Writ Petition No. 8901 of 2025 · The High Court
Case Details
- 1 - NC: 2025:KHC:15042 WP No. 8901 of 2025 C/W WP No. 7899 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8TH DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 8901 OF 2025 (GM-RES) WRIT PETITION NO. 7899 OF 2025 (GM-RES) C/W IN WP No. 8901/2025 BETWEEN: 1. SRI BALAPPA PADAMANNA PUJARI S/O PADAMANNA PUJARI OCCUPATION: FARMER AGED ABOUT 56 YEARS R/AT SHAPURA AGASI, GAVALI GALLI, VIJAYAPURA – 586 101. Digitally signed by NAGAVENI Location: High Court of Karnataka
Legal Reasoning
2. SRI SUNILA BALAPPA PUJARI S/O BALAPPA PADAMANNA PUJARI AGED ABOUT 32 YEARS R/AT SHAPURA AGASI, GAVALI GALLI, VIJAYAPURA – 586 101. (BY SRI D.R.RAVISHANKAR, SR.COUNSEL FOR SRI KULKARNI SHRINATH, ADVOCATE) …PETITIONERS - 2 - NC: 2025:KHC:15042 WP No. 8901 of 2025 C/W WP No. 7899 of 2025 AND: 1. THE STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY DEPARTMENT OF REVENUE 5TH FLOOR, M.S. BUILDING, DR. AMBEDKAR VEEDI, BENGALURU – 560 001. 2. THE REVENUE DEPARTMENT SPECIAL CELL, GOVERNMENT OF KARNATAKA REPRESENTED BY IT’S UNDER SECRETARY M.S.BUILDING, DR. AMBEDKAR VEEDI, BENGALURU – 560 001. 3. THE COMPETENT AUTHORITY FOR, S.M.N CREDIT SOUHARDA SAHAKARI NIYAMITHA, VIJAYAPURA REPRESENTED BY IT'S COMPETENT AUTHORITY SMT. SEEMA NAIK B., AGED ABOUT 50 YEARS O/AT REGIONAL COMMISSIONER, BENGALURU DIVISION, BMTC BUILDING, 2ND FLOOR, K.H.ROAD SHANTHI NAGAR BENGLAURU – 560 027. …RESPONDENTS (BY SRI MOHAMMED JAFFAR SHAH, AGA FOR R1 AND R2; SRI VEERESH R. BUDIHAL, ADVOCATE FOR R-3) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OR ORDER BY WAY OF CERTIORARI PREFERRED BY THE RESPONDENT NO.3 IN MISC NO.1/2025 FILED U/S 13(1) KARNATAKA PROTECTION OF INTEREST OF DEPOSITORS IN FINANCIAL ESTABLISHMENT ACT, 2004 PENDING BEFORE - 3 - NC: 2025:KHC:15042 WP No. 8901 of 2025 C/W WP No. 7899 of 2025 HON’BLE COURT OF XCI ADDL. CITY CIVIL AND SESSIONS AND SPECIAL JUDGE FOR KPIDFE CASES ACT BENGALURU (CCH-92) VIDE ANNEXURE-E AND ETC., IN WP NO. 7899/2025 BETWEEN: 1. SRI SURESH DONDIBHA KADAM AGED ABOUT 48 YEARS OCCUPATION: AUTO DRIVER HOUSE ADDRESS:JHORAPURA PETA, HOSAKUMBA GALLI, VIJAYAPURA – 586 101. 2. SRI THUKARAM DONDIBHA KADAM AGED ABOUT 67 YEARS HOUSE ADDRESS: FLAT NO.184, RASHMI NAGAR, NEAR GALAXY SCHOOL, SAINIK SCHOOL ROAD, VIJAYAPURA – 586 101. 3. SMT. SHANTABAYI W/O GYANOBHA KADAM, AGED ABOUT 58 YEARS. 4. SRI. KARTHIK S/O GYANOBHA KADAM, AGED ABOUT 18 YEARS. 5. SMT. SHOBHA AMBAJI KADAM D/O GYANOBHA KADAM, AGED ABOUT 52 YEARS SL.NO.3 TO 5 ARE RESIDING AT JHORAPURA PETA - 4 - NC: 2025:KHC:15042 WP No. 8901 of 2025 C/W WP No. 7899 of 2025 HOSAKUMBA GALLI VIJAYAPURA – 586 101. 6. SRI SHASHIKUMAR S/O B KANNI AGED ABOUT 27 YEARS 7. SRI SHIVAKUMAR S/O. B KANNI AGED ABOUT 30 YEARS SL.NOS.6 AND 7 ARE RESIDING AT: SIDDALINESHWARA NILAYA VIJAYAPURA ROAD, INDI VIJAYAPURA – 586 209. 8. ABDUL KARIM BAGWAN, S/O MOHAMMED HANIF AGED ABOUT 50 YEARS RESIDING AT UMA BUILDING, BEHIND PDJ HIGH SCHOOL, VIJAYAPURA – 586 101. 9. SMT. SARASWATHI W/O. PRASAD KAMBALE, AGED ABOUT 36 YEARS. 10. SRI GANESH C/O. PRASAD KAMBALE, AGED ABOUT 07 YEARS. 11. SRI. LIKITHA C/O PRASAD KAMBALE, AGED ABOUT 09 YEARS. - 5 - NC: 2025:KHC:15042 WP No. 8901 of 2025 C/W WP No. 7899 of 2025 SL.NO.9 TO 11 ARE RESIDING AT LODHA GRANDEZZA, VISTA B-304, ROAD NO.22, NEAR PASSPORT OFFICE THANE, MAHARASHTRA – 400 604. 12. SRI NARAYAN S/O KRISHNA KAMBALE, AGED ABOUT 64 YEARS HOUSE ADDRESS FLAT NO. 124, KSRTC COLONY, ATHANI ROAD, VIJAYAPURA, VIJAYAPURA – 580 101. 13. SRI GEETA SUBHASHCHANDRA CHALAWE C/O PR MUDDEBIHAL, AGED ABOUT 40 YEARS HOUSE ADDRESS:H.NO. 4222, VIVEKA NAGAR (WEST), 1ST MAIN ROAD, VIJAYAPURA – 586 101. 14. SRI HATELL BASHA S/O MASTAN SAB GODIHAL, AGED ABOUT 46 YEARS HOUSE ADDRESS: GACHINAMAHAL, GODIHAL COLONY, J.M ROAD, VIJAYAPURA, VIJAYAPURA – 586 101. 15. SRI VINAYAK T. KADAM S/O TUKARAM KADAM, AGED ABOUT 26 YEARS. 16. SRI VIJAY T.KADAM - 6 - NC: 2025:KHC:15042 WP No. 8901 of 2025 C/W WP No. 7899 of 2025 S/O TUKARAM KADAM, AGED ABOUT 25 YEARS SL.NO.15 AND 16 ARE RESIDING AT PLOT NO.184, SAINIK SCHOOL ROAD, NEAR GALAXY SCHOOL RAHIM NAGAR, VIJAYAPURA – 586 102. ...PETITIONERS (BY SRI D.R.RAVISHANKAR, SR.COUNSEL FOR SRI KULKARNI SHRINATH, ADVOCATE) AND: 1. THE STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY DEPARTMENT OF REVENUE 5TH FLOOR, M.S.BUILDING, DR. AMBEDKAR VEEDI, BENGALURU – 560 001. 2. THE REVENUE DEPARTMENT SPECIAL CELL, GOVERNMENT OF KARNATAKA REPRESENTED BY IT IS UNDER SECRETARY M.S.BUILDING, DR. AMBEDKAR VEEDI, BENGALURU – 560 001. 3. THE COMPETENT AUTHORITY FOR S.M.N CREDIT SOUHARDA SAHAKARI NIYAMITHA, VIJAYAPURA REGISTERED UNDER CO-OPERATIVE SOCITIES ACT, 1959 REPRESENTED BY IT'S COMPETENT AUTHORITY SMT. SEEMA NAIK B., - 7 - NC: 2025:KHC:15042 WP No. 8901 of 2025 C/W WP No. 7899 of 2025 AGED ABOUT 50 YEARS ADDITIONAL REGIONAL COMMISSIONER O/AT REGIONAL COMMISSIONER, BENGALURU DIVISION, BMTC BUILDING, 2ND FLOOR, K.H. ROAD, SHANTHINAGAR BENGALURU – 560 029. ...RESPONDENTS (BY SRI MOHAMMED JAFFAR SHAH, AGA FOR R-1 AND R-2; SRI VEERESH R.BUDIHAL, ADVOCATE FOR R-3) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OR ORDER BY WAY OF CERTIORARI PREFERRED BY THE RESPONDENT NO.3 IN MISC NO.27/2025 U/S 13(1) KARNATAKA PROTECTION OF INTEREST OF DEPOSITORS IN FINANCIAL ESTABLISHMENT ACT, 2004 FILED BEFORE HON’BLE COURT OF XCI ADDL. CITY CIVIL AND SESSIONS AND SPECIAL JUDGE FOR KPIDFE CASES ACT BENGALURU (CCH-92) VIDE ANNEXURE-E AND ETC., THESE PETITIONS, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE M.NAGAPRASANNA ORAL ORDER Petitioners are before this Court calling in question the miscellaneous petitions filed by the 3rd respondent and also seeking to quash the notification dated 11-11-2021 issued by the 2nd respondent. - 8 - NC: 2025:KHC:15042 WP No. 8901 of 2025 C/W WP No. 7899 of 2025 2. Heard the learned senior counsel D.R.Ravishankar appearing for the petitioners, learned Additional Government Advocate appearing for respondents 1 and 2 and the learned counsel Sri Veeresh R Budihal representing the 3rd respondent/Competent Authority. 3. The learned senior counsel D.R. Ravishankar submits that the Competent Authority has got jurisdiction once a crime comes to be registered to proceed against the financial establishments and several of its directors. These petitioners are dragged into the web of crime in Crime No.145 of 2020 for plethora of offences. The police conduct investigation into the matter and have now filed a charge sheet against several members of the financial establishments for committing fraud or misappropriation, as the case would be. 4. These petitioners have been dropped from the array of accused and are transposed as witnesses against other accused against whom charge sheet is filed. Therefore the petitioners have now become blame free. - 9 - NC: 2025:KHC:15042 WP No. 8901 of 2025 C/W WP No. 7899 of 2025 5. The learned senior counsel would further submit that right from the outset the petitioners have been making a hue and cry that they have nothing to do with the financial establishment. This stand has been vindicated by the fact that the prosecution has dropped the names of the petitioners from the array of accused and transposed them as witnesses. 6. The issue now is with regard to the proceedings instituted by the 3rd respondent/Competent Authority. It is trite that the 3rd respondent/Competent Authority can spring into action only after registration of a crime. Today, the sword of crime is no more hanging on the head of the petitioners. In that light permitting further proceedings against these petitioners before any fora, initiated on the basis of the crime, would become contrary to law. 7. The learned counsel Sri Veeresh R Budihal appearing for the 3rd respondent would submit that the petitioners are already before the Competent Court where the Competent Authority has sought for attachment of property and would submit that it is for the petitioners to pursue their remedy - 10 - NC: 2025:KHC:15042 WP No. 8901 of 2025 C/W WP No. 7899 of 2025 before the concerned Court. I decline to accept the same, on the score that, if the petitioners have nothing to do with the financial establishment, they need not face the rigmarole of procedure before the concerned Court. In that light, both the petitions deserve to succeed. 8. For the aforesaid reasons, the following: (i) (ii)
Decision
ORDER Writ Petitions are allowed. Proceedings taken against the petitioners by the 3rd respondent/Competent Authority before the concerned Court stand quashed. Pending applications, if any, also stand disposed. Sd/- (M.NAGAPRASANNA) JUDGE BKP List No.: 1 Sl No.: 66