- 1 - HC-KAR NC: 2026:KHC:33903-DB MFA No. 9465 of 2025 C/W MFA No. 3150 of 2026 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.9465 OF 2025 (KPIDFA) C/W MISCELLANEOUS FIRST APPEAL NO.3150 OF 2026 (KPIDFA) IN MFA NO.9465/2025 BETWEEN: SRI MOHAN KUMAR B. S/O. LATE BACHE GOWDA AGED ABOUT 39 YEARS RESIDING AT NO.20, 4TH CROSS 1ST MAIN ROAD, MUNESHWARA LAYOUT ATTURU, YELAHANKA BENGALURU-560 064. …APPELLANT (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. 2. M/S. TGS CONSTRUCTIONS PVT. LTD., REPRESENTED BY ITS MANAGING DIRECTOR SMT. MANDEEP KAUR 2ND MAIN, 4TH CROSS, Digitally signed by RAKSHA Location: High Court of Karnataka - 2 - HC-KAR NC: 2026:KHC:33903-DB MFA No. 9465 of 2025 C/W MFA No. 3150 of 2026 NO.97/A EKALAVYA GRUHA J.P. NAGAR, 8TH PHASE JAMBOOSAVARI, KOTHANUR DINNE BENGALURU SOUTH-560 083. 3. SMT. MANDEEP KAUR W/O. SACHIN NAIK RESIDING AT NO.97/A EKALAVYA GRUHA 2ND MAIN, 4TH CROSS J. P. NAGAR, 8TH PHASE JAMBOOSAVARI, KOTHANUR 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 30-1-2026 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. IN MFA NO.3150/2026 BETWEEN: 1. SRI NARAYANASWAMY M. S/O. CHIKKAMUNISHAMAPPA - 3 - HC-KAR NC: 2026:KHC:33903-DB MFA No. 9465 of 2025 C/W MFA No. 3150 of 2026 AGED ABOUT 68 YEARS RESIDING AT DODDASANNE VILLAGE DEVANAHALLI TALUK BENGALURU-562 110. 2. SMT. N. MALA D/O. NARAYANASVAMY M. AGED ABOUT 38 YEARS RESIDING AT DODDASANNE VILLAGE DEVANAHALLI TALUK BENGALURU-562 110. 3. SMT. RAJESHWARI N. D/O. NARAYANASVAMY M. AGED ABOUT 29 YEARS RESIDING AT DODDASANNE VILLAGE DEVANAHALLI TALUK BENGALURU-562 110. 4. SRI ABHILASH N. S/O. NARAYANASVAMY M. AGED ABOUT 25 YEARS RESIDING AT DODDASANNE VILLAGE DEVANAHALLI TALUK BENGALURU-562 110. ...APPELLANTS (BY SRI K. CHANDRANATH ARIGA, 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. 2. M/S. TGS CONSTRUCTIONS PVT. LTD., REPRESENTED BY ITS MANAGING DIRECTOR SMT. MANDEEP KAUR 2ND MAIN, 4TH CROSS NO.97/A EKALAVYA GRUHA J.P. NAGAR, 8TH PHASE JAMBOOSAVARI, KOTHANUR DINNE - 4 - HC-KAR NC: 2026:KHC:33903-DB MFA No. 9465 of 2025 C/W MFA No. 3150 of 2026 BENGALURU SOUTH-560 083. 3. SMT. MANDEEP KAUR W/O. SACHIN NAIK RESIDING AT NO.97/A EKALAVYA GRUHA 2ND MAIN, 4TH CROSS J. P. NAGAR, 8TH PHASE JAMBOOSAVARI, KOTHANUR 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 15-6-2026, 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 PETITIONS FILED UNDER SECTION 5(2) OF THE KPIDFE ACT,2004 WITH COST OF RS.2,000/-. THESE MISCELLANEOUS FIRST APPEALS, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MRS. JUSTICE ANU SIVARAMAN and HON'BLE MR. JUSTICE VENKATESH NAIK T - 5 - HC-KAR NC: 2026:KHC:33903-DB MFA No. 9465 of 2025 C/W MFA No. 3150 of 2026 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 in both the matters. 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. 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 - 6 - HC-KAR NC: 2026:KHC:33903-DB MFA No. 9465 of 2025 C/W MFA No. 3150 of 2026 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. 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. - 7 - HC-KAR NC: 2026:KHC:33903-DB MFA No. 9465 of 2025 C/W MFA No. 3150 of 2026 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.: 6