Partly allowed

K T Govinde Gowda v. Union of India

Karnataka HC7 Aug 2024WP/1085/2021

Case brief

AI extract

What is this about?

Petitioners alleged irregularities and fraud by a bank and its borrowers, seeking quashing of sale proceedings under the SARFAESI Act. The court directed the CBI to include the petitioners in its investigation and disposed of pending interlocutory applications.

What did the court decide?

Directed CBI to include petitioners in investigation; disposed of pending interlocutory applications.

K T Govinde Gowda Vs Union of India — Banking and Recovery | Karnataka HC (2024)

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NC: 2024:KHC:31401 WP No. 1085 of 2021

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 7^TH DAY OF AUGUST, 2024

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BEFORE

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THE HON'BLE MR JUSTICE M.G.S. KAMAL WRIT PETITION NO. 1085 OF 2021 (GM-RES)

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BETWEEN:

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K T GOVINDE GOWDA, S/O LATE THIMME GOWDA, AGED ABOUT 72 YEARS, (SENIOR CITIZEN NOT CLAIMED)

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SMT.G.ANURADHA, W/O SRI.K.T.GOVINDE GOWDA, AGED ABOUT 62 YEARS, (SENIOR CITIZEN NOT CLAIMED)

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BOTH ARE RESIDING AT NO.341, 16^TH MAIN, M.C.LAYOUT, VIJAYANAGAR, BANGALORE-560 040.

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…PETITIONERS

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(BY SRI AJESH KUMAR S, ADVOCATE)

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Digitally signed by SUMA B N Location: High Court of Karnataka

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AND:

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UNION OF INDIA, REPRESENTED BY ITS SECRETARY, MINISTRY OF CORPORATE AFFAIR AND FINANCE, NO.436, C WING, SHASTRI BHAWAN RAJENDRA PRASAD ROAD, NEW DELHI-110 001.

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UNION OF INDIA, REP. BY ITS SECRETARY, MINISTRY OF FINANCE, DEPARTMENT OF FINANCIAL SERVICE, 5^TH FLOOR, JEEVAN DEEP BUILDING, SANSAD MARG NEW DELHI-110 001.

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NC: 2024:KHC:31401 WP No. 1085 of 2021

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UNION OF INDIA, REP. BY ITS SECRETARY, MINISTRY OF CORPORATE AFFAIRS, 519, A WING, SHASTRI BHAWAN, RAJENDRA PRASAD ROAD, NEW DELHI-110 001.

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SECURITIES EXCHANGE BOARD OF INDIA (SEBI) GOVERNMENT OF INDIA, PLOT NO.C4-A, G BLOCK BANDRA KURLA COMPLEX, BANDRA (EAST), MUMBAI-400 051, MAHARASHTRA.

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THE REGISTRAR OF COMPANIES CUM OFFICIAL LIQUIDATOR, MINISTRY OF CORPORATE AFFAIRS, GOVERNMENT OF INDIA, CORPORATE BHAVAN 2^ND AND 3^RD FLOOR, PLOT NO.9 (P), SECTOR CDA, CUTTACK, ODISHA-753014.

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THE SECRETARY, RESERVA BANK OF INDIA, CENTRAL OFFICE, II FLOOR, CENTRE-I, WORLD TRADE CENTRE, CUFFE PARADE, MUMBAI-400005.

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CENTRAL BUREAU OF INVESTIGATION (CBI), OFFICE OF HEAD OF BRANCH, CBI, ACB, NO.36, BELLARY RD, GANGANAGAR, BENGALURU, KARNATAKA-560 032, REP. BY ITS DIRECTOR.

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M/S IDBI BANK LIMITED, NPA MANAGEMENT GROUP, NO.5-9-89/1 AND 2, CHAPEL ROAD, HYDERABAD-500 001, REP BY ITS AUTHORISED OFFICER, M.C.BASANTH CHAKRAVARTHY.

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COASTAL PROJECTS LTD., PLOT NO.237, 2^ND FLOOR, BAPUJINAAR, BHUBANESWAR,

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3 - NC: 2024:KHC:31401 WP No. 1085 of 2021

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ODISHA-751 009, REP. BY ITS OFFICIAL LIQUIDATOR, MR.RAVI SANKAR DEVARAKONDA,

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ALSO AT: PLOT NO.304/O ROAD, NO.78, FILAMNAGAR JUBILEE HILLS, HYDERABAD-500 033, REP. BY ITS MANAGING DIRECTOR, MR.SURENDRA.

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SRI.SABBINENI SURENDRA, MAJOR, MANAGING DIRECTOR, COASTAL PROJECTS LIMITED, PLOT NO.3-4-0 ROAD NO.78, FILM NAGAR, JUBILEE HILLS, HYDERABAD -500 033, ANDHRA PRADESH.

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SRI.HARIHARA RAO GARAPATI, MAJOR, DIRECTOR AND SIGNATORY, COASTAL PROJECTS LIMITED, PLOT NO.304-0 ROAD NO.78 FILM NAGAR, JUBILEE HILLS, HYDERABAD-500 033, ANDHRA PRADESH.

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SRI.SHARAD KUMAR, MAJOR, DIRECTOR AND SIGNATORY COASTAL PROJECTS LIMITED, PLOT NO.304-0 ROAD NO.78, FILM NAGAR, JUBILEE HILLS, HYDERABAD-500 033, ANDHRA PRADESH.

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SRI.SRIDHAR CHANDRASHEKARAN NIVARTHI MAJOR, DIRECTOR AND SIGNATORY, COASTAL PROJECTS LIMITED, PLOT NO.304-0 ROAD NO.78, FILM NAGAR, JUBILEE HILLS, HYDERABAD-500 033, ANDHRA PRADESH.

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4 - NC: 2024:KHC:31401 WP No. 1085 of 2021

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SMT.THOTA VARALAKSHMI, MAJOR, DIRECTOR AND SIGNATORY, COASTAL PROJECTS LIMITED, PLOT NO.304-0 ROAD NO.78, FILM NAGAR, JUBILEE HILLS, HYDERABAD-500 033, ANDHRA PRADESH.

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SRI.SURESH BABU, MAJOR, UMA ASSOCIATES, C/O COASTAL PROJECTS LIMITED, PLOT NO.304-0 ROAD NO.78, FILM NAGAR, JUBILEE HILLS, HYDERABAD-500 033, ANDHRA PRADESH.

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…RESPONDENTS

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(BY SRI KUMAR M N, CGC FOR R1 TO R3 AND R5, SRI T SURYANARAYANA, ADVOCATE FOR R4, SMT ANITHA KRISHNAMURTHY, ADVOCATE FOR SRI P PRASANNAKUMAR, ADVOCATE FOR R7, SRI T P MUTHANNA, ADVOCATE FOR R8, SRI S P KULKARNI, ADVOCATE FOR R9, SRI CHANDRAKANTH PATIL K, ADVOCATE FOR R10 TO R15)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH ALL PROCEEDINGS COMMENCED BY THE RESPONDENT BANK UNDER SECTION 13(4) OF THE SECURITIZATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002 AS AGAINST THE SCHEDULE PROPERTY BY ISSUING A SALE NOTICE DTD 04.01.2021 VIDE ANNX-A AND ETC.

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THIS PETITION COMING ON FOR ORDERS THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR JUSTICE M.G.S. KAMAL

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ORAL ORDER

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Petitioners are before this Court with a short

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grievance, in that it is submitted that the petitioners had

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5 - NC: 2024:KHC:31401 WP No. 1085 of 2021

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offered their property bearing Sy.No.124 /6*** measuring *** 7 A cres ***20 Guntas situated at ***Kariobanahalli Village, Yeshwanthpur Hobli, Bengaluru North Taluk as a collateral security against the financial assistance to be availed by respondent No.9 from the respondent No.8 - IDBI Bank.

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Counsel for the petitioner submits that there were certain irregularities and illegalities committed by respondent No.8-bank in collusion with respondent No.9 which resulted in investigation having been handed over to Central Bureau of Investigation - respondent No.7. The allegations were of misappropriation of the collateral securities by the respondent No.8-bank in collusion with respondent No.9. Learned counsel for the petitioner submits that since the matter is now being investigated *in FIR No.RC0782021E0001 by respondent No.7 - Central Bureau of Investigation, the request of the petitioner is that his application/grievance/complaint pertaining to the aforesaid property may also be included in the said investigation and if it is found that the property offered by

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*Inserted/Deleted vide Court order dated:27.09.2024

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**Page No.5 is Retyped and Replaced vide chamber order dated:19.10.2024. *** Page No.5 is Retyped and Replaced vide chamber order dated:30.11.2024

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6 - NC: 2024:KHC:31401 WP No. 1085 of 2021

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the petitioner has also been the subject matter of the illegalities/irregularities/fraud committed by respondents No. 8 and 9, necessary action be initiated in accordance with law.

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Respondent No.7- authority has no objection for the same.

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In that view of the matter, writ petition is partly allowed. Respondent No.7 - Central Bureau of Investigation is directed to take into account the complaint/representation of the petitioner with regard to the allegations/averments made in this petition and shall investigate into the matter in accordance with law *along with the aforesaid case in FIR No.RC0782021E0001. All the pending interlocutory applications stands disposed of in view of the disposal of the petition.

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SD/(M.G.S. KAMAL) JUDGE

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BRN List No.: 1 Sl No.: 17

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*Inserted/Deleted vide Court order dated:27.09.2024

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Page No.6 is Retyped and Replaced vide chamber order dated:19.10.2024.

K T Govinde Gowda v. Union of India

Case brief

What is this about?

What did the court decide?

K T Govinde Gowda v. Union of India

Case brief

What is this about?

What did the court decide?

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