- 1 - HC-KAR NC: 2026:KHC:17994 WP No. 10767 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2ND DAY OF APRIL, 2026 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI WRIT PETITION NO. 10767 OF 2024 (GM-DRT) BETWEEN: THE SECRETARY KARNATAKA INDUSTRIAL AREA DEVELOPMENT BOARD, NO.49, 4TH AND 5TH FLOOR, KHANIJA BHAVAN, RACE COURSE ROAD BENGALURU-560 070 &PETITIONER (BY SMT.NAMITHA S., ADVOCATE FOR SRI. H.L.PRADEEP KUMAR, ADVOCATE) AND: 1. KARNATAKA STATE FINANCIAL CORPORATION JAYANAGARA BRANCH 8TH FLOOR, JAYANAGAR SHOPPING COMPLEX, 4TH FLOOR, JAYANAGAR BENGALURU-560 022 BY ITS DEPUTY GENERAL MANAGER 2. M/S KINETIX SOLUTIONS PVT. LTD., NO.1036, SRINIDHI PLAZA IIND FLOOR, 14C MAIN, Digitally signed by SUVARNA T Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:17994 WP No. 10767 of 2024 BANASHANKARI II STAGE, BANGALORE-560 070 REPRESENTED BY ITS MANAGING DIRECTOR, SRI. UDAY PRAKASH BHAT 3. SRI UDAY PRAKASH BHAT MANAGING DIRECTOR M/S KINETIX SOLUTION PVT. LTD., NO.1036, SRINIDHI PLAZA IIND FLOOR, 14 C MAIN, BANASHANKARI II STAGE, BANGALORE-560 070 4. SRI. DEEPAK BHAT DIRECTOR M/S KINETIX SOLUTION PVT. LTD., NO.1036, SRINIDHI PLAZA IIND FLOOR, 14C MAIN, BANASHANKARI II STAGE, BANGALORE-560 070 5. SMT. SHILPASHREE G., M/S KINETIX SOLUTION PVT. LTD., FLAT NO.2103, PRESTIGE SOUTH RIDGE APARTMENT, HOSKEREHALLI, BSK 3RD STAGE BANGALORE-560 085 6. SMT. CHAITRA NARASHIMA BHAT DIRECTOR M/S KINETIX SOLUTION PVT. LTD., 2113, PRESTIGE SOUTH RIDGE APARTMENT, HOSKEREHALLI BSK 3RD STAGE BANGALORE-560 085 - 3 - HC-KAR NC: 2026:KHC:17994 WP No. 10767 of 2024 7. SRI. SANDEEP SUDHINDRA CEO AND DIRECTOR M/S KINETIX SOLUTION PVT. LTD., NO.1036, SRINIDHI PLAZA IIND FLOOR, 14C MAIN, BANASHANKARI II STAGE, BANGALORE-560 070 8. IDBI BANK LTD SHANKE COMFORT TOWER 102, K H ROAD, BENGALURU-560 027 BY ITS AUTHORIZED OFFICER / ASST. GENERAL MANAGER &RESPONDENTS (BY SRI.MALIPATIL P.S., ADVOCATE FOR R1 V/O/DATED: 10/04/2024, NOTICE TO R2 TO R8 IS DISPENSED WITH) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO CALL FOR RECORDS AND QUASH THE ORDER DATED 22/12/2023 PASSED ON IA NO. 1992/2023 IN OA NO. 1793/2018 PRODUCED AT ANNEXURE-E. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE SMT. JUSTICE LALITHA KANNEGANTI - 4 - HC-KAR NC: 2026:KHC:17994 WP No. 10767 of 2024 ORAL ORDER The present writ petition is filed seeking the following prayer: "Wherefore, the petitioner most humbly prays that this Hon9ble Court be pleased to, a) Call for record; b) Issue a writ of certiorari or any other appropriate writ or order, directions, quashing the order dated 22.12.2023 passed on I.A No.1992/2023 in OA No.1793/2018 produced at Annexure-E. c) Issue writ, order, direction to the Debt recovery Tribunal-II, Bengaluru to permit the petitioner-Defendant No.7 to lead their evidence. d) Grant such other relief, order or direction to the respondents in the circumstances of the case." 2. The petitioner is defendant No.7 in O.A.No.1793/2018. 3. The facts of the case are that, from the first respondent Corporation, the loan was availed by defendant Nos.1 to 6. After sanction of term loan have jointly executed a deed of guarantee dated 19.02.2016 primary security of land allotted by defendant No.7. After releasing the amount to defendant No.1, out of which, a sum of Rs.5,12,00,000/- was - 5 - HC-KAR NC: 2026:KHC:17994 WP No. 10767 of 2024 released to defendant No.7 through RTGS through M/s Canara Bank, Jayanagar towards plot allotted to defendant No.1 and for issue of receipt of Rs.5,12,00,000/- and also requested to send lease cum sale agreement executed by defendant No.7 to the applicant. The defendant No.7 has executed a receipt dated 25.02.2016 for having received through RTGS for lease of plots allotted to defendant No.1. The defendant No.7 has executed MOU that it is agreed between KIADB and KSFC that if KIADB cancels the allotment of original allottee, in such cases KSFC is entitled to take over land and sell the same for recovery of its dues. The said MOU is signed by the director KIADB and KSFC. Defendant Nos.1 to 6 have not implemented the project and have not repaid the loan. Hence, the Corporation has issued notices to defendants No.1 to 6 for the repayment of the loan amount and defendant No.1 has obtained Bank guarantee for Rs.5 crores which is valid till 30.11.2019. In view of the default, the Corporation has filed O.A before the Tribunal and the petitioner before this Court is arrayed as defendant No.7. The evidence of defendant No.7 is closed on 06.09.2023. Thereafter I.A.No.1992/2023 is filed by the petitioner seeking to reopen the case and permit defendant No.7 to lead his - 6 - HC-KAR NC: 2026:KHC:17994 WP No. 10767 of 2024 evidence. That came to be dismissed by order impugned. The Tribunal while dismissing the application has observed that on examination of the records and the proceedings sheet of the case, it is clear that defendant No.7 has filed vakalat on 18.03.2019 and has filed written statement on 25.07.2019 along with I.A.No.1992/2023 to recall the order and permit them to lead the evidence. In view of the above and for the reasons stated above, I.A.No.1992/2023 stands dismissed. 4. The learned counsel appearing for the petitioner submits that the impugned order is bereft of reasons. The Tribunal has only discussed the submissions of the Bank. Then when it comes to the order, simply has dismissed the I.A. It is submitted that the Tribunal ought to have looked at the substantial interest of the parties and ought to have allowed the application. It is submitted that unless this application is allowed, it would cause a lot of hardship to the petitioner. 5. The learned counsel appearing for the respondent/Bank submits that the Tribunal has rightly observed that from the year 2019 till 2023, defendant No.7 has not evinced any interest, as such the Tribunal has closed the - 7 - HC-KAR NC: 2026:KHC:17994 WP No. 10767 of 2024 evidence and thereafter I.A.No.1992/2023 filed. This is nothing but the delaying tactics and the petitioner cannot be permitted to lead evidence and the Tribunal has rightly considered all these aspects and dismissed the I.A. It is submitted that Co- ordinate Bench of this Court on 10.04.2024 granted order of stay and from the said date the entire proceedings before the DRT are stalled by virtue of the interim order. 6. Having heard the learned counsels on either side, perused the material on record. There is no dispute about the fact that the defendant No.7 has filed vakalat on 18.03.2019, written statement filed on 25.07.2019, evidence of defendant No.7 is closed on 06.09.2023 and the impugned order is passed on 22.12.2023. The entire proceedings before the DRT are closed. The Tribunal ought to have given a reasonable opportunity by imposing the conditions and also perusal of the order discloses that the order is not a reasoned order. Considering the facts and circumstances of the case and to put a quietus to the litigation, whereby, if defendant No.7 is given an opportunity to lead evidence, the litigation can be taken to a logical end. - 8 - HC-KAR NC: 2026:KHC:17994 WP No. 10767 of 2024 7. In these circumstances, this Court is passing the following: ORDER i. The order dated 22.12.2023 passed by the Tribunal on I.A No.1992/2023 in O.A.No.1793/2023 is set aside. ii. The petitioner shall conclude the evidence without seeking further adjournment within 30 days from the date of receipt of the copy of the order. iii. For any reason, if the petitioner fails to adduce evidence, the Tribunal shall pass appropriate orders in accordance with law. iv. Accordingly, the writ petition is disposed of. v. All pending I.As if any, in the petition shall stand closed. SD/- (LALITHA KANNEGANTI) JUDGE PKN List No.: 1 Sl No.: 8