- 1 - HC-KAR NC: 2026:KHC:33902-DB MFA No. 9466 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF JULY, 2026 PRESENT THE HON'BLE MRS. JUSTICE ANU SIVARAMAN AND THE HON'BLE MR. JUSTICE VENKATESH NAIK T MISCELLANEOUS FIRST APPEAL NO.9466 OF 2025 (KPIDFA) BETWEEN: 1. SRI VENKATESH B. S/O. LATE BACHE GOWDA AGED ABOUT 41 YEARS NO.22, 5TH CROSS 1/A MAIN ROAD ATTURU LAYOUT, ATTURU YELAHANKA BENGALURU-560 064. 2. SRI MOHAN KUMAR B. S/O. LATE BACHE GOWDA AGED ABOUT 39 YEARS NO.20, 4TH CROSS 1ST MAIN ROAD MUNESHWARA LAYOUT ATTURU, YELAHANKA BENGALURU-560 064. …APPELLANTS (BY SRI VEERESH MAHESH UPPIN, ADVOCATE) AND: 1. THE COMPETENT AUTHORITY FOR M/S. TGS CONSTRUCTIONS PVT. LTD. ADDITIONAL REGIONAL COMMISSIONER OFFICE OF THE REGIONAL COMMISSIONER BENGALURU DIVISION BMTC BUILDING 2ND FLOOR K.H. ROAD SHANTHINAGAR BENGALURU-560 083. Digitally signed by RAKSHA Location: High Court of Karnataka - 2 - HC-KAR NC: 2026:KHC:33902-DB MFA No. 9466 of 2025 2. M/S. TGS CONSTRUCTIONS PVT. LTD., REPRESENTED BY ITS MANAGING DIRECTOR SMT. MANDEEP KAUR NO.97/A EKALAVYA GRUHA 2ND MAIN, 4TH CROSS J.P. NAGAR, 8TH PHASE JAMBOOSAVARI, KOTHANUR DINNE BENGALURU SOUTH-560 083. 3. SMT. MANDEEP KAUR W/O. SACHIN NAIK NO.97/A, EKALAVYA GRUHA 2ND MAIN, 4TH CROSS JP NAGAR, 8TH PHASE JAMBOOSAVARI, KOTHNUR DINNE BENGALURU SOUTH-560 083. 4. MR. RAMANTH SHETTY S/O. LATE SRI NARAYANA SHETTY AGED ABOUT 60 YEARS RESIDING AT NO.18, 2ND MAIN 2ND CROSS, GUPTA LAYOUT ADUGODI POST BENGALURU-560 030. …RESPONDENTS (BY SRI VEERESH R. BUDIHAL, ADVOCATE FOR R-1; VIDE COURT ORDER DATED 18-2-2026, NOTICE TO R-2 TO R-4 IS DISPENSED WITH) * * * THIS MISCELLANEOUS FIRST APPEAL IS FILED UNDER SECTION 16 OF THE KARNATAKA PROTECTION OF INTEREST OF DEPOSITORS IN FINANCIAL ESTABLISHMENTS ACT, 2004, PRAYING TO SET ASIDE THE ORDER DATED 23-9-2024 PASSED IN MISC.NO.667 OF 2024 ON THE FILE OF THE XCI ADDITIONAL CITY CIVIL AND SESSIONS JUDGE AND SPECIAL JUDGE FOR KPIDFE CASES, BENGALURU (CCH-92), ALLOWING THE PETITION FILED UNDER SECTION 5(2) OF THE KPIDFE ACT-2004. - 3 - HC-KAR NC: 2026:KHC:33902-DB MFA No. 9466 of 2025 THIS MISCELLANEOUS FIRST APPEAL, COMING ON FOR ADMISSION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MRS. JUSTICE ANU SIVARAMAN and HON'BLE MR. JUSTICE VENKATESH NAIK T ORAL JUDGMENT (PER: HON'BLE MRS. JUSTICE ANU SIVARAMAN) We have heard the learned counsel for the appellants and the learned counsel appearing for the Competent Authority. 2. Learned counsel for the appellants submits that the order passed by the Special Court on the application filed by the Competent Authority under Section 5(2) of the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004 (for short, "the KPIDFE Act"), is bad in law on various grounds. 3. It is contended that the application under Section 5(2) was filed after an inordinate delay. It is further contended that the appellants, who are the true owners of the property, were neither put on notice nor afforded an opportunity of hearing before the order was passed. - 4 - HC-KAR NC: 2026:KHC:33902-DB MFA No. 9466 of 2025 4. Learned counsel for the appellants submits that the appellants have serious contentions on facts to be raised in the matter and that the matter may be remanded for fresh consideration by the Special Court after hearing the appellants as well. 5. The learned counsel for the respondent-Competent Authority contends that the factum of the initial attachment was intimated to the public at large by way of a paper publication and that the interim order of attachment was also affixed to the property. It is further contended that, in terms of Section 12(3) of the KPIDFE Act, even if no notice is served, it is open to the affected parties to approach the Special Court and file their objections, if any. 6. Having considered the contentions advanced, we notice that this case involves disputed questions of fact and that this is a fit case where the question as to whether the interim attachment in respect of the appellants' property is to be made absolute requires consideration by the Special Court after putting the appellants on notice. - 5 - HC-KAR NC: 2026:KHC:33902-DB MFA No. 9466 of 2025 7. In the above view of the matter, the appeal is allowed. The impugned order is set aside. The application filed by the Competent Authority under Section 5(2) is remanded to the Special Court for fresh consideration. 8. Without waiting for any further notice, the parties shall appear before the Special Court on 30.07.2026. 9. It is made clear, that it is only in view of the special facts of the instant case, the disputed questions of fact which arises herein that the matter is being remanded for fresh consideration and this order shall not be treated as a precedent in other cases. All contentions of the parties are left open. Sd/- (ANU SIVARAMAN) JUDGE Sd/- (VENKATESH NAIK T) JUDGE AM List No.: 3 Sl No.: 3