain sum,

proper to dispose of this writ” appealas4foll_o$}’&s”:’§:V’.’;v» 4′

(F)

(*5)

No interference.yvithvélthe. imp’u’g.ned’

passed by the leaiered Sing”ie_ ‘fioedgeiiviisfffcalled

for.

In View of:.tiie.jrfeaiis;;etioo7.”ioan amount by

u.§:o:t*.’i’nVV:’fovour of the fifth
y§:ae::?upheld by this Court in
‘1VVv.vV#:”.VN@L7s9f6./35′ vide order dated o1.o5.os

” gand in WA. No,.1291/O6 dated

the first respondent – Corporation

. siiall not be entitled to proceed against the

.,.”.’:–~.,api5Ve.i’l’ant for realising any dues from him as

‘ guarantor for the loan transactions of the

1’ fourth respondent.

fan)

since the fourth respondent is the wife of the

appellant, in view of the corrective steps taken

\

/,5

10

by the first respondent – Corporation to –revise

the calculations and consequentf’:’tof_:the

judgment dated 12.09.03 passedv..§h’:.5’VJ..}§.«

n:o.1291/05, the firstarvespondentl}jcqrporatson x

is hereby directed

recovered from respo:ndeht’V’and also”?

the refundable inltermsi of the
judgment uiiaated’ ….iZ.O§§r98..j ‘aassed in W.A.
No…;t291/Q_6″ to fovtu.rth7 reepondent, within a

——– _f;3e’riod;:_3of fo:u’r.vweeksV.from today.

it iV§«..rna.de’ clear that, if the caiculations made and

&_ the’-tafnount refuncl._ed.~by the first respondent to the fourth

‘ reepondent..tsnot in conformity with the actual liability of

H fhrespondent towards first respondent –

Corporation. either the appellant or the fourth respondent,

afteaj pointing out to the first respondent, the error if any

Ahiphlthe calculations and in the matter of the amount

V’ refunded, if not properly accounted for and the grievance if

any in that regard is not redressed, the fouliw respondent

}…3
‘.«…|

and the appeliant are at liberty to agitate the mgttjeif’-. 2

with regard to the micwatien and the accourztjngéA!rj””£heV.$_”

appropriate forum, in accordance with {awe _:. I

Writ appeal stands d¥sgm_$edA’tf;”‘accord’in;;.§:y;V .

costs.