Facts
The petitioner-borrower was arrayed as a respondent in disputes brought by a co-operative society under Section 70 of the Karnataka Co-operative Societies Act, 1959.
Source reference: para. 1In the respective proceedings, the petitioner sought recall of PW-1 for cross-examination under Order XVIII Rule 17 read with Section 151 of the Code of Civil Procedure.
Source reference: para. 1PW-1’s examination-in-chief was recorded on 23 October 2025, and the matter was adjourned for cross-examination on several dates.
Source reference: para. 1–2After the petitioner did not cross-examine PW-1, the Authority treated cross-examination as given up and proceeded to final arguments.
Source reference: para. 1–2The petitioner’s applications, filed on 5 June 2026, were rejected by orders dated 4 August 2026, prompting these writ petitions.
Source reference: para. 1–2On 2 September 2026, the High Court granted a conditional interim opportunity for cross-examination, subject to payment of ₹15,000 as costs.
Source reference: para. 3–5The petitioner deposited the amount and served the interim order and petition papers on the Society’s counsel.
Source reference: para. 3–5Issues
1. Whether the Authority’s rejection of the petitioner’s applications to recall PW-1 for cross-examination should be set aside
Source reference: para. 1–2, 8–92. Whether the petitioner should receive a further, final opportunity to cross-examine PW-1, subject to conditions
Source reference: para. 3, 6–7, 10–12Law Applied
The proceedings before the Authority arose under Section 70 of the Karnataka Co-operative Societies Act, 1959, which provides for resolution of specified disputes concerning co-operative societies.
Source reference: para. 1The petitioner invoked Order XVIII Rule 17 read with Section 151 of the Code of Civil Procedure to seek recall of PW-1 for cross-examination.
Source reference: para. 1The Court’s stated basis for relief was the need to afford the petitioner a fair opportunity to defend the proceedings, balanced against the petitioner’s prior failure to use the opportunities granted; it imposed costs and made the further opportunity final.
Source reference: para. 3, 6, 10–12No judicial precedent was cited.
Source reference: no citationReasoning
The Court noted that PW-1 had been available for cross-examination on several dates, and that the petitioner’s failure to proceed reflected a degree of negligence.
Source reference: para. 3–7Nevertheless, it considered a further opportunity appropriate to ensure a fair chance to defend the proceedings.
Source reference: para. 3–7The petitioner complied with the interim condition by depositing ₹15,000, and the Society’s counsel had been informed of the interim order.
Source reference: para. 3–7Since the Authority could proceed with PW-1 present on the next date, keeping the writ petitions pending would serve no purpose other than delaying the proceedings.
Source reference: para. 3–7The Court therefore set aside the rejection orders while limiting the relief to one last opportunity and prohibiting further adjournments for cross-examination.
Source reference: para. 8–13Holding
The writ petitions were allowed, and the Authority’s orders dated 4 August 2026 were set aside.
The petitioner was granted one final opportunity to cross-examine PW-1 on the next date fixed by the Authority, without seeking an adjournment.
Source reference: para. 10–13If the petitioner failed to cross-examine PW-1 on that date, no further opportunity would be available.
Source reference: para. 10–13The petitioner was also directed to lead evidence on the very next hearing date after cross-examination, without seeking an adjournment.
Source reference: para. 10–13Acts & Sections Cited
2 provisions across 2 statutes referred to in this judgment. Each provision opens on LawLens.
KARNATAKA CO-OPERATIVE SOCIETIES ACT, 1959.1
Code of Civil Procedure, 19081
Original Court PDF
SHRI. ANNAPPA TUKARAM VARUTEvsTHE ASSISTANT REGISTRAR OF CO OPERATIVES
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