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Karnataka HC backs property buyer, says judge shouldn’t be swayed by protest plea, Real Estate News, ET RealEstate

Karnataka HC backs property buyer, says judge shouldn't be swayed by protest plea, Real Estate News, ET RealEstate
BENGALURU: A magistrate shouldn’t be swayed by a protest petition filed by a complainant, the high court observed while coming to the rescue of a property buyer in Udupi district during an auction held by Karnataka State Financial Corporation.

Complainant BP Manjunath had challenged the police’s ‘B’ report by filing the protest petition, claiming purchaser CH Nagaraja Rao of Mysuru issued a life threat to him in November 2009 over his auctioned property.

Nagaraja Rao challenged the July 30, 2016 order passed by additional civil judge and JMFC, Udupi, directing registration of a criminal case against him. Allowing the petition, Justice M Nagaprasanna observed that the complainant in the case is a frustrated litigant who wanted to settle scores with the petitioner, who was an innocent purchaser in an auction process.

The judge said application of judicious mind by the magistrate while setting the criminal trial in motion, particularly in cases where a protest petition is filed against the ‘B’ report, becomes sine qua non (most necessary), failing which, the order taking cognisance of any allegation becomes a routine exercise.

“Merely because the property belonged to the complainant and it had been sold in public auction, the criminal trial couldn’t have been set in motion. It is in such cases that the magistrate should st have exercised care and caution while taking cognisance of the allegation of such offence,” the judge stated.

Manjunath’s wife had borrowed from KSFC and established Sri Durga Printers and Sri Durga Printers Conventional Hall in Brahmavar town. Following default in repayment of the loan, the property was put up for auction and Nagaraja Rao became the highest bidder. The property was directed to be handed over to Rao. However, Manjunath claimed the property worth more than Rs 55 lakh had been sold at Rs 29 lakh by KSFC. He filed objections to the auction proceedings.

On November 13, 2009, he registered a complaint for criminal intimidation under section 506 of IPC against the purchaser. However, police filed a ‘B’ report, stating there was no evidence against Rao in the case of criminal intimidation. Manjunath challenged it by filing a sworn statement and it was accepted, and an order was issued to register a criminal case against the purchaser.


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