Case Note & Summary
The appellant, Branch Manager of Karnataka State Financial Corporation (KSFC), appealed against an interim order dated 12.05.2015 passed by a learned Single Judge in W.P.No.103642/2015. The respondent, M/s. Gayathri Agro Products, a partnership firm, had filed the writ petition seeking to quash an order dated 18.03.2015 (Annexure-E) and for a mandamus directing the appellant to handover possession of the assets of M/s. Kotturu Basaveshwara Industries of Karatagi. The learned Single Judge, while entertaining the writ petition, passed an interim order directing the appellant to handover possession of the assets. Aggrieved, the appellant filed this writ appeal under Section 4 of the Karnataka High Court Act, 1961. The Division Bench, after hearing both sides, noted that the writ petition was still pending and that the interim order effectively granted the final relief sought in the writ petition. The court held that such an interim order could not be sustained as it would render the writ petition infructuous. Accordingly, the appeal was allowed, the interim order dated 12.05.2015 was set aside, and the learned Single Judge was requested to dispose of the writ petition expeditiously. The court also directed that the parties shall maintain status quo in respect of the assets of M/s. Kotturu Basaveshwara Industries until the disposal of the writ petition.
Headnote
A) Writ Law - Maintainability of Appeal - Interim Order - Section 4 of Karnataka High Court Act, 1961 - The court considered whether a writ appeal lies against an interim order passed by a learned Single Judge in a writ petition. The Division Bench held that the appeal is maintainable and proceeded to hear the matter on merits, setting aside the interim order as the writ petition itself was pending and the interim direction effectively granted the final relief sought. (Paras 1-5) B) Financial Corporation - Possession of Assets - Interim Relief - State Financial Corporations Act, 1951 - The respondent sought quashing of an order dated 18.03.2015 and mandamus for handover of possession of assets of M/s. Kotturu Basaveshwara Industries. The learned Single Judge passed an interim order directing the appellant/KSFC to handover possession. The Division Bench set aside the interim order, holding that granting such interim relief would amount to allowing the writ petition itself at the interim stage. (Paras 3-5)
Issue of Consideration
Whether a writ appeal under Section 4 of the Karnataka High Court Act, 1961 is maintainable against an interim order passed by a learned Single Judge in a writ petition directing the appellant to handover possession of assets.
Final Decision
The appeal is allowed. The interim order dated 12.05.2015 passed in W.P.No.103642/2015 is set aside. The learned Single Judge is requested to dispose of the writ petition as expeditiously as possible. The parties shall maintain status quo in respect of the assets of M/s. Kotturu Basaveshwara Industries until the disposal of the writ petition.
Law Points
- Maintainability of writ appeal against interim order
- Section 4 of Karnataka High Court Act
- 1961
- Interim relief in writ petition
- Possession of assets by financial corporation
