- 1 - HC-KAR NC: 2026:KHC:35649-DB MFA No. 1341 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14TH 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.1341 OF 2026 (KPIDFA) BETWEEN: 1. ASHA N. AGED ABOUT 55 YEARS, W/O SRI. K. GOVINDAIAH, R/AT NO.73, 16TH CROSS, JAYALSHMAMMA LAYOUT, 2ND STAGE, NAGARBHAVI, BANGALORE 560072 2. B. S. PUSHPA SHANKAR, W/O B. S. SHANKAR, AGED 46 YEARS, R/A NO.2816/2, "KIRANA", 2ND STAGE, D BLOCK, 2ND MAIN ROAD, RAJAJINAGAR, BENGALURU 560010 3. SOMASHEKAR, AGED ABOUT 54 YEARS, S/O SRI. LAKSHMANA GOWDA, R/AT NO.3487, Digitally signed by PAVITHRA N Location: High Court of Karnataka - 2 - HC-KAR NC: 2026:KHC:35649-DB MFA No. 1341 of 2026 "SHIVADRI", 1ST FLORR, C BLOCK, 3RD CROSS, OLD 6TH CROSS, GAYATHRI NAGAR, BANGALORE 560021 4. RAMESH SUREGAONKAR, AGED ABOUT 54 YEARS, R/AT NO.352, 66TH CROSS, 5TH BLOCK, RAJAJINAGAR, BANGALORE 560010 5. SMT. MANJULA S, AGED ABOUT 63 YEARS, W/O SRI. S. K. RAMESH, R/AT NO.19, FIRST FLOOR, 4TH CROSS, AMARAJYOTHINAGAR, VIJAYANAGAR, NAGARBHAVI ROAD, BANGALORE- 560040 6. N. N. NARAYANA GOWDA, AGED ABOUT 54 YEARS, R/AT NO.33, 4TH CROSS, S.V. G. NAGAR, MOODALAPALYA, BANGALORE 560072 - 3 - HC-KAR NC: 2026:KHC:35649-DB MFA No. 1341 of 2026 7. SMT. SOWBHAGYA, AGED ABOUT 60 YEARS, W/O SRI. VENKATESH, R/AT NO.55, 10TH A CROSS, PRASHANTH NAGARA, BANGALORE 560079 8. S. K. LAKSHMANAMURTHY, S/O SRI. KRISHNAMURTHY, AGED ABOUT 76 YEARS, R/AT NO.401, 8TH A MAIN, 1ST B CROSS, 3RD STAGE, 4TH BLOCK BASAVESHWARANAGARA, BANGALORE 5600794 9. T. S RAJAN, AGED ABOUT 65 YEARS, S/O LATE SUBRAMANYAN, R/AT NO.S-36, KIRLOSKAR COLONY, 3RD SATEG, 4TH BLOCK, BASAVESHWARNAGAR, BANGALORE 560079 10. POORNIMA V, W/O B. VISHWANATH, AGED ABOUT 50 YEARS, R/AT 273-N, 1ST B CROSS, NEAR CHOWDESHWARI TEMPLE, H. M. T. LAYOUT, - 4 - HC-KAR NC: 2026:KHC:35649-DB MFA No. 1341 of 2026 MATHIKERE, BANGALORE 560054 11. SUJATHA P. S. W/O K. B. HANUMANTHE GOWDA, AGED ABOUT 54 YEARS, R/AT NO.9, R.H.C.S LAYOUT, ANNAPOORNESHWARI NAGAR, SRIGANDHADHAGAVAL, BANGALORE 560091 12. MANJULA C. K. W/O SRI. SANGAMESH GUDAGERI, AGED ABOUT 54 YEARS R/AT 323, CHANDRA SHEKAR AZAD ROAD, GAVIPURAM GUTTAHALLI, BANGALORE 560019 …APPELLANTS (BY SRI. K V NARASIMHAN, ADVOCATE) AND: 1. COMPETENT AUTHORITY FOR - M/S TGS CONSTRUCTIONS PVT. LTD., ASSISTANT COMMISSIONER, BENGALURU SOUTH SUB-DIVISION, BENGALURU, - 5 - HC-KAR NC: 2026:KHC:35649-DB MFA No. 1341 of 2026 2ND FLOOR, KANDAYA BHAVAN, K.G. ROAD, BENGALURU 560009 2. M/S TGS CONSTRUCTIONS PVT. LTD, REPRESENTED BY ITS MANAGING DIRECTOR, SMT. MANDEEP KAUR, R/AT NO. 577/B, II FLOOR, OUTER RING ROAD, TEACHERS COLONY KORAMANGALA, NEAR SILK BOARD, BENGALURU, 560034 3. SMT. MANDEEP KAUR, W/O SACHIN NAIK, R/AT NO. 577/B, II FLOOR, OUTER RING ROAD, TEACHERS COLONY KORAMANGALA, NEAR SILK BOARD, BENGALURU, 560068 4. SRI. SIDDARAJU, S/O LATE LINGAPPA, AGED ABOUT 58 YEARS, R/AT NO.7 KALYAN NAGAR MAIN ROAD, NAGARBHAVI, - 6 - HC-KAR NC: 2026:KHC:35649-DB MFA No. 1341 of 2026 2ND STAGE, BENGALURU - 560072 …RESPONDENTS (BY SRI. VEERESH R. BUDIHAL, ADV. FOR R1; V.C.O. DTD: 01.07.2026 NOTICE TO R2 TO R4 IS DISPENSED WITH) THIS MFA IS FILED U/S.16 OF THE KARNATAKA PROTECTION OF INTEREST OF DEPOSITORS IN FINANCIAL ESTABLISHMENTS ACT, 2004, AGAINST THE ORDER DT. 30.3.2022 PASSED IN MISC.NO.438/2020 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 U/S.5(2) OF THE KARNATAKA PROTECTION OF INTEREST OF DEPOSITORS IN FINANCIAL ESTABLISHMENTS ACT, 2004. THIS APPEAL, 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 - 7 - HC-KAR NC: 2026:KHC:35649-DB MFA No. 1341 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. 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 - 8 - HC-KAR NC: 2026:KHC:35649-DB MFA No. 1341 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 - 9 - HC-KAR NC: 2026:KHC:35649-DB MFA No. 1341 of 2026 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 PN List No.: 1 Sl No.: 20