Karnataka High CourtConstitutional LawAdministrative and Public Law

Executive authorities are constitutionally bound to implement judicial orders passed by High Courts of other states.

KOTAK MAHINDRA BANK LIMITEDv.STATE OF KARNATAKA

Executive authorities are constitutionally bound to implement judicial orders passed by High Courts of other states.. KOTAK MAHINDRA BANK LIMITED vs STATE OF KARNATAKA. Karnataka High Court. LawLens
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In brief

The question

Whether respondent authorities in the State of Karnataka are bound to give effect to the directions issued by the Hon’ble High Court of Bombay and whether a writ of mandamus is liable to be issued in this regard?

The court held

The court allowed the writ petition and issued a writ of mandamus directing Respondent Nos. 1 and 2 and the jurisdictional Sub-Registrars to forthwith record the cancellation of the subject sale deeds and agreements as null and void

It also directed

The court ordered the respondents to complete this exercise within four weeks and imposed costs of ₹25,000 on the respondent authorities for their prior inaction

Article 226(2) ensures that judicial remedies remain effective across state lines, and statutory authorities are under an unequivocal obligation to implement such directions

01Facts

The Petitioner, a secured creditor of Electrex (India) Limited, initiated proceedings under the SARFAESI Act, 2002, following a default of approximately ₹896 crores

¶ 1

In separate proceedings (Insolvency Petition No. 71/2006), the High Court of Bombay adjudicated the borrower’s Managing Director, Mr. Anant V. Hegde, as insolvent

¶ 2

Despite this adjudication, Hegde alienated factory premises in Bengaluru to third parties

¶ 3

On December 17, 2024, the High Court of Bombay issued directions declaring these sale deeds null and void and directed jurisdictional Sub-Registrars in Bengaluru to record the cancellation

¶ 5, 9

Despite receiving the order and subsequent representations from the Petitioner, the Karnataka registration authorities failed to act

¶ 6-7

The Petitioner sought a writ of mandamus to compel compliance

¶ 7

02Issues

i.Whether respondent authorities in the State of Karnataka are bound to give effect to the directions issued by the Hon’ble High Court of Bombay and whether a writ of mandamus is liable to be issued in this regard?

¶ 8

03Law Applied

Article 226(2) of the Constitution of India, which stipulates that High Courts may exercise jurisdiction if the cause of action arises, wholly or in part, within their territories, ensuring that judicial remedies transcend rigid territorial boundaries

¶ 11

Section 17 of the Presidency-Towns Insolvency Act, 1909, regarding the vesting of an insolvent's estate in the Official Assignee

¶ 9

statutory duties of registering officers under the Registration Act, 1908, noting that such duties become mandatory and ministerial when giving effect to judicial pronouncements

¶ 14-15

Provisions in the judgment · 2 · Linked ones open on LawLens

Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 Section 13

Presidency-Towns Insolvency Act, 1909 Section 17

04Reasoning

under Article 226(2), judicial orders of a Constitutional Court carry binding force nationwide if the subject matter or its effects fall within the authority’s domain

¶ 11

The High Court of Bombay validly exercised jurisdiction over the insolvency proceedings, and the subsequent alienation of assets in Bengaluru was an integral part of the same chain of cause of action

¶ 17

executive authorities in one state cannot ignore binding orders of a High Court from another state based on territorial location, as this would undermine the rule of law

¶ 13

The Sub-Registrar’s function in this context is ministerial; once a court declares a transaction null and void, the authority has no discretion but to reflect this in public records

¶ 15, 17

The court characterized the respondents' inaction as willful disobedience and a failure of constitutional duty

¶ 16, 20(vi)

05Holding

The court allowed the writ petition and issued a writ of mandamus directing Respondent Nos. 1 and 2 and the jurisdictional Sub-Registrars to forthwith record the cancellation of the subject sale deeds and agreements as null and void

Order (i)-(ii)

The court ordered the respondents to complete this exercise within four weeks and imposed costs of ₹25,000 on the respondent authorities for their prior inaction

Order (iii)-(iv)

Article 226(2) ensures that judicial remedies remain effective across state lines, and statutory authorities are under an unequivocal obligation to implement such directions

¶ 18, 20(viii)
Karnataka High Court

Original Court PDF

KOTAK MAHINDRA BANK LIMITEDvsSTATE OF KARNATAKA

Karnataka High Court · March 27, 2026

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