Partly allowed

Sri G Javare Gowda v. the State of Karnataka

Karnataka HC4 Jul 2023MFA/8332/2022

Case brief

AI extract

What is this about?

The High Court allowed an appeal filed against the confirmation of an attachment order under the KPIDFE Act. The court held that appellants who purchased portions of the attached land via registered sale deeds were entitled to an opportunity to be heard, ordering the specific attachment of their lands to be set aside for a fresh hearing.

What did the court decide?

The impugned order of confirmation of attachment is set aside so far as it relates to lands purchased by appellants under the registered sale deeds. A fresh hearing is ordered.

Sri G Javare Gowda Vs the State of Karnataka — Civil Procedure and Limitation | Karnataka HC (2023)

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- 1 - NC: 2023:KHC:23004-DB MFA No. 8332/2022

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4^TH DAY OF JULY, 2023

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PRESENT

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THE HON'BLE MRS JUSTICE K.S.MUDAGAL

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AND

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THE HON'BLE MR JUSTICE RAMACHANDRA D. HUDDAR MISCELLANEOUS FIRST APPEAL NO. 8332/2022

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BETWEEN:

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SRI G JAVARE GOWDA S/O LATE GIDDE GOWDA AGED ABOUT 71 YEARS

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R/O NO.1376, MANJUSHREE NILAYA NEAR MINI VIDHANA SOUDHA

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UDAYAGIRI LAYOUT SHANKARAPURAM NORTH

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HASSAN TOWN - 573 201

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SMT. MEENAKSHI W/O SRI T K RAME GOWDA AGED ABOUT 61 YEARS R/O VINAYAKA NAGARA KOTE, ARAKALGUD HASSAN DISTRICT - 573 201

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Digitally signed by K S RENUKAMBA Location: High Court of Karnataka

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SRI TRIPATHY T B S/O LATE S N TRIPATHY AGED ABOUT 51 YEARS R/O NO. C 20/1 70A 1^ST CROSS, SHANKARAPURAM HASSAN - 573 201

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SMT. SPOORTHY P C W/O SRI SURYATEJA G H AGED ABOUT 29 YEARS R/O NO. 69, WARD NO.15, 2^ND CROSS, KRISHNANAGAR SIRUGUPPA, BELLARY DISTRICT - 583 121

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SRI SATHISHA Y S S/O LATE AGRANI SIDDEGOWDA

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2 - NC: 2023:KHC:23004-DB MFA No. 8332/2022

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AGED ABOUT 43 YEARS R/O YALADAHALLI VILLAGE BIDARAHALLI POST, C A KERE HOBLI MADDUR TALUK MANDYA DISTRICT - 571 422

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SRI UMESH N R S/O SRI RAME GOWDA AGED ABOUT 39 YEARS R/O HOUSE NO. 176 NERALEKERE VILLAGE ARAKERE HOBLI SRIRANGAPATNA TALUK MANDYA DISTRICT – 571 415

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SRI THAMMANNAGOWDA S/O LATE HONNEGOWDA AGED ABOUT 66 YEARS R/O BEHIND COURT COMPLEX ARAKALGUD, HASSAN DISTRICT - 573 102

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SRI DHANAPALEGOWDA S/O SRI DODDEGOWDA AGED ABOUT 61 YEARS R/O SAMAKAHALLI VILLAGE BRAHMADEVANAHALLI POST NAGAMANGALA TALUK MANDYA DISTRICT - 562 110

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SRI PUTTABOREGOWDA S/O LATE KULLEGOWDA AGED ABOUT 64 YEARS R/O GANGAWADI VILLAGE M MALLIGERE POST HOONAKERE HOBLI NAGAMANGALA TALUK MANDYA DISTRICT - 571 416

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SRI SHANKARALINGE GOWDA H S/O LATE HONNEGOWDA AGED ABOUT 56 YEARS R/O M HONNENAHALLI VILLAGE MADUGANDUR POST, K R PETE MANDYA DISTRICT - 571 416

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SMT. SHARADAMMA

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- 3 - NC: 2023:KHC:23004-DB MFA No. 8332/2022

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W/O SRI M N RAMAKRISHNEGOWDA AGED ABOUT 47 YEARS R/O MADHAHALLI VILLAGE THIRUGANAHALLI POST HOONAKERE HOBLI NAGAMANGALA TALUK MANDYA DISTRICT - 571 432

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SRI JAVARE GOWDA S/O LATE SANJEEVEGOWDA AGED ABOUT 63 YEARS R/O SUKADHARE VILLAGE B N HALLI POST, HOONAKERE HOBLI NAGAMANGALA TALUK MANDYA DISTRICT - 571 432 … APPELLANTS

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(BY SRI.SANCHAN JAINANDAN, ADVOCATE)

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AND:

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THE STATE OF KARNATAKA REP. BY COMPETENT AUTHORITY THE ASSISTANT COMMISSIONER BENGALURU NORTH SUB DIVISION AND COMPETENT AUTHORITY APPOINTED UNDER THE KPIDFE ACT 2004 2^ND FLOOR, KANDAYA BHAVAN KEMPEGOWDA ROAD BENGALURU – 560 009

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M/S.HINDUSTAN INFRACON (INDIA) PVT. LTD. HAVING ITS OFF AT: NO.826/A, 2^ND FLOOR, 5^TH MAIN ROAD, VIJAYNAGAR, BENGALURU – 560 040

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SRI.V.N.LAKSHMI NARAYANA AGE : MAJOR RANGA NILAYA, 3^RD CROSS, MALLESHWARA NAGARA, BENGALURU – 560 072

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4 - NC: 2023:KHC:23004-DB MFA No. 8332/2022

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SRI.V.K.HONNEGOWDA AGE: MAJOR R/AT. UJJANIPURA, 1^ST CROSS, PAPER TOWN, BHADRAVATHI-577 302

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SRI.CHENNAKESHAVA MUDDAIAH AGE:MAJOR R/AT BINDIHALLI, GUBBI TALUK, TUMAKURU-572 211

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SRI.C.V.LOKESHA AGE: MAJOR R/AT GAYATHRI EXTENSION, CHANNARAYAPATNA-573 116

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SRI.S.N.SOMESHWARA AGE: MAJOR R/AT. NO.183, SAKKARA HIRIYUR, CHITRADURGA-572143

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SRI.B S SHRIDHAR MAJOR, R/AT 171 ENA.J1.O SOCIETTY BIDL, CHANNARAYAPATNA – 573 116

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SRI BORAIAH GANGADHARAIAH AGE:MAJOR, R/AT.NO.163, GANGONDANAHALLI BENGALURU-560072

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SRI.D.K.KEMPE GOWDA AGE:MAJOR R/AT.163, 4^TH MAIN, VIJAYANAGARA WEST STAGE, BENGALURU-560 040

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SRI.H.T.RAJESH AGE:MAJOR R/AT.01, HANIYAMBADI, MANDYA-571403

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SRI.NAGARAJU AGE: MAJOR R/AT. DODDAMANDIGANAHALLI HASSAN-573 217

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- 5 - NC: 2023:KHC:23004-DB MFA No. 8332/2022

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SRI.S.G.SURESH AGE:MAJOR R/AT. GANESHANAGUDI STREET HUNASURU, MYSORE-571 105

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SRI.N.RAMESH AGE:MAJOR R/AT.NO.208, MPM LAYOUT, NAGARABHAVI, 2^ND STAGE, BENGALURU-560 056

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SRI.K.G.LOKESHA AGE:MAJOR R/AT NO.11, HONNAVARA NAGAMANGALA TALUK

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MANDYA-571802 … RESPONDENTS

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(BY SRI VENKATESH P DALWAI, STANDING COUNSEL FOR R1; NOTICE TO R2 TO R15 IS DISPENSED WITH V/C/O DTD:15.06.2023)

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THIS MFA IS FILED U/S.16 OF KARNATAKA PROTECTION OF INTEREST OF DEPOSITORS IN FINANCIAL ESTABLISHMENT ACT, 2004, AGAINST THE ORDER DT.30.10.2021 PASSED IN MISC. NO.615/2019 ON THE FILE OF THE XCI ADDITIONAL CITY CIVIL AND SESSIONS JUDGE, BENGALURU, (CCH-92), ALLOWING THE PETITION FILED U/S.5(2) R/W SEC.11(1) OF THE KPIDFE ACT, 2004.

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THIS APPEAL COMING ON FOR ADMISSION THIS DAY, K.S.MUDAGAL J ., DELIVERED THE FOLLOWING:

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J U D G M E N T

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Heard.

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This appeal is filed challenging the order of XCI Additional City Civil & Sessions Judge and Special Judge for KPIDFE cases, Bengaluru passed in Misc.No.615/2019.

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6 - NC: 2023:KHC:23004-DB MFA No. 8332/2022

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By the impugned order the Special Court in exercise of the power under Section 5(2) read with Section 11(1) of the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004 (for short ‘the Act,2004’) has made absolute the interim order of attachment passed under the Government notification No.RD-09-GRC-2017 dated 06.02.2019.

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The subject matter of this appeal is the land bearing Sy.No.495 of Uddur Village of Mysuru Taluk in all measuring 5 acres 18 guntas. Against one M/s Hindusthan Infracon (India) Pvt. Ltd., a financial establishment, the Government under notification No.RD-09-GRC-2017 dated 05.01.2018 under Section 5 of the Act, 2004 initiated proceedings on the ground that the said financial institution collected the deposits from public with a dishonest intention to cheat and ultimately cheated the depositors without returning the said deposits. It was also alleged that the parties mentioned therein by utilizing such deposit amount have acquired the property fraudulently. Respondent No.1 was appointed as Competent Authority under Section 5(1) of the Act, 2004 for the purpose of attachment of the properties of the members of the financial establishment

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7 - NC: 2023:KHC:23004-DB MFA No. 8332/2022

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who cheated the depositors. The Government exercising the powers under Section 3(3) of the Act, 2004 issued gazette notification as per Annexure-H dated 06.02.2019 attaching their properties. One of the subject matter of the said notification was the property bearing Sy.No.495 of Uddur Village of Mysuru Taluk. After such attachment, respondent No.1 filed application before the Special Court under Section 5(2) read with Section 11(1) of the Act for confirmation of the order of attachment.

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The respondents therein the original owners of the property though served did not contest the matter. The Special Court by the impugned order made the order of attachment absolute. The appellants claim to have purchased different bits of land in Sy.No.495 under different registered sale deeds. The particulars of which are as follows:

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Appellants	Date of sale deed	The extent of the property
1 to 4	12.12.2018	17.08 guntas
5 to 8	17.09.2018	13.08 guntas
9 to 12	12.12.2018	31 guntas

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The appellants claim that they were interested in

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the property in question, they were not served with the notice

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8 - NC: 2023:KHC:23004-DB MFA No. 8332/2022

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and they were not heard in the matter. Thus they seek opportunity to contest the matter. They claim that principles of natural justice are violated.

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Section 12(3) of the Act, 2004 provides an opportunity to the person interested in the property irrespective whether notice as contemplated under Section 3(3) of the Act, 2004 was issued to him or not. Section 3(3) notice contemplates only a general notification. Section 12(3) of the Act, 2004 reads as follows:

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“12. Powers of Special Court regarding attachment.—

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(1) **********

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(2) **********

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(3) Any person claiming an interest in the property attached or any portion thereof may, notwithstanding that no notice has been served upon him under this section, make an objection as aforesaid to the Special Court at any time before an order is passed under subsection (4) or sub-section (6).”

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The above provision goes to show that any person claiming interest in the attached property is entitled to object the proceedings before the Special Court for confirmation of the attachment order. Since the appellants possessed the registered sale deed with respect to bits of the lands aforesaid,

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9 - NC: 2023:KHC:23004-DB MFA No. 8332/2022

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they are entitled to opportunity to object the proceedings so far as the land relating to them. Therefore, the appeal deserves to be allowed only to that extent to provide an opportunity to the appellants. Hence, the following order.

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ORDER

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The appeal is partly allowed.

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The impugned order so far it relates to the lands purchased by the appellants under the aforesaid sale deeds is hereby set aside.

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The appellants and respondent No.1 shall appear before the Special Court on 20.07.2023 without any further notice.

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On such appearance of the parties, the Special Court shall give an opportunity to both of them and dispose of the matter relating to the land purchased by the appellants. If the parties fail to appear, the consequences shall follow.

Sd/-

JUDGE

Sd/JUDGE

PKN

Sri G Javare Gowda v. the State of Karnataka

Case brief

What is this about?

What did the court decide?

Sri G Javare Gowda v. the State of Karnataka

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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