B.S. Sheshagiri Setty & Ors. Etc vs State Of Karnataka & Ors. Etc

Leave granted in the Special Leave Petitions.

Though the case has a chequered history, we refer to the facts in brief hereunder, which are required to appreciate the rival legal contentions urged on behalf of the parties:-

The learned Karnataka Appellate Tribunal allowed the appeal filed by the appellants vide order dated 27.12.1983, and remitted the matter back to the Arbitrator, to dispose of the same in accordance with law after giving proper notice to all the parties. Challenging the said order of the Tribunal, the respondents filed a Writ Petition before the High Court of Karnataka, which was allowed by its judgment and order dated 29.11.1985. The learned High Court held on the issue of the appeal before the Tribunal being barred by limitation as under:

We have heard the learned counsel for both the parties. We are unable to agree with the contentions advanced by the learned counsel appearing on behalf of respondent no. 6. This case is a classic example to demonstrate the gross miscarriage of justice that occurs when the principles of natural justice are ignored for technical considerations. The appellants in the present case are poor farmers, who have been made to litigate for nearly three decades for their land, which was their only source of income and livelihood, which right is guaranteed to them under Article 21 of the Constitution of India. The award of the Arbitrator dated 31.05.1975 was passed ex parte against the appellants. The circular dated 02.03.1984 issued by the Karnataka State Cooperative Land Development Bank on the basis of the government order, stated that the farmers who had become defaulters as on 30.06.1982 to the Taluk Co-operative Land Development Banks in the State, and continued being defaulters upto 30.06.1983 could repay the principal amount to such Banks, then in such cases, the State Government would bear the burden of the entire portion of the interest on such loans on behalf of the farmers and reimburse the same to such respective Banks. As is evident from the letter ‘Annexure P3’, the appellants had repaid the entire principal amount within the date specified in the circular, which fact has not been contested by the respondents. The Auction sale of the property in question was conducted on 27.05.1981, and the confirmation of the sale was ordered on 10.12.1985 without considering the relevant fact of repayment of principal amount due to the Bank within the time stipulated in the notification issued by the Bank referred to supra. The appellants had informed the Bank regarding the repayment of loan on 29.06.1983. The appellate authority has not considered the claim of the appellants on merit. The High Court of Karnataka in Writ Petition No. 6642 of 1984 set aside the order of the Karnataka Appellate Tribunal dated 27.12.1983 on the ground that the appeal before the Tribunal was barred by limitation. The Writ Appeals filed by the appellants were also dismissed. The confirmation of sale of the property in question was done on the basis of the order in the above mentioned Writ Petition. The same was challenged by the appellants before the Deputy Registrar of Co-operative Societies, who dismissed it on the ground that the appellants have not proved how the confirmation of sale is contrary to the provisions of the KCS Act, despite the fact of the repayment of the loan amount to the Bank being brought to his notice. The order of the Minister of Co-operation, Government of Karnataka in the Revision Petition setting aside the confirmation of sale was set aside by the learned single judge of the Karnataka High Court on the ground that it was barred by limitation. The same was upheld by the Division Bench in the Writ Appeals.

and