- 1 - HC-KAR NC: 2026:KHC:19732 WP No. 24471 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8TH DAY OF APRIL, 2026 BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO. 24471 OF 2025 (GM-RES) BETWEEN: 1. SMT. NAGINA TABASSUM W/O SYED MOHAMMED HUSSAIN MULLA AGED ABOUT 43 YEARS HOUSEWIFE NO.49, 5TH E MAIN GUNDAPPA BLOCK RAHMAT NAGAR, RT NAGAR POST BENGALURU-560032, KARNATAKA …PETITIONER (BY SRI. ABDUL MAJID, ADVOCATE) AND: 1. THE COMPETENT AUTHORITY AND SPECIAL OFFICER IMA AND OTHER KPIDFE ACT CASES 3RD FLOOR, PODIUM BLOCK V.V. TOWER, DR. B.R. AMBEDKAR VEEDHI BENGALURU-560001 …RESPONDENT (BY SRI. VEERESH R. BUDIHAL, ADVOCATE FOR C/R) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE NOTICE BEARING NO. SPLOCA/IMA/ENQ-1/08/2025-26 DATED 12.06.2025 ISSUED BY THE RESPONDENT- SPECIAL OFFICER AND COMPETENT AUTHORITY UNDER THE KARNATAKA Digitally signed by CHAITHRA A Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:19732 WP No. 24471 of 2025 PROTECTION OF INTEREST OF DEPOSITORS IN FINANCIAL ESTABLISHMENTS ACT, 2004, AS BEING ARBITRARY, ILLEGAL AND IN VIOLATION OF THE PETITIONER'S FUNDAMENTAL RIGHTS UNDER ARTICLES 14, 19 AND 21 OF THE CONSTITUTION OF INDIA. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM ORAL ORDER In the captioned petition, the petitioner who claim to be the depositor, is now issued with notice/summons under Section 3(1)(a), 6(2)(c) and 6(2)(j) of Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004 and by way of summons the authority has now called upon the depositors for production of information and documents. 2. The summons is issued on the premise that depositor has withdrawn excess amount contrary to the deposits made by him. Therefore, this Court is of the view - 3 - HC-KAR NC: 2026:KHC:19732 WP No. 24471 of 2025 that mere issuance of notice does not contemplate coercive steps. Further the freezing of account pursuant to summons issued under the above said Sections also does not contemplate coercive action. The authority is only apprehending that withdrawals are exorbitant and contrary to the deposits made. Therefore, since summons are issued only to appear before the respondent calling upon the depositor to furnish attested copy of the documents indicated in the summons/notice, this Court is of the view that the depositor's claim vis-a-vis the claim made by the authorities that the withdrawals are in excess of the deposits cannot be examined under Article 227 of the Constitution of India. The authority is vested with power to inspect, enquire into the quantum of deposits made by the depositor and if in a given set of cases, it is found by the authority that payments were made in excess, the above said Act contemplates appropriate recovery and the procedure is provided under the Act to make recovery, in the event it is found that there is an excess withdrawal - 4 - HC-KAR NC: 2026:KHC:19732 WP No. 24471 of 2025 made by the depositor. Therefore, reserving liberty to the petitioner to furnish the documents as indicated in the notice, the writ petition is liable to be disposed of. 3. Accordingly, this Court proceeds to pass the following: ORDER (i) The writ petition stand disposed of. (ii) Liberty is reserved to the petitioner to tender a detailed explanation by furnishing all the documents indicated in the notice/summons. (iii) On receipt of explanation by the depositor, the authorities shall ensure that there shall be a speedy inquiry. (iv) In the event, the amount withdrawn by the depositor is proportionate to the deposits made at the first instance, the accounts of such depositor shall be defreezed forthwith. If there is excess money - 5 - HC-KAR NC: 2026:KHC:19732 WP No. 24471 of 2025 received by the depositor, necessary action shall be contemplated against such depositor strictly in accordance with the Act. (v) All contentions are kept open. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE CA List No.: 2 Sl No.: 71