- 1 - HC-KAR NC: 2026:KHC:2695-DB WA No. 1151 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19TH DAY OF JANUARY, 2026 PRESENT THE HON'BLE MRS. JUSTICE ANU SIVARAMAN AND THE HON'BLE MR. JUSTICE VIJAYKUMAR A. PATIL WRIT APPEAL NO.1151 OF 2023 (GM-RES) BETWEEN: 1. UNION OF INDIA THROUGH THE SECRETARY MINISTRY OF FINANCE DEPARTMENT OF REVENUE GOVERNMENT OF INDIA NORTH BLOCK, NEW DELHI-110 001 2. THE INITIATING OFFICER UNDER THE PBPT ACT 1988 DEPUTY COMMISSIONER OF INCOME TAX (BPU) No.208, 2ND FLOOR CR BUILDING, QUEEN'S ROAD BENGALURU-560 001 …APPELLANTS (BY SRI. DILIP M., ADVOCATE) AND: 1. SRI. H.N. SHOBHAN S/O HVN MURTHY AGED ABOUT 50 YEARS No.23, RAJEEV NAGARA 7TH MAIN, 4TH PHASE, 7TH BLOCK, 3RD STAGE, BANASHANKARI, BENGALURU-560 085 Digitally signed by BANGALORE ANJANAPPA KRISHNA KUMAR Location: High Court of Karnataka - 2 - HC-KAR NC: 2026:KHC:2695-DB WA No. 1151 of 2023 2. SRI. K.S. ESWARAIAH S/O SHIVANNA K.S. AGED ABOUT 54 YEARS No.204, 2ND FLOOR SLLR MANSION, 12TH MAIN 1ST BLOCK, RAJAJINAGARA, BENGLAURU-560 010 3. SRI. SURESH JAGANNATH SHETTY S/O JAGANNATH SHETTY AGED ABOUT 49 YEARS RAJKMAL KEDAR, UDAYAVARA, UDUPI-574 118 4. SRI. RUPESH JANGID S/O SATYANARAYAN AGED ABOUT 39 YEARS No.261, 80 FEET ROAD BANK COLONY, 9TH MAIN, 3RD STAGE, 2ND PHASE, BANASHANKARI BENGALURU-560 085 5. M/S. SOBHA LTD. SOBHA SARJAPURA-MARATHAHALLI OUTER RING ROAD (ORR) BELLANDUR POST, BENGALURU-560 103 6. THE SUB REGISTRAR BANASHANKARI NEXT TO APMC YARD KANAKAPURA ROAD BANASHANKARI, BENGALURU-560 070 7. THE INSPECTOR GENERAL OF REGISTRATION AND COMMISSIONER OF STAMPS KANDAYA BHAVANA 8TH FLOOR, K.G. ROAD, BENGALURU-560 001 …RESPONDENTS THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE KARNATAKA HIGH COURT ACT, 1961, PRAYING THIS HON'BLE COURT TO (a) SET ASIDE THE ORDER DATED 05.09.2022 IN - 3 - HC-KAR NC: 2026:KHC:2695-DB WA No. 1151 of 2023 WP No.11523/2020 PASSED BY THE LEARNED SINGLE JUDGE AND ETC. THIS APPEAL, COMING ON FOR HEARING ON INTERLOCUTORY APPLICATION, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MRS. JUSTICE ANU SIVARAMAN and HON'BLE MR. JUSTICE VIJAYKUMAR A. PATIL ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE VIJAYKUMAR A. PATIL) The appellants have called in question the correctness of the order passed in W.P.No. 11523/2020. 2. It must be noticed that the learned Single Judge while disposing off the writ petition by order dated 05.09.2022 had relied on the order of the Apex Court in the case of Union of India and another v. M/s Ganpati Dealcom Pvt. Ltd., reported in 2022 SCC ONLINE SC 1064. The learned Single Judge noticing the order of the Apex Court whereby Section 5 of the Benami Transactions (Prohibition) Act, 1988 having been held to be unconstitutional had disposed the writ petition while setting aside the impugned order passed by the revenue. It is noticed that subsequently the Union of India had sought for - 4 - HC-KAR NC: 2026:KHC:2695-DB WA No. 1151 of 2023 review of the order passed by the Apex Court declaring provision of the Benami Transactions (Prohibition) Act to be unconstitutional. The said review petition came to be allowed by the Apex Court through its order dated 18.10.2024 reported in Union of India v. Ganpati Dealcom (P) Ltd., [2024] 167 TAXMANN.COM 525 (SC). The Apex Court had made in its order certain observations at Para – 5, 6 and 7 and the same are extracted herein below: “5. It is not disputed that there was no challenge to the constitutional validity of the unamended provisions. This is also clear from the formulation of the question which arose for consideration before the Bench in paragraph 3 of the judgment, which has been extracted above. In the submissions of parties which have been recorded in the judgment, the issue of constitutional validity was not squarely addressed. 6. A challenge to the constitutional validity of a statutory provision cannot be adjudicated upon in the absence of a lis and contest between the parties. We accordingly allow the review petition and recall the judgment dated 23 August 2022. Civil Appeal No 5783 of 2022 shall stand restored to file for fresh - 5 - HC-KAR NC: 2026:KHC:2695-DB WA No. 1151 of 2023 adjudication before a Bench to be nominated by the Chief Justice of India on the administrative side. 7. Where any other proceedings have been disposed of by relying on the judgment of this Court in Ganpati Dealcom Private Ltd (supra), liberty is granted to the aggrieved party to seek a review in view of the present judgment.” 3. It must be noticed that in terms of the observation made in the review, the Apex Court had restored the adjudication in Civil Appeal No.5783 of 2022 while recalling the judgment dated 23.08.2022. Further at Para – 7 of the order, Apex Court had observed that where any proceedings had been disposed off by relying on the judgment of the Court in Union of India and another v. Ganpati Dealcom Pvt. Ltd., (2023) 3 SCC 315, liberty was granted to the aggrieved party to seek a review in light of the present judgment. 4. In the present case, while noticing that the order of the learned Single Judge which is in question herein was also based on the order of the Apex Court in Ganpati Dealcom Private Limited prior to review the order of the learned Single Judge would also require to be reviewed and matter re-adjudicated in - 6 - HC-KAR NC: 2026:KHC:2695-DB WA No. 1151 of 2023 light of the observations at Para – 7 of the order passed in review by the Apex Court. Accordingly, the writ appeal is allowed. The order dated 05.09.2022 in W.P.No.11523/2020 is set aside and matter is remitted to the learned Single Judge for fresh consideration. 5. All contentions are kept open. Sd/- (ANU SIVARAMAN) JUDGE Sd/- (VIJAYKUMAR A. PATIL) JUDGE RAK List No.: 1 Sl No.: 29