Allowed

Mr. Sridhara Brahmavara v. Office of the Joint Director

Karnataka HC15 Nov 2024WP/12729/2023

Case brief

AI extract

What is this about?

Petitioners filed a writ petition after the Sub Registrar refused to register a relinquishment deed due to a notice from the Enforcement Directorate under the PMLA. The High Court, relying on precedent, held that no provision empowers the ED to block registration and quashed the notice.

What did the court decide?

Impugned notice dated 16.10.2020 by Respondent No.1 is quashed; Respondent No.2 is directed to register the relinquishment deed.

Mr. Sridhara Brahmavara Vs Office of the Joint Director — Property and Title | Karnataka HC (2024)

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1 - NC: 2024:KHC:46532 WP No. 12729 of 2023

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15^TH DAY OF NOVEMBER, 2024

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BEFORE

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THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR WRIT PETITION NO. 12729 OF 2023 (GM-RES)

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BETWEEN:

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MR. SRIDHARA BRAHMAVARA

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S/O SRI MOHAN POOJARI AGED ABOUT 57 YEARS

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R/A FLAT NO.A1203 12TH FLOOR PURVA VENEZIA APARTMENTS YALAHANKA NEW TOWN BENGLAURU - 560 096.

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SRI S JAYANNA, S/O SIDDAPPA, AGED ABOUT 54 YEARS,

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R/A FLAT NO.6, IST FLOOR, M K MOON RESIDENCY, SITE NO.26/5, SRIGANDHA KAVAL, BENGALURU - 560 091.

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Digitally signed by R HEMALATHA Location: HIGH COURT OF KARNATAKA

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SMT PUSHPALATHA W/O JAYANNA

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AGED ABOUT YEARS R/A FLAT NO.6, IST FLOOR MK MOON RESIDENTY SITE NO.26/5, SRIGANDHA KAVAL, BENGALURU - 560 091.

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SRI K N RAJU S/O NANJAPPA AGED ABOUT 63 YHEARS R/A NO.2, 3RD MAIN ROAD BRAMHAKUMARI ASHRAMA ROAD OPP NETHARA DISTRIBUTORS

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2 - NC: 2024:KHC:46532 WP No. 12729 of 2023

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HEALHT LAYOUT SRIGANDHAKAVALU

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BENGALURU - 560 091.

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…PETITIONERS

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(BY SRI. VINAY KUTTAPPA., ADVOCATE)

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AND:

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OFFICE OF THE JOINT DIRECTOR DIRECTORATE OF ENFORCEMENT BENGALURU ZONAL OFFICE REPRSENTED BY ITS ASSISTANT DIRECTOR ENFORCEMENT, GOVERNMENT OF KARNATAKA.

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SUB REGISTRAR OFFICE NO.40, IST BLOCK, 2ND STAGE NEAR BDA COMPLEX NAGARABHAVI BANGALORE - 560 072.

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…RESPONDENTS

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(BY SRI. PRASANNA KUMAR P., ADVOCATE)

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THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO SET ASIDE THE NOTICE DTD 15.10.2020 ECIR/BGZO/09/2020(ADRKR) ISSUED BY R-1 QUA THE PETITIONER IN RELATION TO THE PETITION SCHEDULE PROPERTIES PRODUCED AS 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 HEMANT CHANDANGOUDAR

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ORAL ORDER

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The petitioner asserts that he was the successful bidder in the auction conducted by the Union Bank of India. Upon depositing the requisite amount, the sale was confirmed. Subsequently, after payment of the entire balance sale

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NC: 2024:KHC:46532 WP No. 12729 of 2023

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consideration, the Union Bank of India issued a sale certificate in favor of the petitioner in relation to Site Nos. 169 and 171, more fully described in Schedule ‘A’ and Schedule ‘B’ properties. The two sale certificates issued in favor of the petitioner were duly registered in the office of Respondent No. 2 on 14.06.2019.

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Petitioner No. 4, who is a co-owner of the subject properties, intends to release his share in the subject properties in favor of Petitioner Nos. 1 to 3. Accordingly, a relinquishment deed was submitted to Respondent No. 2 for registration.

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Respondent No. 2, however, refused to register the relinquishment deed, citing a notice issued by Respondent No. 1 on 16.10.2020, directing Respondent No. 2 not to allow the transfer, sale, or alienation of the subject properties. The said notice was issued in connection with an investigation under the Prevention of Money Laundering Act, 2002 (PMLA) concerning Sri Guru Raghavendra Sahakara Bank Niyamitha.

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The issue of whether the provisions of the Prevention of Money Laundering Act, 2002 authorize Respondent No. 1 to direct the registering authority to refuse the registration of conveyances involving immovable property, on the ground of claims under the PMLA, has been previously examined by a Co-ordinate Bench of this Court in W.P.

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NC: 2024:KHC:46532 WP No. 12729 of 2023

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No. 10383/2024 (order dated 19.07.2024). The Co-ordinate Bench, relying on the decision of the Bombay High Court in SBICAP Ventures Ltd. v. Joint Director, Directorate of Enforcement (Bengaluru Zonal Office) and Others, W.P. No. 1360/2023 (order dated 20.03.2023), and judgments of this Court in T. Bharat Gowda v. State of Karnataka and Others, W.P. No. 7872/2024 (order dated 28.05.2024), and K.M. Srikant v. State of Karnataka and Others, W.P. No. 10530/2023, held that, in the absence of any statutory provision empowering the Enforcement Directorate to object to the registration of a sale certificate, any such refusal by the registering authority based on the Directorate’s notice was arbitrary and illegal.

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In view of the above, this writ petition is disposed of in terms of the order passed by the Co-ordinate Bench of this Court in W.P. No. 10383/2024. Respondent No. 2 is directed to process the registration of the relinquishment deed submitted by the petitioners, without being influenced by the notice dated 16.10.2020 issued by Respondent No. 1.

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ORDER

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i. Petition is allowed.

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ii. The impugned notice dated 16.10.2020 issued by the 1^st respondent in relation to the petition schedule properties at Annexure A is hereby quashed.

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NC: 2024:KHC:46532 WP No. 12729 of 2023

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iii. The 2^nd respondent is hereby directed to register the conveyance/deeds in relation to the petitioner schedule properties. However, this order is subject to any order of restrained to be passed by the jurisdictional Court.

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Sd/(HEMANT CHANDANGOUDAR) JUDGE

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TIN List No.: 1 Sl No.: 77

Mr. Sridhara Brahmavara v. Office of the Joint Director

Case brief

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Mr. Sridhara Brahmavara v. Office of the Joint Director

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