Tuesday, March 31, 2020

Karnataka HC Stays Auction Of Properties By Banks During Lockdown

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The Karnataka High Court has prima facie said that activities that are not included in the exceptions provided by the State government in the order of lockdown, including holding of the auction of attached properties by banks, will amount to a violation of the government’s orders and will attract prosecution.

The process of e-auction was also stayed by the High Court scheduled for the dates after the lockdown was enforced by the State government from March 23.

Justice G. Narendar passed the interim order on March 24 on a batch of petitions filed by Muddaiah Amarayya Hiremath and others questioning the continuation of the e-auction process, initiated prior to the lockdown, even after the imposition of the lockdown by the government for arresting the spread of coronavirus.

The order issued on March 23 by the state government excluded certain activities and regarding banks, only excluded activity is bank teller services and operation of ATMs, and hence if proposed auctions are permitted to be held, it would amount to a violation, observed the court.

The government counsel had also informed the court that activities, which areĀ not specifically exempted in the order, would be in breach of the provisions of the law under which lockdown was imposed and attracts prosecution.

 

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