- 1 - HC-KAR NC: 2025:KHC:43029 WP No. 31845 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 27TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 31845 OF 2024 (GM-RES) BETWEEN: 1. SATCHMO HOLDINGS LIMITED, FORMERLY KNOWN AS NITESH ESTATES PVT. LIMITED., A COMPANY REGISTERED UNDER THE PROVISIONS OF THE COMPANIES ACT, 1956 HAVING ITS REGISTERED OFFICE AT NO.110, A WING, LEVEL 1, ANDREWS BUILDING, M.G.ROAD, BENGALURU-560 001. REP. BY ITS AUTHORIZED SIGNATORY, SRI. K.B. SWAMY. 2. MARATHALLI VENTURES PRIVATE LIMITED, FORMERLY KNOWN AS NITESH URBAN DEVELOPMENT PVT. LTD., A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, 1956, HAVING ITS REGISTERED OFFICE AT NO 15/45, LEVEL 1A, 4TH CROSS, CAMBRIDGE ROAD, HALASURU, BENGALURU-560 008. REP. BY ITS AUTHORIZED SIGNATORY SRI. K.B. SWAMY. 3. NORTHROOF VENTURES PRIVATE LIMITED, FORMERLY KNOWN AS NITESH HOUSING DEVELOPERS PVT. LTD., A COMPANY INCORPORATED UNDER THE PROVISIONS OF THE COMPANIES ACT, 1956. HAVING ITS REGISTERED OFFICE AT NO. 1/B, FIRST FLOOR, NO 41, CASTLE STREET, OPPOSITE SACRED HEART CHURCH, RICHMOND ROAD, ASHOK NAGAR, RICHMOND TOWN, BANGALORE-560 025. REP. BY ITS AUTHORIZED SIGNATORY SRI K.B. SWAMY …PETITIONERS (BY SMT. SUMANA NAGANAND & Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:43029 WP No. 31845 of 2024 SRI SIDDHARTH SRIKANTH, ADVOCATES) AND: 1. RESERVE BANK OF INDIA, 4TH FLOOR, RBI BYCULLA OFFICE BUILDING, OPP. MUMBAI CENTRAL RAILWAY STATION, BYCULLA, MUMBAI-400 008. REPRESENTED BY ITS GOVERNOR. 2. RESERVE BANK OF INDIA, DEPARTMENT OF SUPERVISION, RESERVE BANK OF INDIA CENTRE I, WORLD TRADE CENTRE, CUFFE PARADE COLABA, MUMBAI 400 005. REP. BY ITS CHIEF GENERAL MANAGER-IN-CHARGE. 3. CENTRAL FRAUD MONITORING CELL, DEPARTMENT OF BANKING SUPERVISION, RESERVE BANK OF INDIA, 10/3/8, NRUPUTHUNGA ROAD, P.B 5467, BENGALURU-560 001. REP. BY ITS GENERAL MANAGER. 4. J .C FLOWERS ASSET RECONSTRUCTION PVT. LTD., 12TH FLOOR, CROMPTON GREAVES HOUSE, DR. ANNIE BESANT ROAD, WORLI, MUMBAI-400 030. REP. BY ITS AUTHORISED REPRESENTATIVE, MR. RAHUL RANA. 5. YES BANK LTD., YES BANK HOUSE, OFF WESTERN EXPRESS HIGHWAY, SANATACRUZ (EAST), MUMBAI -400 055, REP. BY ITS MANAGING DIRECTOR. …RESPONDENTS (BY SRI PRASHANTH MURTHY S.G, ADVOCATE FOR R-4; SMT. APRANA RAI, ADVOCATE FOR R-1 & R-2; R-3 CENTRAL FRAUD MONITORING CELL, REP. BY ITS GENERAL MANAGER - SERVED; SRI RAKESH B BHATT, ADVOCATE FOR R-5) THIS WP IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO A) DECLARE THAT THE - 3 - HC-KAR NC: 2025:KHC:43029 WP No. 31845 of 2024 ACTION OF RESPONDENT NO. 5 IN CLASSIFYING THE PETITIONERS ACCOUNTS AS 'FRAUD' IS ILLEGAL, ARBITRARY AND CONTRARY TO THE MASTER DIRECTIONS ISSUED BY THE RESPONDENT NO. 1 (ANNEXURE P AND P1) ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ ORAL ORDER 1. The Petitioners are before this Court seeking for the following reliefs; a. "Declare that the action of respondent no. 5 in classifying the petitioners' accounts as 'fraud' is illegal, arbitrary and contrary to the Master Directions issued by the Respondent no. 1 (Annexure P and P1); b. Direct the Respondent no. 1 to initiate appropriate action against respondent no. 4 and 5 for violating the Master Directions issued by the Respondent no. 1 (Annexure P and P1) in not de-classifying the Petitioners' account as 'fraud' in reasonable time; c. Consequently, direct the Respondent no. 4 and 5 to de- classify the account of Petitioner no. 2 from the 'fraud' classification; d. Direct Respondent no. 4 to provide a copy of the Plan for Realisation of the assets of the Petitioners formed by Respondent no. 4, to the Petitioners; e. Quash letter dated 23.11.2023 issued by Respondent no. 4 revoking the OTS scheme issued in favour of the Petitioners (Annexure G); f. Quash proceedings in C.P (IB) no. 176/2024 filed by Respondent no. 4 against Petitioner no. 1, - 4 - HC-KAR NC: 2025:KHC:43029 WP No. 31845 of 2024 before the National Company Law Tribunal, Bangalore Bench (Annexure N); g. To pass such other order/s or directions as this Hon'ble Court deems fit to grant in the facts and circumstances of the case including awarding the costs, in the interest of justice." 2. A memo dated 27.10.2025 has been filed, signed by the learned counsel for the Petitioner, which reads as under: “MEMO FILED ON BEHALF OF THE PETITIONER The Petitioner herein respectfully submits as under: 1. The present writ petition has been filed by the Petitioner seeking, inter alia to direct that the action of respondent No.5 classifying the Petitioners’ accounts as 'fraud' is illegal, arbitrary and contrary to the Master Directions issued by the Respondent No.1. 2. During the pendency of the above writ petition, the Petitioner and the contesting Respondent i.e. Respondent No.4, have entered into terms of settlement and have agreed upon terms of repayment, in full and final settlement of all alleged dues payable by the Petitioner. Copy of the letter dated 04.08.2025 is produced herewith as Document No. 1. 3. Hence, it is submitted that, in light of the settlement reached between the parties, the present writ petition does not survive for consideration, and as such, the same may be closed in light of the settlement so reached. Wherefore, it is respectfully prayed that this Hon'ble Court may be pleased to take this memo on record, and dispose of the writ petition as infructuous, in the interest of the justice and equity”. - 5 - HC-KAR NC: 2025:KHC:43029 WP No. 31845 of 2024 3. Accepting the said memo and submission of learned counsel for the Petitioners, the petition is dismissed as settled out of Court. 4. In view of dismissal of the main petition, pending applications, if any, do not survive for consideration. Hence, the same are disposed. Sd/- (SURAJ GOVINDARAJ) JUDGE KTY List No.: 2 Sl No.: 18