Case Note & Summary
The petitioner, A. Shambandhan, borrowed a loan from the Mysore Merchants Co-operative Bank Limited (respondent No.1). He became a defaulter, leading the bank to raise a dispute under Section 70 of the Karnataka Co-operative Societies Act, 1959. An arbitrator passed an award on 15.06.2001 against the petitioner. Aggrieved, the petitioner filed an appeal before the Karnataka Appellate Tribunal, which was allowed on 16.06.2008, and the matter was remanded. Subsequently, the Deputy Registrar of Co-operative Societies passed an order on 22.01.2013 in Dispute No.13/2001-02. The petitioner appealed against this order before the Tribunal in Appeal No.101/2013. The Tribunal, by order dated 10.05.2013, dismissed the appeal on the ground that the petitioner failed to deposit 50% of the award amount as directed under Section 18 of the Act. The petitioner then filed a writ petition under Article 226 of the Constitution of India challenging both the Tribunal's order and the Deputy Registrar's order. The High Court noted that the right of appeal under Section 18 is conditional upon depositing 25% of the award amount or such higher amount as the appellate authority may direct, not exceeding 50%. The Tribunal had directed deposit of 50% of the award amount. The petitioner did not comply with this condition. The High Court held that the Tribunal was justified in dismissing the appeal for non-compliance, as the condition is mandatory. The High Court also observed that the petitioner had an alternative remedy of appeal, which he failed to pursue by complying with the deposit condition. Consequently, the High Court dismissed the writ petition, finding no grounds to interfere.
Headnote
A) Co-operative Law - Appeal - Conditional Right - Section 18 of Karnataka Co-operative Societies Act, 1959 - The right of appeal under Section 18 is conditional upon depositing 25% of the award amount or such higher amount as the appellate authority may direct, not exceeding 50% of the award amount. The Tribunal directed deposit of 50% of the award amount. The petitioner failed to comply with this condition. The High Court held that the Tribunal was justified in dismissing the appeal for non-compliance, as the condition is mandatory and not discretionary. (Paras 1-4) B) Constitutional Law - Writ Jurisdiction - Alternative Remedy - Article 226 of Constitution of India - The High Court declined to interfere under Article 226, as the petitioner had an alternative remedy of appeal under Section 18 of the Karnataka Co-operative Societies Act, 1959, which he failed to pursue by complying with the deposit condition. The writ petition was dismissed as not maintainable. (Para 4)
Issue of Consideration
Whether the Karnataka Appellate Tribunal was justified in dismissing the appeal for non-compliance with the condition of depositing 50% of the award amount under Section 18 of the Karnataka Co-operative Societies Act, 1959.
Final Decision
The High Court dismissed the writ petition, holding that the Tribunal was justified in dismissing the appeal for non-compliance with the mandatory condition of depositing 50% of the award amount under Section 18 of the Karnataka Co-operative Societies Act, 1959. The Court found no grounds to interfere under Article 226 of the Constitution of India.
Law Points
- Conditional right of appeal
- Deposit of 50% of award amount
- Mandatory requirement
- Section 18 Karnataka Co-operative Societies Act
- 1959
- Writ jurisdiction under Article 226
- Alternative remedy
