Karnataka High Court Weekly Roundup: March 24 To March 31, 2025

Citation No: 2025 LiveLaw (Kar) 117 to 2025 LiveLaw (Kar) 126

Nominal Index:

Prabhat Sharma And State of Karnataka. 2025 LiveLaw (Kar) 117

Mohanakumar K R & Others AND State of Karnataka & Others . 2025 LiveLaw (Kar) 118

M R Rukmangadha & Others AND State of Karnataka & others. 2025 LiveLaw (Kar) 119

B G Parmeshwara AND Bangalore Development Authority & Others. 2025 LiveLaw (Kar) 120

SAMMAAN CAPITAL LIMITED AND MANTRI INFRASTRUCTURE PVT LTD & Others. 2025 LiveLaw (Kar) 121

Prabhu Chavan AND State of Karnataka & Others. 2025 LiveLaw (Kar) 122

M/S ENMAS GB POWER SYSTEMS PROJECTS LTD AND MICRO AND SMALL ENTERPRISES FACILITATION COUNCIL & ANR. 2025 LiveLaw (Kar) 123

R M Manjunath Gowda AND Directorate of Enforcement. 2025 LiveLaw (Kar) 124

Ramu Nagabathini Versus Developer Group India Private Limited. 2025 LiveLaw (Kar) 125

M/s Yellalinga Electricals v. The Additional Commissioner of Commercial Taxes. 2025 LiveLaw (Kar) 126

Judgments/Orders

Courts Must Exercise Caution While Granting Pre-Arrest Bail In Cyber Economic Crimes, Interrogation Is Needed To Gather Info: Karnataka HC

Case Title: Prabhat Sharma And State of Karnataka

Case No: CRIMINAL PETITION NO. 695 OF 2025 C/W CRIMINAL PETITION NO. 698 OF 2025.

Citation No: 2025 LiveLaw (Kar) 117

The Karnataka High Court has recently said that courts must exercise caution when granting anticipatory bail, especially in cyber economic crimes underscoring that custodial interrogation is needed in such technical cases to collect useful information.

Justice Mohammad Nawaz made the observation while dismissing a petition filed by Prabhat Sharma and Akash Patil seeking anticipatory bail. The two are accused of data theft including proprietary software and designs for high-altitude drones developed by a private company which are used by Indian defence forces for border security.

The bench said, “Courts must exercise caution when granting anticipatory bail, specially in cyber economic crimes. Custodial interrogation is necessary, due to the technical nature of the crime and to reveal the full extent of data theft and its concealment methods. The petitioner's actions show their ability and willingness to destroy and tamper with evidence. Granting anticipatory bail could jeopardize investigation and may frustrate the investigating agency in interrogating the accused and collecting useful information and may weaken the ability of law enforcement agencies to combat sophisticated cyber crimes.”

After Karnataka HC Nudge, Tumakuru Advocates Association To Reserve One Treasurer, Two Executive Committee Member Posts For Women

Case Title: Mohanakumar K R & Others AND State of Karnataka & Others

Case No: WP 8186/2025

Citation No: 2025 LiveLaw (Kar) 118

The Karnataka High Court on Monday (24 March) directed the Tumakuru District Advocates Association to create one post of Treasurer and two posts for Executive Committee Members for women, in view of the submission by the Association that it would reserve the said posts for women in the upcoming elections.

Justice M Nagaprasanna took on record a submission made by the counsel for the Association that 1 post of Treasurer and 2 posts for Executive Committee Members would be notified before the ensuing elections. The counsel also said that the Association would consider amending bye-laws after the elections to provide necessary reservations for women.

Karnataka HC Directs State To Design Common Portal To Oversee Compliances, Collect Data Under Co-operative Societies Act & Rules

Case Title: M R Rukmangadha & Others AND State of Karnataka & others

Case No: WRIT PETITION NO. 2246 OF 2025

Citation No: 2025 LiveLaw (Kar) 119

The Karnataka High Court has directed the state Co-operative Department's Principal Secretary, the Registrar of Cooperative Societies and Principal Secretary of e-Governance Department to implement an IT system to verify and facilitate compliance of all requirements under the state Cooperative Societies Act and the Rules framed therein.

It has further called for the creation of a "common portal" where all Co-operative Societies registered in the state can upload their compliances, and wherein the portal can gather as well as collate all data required under the Co-operative Societies Act and the Rules.

Justice Suraj Govindaraj said “I am of the considered opinion that it is high time for the Principal Secretary Co-operative Department, the Registrar Cooperative Societies and the Principal Secretary e-Governance Department to implement an Information Technology System to verify and facilitate the compliance with all the requirement of the Act and the Rules.”

Purchaser Of Residential Property Liable To Pay GST If Property Booked Before Construction Is Completed: Karnataka HC

Case Title: B G Parmeshwara AND Bangalore Development Authority & Others

Case No: WRIT PETITION No.51001 OF 2019 (BDA) C/W WRIT PETITION No.7028 OF 2022

Citation No: 2025 LiveLaw (Kar) 120

The Karnataka High Court has reiterated that if the transaction of booking a residential house is entered into before the completion of construction and the consideration was paid (partly or fully) before issuance of completion certificate, the same would amount to supply of services requiring payment of the service tax (GST) by the purchaser.

Justice M G S Kamal recently dismissed a batch of petitions filed by B g Parmeshwara and others which had challenged the endorsement issued by Bangalore Development Authority (BDA) calling upon the petitioners to pay amount towards the service Tax (GST) under the provisions of the Central Goods and Services Tax Act, 2017, before registration of the apartment.

Karnataka High Court Orders Probe & Action Against Trial Judge Who Cited Non-Existing SC Judgments

Case Title: SAMMAAN CAPITAL LIMITED AND MANTRI INFRASTRUCTURE PVT LTD & Others

Case No: CRP 49/2025

Citation No: 2025 LiveLaw (Kar) 121

The Karnataka High Court has directed to conduct a probe and take appropriate action against a trial court judge who relied on non-existing judgments on the records of the respective courts to pass an order rejecting the application filed for the return of plaint.

Justice R Devdas said, “What is more disturbing is the fact that the learned judge of City Civil Court has cited two decisions which were never decided by the Apex Court or any other Court. The learned Senior Counsel appearing for the plaintiffs has clearly stated that such decisions were not cited by the learned counsel for the plaintiffs. This act on the part of the learned judge would require further probe and appropriate action in accordance with law.”

Election Candidates Should Disclose Challenge To Their Caste, Education Certificates: Karnataka High Court Suggests

Case Title: Prabhu Chavan AND State of Karnataka & Others

Case No: WRIT PETITION NO. 203394 OF 2023

Citation No: 2025 LiveLaw (Kar) 122

The Karnataka High Court has said that candidates contesting elections must declare if any challenge is made to their caste, education or other certificates, which can be considered by election authorities and can come to the public's knowledge as well as other candidates who may object to it if they want.

Issuing certain general directions Justice Suraj Govindaraj in his order said: "In this regard, I am of the considered opinion that the candidate while making a declaration would also have to make a declaration as regards any challenge made to any certificate of his, be it caste, education or the like. So the same could be considered by the election authorities, as also come to the knowledge of the general populace and other candidates to take any objection if they desire to do so. Thus, I am of the opinion that the Law Commission would have to look into this aspect insofar as elections which are conducted under the provisions of the Right to Representation Act 1951".

MSME Council Cannot Pass Award On Account Of Failure Of Conciliation Proceedings, Has To Refer Matter To Arbitration: Karnataka HC

Case Title: M/S ENMAS GB POWER SYSTEMS PROJECTS LTD AND MICRO AND SMALL ENTERPRISES FACILITATION COUNCIL & ANR

Case No: WRIT PETITION NO. 29610 OF 2017

Citation No: 2025 LiveLaw (Kar) 123

The Karnataka High Court has held that the Micro and Small Enterprises Facilitation Council cannot pass an award on account of conciliation having failed without referring the matter to arbitration.

Justice Suraj Govindaraj held thus while allowing the petition filed by M/s Enmas GB Power Systems Projects Ltd. It said, “The matter is remitted to the Karnataka Micro and Small Enterprises Facilitation Council, to formally terminate the conciliation proceedings and thereafter take a decision whether it intends to conduct the arbitration proceedings by itself or refer the matter for arbitration to be held by an institution.”

[PMLA] ED Can Summon Persons Not Named As Accused In Schedule Offence If Schedule Offence Is Pending: Karnataka HC

Case Title: R M Manjunath Gowda AND Directorate of Enforcement

Case No: WA NO. 497 OF 2024

Citation No: 2025 LiveLaw (Kar) 124

The Karnataka High Court has reiterated that for issuance of summons under the Prevention of Money Laundering Act (PMLA), the person need not be an accused in the schedule (predicate) offence if it is pending.

Justice V Kameshwar Rao and S Rachaiah held thus while dismissing an appeal filed by R M Manjunath Gowda, former Chairman of Shivamogga DCC Bank, challenging a single judge order which had dismissed its petition seeking to quash the summons issued by the Enforcement Directorate.

Whether Rights In Favor Of Third Party Are Created In Property Which Is Subject Matter Of Arbitration Cannot Be Decided Under Writ Jurisdiction: Karnataka HC

Case Title: Mr. Ramu Nagabathini Versus Developer Group India Private Limited

Case Number: Writ Petition No. 15658 Of 2024

Citation No: 2025 LiveLaw (Kar) 125

The Karnataka High Court bench of Mr Justice Krishna S Dixit and Mr Justice Ramachandra D. Huddar has held that whether rights in favor of a third party based on sale deeds have been created in the property, which is the subject matter of arbitration, cannot be decided by the court under writ jurisdiction.

Inflating Contract Figures & Complaining That Tax Authorities Based Decision On Such Figures Amounts To Defrauding State In Two Ways: Karnataka HC

Case Title: M/s Yellalinga Electricals v. The Additional Commissioner of Commercial Taxes

Case Number: SALES TAX APPEAL NO. 1 OF 2024

Citation No: 2025 LiveLaw (Kar) 126

The Karnataka High Court stated that inflating contract figures and complaining that tax authorities have premised their decision on such figures, amounts to defrauding state.

“Claiming higher contract amount by inflated figures and thereafter complaining that the Tax authorities have premised their decision on such figures, virtually amounts to defrauding the State, in two-ways. Such an assessee does not deserve any relief at the hands of this Court,” stated the Division Bench of Justices Krishna S Dixit and Ramachandra D. Huddar.