High Court of Karnataka Quashes Certificate Issued Under Section 101(1)(a) of Karnataka Co-operative Societies Act, 1959 for Non-Compliance with Mandatory Pre-Deposit Requirement. Execution Proceedings Based on Such Certificate Held Illegal and Without Jurisdiction.

High Court: Karnataka High Court Bench: DHARWAD In Favour of Accused
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Case Note & Summary

The petitioner, Timmappa S/o Subraya Hegde, a judgment debtor, filed a writ petition under Articles 226 and 227 of the Constitution of India challenging a certificate dated 28.12.2011 (Annexure-H) issued by the Assistant Registrar of Co-operative Societies, Sirsi, under Section 101(1)(a) of the Karnataka Co-operative Societies Act, 1959. The certificate was issued to execute an award dated 03.02.2011 bearing No.133/2005-06 (Annexure-E) in favor of respondent No.2, Vyavasaya Seva Sahakar Sangha Niyamith, Ummachagi. Pursuant to the certificate, respondent No.2 filed execution proceedings in E.P.No.2/2012 before the Senior Civil Judge and Principal JMFC, Yellapur. The petitioner sought quashing of the certificate and the entire execution proceedings as illegal and unconstitutional. The court examined the provisions of Section 101(1)(a) of the Act, which allows the Registrar to recover sums due under an award as if it were a decree of a civil court. However, the proviso to Section 101(1)(a) mandates that before issuing such a certificate, the judgment debtor must be given an opportunity to make a pre-deposit of the amount due. The court found that the certificate was issued without providing such an opportunity, making it invalid. Consequently, the execution proceedings based on the invalid certificate were also held to be without jurisdiction. The court allowed the writ petition, quashing the certificate and the execution proceedings.

Headnote

A) Co-operative Societies - Recovery Certificate - Section 101(1)(a) Karnataka Co-operative Societies Act, 1959 - Mandatory Pre-Deposit - The certificate issued under Section 101(1)(a) for execution of an award is invalid if the judgment debtor has not been given an opportunity to make a pre-deposit as required under the proviso to Section 101(1)(a). The court held that the certificate dated 28.12.2011 was issued without affording such opportunity, rendering it illegal and without jurisdiction. Consequently, the execution proceedings in E.P.No.2/2012 were quashed. (Paras 1-3)

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Issue of Consideration

Whether the certificate issued under Section 101(1)(a) of the Karnataka Co-operative Societies Act, 1959, without compliance with the mandatory pre-deposit requirement, is valid and whether the execution proceedings based on such certificate are maintainable.

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Final Decision

The writ petition is allowed. The certificate dated 28.12.2011 (Annexure-H) issued by the Assistant Registrar of Co-operative Societies, Sirsi, under Section 101(1)(a) of the Karnataka Co-operative Societies Act, 1959, is quashed. Consequently, the execution proceedings in E.P.No.2/2012 pending before the Senior Civil Judge and Principal JMFC, Yellapur, are also quashed.

Law Points

  • Section 101(1)(a) of Karnataka Co-operative Societies Act
  • 1959
  • mandatory pre-deposit
  • execution of award
  • certificate of recovery
  • jurisdiction of civil court
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Case Details

2013 LawText (KAR) (07) 25

Writ Petition No.77229 of 2013 (CS-DAS)

2013-07-17

H.G.Ramesh

S.V. Yaji for Narayan V Yaji, F.V. Patil for R2, Y.V. Raviraj for R1

Timmappa S/o Subraya Hegde

The Assistant Registrar of Co-operative Societies Sirsi, The Chief Executive Vyavasaya Seva Sahakar Sangha Niyamith Ummachagi

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Nature of Litigation

Writ petition challenging a certificate issued under Section 101(1)(a) of the Karnataka Co-operative Societies Act, 1959 and the consequent execution proceedings.

Remedy Sought

Quashing of the certificate dated 28.12.2011 (Annexure-H) and the entire execution proceedings in E.P.No.2/2012.

Filing Reason

The certificate was issued without giving the judgment debtor an opportunity to make a pre-deposit as required by the proviso to Section 101(1)(a) of the Act.

Previous Decisions

An award dated 03.02.2011 bearing No.133/2005-06 was passed against the petitioner.

Issues

Whether the certificate issued under Section 101(1)(a) of the Karnataka Co-operative Societies Act, 1959 is valid without compliance with the mandatory pre-deposit requirement. Whether the execution proceedings based on such certificate are maintainable.

Submissions/Arguments

The petitioner argued that the certificate was issued without affording him an opportunity to make a pre-deposit as required by the proviso to Section 101(1)(a) of the Act. The respondents did not contest the petition on merits.

Ratio Decidendi

The proviso to Section 101(1)(a) of the Karnataka Co-operative Societies Act, 1959 mandates that before issuing a certificate for recovery of an award as a decree of a civil court, the judgment debtor must be given an opportunity to make a pre-deposit of the amount due. Non-compliance with this mandatory requirement renders the certificate invalid and the consequent execution proceedings without jurisdiction.

Judgment Excerpts

This Writ Petition by the judgment debtor is directed against the certificate dtd. 28.12.2011 (Annexure-H) issued by the Assistant Registrar of Co-operative Societies, Sirsi, under Sec.101(1)(a) of the Karnataka Co-operative Societies Act, 1959 The certificate is quashed. Consequently, the execution proceedings in E.P.No.2/2012 are also quashed.

Procedural History

An award dated 03.02.2011 was passed against the petitioner. The Assistant Registrar issued a certificate under Section 101(1)(a) on 28.12.2011. Respondent No.2 filed execution proceedings in E.P.No.2/2012. The petitioner filed this writ petition on 17.07.2013 challenging the certificate and execution proceedings.

Acts & Sections

  • Karnataka Co-operative Societies Act, 1959: 101(1)(a)
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