V S MOHAMMED ASIF vs STATE OF KARNATAKA
- Court
- Karnataka High Court
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HC-KAR
NC: 2026:KHC:59448
WP No. 5472 of 2024
C/W WP No. 5054 of 2024
WP No. 5521 of 2024
AND 1 OTHER
CNR: KAHC010092252024
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
TH
DATED THIS THE 27 DAY OF OCTOBER, 2026
BEFORE
THE HON'BLE MR. JUSTICE T.P.VIVEKANANDA
WRIT PETITION NO. 5472 OF 2024 (GM-RES)
C/W
WRIT PETITION NO. 5054 OF 2024 (GM-RES)
WRIT PETITION NO. 5521 OF 2024 (GM-RES)
WRIT PETITION NO. 5627 OF 2024 (GM-RES)
IN WP No. 5472/2024
BETWEEN:
V.S. MOHAMMED ASIF
S/O SABU
AGED ABOUT 64 YEARS
R/AT BLOCK 3. MADIKERI CITY
KODAGU-571 201
…PETITIONER
(BY SRI. PRASANNA KUMAR S, ADVOCATE)
AND:
1.
STATE OF KARNATAKA
REPRESENTED BY SECRETARY
DEPARTMENT OF REVENUE
TH
5 FLOOR, M.S.BUILDING
DR.B.R. AMBEDKAR VEEDHI
BANGALORE-560 001
2.
STATE OF KARNATAKA
REPRESENTED BY DEPUTY SECRETARY
(SERVICES-1, SSLR AND SPECIAL CELL)
DEPARTMENT OF REVENUE
TH
5 FLOOR, M.S.BUILDING
Digitally signed by
PREMCHANDRA M R
Location: HIGH
COURT OF
KARNATAKA
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HC-KAR
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WP No. 5472 of 2024
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DR.B.R. AMBEDKAR VEEDHI
BANGALORE- 560 001
3.
MOHAMMED SUHEB B.R
S/O ABDUL RAZAQ
AGED ABOUT 60 YEARS
R/AT VIRAJPET TOWN
VIRAJPET TALUK
KODAGU-571 218
4. SOUTH COORG MUSLIM CREDIT
CO-OPERATIVE SOCIETY LIMITED
NO.283, VIRAJPET
KODAGU-571 218
REP. BY ITS CHAIRMAN
REG. UNDER KARNATAKA CO-OPERATIVE
SOCIETY ACT, 1959
…RESPONDENTS
(BY SRI. VEERESH BUDIHAL, ADVOCATE FOR R1 & R2 - [VC])
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO CALL
FOR RECORDS AND QUASHING THE NOTIFICATION DATED
29.12.2023 UNDER SECTION 3(2) OF THE KARNATAKA
PROTECTION OF INTEREST OF DEPOSITORS IN FINANCIAL
ND
ESTABLISHMENTS ACT, 2004, ISSUED BY THE 2
RESPONDENT ONLY INSOFAR AS THE PETITIONERS PROPERTY
FOUND AT ITEM NO.7 FOUND AT THE ANNEXURE OF THE
NOTIFICATION IS CONCERNED, A COPY OF WHICH IS
PRODUCED AS ANNEXURE-D, VIDE BEARING NO.E-RD 119 GRC
2023 AS ILLEGAL AND VOID AND ETC.
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HC-KAR
NC: 2026:KHC:59448
WP No. 5472 of 2024
C/W WP No. 5054 of 2024
WP No. 5521 of 2024
AND 1 OTHER
CNR: KAHC010092252024
IN WP NO. 5054/2024
BETWEEN:
YOUSUF K.K
S/O KALKLE K.A
AGED ABOUT 46 YEARS
R/A MADIKERI TALUK
AIKOLMURNAD VILAGE POST
KANTHUR, KODAGU-571 252
...PETITIONER
(BY SRI. PRASANNA KUMAR S, ADVOCATE)
AND:
1. STATE OF KARNATAKA
REPRESENTED BY SECRETARY
DEPARTMENT OF REVENUE
TH
5 FLOOR, M.S.BUILDING
DR.B.R.AMBEDKAR VEEDHI
BANGALORE-560 001
2.
STATE OF KARNATAKA
REPRESENTED BY DEPUTY SECRETARY
(SERVICES-1, SSLR AND SPECIAL CELL)
DEPARTMENT OF REVENUE
TH
5 FLOOR, M.S.BUILDING
DR.B.R. AMBEDKAR VEEDHI
BANGALORE- 560 001
3. MOHAMMED SUHEB B.R
S/O ABDUL RAZAQ
AGED ABOUT 60 YEARS
R/AT VIRAJPET TOWN
VIRAJPET TALUK
KODAGU-571 218
4. SOUTH COORG MUSLIM CREDIT
CO-OPERATIVE SOCIETY LIMITED
NO.283, VIRAJPET
KODAGU-571 218
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HC-KAR
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WP No. 5472 of 2024
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WP No. 5521 of 2024
AND 1 OTHER
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REP. BY ITS CHAIRMAN
REG. UNDER KARNATAKA CO-OPERATIVE
SOCIETY ACT, 1959
...RESPONDENTS
(BY SRI. VEERESH BUDIHAL, ADVOCATE FOR R1 & R2 -
[VC])
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO
QUASH THE IMPUGNED ORDER DTD 29.12.2023 U/S 3(2)
OF THE KARNATAKA PROTECTION OF INTEREST OF
DEPOSITORS IN FINANCIAL ESTABLISHMENTS ACT, 2004,
ISSUED BY THE R2 ONLY INSOFAR AS THE PETITIONERS
PROPERTY FOUND AT ITEM NO.10 OF THE ANNEXURE OF
THE IMPUGNED ORDER IS CONCERNED, A COPY OF WHICH
IS PRODUCED AS ANNEXURE-E, AS ILLEGAL AND VOID
AND ETC.
IN WP NO. 5521/2024
BETWEEN:
SARA JABEEN
W/O MOHAMMED SHOIB
AGED ABOUT 59 YEARS
R/AT NO.41, KARNATAKA HARDWARE
MAIN ROAD, VIJRAJPET TOWN
KODAGU-571 218
...PETITIONER
(BY SRI. PRASANNA KUMAR S, ADVOCATE)
AND:
1. STATE OF KARNATAKA
REPRESENTED BY SECRETARY
DEPARTMENT OF REVENUE
TH
5 FLOOR, M.S.BUILDING
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HC-KAR
NC: 2026:KHC:59448
WP No. 5472 of 2024
C/W WP No. 5054 of 2024
WP No. 5521 of 2024
AND 1 OTHER
CNR: KAHC010092252024
DR.B.R.AMBEDKAR VEEDHI
BANGALORE-560 001
2. STATE OF KARNATAKA
REPRESENTED BY DEPUTY SECRETARY
(SERVICES-1, SSLR AND SPECIAL CELL)
DEPARTMENT OF REVENUE
TH
5 FLOOR, M.S.BUILDING
DR.B.R. AMBEDKAR VEEDHI
BANGALORE- 560 001
3. MOHAMMED SUHEB B.R
S/O ABDUL RAZAQ
AGED ABOUT 60 YEARS
R/AT VIRAJPET TOWN
VIRAJPET TALUK
KODAGU-571 218
4.
SOUTH COORG MUSLIM CREDIT
CO-OPERATIVE SOCIETY LIMITED
NO.283, VIRAJPET
KODAGU-571 218
REP. BY ITS CHAIRMAN
REG. UNDER KARNATAKA CO-OPERATIVE
SOCIETY ACT, 1959
...RESPONDENTS
(BY SRI. VEERESH BUDIHAL, ADVOCATE FOR R1 & R2 -
[VC])
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO
CALL FOR THE RECORDS AND QUASHING THE IMPUGNED
ORDER DATED 29.12.2023 UNDER SECTION 3(2) OF THE
KARNATAKA PROTECTION OF INTEREST OF DEPOSITORS
IN FINANCIAL ESTABLISHMENTS ACT, 2004, ISSUED BY
THE 2ND RESPONDENT ONLY INSOFAR AS THE
PETITIONERS PROPERTY FOUND AT ITEM NO.6, 11 AND 12
FOUND AT THE ANNEXURE OF THE IMPUGNED ORDER IS
CONCERNED, A COPY OF WHICH IS PRODUCED AS
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HC-KAR
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WP No. 5472 of 2024
C/W WP No. 5054 of 2024
WP No. 5521 of 2024
AND 1 OTHER
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ANNEXURE-E,VIDE BEARING NO. E-RD 119 GRC 2023 AS
ILLEGAL AND VOID AND ETC.
IN WP NO. 5627/2024
BETWEEN:
HAMSA A.A
S/O ABDULLA MUSALIYAR
AGED ABOUT 69 YEARS
R/AT HALGUNDA POST
KONDAGERI
VIRAJPET TLAUK
KODAGU-571 252
...PETITIONER
(BY SRI. PRASANNA KUMAR S, ADVOCATE)
AND:
1. STATE OF KARNATAKA
REPRESENTED BY SECRETARY
DEPARTMENT OF REVENUE
TH
5 FLOOR, M.S.BUILDING
DR.B.R.AMBEDKAR VEEDHI
BANGALORE-560 001
2. STATE OF KARNATAKA
REPRESENTED BY DEPUTY SECRETARY
(SERVICES-1, SSLR AND SPECIAL CELL)
DEPARTMENT OF REVENUE
TH
5 FLOOR, M.S.BUILDING
DR.B.R. AMBEDKAR VEEDHI
BANGALORE- 560 001
3. MOHAMMED SUHEB B.R
S/O ABDUL RAZAQ
AGED ABOUT 60 YEARS
R/AT VIRAJPET TOWN
VIRAJPET TALUK
KODAGU-571 218
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HC-KAR
NC: 2026:KHC:59448
WP No. 5472 of 2024
C/W WP No. 5054 of 2024
WP No. 5521 of 2024
AND 1 OTHER
CNR: KAHC010092252024
4. SOUTH COORG MUSLIM CREDIT
CO-OPERATIVE SOCIETY LIMITED
NO.283, VIRAJPET
KODAGU-571 218
REP. BY ITS CHAIRMAN
REG. UNDER KARNATAKA CO-OPERATIVE
SOCIETY ACT, 1959
...RESPONDENTS
(BY SRI. VEERESH BUDIHAL, ADVOCATE FOR R1 & R2 -
[VC])
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO
CALL FOR THE RECORDS AND QUASHING THE IMPUGNED
ORDER DATED 29.12.2023 UNDER SECTION 3(2) OF THE
KARNATAKA PROTECTION OF INTEREST OF DEPOSITORS
IN FINANCIAL ESTABLISHMENTS ACT, 2004, ISSUED BY
THE 2ND RESPONDENT ONLY INSOFAR AS THE
PETITIONERS PROPERTY FOUND AT ITEM NO.8 FOUND AT
THE ANNEXURE OF THE IMPUGNED ORDER IS
CONCERNED, A COPY OF WHICH IS PRODUCED AS
ANNEXURE-D, VIDE BEARING NO.E.RD.119 GRC 2023 AS
ILLEGAL AND VOID AND ETC.
THESE PETITIONS, COMING ON FOR ORDERS, THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE T.P.VIVEKANANDA
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WP No. 5472 of 2024
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ORAL ORDER
The petitioners in all these writ petitions have called
in question the Notification dated 29.12.2023 issued by
respondent Nos.1 and 2 invoking the provisions of Section
3(2) of the Karnataka Protection of Interest of Depositors
in Financial Establishments Act, 2004, (hereinafter
referred to as “the Act”) in respect of different items of
properties as mentioned in the prayer to the writ petitions.
2. The claim of the petitioners is that, they are the
purchasers of certain immovable properties through the
registered sale deed dated 26.09.2023, gift deed dated
06.09.2021 and 09.09.2021 and sale deed dated
29.09.2023 from respondent No.3 herein who was an
office bearer of respondent No.4-financial establishment.
On the allegation that the assets acquired by the
respondent No.3 was a proceeds of crime or the amount
derived from the respondent No.4, all the properties which
were conveyed by respondent No.3 to the petitioners
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herein are included in the Notification issued under Section
3(2) of the Act.
3. In terms of Sub-section (2) of Section 5 of the
Act within thirty days from the date of the order passed by
the State under Section 3 of the Act, the Competent
Authority appointed in respect of the financial
establishment will have to apply to the Special Court for
further order of attachment to be made absolute. In the
present case, the petitioners herein have approached this
Court challenging the very initiation of the
proceedings/notification issued under Section 3(2) of the
Act and this Court by order dated 29.02.2024 directed the
respondents not to precipitate the matter.
4. It is the submission of the learned counsel for
the respondent No.4 that in the light of the interim order
passed by this Court, the Competent Authority appointed
in respect of respondent No.4 could not approach the
Competent Court as required under Sub-section (2) of
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WP No. 5472 of 2024
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Section 5 of the Act. It is his submission that under the
guise of challenging the Notification issued under Section
3(2) of the Act, the petitioners cannot prevent or prohibit
the Competent Authority from invoking the provisions of
Sub-section (2) of Section 5 of the Act. It is for the
Competent Authority to approach the Special Court and
seek for confirmation of the attachment order in the
manner known to law.
5. In the proceedings that would be initiated under
Sub-section (2) of Section 5 of the Act, all the concerned
especially the persons whose properties are notified under
Section 3(2) of the Act would be provided with an
opportunity to put forth their contentions before the
Special Court. Therefore, this Court cannot adjudicate
upon the validity of the Notification issued under Section
3(2) of the Act at the instance of the petitioners in the
present writ petitions.
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HC-KAR
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WP No. 5472 of 2024
C/W WP No. 5054 of 2024
WP No. 5521 of 2024
AND 1 OTHER
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6. Learned counsel for the respondents places
reliance on the order passed by the Co-ordinate Bench of
this Court in WP.No.35914/2017 dated 15.11.2022 and
contends that under similar circumstances taking note of
the relevant provisions of the Act, this Court has held that
the writ petitions are not maintainable and the parties will
have to approach the Competent Court under the Act.
7. Learned counsel for the petitioners, however,
apprehends that, if the writ petitions are disposed of
permitting the Competent Authority to approach the
Competent Court under Sub-section (2) of Section 5 of the
Act, under the guise of the impugned Notification, the
possession of the petitioners would be disturbed by the
Competent Authority.
8. In response to the same, the learned counsel
for the respondent No.4-Competent Authority submits that
by virtue of Sub-section (4) of Section 3 of the Act, the
property attached under Sub-section (2) has already vest
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with the Competent Authority. However, he further
hastened to add that till the Competent Court decides the
matter under Sub-section (2) of Section 5 of the Act, the
respondent No.4-Competent Authority would not disturb
the possession of the petitioners in respect of the
properties involved in the present writ petitions. The said
submission would allay the apprehension of the
petitioners.
9. In the light of the aforesaid submissions and
taking note of the provisions of Sub-section (2) of Section
3 and Sub-section (2) of Section 5 of the Act, it is just and
appropriate for this Court to permit the respondent No.4-
Competent Authority to approach the Competent Court
under Sub-section (2) of Section 5 of the Act within a
period of 30 days from the date of receipt of certified copy
of this order. If such a petition is filed, it is always open for
the petitioners herein to put forth their contentions in
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respect of the transactions, which they have entered into
with the respondent No.3.
10. With the aforesaid observations, all the writ
petitions are disposed of . Till such time the proceedings
before the Competent Court is decided under Sub-section
(2) of Section 5 of the Act, the possession of the
petitioners shall not be disturbed.
Sd/-
(T.P.VIVEKANANDA)
JUDGE
PB
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