Karnataka High Court
Royaume Builder And Promoters Pvt Ltd vs Asset Reconstruction Company India ... on 25 June, 2025
Author: M.Nagaprasanna
Bench: M.Nagaprasanna
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NC: 2025:KHC:22296
WP No. 16736 of 2025
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 25TH DAY OF JUNE, 2025
BEFORE
THE HON'BLE MR JUSTICE M.NAGAPRASANNA
WRIT PETITION NO. 16736 OF 2025 (GM-CPC)
BETWEEN:
1. ROYAUME BUILDER AND
PROMOTERS PVT. LTD.,
NO.37/21, SKYLARK CHAMBERS,
YELLAPPA CHETTY LAYOUT,
ULSOOR ROAD, BENGALURU - 560 042.
2. SKYLARK MANIONS PVT. LTD.,
NO.37/21, SKYLARK CHAMBERS,
YELLAPPA CHETTY LAYOUT,
ULSOOR ROAD, BENGALURU - 560 042.
BOTH PETITIONER NO.1 AND 2 ARE
REPRESENTED BY THEIR AUTHORIZED
Digitally signed REPRESENTATIVE SALEEM SHERIFF
by NAGAVENI INCORPORATED UNDER THE COMPANIES ACT, 1956.
Location: High
Court of
Karnataka 3. SALEEM SHERIFF
R/AT NO.2718, AI SADIFAH,
I CROSS, NEAR NEW THIPPASANDRA P.O,
GEETHANJALI LYAOUT, BENGALURU - 560 075.
...PETITIONERS
(BY SRI C.K.NANDAKUMAR, SENIOR COUNSEL FOR
SRI ABHIMANYU DEVAIAH, ADVOCATE)
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WP No. 16736 of 2025
HC-KAR
AND:
1. ASSET RECONSTRUCTION COMPANY
INDIA LIMITED,
HAVING ITS REGISTERED OFFICE AT
THE RUBY, 10th FLOOR, 29
SENAPATI BAPAT MARG,
DADAR (WEST), MUMBAI - 400 028.
2. NIXA FINCAP PVT. LTD.,
FORMERLY KNOWN AS
XANDER FINANCE PRIVATE LIMITED,
HAVING ITS REGISTERED OFFICE AT
101, 5 NORTH AVENUE, MAKER MAXITY,
BANDRA KURLA COMPLEX
BANDRA EAST, MUMBAI - 400 051.
3. RAMKY ESTATES AND FARMS LIMITED
RAMKY GRANDIOSE , 9TH FLOOR,
RAMKY TOWERS COMPLEX,
GANCHIBOWLI, HYDERABAD,
RANGAREDDY DISTRICT
TELANGANA - 500 074.
ALSO AT:
NO. 25-30, RAMKY HOUSE,
2nd CROSS, RAGHAVENDRA NAGAR,
KALYAN NAGAR POST,
BENGALURU - 560 043,
INCORPORATED UNDER THE COMPANIES ACT, 1956
...RESPONDENTS
(BY SRI SRINIVASAN RAGHAVAN V., SENIOR COUNSEL FOR
SRI P.CHINNAPPA, ADVOCATE FOR R1;
SRI S.S.NAGANAND, SENIOR COUNSEL FOR
SRI SHARAN A.KUKREJA, SMT. ABHIJNA SOMASHEKARA
AND SRI AKSHAYA K., ADVOCATES FOR R3)
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NC: 2025:KHC:22296
WP No. 16736 of 2025
HC-KAR
THIS WP IS FILED UNDER ARTICLE 227 OF THE
CONSTITUTION OF INDIA PRAYING TO QUASH AND STRIKE
DOWN THE ORDER DTD 10.06.2025 PASSED BY THE COURT OF
LXXXIV ADDL CITY CIVIL AND SESSIONS JUDGE,
COMMERCIAL COURT UNIT VIDE ANX-D AND D, IA NO.1 AND
2 BENGALURU CCH-85 IN COMM O.S.NO.781/2025 AS IT IS
ARBITRARY, ILLEGAL, VIOLATIVE OF NATURE JUSTICE AND
BAD IN THE EYES OF LAW.
THIS PETITION, COMING ON FOR PRELIMINARY
HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR JUSTICE M.NAGAPRASANNA
ORAL ORDER
The petitioners are before this court calling in question an order dated 10.06.2025 passed by the concerned Court. The petitioners are before Commercial Court in the subject suit in which an application is filed under Order XXXIX Rules 1 and 2 of the Code of Civil Procedure, seeking injunction of the invocation of pledge.
2. Heard Sri. C.K.Nandakumar, learned Senior Counsel appearing for the petitioners, Sri.Srinivasan Raghavan V, learned Senior Counsel appearing for the respondent No.1, Sri.S.S.Naganand, learned Senior Counsel appearing for the respondent No.3 and have perused the material on record. -4-
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3. The concerned Court issues notice without granting any temporary injunction on the score that the proceedings are instituted by the Asset Reconstruction Company India Limited, invoking the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The respondents are represented now and would submit that the respondents are represented before the concerned Court, as well. This court had granted an interim protection to the petitioners in terms of its order dated 11.06.2025, and subsequently clarified by the second order dated 20.06.2025.
4. The order dated 11.06.2025 reads as follows:
"Heard the learned counsel, Sri. Mahesh Choudhary, appearing for the petitioners.
Learned counsel appearing for the petitioners shall serve the respondents by way of hand summons and file an acknowledgment of such service, in the next three days.
The concerned Court has now refused to grant an interim order on I.A.Nos.1 and 2 to stay the invocation of pledge and all consequent actions on the score that the Court has no jurisdiction to entertain the petition, as it arises out of certain SARFAESI proceedings.
A perusal at the copy of the order is indicative of the fact that the concerned Court now declines to grant an order in Commercial O.S.No.781/2025 on the score that it has no jurisdiction to consider the issues relating to provisions of the SARFAESI Act, 2002. The observation appears to be erroneous, as there is no -5- NC: 2025:KHC:22296 WP No. 16736 of 2025 HC-KAR SARFAESI proceedings pending between the same parties or on the same cause of action.
The notice that is the subject matter before the concerned Court is issued under Section 176 of the Indian Contract Act, 1872 and not under Section 13(2) of the SARFAESI Act, 2002.
In that light, there shall be an interim order as was prayed before the concerned Court, till the next date of hearing.
List the matter on 20.06.2025 in 'Preliminary Hearing'.
Hand delivery of the order is permitted."
The order dated 20.06.2025 reads as follows:
"Heard Sri S.S.Naganand, learned senior counsel and Sri Srinivasa Raghavan, learned counsel for respective respondents.
Learned counsel for petitioners seeks time on the score that the arguing counsel has some inconvenience today.
Learned senior counsel and the learned counsel representing respective respondents would submit that the interim order is granted as prayed for. There are two applications that come to be rejected and therefore, the interim order is to be restricted only to the prayer sought in the writ petition.
In that light, the interim order shall stand continued qua the prayer sought in the writ petition. With the aforesaid modification, the interim order stands clarified.
Registry to delete all the office note, as they stand complied.
List this matter on 24.06.2025, in preliminary hearing."-6-
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5. The matter is heard.
6. This Court is of the opinion that since both the parties are represented before this Court and the issue that is brought before the Court is non-granting of a temporary injunction on consideration of an application under Order XXXIX Rules 1 and 2 of CPC, I deem it appropriate to direct the parties to appear before the concerned Court on 30.06.2025.
7. The concerned Court is directed to take up the matter on 30.06.2025 and pass necessary orders, in accordance with law.
8. The interim protection as obtaining on 20.06.2025 shall continue till 01.07.2025. On 01.07.2025, the interim protection granted by this Court would automatically vanish. The concerned Court is at liberty to pass necessary orders in accordance with law, without being influenced by this order. Merely because this Court has granted an interim order and extended up to 01.07.2025, it is not that the concerned Court also should grant an interim order. The pending application shall be considered strictly in consonance with law. The interim -7- NC: 2025:KHC:22296 WP No. 16736 of 2025 HC-KAR protection is extended only to enable submissions of the respective counsels being made before the concerned Court.
With the above observations, the petition is disposed.
Sd/-
(M.NAGAPRASANNA) JUDGE CBC List No.: 1 Sl No.: 27 CT:SS