Karnataka High Court
Sri G Javare Gowda vs The State Of Karnataka on 4 July, 2023
Bench: K.S.Mudagal, Ramachandra D. Huddar
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NC: 2023:KHC:23004-DB
MFA No. 8332/2022
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 4TH DAY OF JULY, 2023
PRESENT
THE HON'BLE MRS JUSTICE K.S.MUDAGAL
AND
THE HON'BLE MR JUSTICE RAMACHANDRA D. HUDDAR
MISCELLANEOUS FIRST APPEAL NO. 8332/2022
BETWEEN:
1. SRI G JAVARE GOWDA
S/O LATE GIDDE GOWDA
AGED ABOUT 71 YEARS
R/O NO.1376, MANJUSHREE NILAYA
NEAR MINI VIDHANA SOUDHA
UDAYAGIRI LAYOUT
SHANKARAPURAM NORTH
HASSAN TOWN - 573 201
2. SMT. MEENAKSHI
W/O SRI T K RAME GOWDA
AGED ABOUT 61 YEARS
R/O VINAYAKA NAGARA
KOTE, ARAKALGUD
HASSAN DISTRICT - 573 201
Digitally
signed by K S 3. SRI TRIPATHY T B
RENUKAMBA
S/O LATE S N TRIPATHY
Location:
High Court of AGED ABOUT 51 YEARS
Karnataka R/O NO. C 20/1 70A
1ST CROSS, SHANKARAPURAM
HASSAN - 573 201
4. SMT. SPOORTHY P C
W/O SRI SURYATEJA G H
AGED ABOUT 29 YEARS
R/O NO. 69, WARD NO.15,
2ND CROSS, KRISHNANAGAR
SIRUGUPPA, BELLARY DISTRICT - 583 121
5. SRI SATHISHA Y S
S/O LATE AGRANI SIDDEGOWDA
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MFA No. 8332/2022
AGED ABOUT 43 YEARS
R/O YALADAHALLI VILLAGE
BIDARAHALLI POST, C A KERE HOBLI
MADDUR TALUK
MANDYA DISTRICT - 571 422
6. 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
7. SRI THAMMANNAGOWDA
S/O LATE HONNEGOWDA
AGED ABOUT 66 YEARS
R/O BEHIND COURT COMPLEX
ARAKALGUD, HASSAN DISTRICT - 573 102
8. SRI DHANAPALEGOWDA
S/O SRI DODDEGOWDA
AGED ABOUT 61 YEARS
R/O SAMAKAHALLI VILLAGE
BRAHMADEVANAHALLI POST
NAGAMANGALA TALUK
MANDYA DISTRICT - 562 110
9. 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
10. 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
11. SMT. SHARADAMMA
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MFA No. 8332/2022
W/O SRI M N RAMAKRISHNEGOWDA
AGED ABOUT 47 YEARS
R/O MADHAHALLI VILLAGE
THIRUGANAHALLI POST
HOONAKERE HOBLI
NAGAMANGALA TALUK
MANDYA DISTRICT - 571 432
12. 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
(BY SRI.SANCHAN JAINANDAN, ADVOCATE)
AND:
1. THE STATE OF KARNATAKA
REP. BY COMPETENT AUTHORITY
THE ASSISTANT COMMISSIONER
BENGALURU NORTH SUB DIVISION
AND COMPETENT AUTHORITY
APPOINTED UNDER THE
KPIDFE ACT 2004
2ND FLOOR, KANDAYA BHAVAN
KEMPEGOWDA ROAD
BENGALURU - 560 009
2. M/S.HINDUSTAN INFRACON
(INDIA) PVT. LTD.
HAVING ITS OFF AT:
NO.826/A, 2ND FLOOR,
5TH MAIN ROAD, VIJAYNAGAR,
BENGALURU - 560 040
3. SRI.V.N.LAKSHMI NARAYANA
AGE : MAJOR
RANGA NILAYA, 3RD CROSS,
MALLESHWARA NAGARA,
BENGALURU - 560 072
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MFA No. 8332/2022
4. SRI.V.K.HONNEGOWDA
AGE: MAJOR
R/AT. UJJANIPURA,
1ST CROSS, PAPER TOWN,
BHADRAVATHI-577 302
5. SRI.CHENNAKESHAVA MUDDAIAH
AGE:MAJOR
R/AT BINDIHALLI, GUBBI TALUK,
TUMAKURU-572 211
6. SRI.C.V.LOKESHA
AGE: MAJOR
R/AT GAYATHRI EXTENSION,
CHANNARAYAPATNA-573 116
7. SRI.S.N.SOMESHWARA
AGE: MAJOR
R/AT. NO.183, SAKKARA HIRIYUR,
CHITRADURGA-572143
8. SRI.B S SHRIDHAR
MAJOR, R/AT 171 ENA.J1.O SOCIETTY BIDL,
CHANNARAYAPATNA - 573 116
9. SRI BORAIAH GANGADHARAIAH
AGE:MAJOR,
R/AT.NO.163,
GANGONDANAHALLI
BENGALURU-560072
10. SRI.D.K.KEMPE GOWDA
AGE:MAJOR
R/AT.163, 4TH MAIN,
VIJAYANAGARA WEST STAGE,
BENGALURU-560 040
11. SRI.H.T.RAJESH
AGE:MAJOR
R/AT.01, HANIYAMBADI,
MANDYA-571403
12. SRI.NAGARAJU
AGE: MAJOR
R/AT. DODDAMANDIGANAHALLI
HASSAN-573 217
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13. SRI.S.G.SURESH
AGE:MAJOR
R/AT. GANESHANAGUDI STREET
HUNASURU,
MYSORE-571 105
14. SRI.N.RAMESH
AGE:MAJOR
R/AT.NO.208, MPM LAYOUT,
NAGARABHAVI, 2ND STAGE,
BENGALURU-560 056
15. SRI.K.G.LOKESHA
AGE:MAJOR
R/AT NO.11, HONNAVARA
NAGAMANGALA TALUK
MANDYA-571802 ... RESPONDENTS
(BY SRI VENKATESH P DALWAI, STANDING COUNSEL FOR R1;
NOTICE TO R2 TO R15 IS DISPENSED WITH V/C/O
DTD:15.06.2023)
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.
THIS APPEAL COMING ON FOR ADMISSION THIS DAY,
K.S.MUDAGAL J., DELIVERED THE FOLLOWING:
JUDGMENT
Heard.
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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2. 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.
3. 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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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.
4. 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:
The extent of the
Appellants Date of sale deed
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
5. The appellants claim that they were interested in
the property in question, they were not served with the notice
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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.
6. 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:
"12. Powers of Special Court regarding attachment.--
(1) **********
(2) **********
(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 sub-
section (4) or sub-section (6)."
7. 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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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.
ORDER
The appeal is partly allowed.
The impugned order so far it relates to the lands
purchased by the appellants under the aforesaid sale deeds is
hereby set aside.
The appellants and respondent No.1 shall appear before
the Special Court on 20.07.2023 without any further notice.
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
