01Facts
The Petitioner, a secured creditor of Electrex (India) Limited, initiated proceedings under the SARFAESI Act, 2002, following a default of approximately ₹896 crores
¶ 1In separate proceedings (Insolvency Petition No. 71/2006), the High Court of Bombay adjudicated the borrower’s Managing Director, Mr. Anant V. Hegde, as insolvent
¶ 2Despite this adjudication, Hegde alienated factory premises in Bengaluru to third parties
¶ 3On 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, 9Despite receiving the order and subsequent representations from the Petitioner, the Karnataka registration authorities failed to act
¶ 6-7The Petitioner sought a writ of mandamus to compel compliance
¶ 702Issues
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?
¶ 803Law 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
¶ 11Section 17 of the Presidency-Towns Insolvency Act, 1909, regarding the vesting of an insolvent's estate in the Official Assignee
¶ 9statutory duties of registering officers under the Registration Act, 1908, noting that such duties become mandatory and ministerial when giving effect to judicial pronouncements
¶ 14-15Provisions 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
¶ 11The 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
¶ 17executive 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
¶ 13The 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, 17The 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)Original Court PDF
KOTAK MAHINDRA BANK LIMITEDvsSTATE OF KARNATAKA
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