Karnataka High Court
Dreamz Siddhi Apartment Owners ... vs State Of Karnataka on 14 February, 2023
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WP No. 6200 of 2019
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 14TH DAY OF FEBRUARY, 2023
BEFORE
THE HON'BLE MRS. JUSTICE K.S. HEMALEKHA
WRIT PETITION NO.6200 OF 2019 (GM-RES)
BETWEEN:
1. DREAMZ SIDDHI APARTMENT OWNERS ASSOCIATION
A SOCIETY REGISTERED UNDER
KARNATAKA SOCIETIES REGISTRATION ACT
AND REPRESENTED BY ITS SECRETARY,
SRI MANJUNATH
WITH ITS REGISTERED OFFICE AT
NO.78/1, VEERASANDRA VILLAGE,
ATTIBELE HOBLI, ANEKAL TALUK
BANGALORE URBAN DISTRICT - 560 100.
2. MR. NANDAKUMAR A.S.
S/O. SRI SUBBARAMAN A.S.
AGED ABOUT 44 YEARS,
2.a) MRS. DEEPU .S
W/O. SRI NANDAKUMAR A.S.
Digitally signed by AGED ABOUT 34 YEARS,
MAHALAKSHMI B M
BOTH ARE R/AT NO.121,
Location: HIGH 5TH CROSS, 10TH MAIN,
COURT OF SARASWATHIPURAM,
KARNATAKA MYSORE - 570 009.
(FLAT NO.003)
3. LAKSHMAIAH
S/O. NANJAPPA,
AGED ABOUT 42 YEARS,
NO.268, 'RAGHAVA',
21ST MAIN, BTM 2ND STAGE, 1ST PHASE,
BANGALORE - 560 076.
4. MRS. KIRAN SINGH
W/O. MANANJAY KUMAR SINGH
AGED ABOUT 45 YEARS,
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WP No. 6200 of 2019
R/AT C/O. T.K. UNNIKRISHNAN
THERAMBIL HOUSE, NEAR KRUPALAYA CHURCH,
VINAYAKNAGAR, ANNASANDRAPALAYA,
P.O. VIMANPURA,
BANGALORE - 560 017
(FLAT NO.303)
5. MR. MANJUNATH B.I.
S/O. LATE INDRAKUMAR BANDUCHODE,
AGED ABOUT 31 YEARS,
R/AT NO.101/1, 2ND FLOOR,
8TH CROSS, DOMLUR,
BANGALORE - 560 071
(FLAT NO.204)
6. MR. VYSYARAJU VAIKUNTHA RAJU
S/O. LATE V. SATYANARAYANA RAJU,
AGED ABOUT 70 YEARS,
6.a) MR. VYSYARAJU NAVIN KUMAR RAJU
S/O. VYSYARAJU VAIKUNTHA RAJU,
AGED ABOUT 33 YEARS,
BOTH ARE R/AT NO.16, 24TH E CROSS,
MUNESHWARA LAYOUT, EJIPURA,
VIVEK NAGAR POST,
BANGALORE - 560 047
(FLAT NO.9)
7. MR. KAMAL KUMAR TRIPATHI
S/O. SRI PREM NARAYAN TRIPATHI
AGED ABOUT 44 YEARS,
7.a) MRS. ABHILASHA TRIPATHI
W/O. MR. KAMAL KUMAR TRIPATHI,
AGED ABOUT 40 YEARS,
BOTH ARE R/AT NO.135/3,
RED QUARTERS, COMMAND HOSPITAL AIR FORCE,
OLD AIRPORT ROAD, AGRAM POST,
BANGALORE - 560 007.
(FLAT NO.113)
8. MR. H.C. RAMESH
S/O. H.R. CHIKKARAMU
AGED ABOUT 53 YEARS,
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WP No. 6200 of 2019
8.a) MRS. S.N. SRILATHA
W/O. H.C. RAMESH
AGED ABOUT 44 YEARS,
BOTH ARE R/AT NO.3596,
BEHIND CIVIL COURT,
KIRJAJI ROAD, HUNSUR,
KARNATAKA - 571 114
(FLAT NO.014)
9. MR. SHYAM SUNDAR .S
S/O. D. SELVARAJAN,
AGED ABOUT 31 YEARS,
R/AT NO.1/1159, OLD NO.MIG 479,
SATYASAI NAGAR, TNHB PHASE-II,
KRISHNAGARI,
TAMIL NADU - 635 002
(FLAT NO.106)
10. VINOD KUMAR T.S.
S/O. SRI T.N. SRINIVASA MURTHY,
AGED ABOUT 29 YEARS,
R/AT NO.63, 11TH BLCOK,
KSRP, HC's QUARTERS,
KORAMANGALA,
BENGALURU - 560 034
(FLAT NO.105)
11. MR. SHIVANAND MERANAL
S/O. MAHANTHAPPA MERANAL,
AGED ABOUT 41 YEARS,
R/AT NO.8, 17TH CROSS,
N.G.R. LAYOUT, ROOPENA AGRAHAR,
BANGALORE - 560 068
(FLAT NO.305)
12. MR. HARSHAVARDHAN KARTHIGAI
S/O. SRI KARTHIGAI .N
AGED ABOUT 35 YEARS,
R/AT NO.1345, 18TH A MAIN,
J P NAGAR II PHASE,
BANGALORE - 560 078
(FLAT NO.302)
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WP No. 6200 of 2019
13. MR. ASHOK KUMAR
S/O. SRI LATE R.D. NAHTO
AGED ABOUT 61 YEARS,
R/AT FLAT NO.202, 8TH CROSS
CHINNAPPAHALLI, MARATHAHALLI
BANGALORE - 560 037
(FLAT NO.403)
14. MS. RANJANA B.I.
D/O. SRI. LATE B. INDRAKUMAR
AGED ABOUT 33 YEARS,
R/AT NO.101/1, 2ND FLOOR,
8TH CROSS, DOMLUR,
BANGALORE - 560 071
(FLAT NO.405)
15. MRS. PRAMILA HALYAL
W/O. MR. SHREEPAD HAMPIHOLI
AGED ABOUT 33 YEARS,
15.a) MR. SHREEPAD HAMPHOLI
S/O. SRI BALAKRISHNA HAMPIHOLI,
AGED ABOUT 35 YEARS,
BOTH ARE R/AT NO.304, 3RD FLOOR,
NAKODA APARTMENT, "NEELADRI",
13TH CROSS, NEELADRI NAGAR,
ELECTRONIC CITY PHASE-I
BANGALORE - 560 100
(FLAT NO.008)
16. MR. M. SUDHAKARA
S/O. M.V. MADDIREDDY
AGED ABOUT 48 YEARS,
R/AT KADADANAMARI
CHINTHAMANI TALUK
CHIKKABALLAPUR DISTRICT
KARNATAKA - 563 123
(FLAT NO.304)
17. MR. M. VIVEKANANDA KAMATH
S/O. LATE M. DAMODAR KAMATH,
AGED ABOUT 44 YEARS,
R/AT NO.1773, 41A CROSS
18B MAIN, 4TH T BLOCK,
JAYANAGAR,
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WP No. 6200 of 2019
BANGALORE - 560 041
(FLAT NO.013)
18. MR. VAISHALI A SAVADATTI
W/O. AJEET KUMAR SAVADATTI
AGED ABOUT 51 YEARS,
R/A NO.463, 'PADMANIK' NIVAS
PLOT NO.37, PANT NAGAR
BELGAUM,
KARNATAKA - 590 103
(FLAT NO.115)
19. MR. CHHATRAPAL SINGH
S/O. SULTAN SINGH
AGED ABOUT 49 YEARS,
R/AT FLAT NO.803
'C' BLOCK, UMC APARTMENT
KUDLU GATE SIGNAL
HOSUR MAIN ROAD
BENGALURU - 560 068
(FLAT NO.208)
20. MR. V.S. UDAYA KUMAR
S/O. SRI LATE V.S. NAGARAJAIAH
AGED ABOUT 31 YEARS
R/AT 26-23/1, M.C. PALAYAM
PALAMNER, CHITTOR DISTRICT
ANDHRA PRADESH - 517 408
(FLAT NO.201)
21. MR. NAVEEN KUMAR D.V.
S/O. VENKATESH D.R.
AGED ABOUT 30 YEARS,
R/AT D.T. STREET, NANGALI POST,
MULBAGAL TALUK,
KOLAR - 563 132.
(FLAT NO.001)
22. MRS. USHA VILAS SHROTIRIYA
W/O. VILAS SHROTRIYA,
AGED ABOUT 74 YEARS,
22.a) MR. VILAS VISHNU SHROTRIYA
S/O. VISHNU SHROTRIYA
AGED ABOUT 78 YEARS,
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WP No. 6200 of 2019
BOTH ARE R/AT H-3, MAITREE APARTMENT
6TH MAIN ROAD,
BETWEEN 13TH AND 15TH CROSS,
MALLESHWARAM,
BANGALORE - 560 003
(FLAT NO.308)
23. MR. RAMACHANDRA PRASAD SWARNKAR
S/O. SRI RADHEY SHYAM SWARNKAR,
AGED ABOUT 55 YEARS,
23.a) MRS. LAXMI DEVI
W/O. MR. RAMACHANDRA PRASAD SWARNKAR
AGED ABOUT 51 YEARS,
BOTH ARE R/AT NO.138/1,
RED QUARTERS, COMMAND HOSPITAL,
AIR FORCE, AGRAM,
BANGALORE - 560 007.
(FLAT NO.102)
24. MR. TIMOTHY ASIR .J
S/O. JEYASINGH .S
AGED ABOUT 36 YEARS,
NO.S-1, MM RESIDENCY APARTMENTS,
MUNIRAJU FARM PUTTERNAHALLI,
J.P. NAGAR, 7TH PHASE,
BANGALORE - 560 078
(FLAT NO.005)
25. MR. BASHEER .A
S/O. ALIMUHAMMED K.K.
AGED ABOUT 48 YEARS,
R/AT LAILA NILAYAM,
ANJUMOORTHY (P),
MANGALAM VADAKKENCHERRY,
PALAKKAD - 678 682
(FLAT NO.415)
26. MR. MOHAN .P
S/O. K. UNNIKRISHNAN,
AGED ABOUT 36 YEARS,
NO.33, 1ST FLOOR, 6TH BLOCK,
NIMHANS QUARTERS,
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WP No. 6200 of 2019
BYRASANDRA CAMPUS,
BANGALORE - 560 011
(FLAT NO.406)
27. MR. AMEET D'SILVA
S/O. SRI FRANCIS X B.S. D'SILVA
AGED ABOUT 39 YEARS,
27.a) MRS. NATALILE MARYANNE FERNANDES
S/O. PAUL D'SILVA,
AGED ABOUT 71 YEARS,
BOTH ARE R/AT NO.134,
PREETI AHIMSA MARG,
SIDDARTH NAGAR,
MYSORE - 570 011
(FLAT NO.210)
28. MRS. VINITA SARAVANAKUMAR
W/O. LATE SRI T. SARAVANA KUMAR,
AGED ABOUT 46 YEARS,
R/AT NO.17, FLAT NO.302,
2ND MAIN, 5TH CROSS,
VINAYAKA NAGAR, 'A' BLOCK,
V.M. PARADISE, OLD AIR PORT ROAD,
BANGALORE - 560 017.
(FLAT NO.110)
29. MR. BIRENDRA PRASAD
S/O. BIRENDRA PRASAD,
AGED ABOUT 41 YEARS,
29.a) MRS. SHOBHA RANI
W/O. BIRENDRA PRASAD,
AGED ABOUT 31 YEARS,
BOTH ARE R/AT DRDO,
2ND PHASE, QTRS. NO.C-46/21,
C.V. RAMAN NAGAR,
BENGALURU - 560 093
(FLAT NO.111)
30. MRS. G. BABITA GIRI
D/O. SRI V. GUNA SEKHARAN,
AGED ABOUT 44 YEARS,
REPRESENTED BY HER GPA HOLDER
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WP No. 6200 of 2019
(HER FATHER)
MR. V. GUNA SEKHARAN,
S/O. SRI R. VEDAGIRI,
AGED ABOUT 76 YEARS.
R/AT NO.17, FLAT NO.302, 2ND MAIN,
5TH CROSS, VINAYAKA NAGAR, 'A' BLOCK,
V.M. PARADISE, OLD AIR PORT ROAD,
BANGALORE - 560 017
(FLAT NO.112)
31. MRS. MEENA YADAV
W/O. MR. RAJESH KUMAR YADAV,
AGED ABOUT 38 YEARS,
31.a) MR. RAJESH KUMAR YADAV
S/O. SRI JAGADISH YADAV,
AGED ABOUT 39 YEARS,
BOTH R/AT NO.226/21,
MAP QUARTERS,
COMMAND HOSPITAL,
AIR FORCE, BANGALORE ARRAM POST,
BANGALORE - 560 007
(FLAT NO.015)
32. MRS. R. CHANDRA
W/O. J. RAVINDRA,
AGED ABOUT 56 YEARS,
32.a) MS. SANDHYA JALA
D/O. J. RAVINDRA,
AGED ABOUT 29 YEARS,
BOTH ARE R/AT NO.73A/275,
KUJJI NAICKEN STREET,
EAST ANNA NAGAR,
CHENNAI - 600 102
(FLAT NO.215)
33. MR. POLAKONDA ASHOK
S/O. BASHIAH,
AGED ABOUT 55 YEARS,
R/AT 2-3-670, FLAT NO.202,
VENKATADRI APARTMENTS,
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WP No. 6200 of 2019
AZAD NAGAR, AMBERPET - 500 016
(FLAT NO.309)
34. MRS. SHIVIKA
W/O. ABHINAV ANAD,
AGED ABOUT 29 YEARS,
34.a) MR. ABHINAV ANAND
S/O. TARUN KUMAR ANAND,
AGED ABOUT 29 YEARS,
BOTH ARE R/AT ANAND BHAWAN
BEDI NAGAR, NAGPUR ROAD,
JABALPUR - 482 001
(FLAT NO.012)
35. MRS. SAROJAMMA .P
W/O. P.S. RAMAMURTHY,
AGED ABOUT 71 YEARS,
R/AT NO.15, 1ST FLOOR,
5TH MAIN, 9TH CROSS,
KRISHNAPPA BLOCK, GANGANAGAR,
BANGALORE - 560 032
(FLAT NO.205)
36. MRS. REMA REDDY
W/O. LATE SATISH NARANG,
AGED ABOUT 61 YEARS,
NO.113, 2ND CROSS,
3RD MAIN ROAD, MINASHAS NAGAR,
BANGALORE - 560 072
(FLAT NO.109 AND 408)
37. MRS. VALLAMKONDA VAISHNAVI
W/O. SRI VALLAMKONDU RAVI CHANDRA
AGED ABOUT 27 YEARS,
R/AT NO.11, SARANYA SPRINGS APARTMENTS,
GREEN GARDEN LAYOUT,
MUNNEKOLALA, KUNDANAHALLI,
BANGALORE - 560 037
(FLAT NO.312)
38. MRS. AARTI PANDEY
W/O. SRI ARJUN PRASAD,
AGED ABOUT 44 YEARS,
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WP No. 6200 of 2019
R/AT NO.SMQ 91/3,
AKASH VIHAR AIR FORCE CAMP,
MARATHAHALLI,
BENGALURU - 560 037
(FLAT NO.101)
39. MRS. ANITHA LOBO
W/O. IVAN GREGORY LOBO
AGED ABOUT 44 YEARS,
R/AT CHRISS DALE
BAITHURIL LAYOUT,
PALDANE, MANGALORE - 575 028
(FLAT NO.410)
40. MRS. KASTURI KASHYAP
W/O. CHIRANTH KASHYAP
AGED ABOUT 35 YEARS,
40.a) MR. CHIRANTH KASHYAP
S/O. SRI NEELAKANTA RAO
AGED ABOUT 39 YEARS,
BOTH ARE R/AT NO.506/C,
2ND STAGE, BOGAI SOUTH,
BOGADI POST, MYSORE - 570 026
(FLAT NO.002)
41. SRI S.K. SREEKANTH
S/O. SRI S. KRISHNAPPA
AGED ABOUT 63 YEARS,
RESIDING AT NO.860, 5TH MAIN
BEML 3RD STAGE,
RAJARAJESWARI NAGAR,
BANGALORE - 560 098.
42. SMT. RADHAMANI KSHATRIYA
D/O. SRI RAVINDRA KUMAR
RESDING AT NO.50/44,
NANJAPPA BUILDING,
CHIKKA BEGUR GATE, KUDLU GATE,
BOMMANAHALLI,
HOSUR MAIN ROAD,
BANGALORE - 560 068.
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WP No. 6200 of 2019
43. SMT. SUMA B.S.
D/O. SRI B.R. SUBRAMANYAM
AGED ABOUT 46 YEARS,
RESIDING AT NO.34, 3RD CROSS,
LIC COLONY, 3RD BLOCK,
EAST JAYANAGAR,
BANGALORE - 560 011.
44. MR. ABHISHEK NATH
S/O. ALOKE KUMARNATH
AGED ABOUT 24 YEARS,
44.a) MRS. BINA NATH
W/O. ALOKE KUMARNATH
AGED ABOUT 57 YEARS,
BOTH ARE RESIDING AT NO.3,
6TH CROSS, NARAYNA REDDY LAYOUT,
E-CITY PHASE-2,
BANGALORE - 562 100
45. MR. SUHAS K.P.
S/O. PUTTASWAMY K.M.
AGED ABOUT 31 YEARS,
RESIDING AT NO.44/4,
"RAJASHREE", D SUBBAIAH ROAD,
LAKSHMIPURM,
MYSORE - 560 004
(FLAT NO.401)
46. MR. KRISHNA RAMA BHAKARE
S/O. LATE RAMA BHAKARE,
AGED ABOUT 65 YEARS,
RESIDING AT C/O. SAI RURNA APARTMENT,
SOMSANDRAPALYA, HSR LAYOUT,
2ND SECTOR, BANGALORE - 560 102
(FLAT NO.114)
47. MRS. RATI KHATRI
W/O. VISHWESH KHATRI
AGED ABOUT 35 YEARS,
47.a) MR. VISHWESH KHATRI
S/O. RABISH KHATRI
AGED ABOUT 39 YEARS,
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WP No. 6200 of 2019
BOTH ARE RESIDING AT M-125,
1ST FLOOR, TODAYS BLOSSOM-2,
NEAR ARTEMIS HOSPITAL,
MAY FIELD GARDEN,
SECTOR -51 GURGAON - 122 001
REPRESENTED BY THEIR GPA HOLDER
MR. ABHINAV ANAND
S/O. TARUN ANAND
AGED ABOUT 29 YEARS,
RESIDING AT NO.43, ROYAL SHELTERS,
4TH MAIN, 3RD CROSS,
DEVARACHIKKANAHALLI,
BANGALORE - 560 076
(FLAT NO.108). ... PETITIONERS
(BY SRI MALLIKARJUN N.K., ADVOCATE FOR
SRI A. SAMPATH, ADVOCATE)
AND:
1. STATE OF KARNATAKA
BY ITS PRINCIPAL SECRETARY
DEPARTMENT OF REVENUE
MULTISTORIED BUILDING
DR. B.R. AMBEDKAR ROAD,
BANGALORE - 560 001.
2. THE ASSISTANT COMMISSIONER AND
COMPETENT AUTHORITY
BANGALORE SOUTH SUB-DIVISION,
BANGALORE - 560 009. ... RESPONDENTS
(BY SRI N. KUMAR, ADVOCATE)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227
OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE
IMPUGNED NOTIFICATION DATED 20.06.2019 ISSUED BY THE
RESPONDENT NO.2 AND PUBLISHED IN THE KARNATAKA GAZETTE
ENCLOSED AS ANNEXURE-D IN SO FAR AS IT RELATES TO THE
SUBJECT PROPERTY.
THIS WRIT PETITION COMING ON FOR FURTHER HEARING,
THIS DAY, THE COURT MADE THE FOLLOWING:-
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WP No. 6200 of 2019
ORDER
The petitioner in this writ petition is seeking to quash the impugned notification bearing No.RD 17 GRC 2017 (P-2) dated 20.06.2019 issued by the 2nd respondent, whereby, the 2nd respondent in exercise of its power under Section 3 (2) of the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004 (hereinafter referred to as "KPIDFE Act" for short) has attached and declared the properties acquired by M/s. Dreamz Infra India Pvt., Ltd., M/s. Gruha Kalyan Pvt., Ltd., M/s. TGS Constructions Pvt., Ltd., and other allied companies/entities that the said properties shall on publication of this order in the Official Gazette, shall forthwith, vest with the competent authority, who has been appointed by the Government pending further orders from the Special Court.
2. Heard Sri. Mallikarjun N.K., learned counsel appearing on behalf of Sri. A. Sampath, learned counsel for the petitioners and Sri. N. Kumar, learned counsel for the respondents.
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WP No. 6200 of 2019
3. The petitioner Nos.2 to 40 (a) are the purchasers and petitioner Nos.41 to 47 are the agreement holders of the residential flats constructed by the M/s. Dreamz Infra India Private Ltd. at Sy. No.78/1 Veerasandra Village, Attibele Hobli, Anekal Taluk, Bangalore Urban District in an area measuring 25 guntas. It is stated by the petitioners that the KPIDFE Act is intended to protect the depositors of financial establishments and the M/s. Dreamz Infra India Pvt. Ltd. is not a "financial establishment" to come under Section 2 (4) of KPIDFE Act and therefore, the said Act is not applicable and beyond the scope of KPIDFE Act. Learned counsel for the petitioners brought to the notice of this Court that the suit in O.S.Nos.355/2018, 501/2018, 558/2018, 463/2018, 464/2018, 465/2018 and 763/2018 filed before the Senior Civil Judge at Anekal by the agreement holders for specific performance of the contract against M/s. Dreamz Infra India Pvt. Ltd., has been decreed in favour of the agreement holders i.e., petitioner
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WP No. 6200 of 2019Nos.41 to 47 and Sale Deed has been executed by appointing a Court Commissioner. Learned counsel for the petitioner would submit that M/s. Dreamz Infra India Pvt., Ltd., represented by RP as appointed by NCLT had preferred W.P. No.13477/2020 seeking to quash the proceedings initiated against the petitioner therein in Misc. No.2/2020 dated 02.012020 and this Court vide Order dated 24.05.2021 allowed the writ petition and held that the respondent can proceed against the petitioner only under NCLT Act and not any other law which prevails. Against the said order, W.A. No.1343/2021 has been preferred and interim order of stay has been granted.
4. Per contra, learned AGA appearing for the respondents would contend that the writ petition is not maintainable in view of the provisions of Section 5 (2) of KPIDFE Act and the competent authority having filed Misc. No.180/2023 to make attachment absolute in respect of the M/s. Dreamz Infra India Pvt. Ltd. It is further submitted by the learned AGA that the petitioners who
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WP No. 6200 of 2019stated to be the aggrieved person can approach the appropriate authority where miscellaneous petition is filed as mentioned under Section 12 (3) of the KPIDFE Act and would contend that the petition would be disposed of as having alternative remedy under Section 5 (2) read with Section 12 (3) of the KPIDFE Act.
5. In light of the submission made by the learned counsel for the parties and having perused the material on record, the point that arises for consideration is:
"Whether the writ petition is maintainable in light of the competent authority having approached before the Special Court under Section 5 (3) of KPIDFE Act, 2004 to make the sale absolute and whether the petitioner can address his grievance as a person claiming to have interest in the property attached before the competent authority as contemplated under Section 12 (3) of the KPEDFE Act, before the Special Court?"
6. It is not in dispute that the petitioners are persons claiming interest in the property attached under
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WP No. 6200 of 2019Section 3 (2) of the KPIDFE Act as the petitioners claim that they are the purchasers and the agreement holders of the flats and also there is decree in favour of the agreement holders for specific performance having been constructed by M/s. Dreamz Infra India Pvt. Ltd. Before adverting to the contentions of the learned counsel for the parties, it is relevant to look into the provision of the KPIDFE Act. Section 5 of the KPIDFE Act reads as under:
"5. Competent Authority.-(1) The Government shall, by notification, appoint an officer not below the rank of an Assistant Commissioner to be the Competent Authority for the purpose of this Act.
Provided that, where cases pertaining to any one financial establishment is spread over more than one district, the State Government may appoint one Competent Authority to handle all such cases.
(1A) The Government may by notification appoint any officer not below the rank of Assistant Commissioner to assist the Competent Authority, if he is of and above the rank of Deputy Commissioner in discharging his function under this
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Act and also to file affidavit on his behalf in the designated court.
(2) The Competent Authority shall within thirty days from the date of receipt of the order made under section 3, apply to the special Court for further order of attachment absolute.
Provided that, the Secretary to Government, Revenue Department, may on the request of the Competent Authority, extend this period by another fifteen days in cases having valid reasons and based on the merits of the case.
(3) An application made under sub-section (2) shall be accompanied by one or more affidavits, stating the grounds on which the order is made under section 3 and the amount of money or other property believed to have been acquired from out of the deposits and the details, if any, of persons in whose name such property is believed to have been invested or acquired or any property attached under Section 3.
(4) The competent authority may also make an application to any Special Court or Designated Court or any other judicial forum established or constituted or entrusted with the powers by any other State Government under any
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WP No. 6200 of 2019similar enactment for adjudicating any issue or subject matter pertaining to money or property or assets belonging to or ostensibly belonging to a Financial Establishment or any person notified under this Act situated within the territorial jurisdiction of that Special Court or Designated Court or any judicial forum, as the case may be, for passing appropriate orders to give effect to the provisions of this Act."
(Emphasis supplied)
7. The perusal of sub-section (2) of Section 5 would state that the competent authority after receipt of the order under Section 3 shall apply to the Special Court for further order of attachment to be made absolute within 30 days. In light of the said provision, the competent authority has approached the Special Court by filing Misc. No.180/2023 under Section 5(2) of the KPIDFE Act.
8. It is also relevant to consider sub-section (3) of Section 12 of the KPIDFE Act, which reads as under:
"12. Powers of Special Court regarding attachment. - (1) Upon receipt of an application under section 5, the Special Court shall issue to the Financial Establishment and to any other person if
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any, whose property is attached by the designated authority under section 3, a notice accompanied by the copies of the application and affidavits and of the record of evidence, if any, calling upon them to show cause on or before a date to be specified in the notice why the order of attachment should not be made absolute.
(2) The Special Court shall also issue such notice, to all other persons represented to it as having or being likely to claim, any interest or title in the property of the Financial Establishment or the person to whom the notice is issued under sub section (1), calling upon all such persons to appear on the same date as that specified in the notice and make objection if they so desire to the attachment of the property or any portion thereof on the ground that they have interest in such property or portion thereof.
(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).
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WP No. 6200 of 2019(4) The Special Court shall if no cause is shown and no objections are made on or before the specified date, forthwith pass an order making the order of attachment absolute, and issue such direction as may be necessary for realization of the assets attached and for the equitable distribution among the depositors of the money realized from out of the property attached.
(5) If cause is shown or any objection is made as aforesaid, the Special court shall proceed to investigate the same and in so doing, as regards the examination of parties and in all other respects, the Special Court shall subject to the provisions of this Act, follow the summary procedure as contemplated under Order 37 of the Civil Procedure Code, 1908 and exercise all the powers of a court in hearing a suit under the said Code and any person making an objection shall be required to adduce evidence to show that on the date of attachment he had some interest in the property attached.
(6) After investigation under sub-section (5), the Special Court shall pass an order as far as may be within one hundred and eighty days from the date of receipt of application under sub-section (2) of section 5 either making the ad-interim order of attachment absolute or varying it by releasing a
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WP No. 6200 of 2019portion of the property from attachment or cancelling the ad-interim order of attachment.
Provided that, Special Court shall not release from attachment any interest which it is satisfied that the financial establishment or the person referred to in sub-section (1) has in the property, unless it is also satisfied that there will remain under attachment an amount or property of value not less than the value that is required for repayment to the depositors of such Financial Establishment.
(7) Where the Special Court passes an order under sub-section (6), making the order of attachment absolute or varying the order of attachment by releasing a portion of the property from attachment it may, issue such direction as may be necessary for realisation of the assets attached and for the equitable distribution amongst the depositors of the money realised from and out of the assets so attached.
(8) Where an application is made by any person duly authorised or constituted or specified by any other State Government under similar enactment empowering him to exercise control over any money or property or assets attached by that State Government, the Special Court shall
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WP No. 6200 of 2019exercise all its powers, as if, such an application were made under this Act and pass appropriate order or direction on such application so as to give effect to the provisions of such enactment."
(Emphasis supplied)
9. The perusal of the said section would depict that the person claiming interest in the property can approach the Special Court and make an objections at any time before an order is passed under sub-section (4) or sub-section (6) of Section 12 of the KPIDFE Act.
10. In light of the proviso, 3 to Section 12 an interest person can file objections and the petitioners being interested persons can approach the Special Court and the grievance of the petitioners would be meted if the petitioners are afforded an opportunity to file their objections before the Special Court and the Special Court to consider the objections in accordance with law. Thus, the availability of the alternate remedy is justified and point framed for consideration is answered accordingly.
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WP No. 6200 of 2019
11. However, keeping in view that the petitioner has approached the Court and vide order dated 15.04.2019 status-quo with regard to the flats of the petitioners, which are in the occupation was directed to be maintained.
12. For the reasons stated supra, this Court is of the considered view that the petitioners have alternative remedy to approach the Special Court under Section 12 (3) of the KPIDFE Act.
13. Accordingly, this Court pass the following:
ORDER i. The petitioners are relegated to approach the Special Court in Misc. No. 180/2023 and file their objections within the period of three weeks from the date of certified copy of the order.
ii. The Special Court to consider the objections and pass appropriate order in accordance with law.
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iii. The order of status-quo dated 15.04.2019 in favour of the petitioners would continue till the disposal of the Misc. No.180/2023.
Accordingly, the writ petition stands disposed of.
Sd/-
JUDGE MBM