Karnataka High Court
Mohammed Khaleelur Rehman vs M/S Canara Nidhi Limited on 30 October, 2025
Author: S Vishwajith Shetty
Bench: S Vishwajith Shetty
-1-
NC: 2025:KHC:43566
WP No. 707 of 2024
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 30TH DAY OF OCTOBER, 2025
BEFORE
THE HON'BLE MR. JUSTICE S VISHWAJITH SHETTY
WRIT PETITION NO. 707 OF 2024 (GM-CPC)
BETWEEN:
MOHAMMED KHALEELUR REHMAN
S/O HAYATH SAHEB
AGED 82 YEARS
R/A NO.9, MUDALAPPA STREET
DODDAMAVALLI
BANGALORE - 560 004.
...PETITIONER
(BY SRI SAIPRAKASH B, ADV.)
AND:
1. M/S CANARA NIDHI LIMITED
1ST FLOOR, MANIPAL CENTRE
CHITTARANJAN CIRCLE
UDUPI - 576 101
REPRESENTED BY ITS GPA HOLDER
Digitally signed SRI BALAKRISHNA NAYAK
by NANDINI M
S S/O APRAYA NAYAK.
Location: HIGH
COURT OF 2. MS. KHUTAIJA
KARNATAKA D/O MOHAMMED KHALEELUR REHMAN
MAJOR IN AGE
R/A NO.9, MUDALAPPA STREET
DODDAMAVALLI, BANGALORE - 560 004.
3. MOHAMMED AMEEDNUDDIN
S/O MOHAMMED RAFFIUDDIN
AGE MAJOR
R/O 34, NANJEGOWDA STREET
DODDAMAVALLI
BANGALORE - 560 004.
...RESPONDENTS
-2-
NC: 2025:KHC:43566
WP No. 707 of 2024
HC-KAR
(BY SRIM.N. UMESH, ADV., FOR R-1;
V/O/D 09.02.2024, NOTICE TO R-2 & R-3 IS D/W)
THIS WP IS FILED UNDER ARTILCE 227 OF THE
CONSTITUTION OF INDIA PRAYING TO QUASHING THE ORDER DTD
08.11.22 PASSED IN MISC 673/18 BEFORE THE XIX ADDL CITY CIVIL
AND SESSIONS JUDGE (CCH18), BENGALURU, ALLOWING THE
PETITION FILED UNDER ORDER XXI RULE 106 OF C.P.C
CONSEQUENTLY RESTORING THE EXECUTION PETITION NO.
1586/2002 (PRODUCED AT ANNEXURE-A) AND FURTHER BE
PLEASED TO DISMISS THE EXECUTION PETITION NO. 1586/2002
PENDING ON THE FILE OF XIX ADDL CITY CIVIL AND SESSIONS
JUDGE (CCH18) BENGALURU(PRODUCED AT ANNEXURE-G)
THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER
WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE S VISHWAJITH SHETTY
ORAL ORDER
1. This writ petition under Article 227 of the Constitution of India, is filed seeking for the following reliefs:
a) Issue a writ in the nature of certiorari or any other writ or order, quashing the order dated 08.11.2022 passed in Misc. No.673/18 before the XIX Addl. City Civil & Sessions Judge (CCH 18), Bengaluru, allowing the petition filed under Order XXI Rule 106 of CPC consequently restoring the execution petition no.1586/2002 (produced at Annexure-A) and further be pleased to dismiss the execution petition No.1586/2002 pending on the file of XIX Addl. City Civil & Sessions Judge (CCH 18), Bengaluru (produced at Annexure-G);-3-
NC: 2025:KHC:43566 WP No. 707 of 2024 HC-KAR
b) Pass such other order/s as this Hon'ble Court deems fit in the facts and circumstances of the case in the interest of justice and equity.
2. Learned Counsel appearing for the parties jointly submit that the parties were referred to Mediation Centre, Bengaluru, to explore the possibilities of settlement and before the Mediation Centre, Bengaluru, the parties have settled their inter se dispute and a Memorandum of Settlement was also executed by the parties before the Mediation Centre which is signed by the parties and by their respective parties. They submit that this writ petition may be disposed of in terms of Memorandum of Settlement entered into between the parties before the Mediation Centre, Bengaluru.
3. The aforesaid submissions made on behalf of the parties and the Memorandum of Settlement executed between the parties before the Mediation Centre at Bengaluru dated 25.09.2025 are placed on record.
4. In the aforesaid Memorandum of Settlement dated 25.09.2025, in paragraphs 1 to 12, it is stated as under:
-4-NC: 2025:KHC:43566 WP No. 707 of 2024 HC-KAR "1. The Respondent No.1 is represented by Mr. Suresh A.M and the and an authorization letter issued by Sri. Vivekananda.B, Director for Canara Nidhi Limited dated 10.09.2025 by authorizing Mr. Suresh A.M to attend behalf of Respondent No.1 to enter into settlement, report and admit settlement before the Hon'ble Court.
The said authorization letter, which is appended to this memorandum of settlement, which becomes part and parcel this settlement.
2. The Petitioner and Respondent No.1 admit and agrees that the petitioner has borrowed a sum of Rs.5,00,000/- (Rupees Five Lakhs Only) from Respondent No.1 on certain terms of repayment by way of EMI. The Petitioner has mortgaged the title deeds of the house property as security towards the loan vide registered mortgage deed dated 24.04.1998 and 06.05.1998.
3. The Petitioner had defaulted in making EMI payments hence the Respondent No.1 initiated arbitration proceedings A.P.No.84/2001 before the sole Arbitrator Mr.A.S.N.Hebbar, The Arbitrator has passed an order dated 29.12.2001 determining the amount payable at Rs.7,35,652/- with future interest @21% per annum.
4. Thereafter the Respondent No.1 had filed an Execution Petition No.1586/2002 before the XIX Addl. City Civil Sessions Judge, Bengaluru for execution of the aforementioned award. The Petitioner had participated in the execution petition and made certain payments. The Execution Petition came to be dismissed for non -5- NC: 2025:KHC:43566 WP No. 707 of 2024 HC-KAR prosecution. The respondent No.1 has therefore preferred Misc No.673/2018 before XIX Addl. City Civil and Sessions Judge, Bengaluru (CCH-18). The said misc petition was allowed and Execution petition was restored, which is challenged in the above writ petition.
5. Both the parties have agreed and admit that in the interregnum the petitioner had paid a sum of Rs.4,70,000/- (Rupees Four Seventy Thousand Only) towards the dues payable as determined by the Arbitrator. The Respondent No.1 in its Execution Petition is seeking for recovery of balance principal amount and for stipulated interest.
6. The Petitioner has offered to pay a sum of Rs.3,00,000/-(Rupees Three Lakhs Only) as full and final payment towards all the dues that the Petitioner is payable to Respondent No.1. The amount of Respondent No.1 has accepted the said Rs.3,00,000/- (Rupees Three Lakhs Only) towards all the due payable the petitioner towards the loan transaction dated 24.04.1998 and 06.05.1998.
7. The Respondent No.1, upon receipt of the above amount confirms that the loan has been completely discharged and that there are no dues from the Petitioner and undertakes to withdraw the Execution Petition No.1586/2022.
8. The Petitioner has on this date paid the aforementioned Rs.3,00,000/- (Rupees Three Lakhs -6- NC: 2025:KHC:43566 WP No. 707 of 2024 HC-KAR Only) by way of demand draft bearing No. 309605 dated 24.09.2025 in favour of Respondent NO.1 drawn on State Bank of India, ISRO Layout Branch, Kumaraswamy Layout, Bengaluru. Both parties admit that the demand draft will be handed over to the Respondent No.1 before the Hon'ble High Court of Karnataka, at Bengaluru upon receipt of the original document submitted at the time of the loan was sanctioned.
9. The Respondent No.1 bank undertakes to return original promissory notes, blank cheques, title deeds and other documents that was submitted for obtaining the loan before the Hon'ble High Court of Karnataka, at Bengaluru.
10. Both parties undertakes to co-operate to get the registered mortgage deed cancelled before the Sub- Registrar, Bengaluru within a period of 6 months.
11. The Respondent No.2 and 3 are made parties as they have signed for co-obligants. The Respondents 2 and 3 are absent. Since the Petitioner is discharging the entire loan along with interest the absence of Respondent No.1 and 2 does not affect recording of the agreement as the primary borrower is the petitioner only and he has undertaken to repay the amount as aforementioned.
12. In view of the above settlement the Respondent No.1 undertakes to withdraw the Execution Petition -7- NC: 2025:KHC:43566 WP No. 707 of 2024 HC-KAR No.1586/2022 on the file of XIX Addl. City Civil Sessions Judge, Bengaluru."
5. The parties who are before this Court are identified by their respective advocates. The Memorandum of Settlement is signed by the parties and also by their respective advocates. It is submitted by the learned Counsels appearing on behalf of the parties that in compliance of the terms of settlement between the parties, the petitioner has today handed over a Demand Draft as stated in paragraph 8 of the Memorandum of Settlement for a sum of Rs.3 lakhs drawn in favour of the respondent-Bank and inturn the representative of the Bank who is present before the Court, has handed over the documents as mentioned in paragraph 9 of the Memorandum of Settlement to the petitioner and receipt of the same is acknowledged by the petitioner who is present in person before the Court. In addition to the aforesaid documents, a No Due Certificate has been also handed over by the Bank to the petitioner.
6. In view of the above, the writ petition is disposed of in terms of the Memorandum of Settlement dated 25.09.2025 executed by the parties to this petition before the Mediation -8- NC: 2025:KHC:43566 WP No. 707 of 2024 HC-KAR Centre, Bengaluru. It is needless to state that the Execution Petition No.1586/2022 pending before the Court of XIX Addl.
City Civil & Sessions Judge, Bengaluru, shall be withdrawn by the Bank on the next date of hearing of the said case.
Sd/-
(S VISHWAJITH SHETTY) JUDGE KK