Research › Search › Judgment

High Court of Karnataka · body

2026 DAILYLAW 38385 (KAR)

M/S ARUN SHELTERS PVT LTD v. MRS.SAHIRA BANU

WP/4983/2025 · 2026-09-01

D K Singh, H Shanthi Bhushan

body2026

Judgment text

Extracted from the PDF above. The PDF is authoritative.

- 1 - HC-KAR CNR: KAHC010112872025 NC: 2026:KHC:47445-DB WP No. 4983 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 1ST DAY OF SEPTEMBER, 2026 PRESENT THE HON'BLE MR. JUSTICE D K SINGH AND THE HON'BLE MR. JUSTICE H.SHANTHI BHUSHAN WRIT PETITION NO. 4983 OF 2025 (GM-CON) BETWEEN: 1. M/S ARUN SHELTERS PVT LTD., REPRESENTED BY ARUN KUMAR M, ITS MANAGING DIRECTOR, NO. 1/32, A KENCHANAHALLI, DODDABALLAPUR ROAD, YELAHANKA ROAD, BENGALURU-560 064. REG NO. IN NO.407010KA2005 PTCO35372 UNDER COMPANIES ACT, 1956. 2. SRI.ARUN KUMAR M S/O LATE MARISONNAPPA, AGED ABOUT 55 YEARS, R/AT NO.100, 4TH MAIN, AMARJYOTHI LAYOUT, R.T.NAGAR, BENGALURU-560 032. …PETITIONERS (BY SRI. VENKATESH R BHAGAT., ADVOCATE) AND: 1. MRS.SAHIRA BANU W/O MOHAMMED SALEEM GUARD, AGED ABOUT 25 YEARS, R/AT A2 -201, SHREE PRAKRITI APARTMENT, THINDLU MAIN ROAD, BENGALURU-560 097. Digitally signed by MALA K N Location: High Court of Karnataka - 2 - HC-KAR CNR: KAHC010112872025 NC: 2026:KHC:47445-DB WP No. 4983 of 2025 2. SRI. MOHAMMED SALEEM GUARD, S/O MOHAMMED YOUSUF, AGED ABOUT 59 YEARS, R/AT A2-201, SHREE PRAKRITI APARTMENT, THINDLU MAIN ROAD, BENGALURU-560 097. 3. THE KARNATAKA STATE CONSUMER DISPUTES REDRESSAL COMMISSION, BENGALURU GROUND FLOOR, BASAVA BHAVAN, SRI BASAVESHWARA CIRCLE, HIGH GROUNDS, SHIVAJI NAGAR, BENGALURU, KARNATAKA 560 001. REP BY ITS PRESIDENT …RESPONDENTS (BY SRI. PRAKASH B N.,ADVOCATE FOR R1 & R2; R3 SERVED AND UNREPRESENTED) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA READ WITH SECTION 528 OF THE BNSS 2023 PRAYING TO CALL FOR THE RECORDS PERTAINING TO EXECUTION PETITION No.49/2020 ON THE FILE OF KARNATAKA STATE CONSUMER DISPUTES REDRESSAL COMMISSION AT BENGALURU AND II) ISSUE WRIT IN THE NATURE OF CERTIORARI OR ANY OTHER WRIT, ORDER OR DIRECTION QUASHING THE IMPUGNED ORDER DATED 12.11.2024 PASSED ON IA FILED UNDER SECTION 239 OF CR.P.C OF 1973 AND NEW SECTION 262 OF BNSS, 2023 IN EXECUTION APPLICATION No-49/2020 ON THE FILE OF THE KARNATAKA STATE CONSUMER DISPUTES REDRESSAL COMMISSION, BENGALURU (PRINCIPAL BENCH) IN PURSUANT TO IMPUGNED ORDER AT ANNEXURE-A AND ALL THE FURTHER PROCEEDINGS PURSUANT THERETO IN THE INTEREST OF JUSTICE AND EQUITY. - 3 - HC-KAR CNR: KAHC010112872025 NC: 2026:KHC:47445-DB WP No. 4983 of 2025 THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE D K SINGH AND HON'BLE MR. JUSTICE H.SHANTHI BHUSHAN ORAL ORDER (PER: HON'BLE MR. JUSTICE D K SINGH) The present Writ Petition has been filed impugning the order dated 12.11.2024 passed in Interlocutory Application filed under Section 239 of Code of Criminal Procedure, 1973 (hereinafter referred to as Cr.P.C. for short) (Section 262 of the BNSS, 2023) in Execution Application No.49/2020 on the file of the Karnataka State Consumer Disputes Redressal Commission, Bengaluru (Principal Bench) (hereinafter referred to as State Commission for short). 2. The State Commission has rejected the application filed by the petitioners on the ground that the Managing Director and Directors of the judgment debtor - 4 - HC-KAR CNR: KAHC010112872025 NC: 2026:KHC:47445-DB WP No. 4983 of 2025 cannot be discharged from their liabilities, in view of the several judgments passed by the Supreme Court as noted in the impugned order. 3. In the present case, the respondents were lured by petitioners to invest with them of their hard earned Rs.40,00,000/- in order to have a house to be constructed by the petitioners. This amount of Rs.40,00,000/- was deposited in the year 2014. It is not even a brick laid by the realtors/builders and when the respondents had no hope to get the house and their hard earned money was misappropriated by the petitioner realtors, they filed a complaint before the State Commission in C.C.No.89/2016. The State Commission vide order dated 11.10.2019 directed the petitioners to refund Rs.40,00,000/- along with interest at the rate of 12% per annum from the date of the receipt till realisation within 8 weeks. When such aforesaid mandatory directions were not complied with by the petitioners or the judgment - 5 - HC-KAR CNR: KAHC010112872025 NC: 2026:KHC:47445-DB WP No. 4983 of 2025 debtors, the execution petition came to be filed in 2020 in Execution Petition No.49/2020. After the execution proceedings were filed, the petitioner - company was before the National Company Law Tribunal (for short NCLT) and NCLT vide order dated 31.01.2020, admitted the insolvency filed by the Kotak Mahindra Bank against the petitioners and appointed Interim Resolution Professional. The said fact was brought to the notice of the State Commission. The petitioners filed applications seeking discharge from the liability. The State Commission has rejected the application. 4. We have gone through the impugned order. This is well settled that the personal liability of the Directors would continue despite the order passed by the NCLT/NCLT in insolvency proceedings. 5. Therefore, the liability of respondent No. 2 will not get affected by the order passed in an insolvency proceedings by the NCLT. We are of the view that the - 6 - HC-KAR CNR: KAHC010112872025 NC: 2026:KHC:47445-DB WP No. 4983 of 2025 impugned order passed by the State Commission does not require any interference by this Court in exercise of its jurisdiction under Article 227 of the Constitution of India. We find this Writ Petition without merit and substance. 6. We therefore, dismiss this Writ Petition. Sd/- (D K SINGH) JUDGE Sd/- (H.SHANTHI BHUSHAN) JUDGE BVK List No.: 2 Sl No.: 8