- 1 - HC-KAR NC: 2026:KHC:31706 WP No. 21501 of 2018 C/W WP No. 15499 of 2018 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25TH DAY OF JUNE, 2026 BEFORE THE HON'BLE MR. JUSTICE M.G.S. KAMAL WRIT PETITION NO. 21501 OF 2018 (GM-RES) C/W WRIT PETITION NO. 15499 OF 2018 (GM-RES) IN WP No. 21501/2018 BETWEEN: M/S. MUTHOOT FINANCE HAVING ITS REGIONAL OFFICE AT NO.84/3, UCF CENTRE HENNUR MAIN ROAD, ST. THOMAS TOWN POST LINGARAJAPURAM BANGALORE - 560 084 REPRESENTED BY ITS REGIONAL MANAGER SRI. ARUN. …PETITIONER (BY SRI. BHARATH K, ADVOCATE) AND: 1. THE STATE OF KARNATAKA REPRESENTED BY ITS CHIEF SECRETARY 101, 1ST FLOOR, VIKAS SOUDHA NEAR VIDHANA SOUDHA DR. B.R. AMBEDKAR VEEDHI BENGALURU - 560 001. 2. KARNATAKA STATE MINORITIES COMMISSION Digitally signed by SUMA B N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:31706 WP No. 21501 of 2018 C/W WP No. 15499 of 2018 HAVING ITS OFFICE AT 5TH FLOOR, V.V. TOWER, VISWESWARAIAH CENTRE, DR. B.R. AMBEDKAR VEEDHI BANGALORE - 560 001 REPRESENTED BY ITS CHAIRMAN. 3. NEELUFAR BANU AGED MAJOR W/O LATE SAJJID AHAMED R/AT NO.08, RAMAKRISHNA GARDEN NEELASANDRA, BENGALURU - 560 047. 4. JAVED ALI KHAN AGED MAJOR S/O R FAZLULLAH R/AT NO.22, 2ND MAIN, BHUVANESHWARI NAGAR R.T. NAGAR POST BANGALORE - 560 032. 5. AKRAM PASHA AGED MAJOR S/O MOHAMMED ABBAS R/AT NO.86, 1ST CROSS, ANAPALYA NEELSANDRA BANGALORE - 560 047. 6. MOHAMMED TARIQ AGED MAJOR S/O MOHAMMED BASHA R/AT NO.19/24, 1ST CROSS 3RD MAIN, KUSHAL NAGAR K.G. HALLI, BANGALORE - 560 045. 7. AHAMED ALI BAIG - 3 - HC-KAR NC: 2026:KHC:31706 WP No. 21501 of 2018 C/W WP No. 15499 of 2018 AGED MAJOR S/O IBRAHIM BAIG R/AT NO.148, 7TH CROSS, MUNESHWARANAGAR SHAMPURA MAIN ROAD BANGALORE - 560 045. 8. MEHABOOB ALI KHAN S/O LATE H.M.MUSTHAFA KHAN AGED MAJOR R/AT NO.23, 1ST CROSS, 1ST MAIN ROAD, BEHIND SHANTHISAGAR HOTEL, R.T. NAGAR, BANGALORE - 560 032. 9. MRS. HABEEBUNNISA IMRAN W/O IMBRAN PASHA AGED MAJOR R/AT NO.23, 7TH B MAIN, N.G. LAYOUT, L.R. BANDE BANGALORE - 560 032. 10. AHAMED KHAN S/O GHULAM RASOOL AGED ABOUT 49 YEARS, R/AT NO.16, NDB LAYOUT DINNE HOSAHALLI, CHIKKABALLAPURA TOWN CHIKKABALLAPURA DISTRICT - 562 101. …RESPONDENTS (BY SRI. SRINIVAS KUMAR M, HCGP FOR R1; SRI. ZAMEER PASHA, ADVOCATE FOR R2; R5 - AKRAM PASHA - SERVED; R6 - MOHAMMED TARIQ - SERVED) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE - 4 - HC-KAR NC: 2026:KHC:31706 WP No. 21501 of 2018 C/W WP No. 15499 of 2018 ANTEDATED ORDER DATED 19.4.2018 PASSED BY THE R-2 AGAINST THE PETITIONER IN CASE NO. KSMC/ CHM/ C - 03/2018/05 (PROCEEDINGS NO. 303), VIDE ANNEX-H AND ETC., IN WP NO. 15499/2018 BETWEEN: M/S. MUTHOOT FINANCE HAVING ITS REGIONAL OFFICE AT NO.84/3, UCF CENTRE HENNUR MAIN ROAD, ST. THOMAS TOWN POST LINGARAJAPURAM BANGALORE - 560 084 REPRESENTED BY ITS GENERAL MANAGER SRI. ARUN. ...PETITIONER (BY SRI. BHARATH K, ADVOCATE) AND: 1. THE STATE OF KARNATAKA REPRESENTED BY ITS CHIEF SECRETARY 101, 1ST FLOOR, VIKAS SOUDHA NEAR VIDHANA SOUDHA DR. B.R. AMBEDKAR VEEDHI BENGALURU - 560 001. 2. KARNATAKA STATE MINORITIES COMMISSION HAVING ITS OFFICE AT 5TH FLOOR, V.V. TOWER, VISWESWARAIAH CENTRE, DR. B.R. AMBEDKAR VEEDHI BANGALORE - 560 001 REPRESENTED BY ITS SECRETARY/ AUTHORIZATION. - 5 - HC-KAR NC: 2026:KHC:31706 WP No. 21501 of 2018 C/W WP No. 15499 of 2018 3. NEELUFAR BANU W/O LATE SAJJID AHAMED R/AT NO.08, RAMAKRISHNA GARDEN NEELASANDRA, BENGALURU - 560 047. 4. JAVED ALI KHAN S/O R FAZLULLAH NO.22, 2ND MAIN, BHUVANESHWARI NAGAR R.T. NAGAR POST BANGALORE - 560 032. 5. AKRAM PASHA S/O MOHAMMED ABBAS NO.86, 1ST CROSS, ANAPALYA NEELSANDRA BANGALORE - 560 047. 6. MOHAMMED TARIQ S/O MOHAMMED BASHA R/AT NO.19/24, 1ST CROSS 3RD MAIN, KUSHAL NAGAR K.G. HALLI, BANGALORE - 560 045. 7. AHAMED ALI BAIG S/O IBRAHIM BAIG NO.148, 7TH CROSS, MUNESHWARANAGAR SHAMPURA MAIN ROAD BANGALORE - 560 045. 8. M.A. KHAN NO.23, IST CROSS, 2ND BLOCK, P & T COLONY, R.T.NAGAR, BANGALORE - 560 032. - 6 - HC-KAR NC: 2026:KHC:31706 WP No. 21501 of 2018 C/W WP No. 15499 of 2018 9. IMRAN PASHA NO.23, 7TH B MAIN, N.G. LAYOUT, L.R. BANDE, BANGALORE - 560 032. 10. AHAMED KHAN S/O GULAM RASSOL KHAN AGED ABOUT 49 YEARS R/A: 2ND CROSS, KANAKAN NAGAR HEBBAL, BENGALURU - 560 024. ...RESPONDENTS (BY SRI. SRINIVAS KUMAR M, HCGP FOR R1; SRI. MOHAMMED RAYEEF, ADVOCATE FOR R6; SRI. R. KOYHWAL, ADVOCATE FOR R8; SRI. ZAMEER PASHA, ADVOCATE FOR R2; R7 - AHAMED ALI BAIG - SERVED R8 - M.A. KHAN - SERVED; VIDE ORDER DATED 04.02.2019, WP IS DISMISSED, QUA, R3 TO R5, R9 AND R10) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO-DECLARE RULE 5A AND 5K OF THE KARNATAKA STATE MINORITIES COMMISSION [AMENDMENT] RULES, 2017 AS ULTRAVIRES THE PROVISIONS OF SECTIONS 10, 10A READ WITH SECTION 17 OF THE KARNATAKA STATE MINORITY COMMISSIOENR ACT, 1994 AND ETC., THESE PETITIONS, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE M.G.S. KAMAL - 7 - HC-KAR NC: 2026:KHC:31706 WP No. 21501 of 2018 C/W WP No. 15499 of 2018 ORAL ORDER Petitioner - a financial company is before this Court being aggrieved by the order dated 19.04.2018 in WP No.21501/2018 and notice dated 03.01.2018 in WP No.15499/2018 issued by respondent No.2- Commission. In terms of which, in purported exercise of its power under Section 10 of the Karnataka State Minorities Commission Act, 1994 (for short 'the Act'), the Commission has directed the petitioner herein to return the gold ornaments and cash deposited by the private respondents and has further directed the regulatory authorities to conduct enquiry into functioning of the petitioner-company. 2. Learned counsel for the petitioner submits that the order impugned is one without authority of law. He submits that the Commission can at the most pass order with a recommendatory nature as contemplated under Section 10 of the Act and cannot pass an executory order. Hence, seeks for allowing of the petition. 3. In response, learned counsel for the respondents submits that, if matter is remitted to the Commission, matter will be reconsidered and appropriate order strictly in accordance with the provisions of the Act will be passed. - 8 - HC-KAR NC: 2026:KHC:31706 WP No. 21501 of 2018 C/W WP No. 15499 of 2018 4. Submission is placed on record. 5. The operative portion of the impugned order reads as under: " The respondent company, Muthoot Finance Ltd., is directed to return the gold ornaments and cash deposited by the complainants with Mr. Ahmed Khan, the then Branch Manager, Sultanpalya Branch, Bangalore without any encumbrances. The Regulatory Authorities be requested to cause enquiry into the functioning of the Muthoot Finance Ltd., as many complaints of breach of trust and cheating are reported in the Press." 6. Section 10 of the Act reads as under: 10. Functions of the Commission.- (1) The functions of the Commission shall be as follows :- (a) to examine the working of various safeguards provided in the Constitution and in the laws passed by the State Legislature for the protection of minorities; (b) to make recommendations with a view to ensuring effective implementation and enforcement of all the safeguards; [(bb) to make recommendations for implementing the Prime Ministers new 15 Point Programme.] (c) to monitor the working of the safeguards provided in the constitution, laws enacted by the State Legislature and policies and schemes of the Government for minorities; (d) to conduct studies, research and analysis on the questions of avoidance of discriminations against minorities; - 9 - HC-KAR NC: 2026:KHC:31706 WP No. 21501 of 2018 C/W WP No. 15499 of 2018 (e) to make a factual assessment of the representation on minorities in the services of the Government undertakings, Government and quasi- Government bodies and in case representation is inadequate, to suggest ways and means to achieve the desired level; (f) to make recommendations for ensuring, maintaining and promoting communal harmony in the State; (g) to make periodical reports at prescribed intervals to the Government; (h) to study any other matter which in the opinion of the Commission is important from the point of view of the welfare and development of minorities and to make appropriate recommendation; (i) to consider the grievances of the minorities and to suggest appropriate solution from time to time; (j) to look into specific complaints regarding deprivation of rights and safeguards of minorities and take up such matter with the appropriate authorities: Provided that if any matter specified in sub-section (1) is undertaken by the National Commission for Minorities constituted under section 3 of the National Commission for Minorities Act, 1992 (Central Act 19 of 1992), the State Commission for Minorities shall cease to have jurisdiction in such matters. (2) The Government shall cause the recommendations of the Commission to be laid before each House of the State Legislature along with the memorandum explaining the action taken or proposed to be taken on the recommendations and the reasons for non-acceptance, of any such recommendations." 7. Perusal of Section 10 of the Act indicates that, the Commission when called upon to look into the allegations of violation of any statutory safeguard provided to the persons - 10 - HC-KAR NC: 2026:KHC:31706 WP No. 21501 of 2018 C/W WP No. 15499 of 2018 governed under the Act can only pass orders in the recommendatory nature to be taken by the appropriate authorities thereafter. It cannot on its own sit and pass executive orders. However, in the light of the submission made by the respondent No.2, provided an opportunity to reconsider the matter, this Court passes the following order: ORDER (i) Writ petitions are allowed. (ii) Order dated 19.04.2018 and notice dated 03.01.2018 issued by respondent No.2- Commission are quashed. Matter is remitted to the Commission to consider strictly within the provisions of Section 10 of the Act and pass appropriate order as contemplated there under. Sd/- (M.G.S. KAMAL) JUDGE SPV List No.: 1 Sl No.: 6