- 1 - HC-KAR NC: 2026:KHC:5326 CRL.A No. 555 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30TH DAY OF JANUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE G BASAVARAJA CRIMINAL APPEAL NO. 555 OF 2024 (KPIDFE) BETWEEN: MR. MOTTY JOHN, AGED 51 YEARS, RESIDING FLAT NO.405, B BLOCK, MAHAVEER CALYX, NYANAPANAHALLI, BTM-4TH STAGE, BANGALORE PIN CODE-560076 …APPELLANT (BY SRI. SUSHEEL SHANKAR, ADVOCATE) AND: 1. THE COMPETENT AUTHORITY FOR M/S. SHREE SHAKTHI CREDIT SOUHARDA COOPERATIVE LTD., REPRESENTED BY ITS COMPETENT AUTHORITY, JOINT REGISTRAR OF COOPERATIVE SOCIETIES, 3RD FLOOR, 'A' BLOCK, TTMC BUILDING, SHANTHINAGAR, BENGALURU, PIN CODE-560027 2. M/S. SHREE SHAKTHI CREDIT SOUHARDA COOPERATIVE LTD., NO.171/1, 6TH CROSS, 8TH MAIN ROAD, MALLESHWARAM, BENGALURU-560003 REPRESENTED BY ITS OFFICIAL LIQUIDATOR, SOUHARDA SAHAKARI SOUDHA, NO.68, 1ST FLOOR, BETWEEN 17TH AND 18TH CROSS, MARGOSA ROAD, MALLESHWARAM, BENGALURU, Digitally signed by MARKONAHALLI RAMU PRIYA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:5326 CRL.A No. 555 of 2024 PIN CODE-560055 3. M/S. KUMAR ENTERPRISES, NO.9, 1ST FLOOR, 7TH CROSS, 7TH MAIN, MALLESHWARAM, BENGALURU-560003 REPRESENTED BY ITS PARTNER, SRI SUKUMAR B., NO.193/17, 1ST CROSS, GIRINAGAR, IV PHASE, OPPOSITE VINAYAKA HOSPITAL, BENGALURU, PIN CODE-560085 4. SMT. TARA, W/O MR. SINAPPA, AGED ABOUT 46 YEARS, RESIDING AT NO.316, DEVARACHIKKANAHALLI, B.G. ROAD, BENGALURU-560085 5. MAHAVEER CALYX APARTMENT OWNERS WELFARE ASSOCIATION, REPRESENTED BY ITS SECRETARY, MAHAVEER CALYX, NYANAPANAHALLI, BTM-4TH STAGE, BENGALURU PIN CODE-560076 6. M/S S.A. DEVELOPERS, A PROPRIETORSHIP CONCERN, REPRESENTED BY ITS PROPRIETOR, MR. SYED ALEEMULLA, HAVING ITS OFFICE AT NO.950, 1ST FLOOR, 27TH "A" MAIN, 9TH BLOCK, JAYANAGAR, BENGALURU, PIN CODE-560069 …RESPONDENTS (BY SRI. VEERESH R BUDIHAL, ADVOCATE FOR RESPONDENT NO.1; SRI. A. DEVARAJA, ADVOCATE FOR RESPONDENT NO.2; SRI. B.S.RADHANANDAN, ADVOCATE FOR RESPONDENT NO.6; NOTICE TO RESPONDENT NOS.3 AND 5 IS SERVED) - 3 - HC-KAR NC: 2026:KHC:5326 CRL.A No. 555 of 2024 THIS CRL.A IS FILED UNDER SECTION 16 OF THE KPIDFE ACT PRAYING TO SET ASIDE THE ORDER DATED 30.06.2023 IN MISC.NO.298/2023 PASSED BY THE XCI ADDITIONAL CITY CIVIL AND SESSIONS JUDGE (SPECIAL COURT) (CCH-92). THIS APPEAL, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE G BASAVARAJA ORAL JUDGMENT The appellant-Mr.Motty John has preferred this appeal under Section 16 of the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004 (henceforth referred to as 'KPIDFE Act'), against the order passed by the XCI Additional City Civil and Sessions Judge and Special Judge for KPIDFE Cases, Bengaluru (CCH-92) (for short 'trial Court'), in Misc.No.298/2023 dated 30.06.2023. 2. The trial Court has allowed the petition filed by the petitioner - the competent authority for M/s Shree Shakthi Credit Souhardha Co-operative Ltd., represented by its competent authority, the Joint Registrar of Co- - 4 - HC-KAR NC: 2026:KHC:5326 CRL.A No. 555 of 2024 operative Societies under Section 5(2) of the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004, with costs. 3. Further, the trial Court has passed the order as under: "Consequently by exercising the power confirmed under Section 12(4) of KPIDFE Act, the interim order of attachment passed by the Government vide notification No.RD.02.GRC.2015, Bengaluru, dated 07.02.2019 is hereby made absolute with regard to the petition 'A' schedule property for recovery of earnest money of Rs.30,00,000/-(Rupees Thirty Lakhs) paid to respondent No.3 with regard to the said property with interest at 12% per annum from the date of sale agreement till realization, subject to condition that, if the respondent No.3, deposits the earnest money with interest as ordered within 30 days with the petitioner competent authority, the attachment order of the said property stands canceled. If the respondent No.3 fails to deposit the amount as ordered, the competent authority is hereby directed to take steps expeditiously for realization of the amount from the said attached property and for equal distribution of the amount - 5 - HC-KAR NC: 2026:KHC:5326 CRL.A No. 555 of 2024 realized from said property among the depositors of the respondent No.1 Co-operative Ltd., in accordance with law. If the excess amount is received from the said property, then the excess amount has to be paid to the Respondent No.3 after deducting the expenses incurred. The petitioner shall submit the periodical report once in two moths with regard to the steps taken in this regard." 4. The office has made a note that writ petition may be preferred. 5. The learned counsel for the respondents would submit that in view of the list of case types in the High Court of Karnataka, any order passed in the miscellaneous cases, the appeal comes under the category of Miscellaneous First Appeal. 6. The impugned order passed by the trial Court is not criminal in nature. Hence, I proceed to pass the following order: - 6 - HC-KAR NC: 2026:KHC:5326 CRL.A No. 555 of 2024 ORDER i. This appeal is dismissed as not maintainable; ii. The appellant is at liberty to take proper legal steps before the appropriate Court in accordance with law; iii. The appellant is permitted to avail the benefit of the provisions of Section 14 of the Indian Limitation Act, 1963. Office is directed to return the copy of the impugned order and other documents to the appellant for taking further steps. Sd/- (G BASAVARAJA) JUDGE BKN List No.: 1 Sl No.: 5