Karnataka High Court
Vishwant Nadagouda vs Karnataka State Financial Corporation on 20 November, 2024
Author: S.R.Krishna Kumar
Bench: S.R.Krishna Kumar
-1-
NC: 2024:KHC-K:8663
WP No. 202545 of 2023
IN THE HIGH COURT OF KARNATAKA,
KALABURAGI BENCH
DATED THIS THE 20TH DAY OF NOVEMBER, 2024
BEFORE
THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR
WRIT PETITION NO. 202545 OF 2023 (KLR-RES)
BETWEEN:
VISHWANT
S/O BASAVARAJAPPA NADAGOUDA,
AGE 61 YEARS,
OCCUPATION BUSINESS,
RESIDENT OF BASAVA NILAY,
H.NO.261, BASAVESHWAR NAGAR,
KALABURAGI-585 103.
...PETITIONER
(BY SRI. HARSHAVARDHAN R MALIPATIL,ADVOCATE)
AND:
1. KARNATAKA STATE FINANCIAL CORPORATION
KSFS BHAVAN, TIMMAIAH ROAD,
BENGALURU-560 052.
BY ITS CHAIRMAN AND MANAGING DIRECTOR.
Digitally signed 2. THE KARNATAKA STATE FINANCIAL CORPORATION
by SUMITRA BRANCH OFFICE,
SHERIGAR OPPOSITE HINDI PRACHAR SABHA,
Location: HIGH KALABURAGI - 585 102
COURT OF BY ITS ASSISTANT GENERAL MANAGER.
KARNATAKA
3. THE DEPUTY COMMISSIONER
MINI VIDHAN SOUDHA,
KALABURAGI-585 102.
4. THE SPL. TAHASILDAR
KSFC, RECOVERY OF GOVT DUE
KALABURAGI-585 105.
...RESPONDENTS
(BY SRI.SHIVANAND PATIL, ADVOCATE FOR R-1 & R-2
SMT. MAYA.T.R, HCGP FOR R-3 & R-4)
-2-
NC: 2024:KHC-K:8663
WP No. 202545 of 2023
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA, PRAYING TO A WRIT OF CERTIORARI
QUASHING THE ORDER/NOTICE OF THE RESPONDENT NO.4 BEARING
NO. ¸ÀA. PÀgÁºÀ¸À/«vÀPÀ/PÀ/3203/269/2023-24 DATED 07-08-2023 VIDE
ANNEXURE-G, IN SO FAR AS IT PERTAINS TO PETITIONER, IN THE
INTEREST OF JUSTICE AND EQUITY
THIS PETITION, COMING ON FOR FINAL HEARING, THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR
ORAL ORDER
(PER: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR) In this petition, petitioner seeks for the following reliefs:-
" i) A writ of certiorari quashing the order/notice of the Respondent No.4 bearing No. ¸ÀA.
PÀgÁºÀ¸À/«vÀPÀ/PÀ/3203/269/2023-24 dated: 07.08.2023 vide Annexure-G, in so far as it pertains to petitioner, in the interest of justice and equity.
ii) Pass any other order or direction as the Hon'ble Court deems fit in the circumstances of the case."
2. Heard learned counsel for the parties and perused the material on record.
3. A perusal of the material on record will indicate that pursuant to the request made by respondents 1 and 2 - KSFC for alleged default of loan availed by M/s.Rajashree Chemicals, to -3- NC: 2024:KHC-K:8663 WP No. 202545 of 2023 which the petitioner is alleged to be a guarantor, the 3rd respondent
- Deputy Commissioner issued a communication dated 17.07.2023 directing the 4th respondent - Tahsildar to take steps for recovery of the amounts due as arrears of land revenue.
4. It is contended by the learned counsel for petitioner that in the absence of mandatory procedure prescribed under Section 32G of the State Financial Corporation Act, 1951 (for short 'the SFC Act') being followed and without there being any certificate issued by the State Government in this regard, the 4th respondent - Tahsildar did not have jurisdiction or authority of law to issue the impugned Notice proposing to initiate proceedings for recovery by treating the same as arrears of land revenue, which is contrary to the provisions of Section 32G of the SFC Act and consequently, the impugned notice deserves to be quashed.
5. Per contra, learned counsel for respondents 1 and 2 - KSFC would support the impugned notice and reiterating the various contentions urged in the statement of objections, submit that there is no merit in the petition and that the same is liable to be dismissed.
-4-
NC: 2024:KHC-K:8663 WP No. 202545 of 2023
6. A perusal of the material on record, in particular, the statement of objections containing the correspondence between the State Government and KSFC as well as the documents produced by the petitioner, which also contain the correspondence will clearly indicate that the mandatory procedure prescribed under Section 32G of the SFC Act had not been followed, in as much as, any certificate was issued by the State Government before respondents 3 and 4 took necessary steps to recover the alleged amounts due from the petitioner as contemplated under Section 32G of the SFC Act. Under these circumstances, on the short ground of non-compliance of the mandatory procedure prescribed under Section 32G of the SFC Act and in the absence of necessary certificate which should precede any recovery proceedings to be initiated against the petitioner, I am of the view that the impugned notice insofar as the petitioner is concerned deserves to be set aside by reserving liberty in favour of the respondents to take appropriate action in accordance with law.
7. In the result, I pass the following:-
ORDER
(i) Petition is hereby allowed. -5-
NC: 2024:KHC-K:8663 WP No. 202545 of 2023
(ii) The impugned Notice at Annexure-G dated 07.08.2023 issued by the 4th respondent insofar as the petitioner is concerned is hereby quashed.
(iii) Liberty is reserved in favour of the respondents to take appropriate action against the petitioner in accordance with law.
Sd/-
(S.R.KRISHNA KUMAR) JUDGE Srl.
List No.: 1 Sl No.: 53