Karnataka High Court
Smt. M Kalpavalli vs The Deputy Registrar Of Chits North Zone on 20 November, 2025
Author: Suraj Govindaraj
Bench: Suraj Govindaraj
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NC: 2025:KHC:48791
WP No. 22063 of 2025
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 20TH DAY OF NOVEMBER, 2025
BEFORE
THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ
WRIT PETITION NO. 22063 OF 2025 (GM-CFA)
BETWEEN:
SMT. M KALPAVALLI
W/O M R RAJAGOPAL,
AGED ABOUT 62 YEARS,
R/AT NO 47, 25TH MAIN, T BLOCK,
GIRINAGAR, BENGALURU - 560085
...PETITIONER
(BY SRI. VEERABHADRAIAH M., ADVOCATE)
AND:
1. THE DEPUTY REGISTRAR OF
CHITS NORTH ZONE
BANGALORE CITY DISTRICT,
BANGALORE - 560003
2. THE DEPUTY REGISTRAR OF CHITS
Digitally signed HASSAN DISTRICT,
by SHWETHA
RAGHAVENDRA HASSAN-573201.
Location: HIGH
COURT OF 3. M/S MARGADARSHI CHITS
KARNATAKA
(KARNATAKA) PVT LTD
REPRESENTED BY ITS FOREMAN
AND BRANCH MANAGER
SRI K RAGHUNATH
NO. 366, KMP ARCADE,
R.T.NAGAR
BANGALORE - 560032
4. SRI HARISH D Y
S/O SRI D V YADURAJ
PROPRIETOR,
M/S MANCHALE CONSTRUCTIONS,
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WP No. 22063 of 2025
HC-KAR
NO.09, 5TH CROSS, KANDAYA COLONY,
J.P.NAGAR, MYSORE - 570 008.
5. SRI MAHADEV M
S/O SRI MADAPPA
CIVIL CONTRACTOR,
NO.54, LINGAMBUDIPALYA,
SRIRAMPURA, 2ND STAGE,
MYSORE - 570023
6. SRI ASHWINI A
W/O SRI HARISH D Y,
NO. 09, 5TH CROSS,
KANDAYA COLONY,
J.P.NAGAR MYSORE - 570008.
7. SRI MAHADEVA SWAMY K S
S/O SRI SANNAPP,
PROPRIETOR,
SHRIYAS AND ELECTRICALS,
NO.16, 2ND MAIN ROAD,
JAYANAGAR,. MYSORE - 570008.
8. SRI NAGESHA H N
S/O SRI NAGALINGAPPA,
NO. 136, 17TH MAIN,
3RD CROSS, E BLOCK,
J.P.NAGAR, MYSORE - 570 008
9. SRI. A PRAVEEN
S/O ASHWATHNARAYANARAO
AGED ABOUT 45 YEARS
R/AT NO. 705, 9TH MAIN, 47TH CROSS, 5TH BLOCK
JAYANAGARA, BENGALURU 560011
...RESPONDENTS
(BY SRI. P.P. JAYAKUMAR., ADVOCATE FOR C/R3;
SRI. B. RAVINDRANATH., AGA FOR R1 & R2;
V/O DATED 20.11.2025 NOTICE TO R4 TO R9 D/W)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227
OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT IN THE
NATURE OF CERTIORARI OR ANY OTHER WRIT TO QUASH THE
IMPUGNED ORDER OF ATTACHMENT VIDE
NO.DRBN/NZ/CHIT/248/2012-13 DATED 31.08.2013 PASSED BY THE
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WP No. 22063 of 2025
HC-KAR
1ST RESPONDENT AS PER ANNEXURE-HAND ALSO THE ORDER
BEARING DRB/YCF/01/2012-13 DATED 15.06.2012 PASSED BY THE
RESPONDENT NO.2 AS PER ANNEXURE-H1, IN SO FAR AS IT
RELATES TO THE SCHEDULE PROPERTY COVERED UNDER THE
ANNEXURES-H AND H1 AND ETC.
THIS WRIT PETITION, COMING ON FOR ORDERS, THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ
ORAL ORDER
1. Since a settlement is arrived between the purchaser of the property and respondent No.3, notice to respondents No.4 to 9, who are guarantors and subscribers to chit fund is dispensed with.
2. The Petitioner is before this Court seeking for the following reliefs;
a) Issue a writ in the nature certiorari or any other writ to quash the impugned Order of attachment Vide No.DBRN/NZ/CHITS/248/2012 13 dated 31.08.2013 passed by the 1st Respondent as per Annexure H and also the Order bearing DRB/YCF/01/2012-13 dated 15.06.2012 passed by the Respondent No.2 as per Annexure-H1, so far as it relates to the schedule property covered under the Annexures-H and H1;
b) Issue writ in the nature of certiorari or any other writ to declare that the Execution petitions Joint Memo pending on the file of 2nd Addl., Civil Judge, Senior Division, Mysore, in Ex.No.42/2020 and Ex. No.349/2013 on the file of 3rd Addl., Civil Judge (Sr.Dvn), Mysore as barred by limitation in view of Section 71 of the Chit Funds Act, 1982 as per Annexures-L and L1 only in so far as it relates to the Petitioner herein who is the Judgment Debtor No.7 -4- NC: 2025:KHC:48791 WP No. 22063 of 2025 HC-KAR in Ex. No.42/2020 and JDR No.7 in Ex.No.349/2013 are concerned as well as to the schedule property therein also.
c) Issue any appropriate order or writ or direction as this Hon'ble Court deem it fit and proper in the facts and circumstances of the case and allow this Writ Petition with costs, in the ends of justice and equity.
3. A joint memo has been filed signed by the petitioner, counsel for the petitioner, authorized representative of respondent No.3 and counsel for respondent No.3, which reads as under:
JOINT MEMO I, Smt. M Kalpavalli, w/o M.R.Rajagopal, aged about 62 years old, R/at No.47, 25th main, 'T' Block, Girinagar, Bengaluru-560085 & I, M/S Margadarshi Chits (Karnataka) pvt ltd, represented by its Branch manager, Sri. K Raghunath, No. 366, KMP Arcade, R.T.Nagar, Bangalore-560032, do hereby solemnly affirm and state as follows:-
1. The challenge in this writ petition is to the orders of attachment dated 31.08.2013 and 15.06.2012, bearing No. DRB/NZ/CHIT8-248-2012-13 and No. DRH/YCF/01/2012-13 respectively, issued by Respondent No. 1 & 2 and produced as Annexures-H and H1.
2. The Petitioners have also sought for quashing of the execution proceedings pending on the file of the 2nd Additional Civil Judge, Senior Division, Mysore in Ex.P No. 42/2020, and on the file of the 3rd Additional Civil Judge, Senior Division, Mysore in Ex.P No. 349/2013.
3. Upon deliberations between the Petitioner and the 3rd Respondent company, it is submitted as follows:-5-
NC: 2025:KHC:48791 WP No. 22063 of 2025 HC-KAR * Respondent No. 5 was one of the subscribers to the chit fund, and Respondent No. 4 was also a subscriber. The chit taken over by the 4th Respondent was guaranteed by the 5th Respondent in respect of the chit conducted by the 3rd Respondent Company. Similarly, the 5th Respondent was also a subscriber who took over a chit; however, both subscribers committed default in repayment of the chit amounts due to the 3rd Respondent Company.
4. Owing to this default, the 3rd Respondent Company initiated proceedings for recovery of the amount from Respondents 4 to 9, and ultimately an award was passed. Thereafter, the property standing in the name of the 5th Respondent was attached by virtue of orders passed independently by Respondents 1 and 2. These orders dated 15.05.2012 and 13.06.2012 attached the schedule property which is the subject matter of the present challenge.
5. Although the attachment orders were passed, they were neither notified nor reflected in the encumbrance register. As such, the attachment orders were not visible to the public.
6. The Petitioner, being a bona fide purchaser, purchased the property under a registered sale deed dated 03.07.2014. However, notice relating to the attachment came to be issued only during 2022. When an application for impleadment was filed in the execution proceedings. During the pendency of execution, due deliberations took place between the Petitioner and the 3rd Respondent company, represented by its authorised person. Out of such deliberations, the parties arrived at an amicable settlement whereby the Petitioner agreed to pay a sum of Rs. 12,50,000/- (twelve lakh fifty thousand rupees only), as enable to eliminate the attachment in respect of schedule property to this writ petition.
7. Pursuant to this understanding. a Demand Draft drawn in favour of Margadarshi Chits (Karnataka) Pvt. Ltd. Dated 19.11.2025, DD No.797193 for Rupees 12,50,000/- (rupees twelve lakh fifty thousand only) drawn from Kotak Mahindra Bank, High Court Branch, Bengaluru Branch, same has handed over to the -6- NC: 2025:KHC:48791 WP No. 22063 of 2025 HC-KAR authorised person in open court on 20.11.2025. The receipt of the same is hereby acknowledged.
8. In view of the above facts and the amicable settlement arrived at between the parties, the 3rd Respondent company has voluntarily agreed to give up its claim arising out of the attachment orders dated 31.08.2013 and 15.06.2012 (Annexures-H and H1). Consequently, the 3rd Respondent has conceded to the quashing of the attachment orders in respect of the schedule property purchased by the Petitioners as bona fide purchasers.
9. In view of the aforesaid settlement the Respondent No.3, have no objection to quash the Ex.P No. 42/2020 & Ex.P No.349/2013, pending on the file of the II Additional Civil Judge, Senior Division, Mysuru & III Additional Civil Judge, Senior Division, Mysuru, as per Annexure-L & L1 respectively and so far as relates the petitioner and also the schedule property.
10. Signatory to this Joint Memo signed on behalf of the 3rd Respondent Company is duly empowered to sign this Joint Memo. The copy of such authorisation is annexed to this Joint Memo.
Wherefore, it is humbly prayed that this Hon'ble Court, upon accepting the joint memo, may be pleased to dispose of the writ petition by quashing the following attachment orders:
a. Order of attachment bearing No. DRBN/NZ/CHITS/248/2012-13 dated 31.08.2013, which are produced as Annexures-H; and b. Order of attachment bearing No. DRH/YCF/01/2012-13 dated 15.06.2012, which are produced as Annexures-H1.
Accordingly, the aforesaid orders may kindly be quashed in the interest of justice and equity.
SCHEDULE PROPERTY All the piece and parcel of the immovable property situated at House No.84, Janatha Layout, Nachanahally Palya, Khille Mohalla, Mysore City, (JP Nagar), Mysore District, measuring East to West 40 feet, South to North 30 feet, bounded on:-
-7-NC: 2025:KHC:48791 WP No. 22063 of 2025 HC-KAR EAST: PROPERTY NO.85 & CONSERVANCY ROAD WEST: PROPERTY NO.83;
NORTH: ROAD;
SOUTH: PROPERTY NO.91
4. Learned counsel, on instructions, submits that the petitioner has settled the matter for a sum of Rs.12,50,000/- dated 19.11.2025 bearing No.797913 drawn on Kotak Mahindra Bank, High court branch, Bangalore, has been today handed over to counsel for respondent No.3 which counsel for respondent No.3 confirms receipt.
5. Counsel for respondent No.3, on instructions from the authorized representative of respondent No.3, who is present today, submits that on receipt of the said amount, respondent No.3 will have no claim over the property described in schedule to the joint memo and that the petitioner would be entitled to exercise such rights as the petitioner may possess -8- NC: 2025:KHC:48791 WP No. 22063 of 2025 HC-KAR without reference to respondent No.3. His submission is placed on record.
6. Taking memo and submissions on record, I pass the following:
i. The writ petition is allowed.
ii. A certiorari is issued. The impugned Order of
attachment dated 31.08.2013 passed by
respondent No.1 at Annexures-H and the order dated 15.06.2012 passed by respondent No.2 at Annexure-H1 are hereby quashed.
SD/-
(SURAJ GOVINDARAJ) JUDGE LN List No.: 2 Sl No.: 11