SHRI. SUTRAM SURESH vs STATE OF KARNATAKA

Court
Karnataka High Court

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WP No. 11143 of 2024


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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

TH
DATED THIS THE 4 DAY OF NOVEMBER, 2026


BEFORE

THE HON'BLE MR. JUSTICE T.P.VIVEKANANDA

WRIT PETITION NO. 11143 OF 2024 (GM-RES)



BETWEEN:

1.
SHRI. SUTRAM SURESH,
S/O. S. R. SHANKARA RAMAIAH,
AGED ABOUT 57 YEARS,
R/AT A-1505,
BRIGADE GATEWAY,
MALLESHWARAM WEST,
BANGALORE - 560 055.

2. SMT. VANITHA SURESH,
W/O. SUTRAM SURESH,
AGED ABOUT 49 YEARS,
R/AT A-1505,
BRIGADE GATEWAY,
MALLESHWARAM WEST,
BANGALORE - 560 055.

3. MS. AISHWARYA SURESH,
D/O. SUTRAM SURESH,
AGED ABOUT 27 YEARS,
R/AT A-1505,
BRIGADE GATEWAY,
MALLESHWARAM WEST,
BANGALORE - 560 055.

4. MS. SOUNDARYA SURESH
D/O. SUTRAM SURESH,
AGED ABOUT 24 YEARS,
R/AT A-1505,










Digitally signed by
PREMCHANDRA M R
Location: HIGH
COURT OF
KARNATAKA

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BRIGADE GATEWAY,
MALLESHWARAM WEST,
BANGALORE - 560 055.
…PETITIONERS
(BY SRI. PRASHANTH P.N., ADVOCATE)
AND:

1.
STATE OF KARNATAKA,
REPRESENTED BY ITS UNDER SECRETARY,
REVENUE DEPARTMENT (SPECIAL CELL),
KARNATAKA GOVERNMENT SECRETARIAT,
M.S. BUILDING,
BANGALORE - 560 001.

2. THE COMPETENT AUTHORITY FOR VIKRAM
INVESTMENTS
RD
3 FLOOR, MINI V.V. TOWER,
PODIUM BLOCK,
DR. AMBEDKAR VEEDHI,
BANGALORE - 560 001.
…RESPONDENTS
(BY SRI.M. SRINIVAS KUMAR, HCGP FOR R1,
SRI. VEERESH BUDIHAL, ADVOCATE FOR R2)

THIS WRIT PETITION IS FILED UNDER ARTICLE 226 AND
227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH
THE AD INTERIM ORDER OF ATTACHMENT VIDE NOTIFICATION
NO. RD 06 FRC 2018 DATED:07/02/2019 ISSUED BY R1, AS
CONTAINED IN ANNEXURE-A IN SO FAR AS BANK ACCOUNTS
AS CONTAINED IN ITEM NO. 1 TO 9 THAT BELONGED TO
PETITIONER NO. 1, PETITIONER NO. 2, PETITIONER NO. 3 AND
4 IN ANNEXURE-1, LIC POLICY BONDS AS CONTAINED IN ITEM
NO. 1 TO 12 BELONGING TO PETITIONER NO. 2 IN ANNEXURE-
1, MOVABLE PROPERTIES AS CONTAINED IN ITEM NO. 4 LIST-
3 VEHICLES BELONGING TO PETITIONER NO. 2 IN ANNEXURE-
1 ARE CONCERNED, FOR BEING CAPRICIOUS, IMPULSIVE AND
FOR NOT BEING SUBSTANTIATED IN ACCORDANCE WITH THE
PROVISO OF KPIDFC ACT, MORE FULLY AS DETAILED IN THE

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PETITION QUASH THE AD-INTERIM ORDER OF ATTACHMENT
VIDE SUBSEQUENT NOTIFICATION NO. RD 06 GRC 2018
DATED 06/11/2020 ISSUED BY R1, AS CONTAINED IN
ANENXURE-B IN SO FAR AS THE IMMOVABLE PROPERTY AS
CONTAINED IN ITEM NO. 1, BELONGING TO PETITIONER NO.
2, IN ANNEXURE-1, IMMOVABLE PROPERTY AS CONTAINED IN
ITEM NO. 2 JOINTLY BELONGING TO PETITIONER NO. 1 AND 2
IN ANNEXURE-1, MOVABLE PROPERTY AS CONTAINED IN ITEM
NO. 1 BELONGING TO PETITIONER NO. 1 IN ANNEXURE-2 ARE
CONCERNED, FOR BEING CAPRICIOUS, IMPULSIVE AND FOR
NOT BEING SUBSTANTIATED IN ACCORDANCE WITH THE
PROVISOS OF KPIDFC ACT, MORE FULLY AS DETAILED IN THE
PETITION AND ETC.
THIS PETITION, COMING ON FOR PRELIMINARY HEARING
B; GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE T.P.VIVEKANANDA

ORAL ORDER

The petitioners are before this Court, challenging the
order of attachment passed under Section 3(2) of the
Karnataka Protection of Interest of Depositors in Financial
Establishments Act, 2004, ('the Act' for short) dated
07.02.2019, 06.11.2020, 05.01.2022 and also seeking
quashing of the order dated 26.03.2022, by which the
petitioners were deleted from the array of parties in the
proceedings in Misc.No.250/2022 before the XCI,

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Additional City Civil and Sessions Judge, Bengaluru and for
other reliefs.

2. The contention of the learned counsel for the
petitioners is that, though the notifications attaching the
properties of the petitioners and others in terms of Section
3(2) of the Act were issued on 07.02.2019, 06.11.2020
and 05.01.2022, however, the proceedings under Section
5(2) of the Act were not initiated by the Competent
Authority within 30 days, as provided under Section 5(2)
of the Act. The Competent Authority had initially instituted
the proceedings at the first instance in Misc.No.653/2019.
On the ground that there were inherent defects in the
petition filed by the Competent Authority, the
Misc.No.653/2019 was withdrawn with liberty to file a
petition. It is thereafter, that the Competent Authority
filed Misc.No.250/2022 arraying the petitioners herein as
respondent Nos.17, 18, 19 and 20.

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3. Upon issuance of notice in the said proceedings,
the petitioners have filed the present writ petition
challenging the very initiation of the proceedings on
several grounds, including the ground of limitation in filing
the petition under Section 5(2) of the Act. This Court
passed an interim order on 24.04.2024, restraining the
respondents from precipitating the matter till the next
date of hearing. The said interim order was continued from
time to time.

4. In the light of the interim order passed in the
instant writ petition, the Competent Court was requested
by the Competent Authority to delete several respondents
including the petitioners herein. The said application for
deletion having been allowed, the petitioners herein were
deleted from the array of parties in Misc.No.250/2022.

5. It is the submission of the learned counsel for
the petitioners that, in view of the fact that the
proceedings under Section 5(1) of the Act, are to be

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initiated within 30 days from the date of issuance of
notification under Section 3(1) of the Act, the proceedings
in Misc.No.250/2022 were hopelessly barred by limitation
and it is in the said circumstances that the petitioners
have approached this Court praying for quashing of all the
attachment orders referred to supra, including the
initiation of the proceedings and the order dated
26.03.2022, by which notice of the proceedings in
Misc.No.250/2022 was issued to the petitioners along with
the other respondents.

6. It is the further submission of the learned
counsel for the petitioners that Misc.No.250/2022 was not
accompanied by any application for condonation of the
inordinate delay in filing the said petition.

7. On the other hand, the learned counsel
appearing for respondent No.2-Competent Authority
submits that, respondent Nos.21 and 22 in
Misc.No.250/2022 had approached this Court in

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WP.No.11118/2022. This Court vide order dated
25.08.2026 disposed of the said writ petition granting
liberty to the petitioners therein i.e., respondent Nos.21
and 22 to approach the Competent Authority, since the
petitioners therein were alleged to be third party
beneficiaries of the proceeds of crime.

8. It is the submission of the learned counsel for
respondent No.2 that the observation made by the
Co-ordinate Bench of this Court in the aforesaid decision is
also applicable to the present case in as much as in the
light of the liberty granted by the Special Court while
considering the application for deletion, the Competent
Authority is well within its rights to approach the Special
Court under Section 5(2) of the Act. Whether the petition
that would be filed by the Competent Authority is barred
by limitation and as to whether the Competent Court is
empowered to condone the delay or not is a matter which
shall be considered by the Competent Court and the
petitioners cannot prevent the Competent Authority in

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approaching the Special Court under Section 5(2) of the
Act. There cannot be an order of prohibition restraining the
Competent Authority from approaching the Special Court.

9. Having heard the learned counsel appearing for
the petitioners and respondent No.2 and upon perusal of
the aforesaid orders passed by the Special Court as well as
by this Court, what is discernible is that the challenge
made by the petitioners to the orders passed under
Section 3(2) of the Act is premature in as much as
pursuant to the orders of attachment under Section 3(2)
of the Act, the Competent Authority is required under
Section 5(2) of the Act, to approach the Competent Court
for further orders to make the attachment absolute.

10. It is in the said proceedings, that the persons
whose properties are attached under Section 3(2) of the
Act, would be having their say and would be entitled to
contest the said petition. As submitted at the Bar, the
proceedings in Misc.No.250/2022 have been now

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concluded and the prayer for quashing of the order dated
26.03.2022 in Misc.No.250/2022 does not survive for
consideration. The other prayers regarding the challenge
to the notifications issued under Section 3(2) of the Act as
observed above are premature. Therefore, only order that
could be passed in the present writ petition is to permit
respondent No.2 to approach the Special Court under
Section 5(2) of the Act in accordance with the provisions
of the Act. In such proceedings, the petitioners will have
all the rights to oppose the petition not only on merits but
also on the ground of delay in filing of the petition.
In the result,

i ) The writ petition is disposed of .

ii ) The challenge made to the notifications at
Annexures-A, B and C dated 07.02.2019,
06.11.2020 and 05.01.2022 is rejected.

iii ) It is open for respondent No.2 to approach the
Competent Court in terms of the provisions of

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Section 5(2) of the Act, within a period of 30
days from today.

iv ) All the contentions of the parties are kept open
to be considered by the Special Court in the
proceedings that would be initiated by
respondent No.2, including the contention
regarding limitation for filing of the petition by
the Competent Authority.

Sd/-
(T.P.VIVEKANANDA)
JUDGE





PK
List No.: 1 Sl No.: 38