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Case Analysis Kotak Mahindra Bank Limited vs State of Karnataka & Anr 2026 KHC 17970
Synopsis
The petitioner (Kotak Mahindra Bank), a secured creditor of Electrex (India) Ltd., sought enforcement of directions issued by the Bombay High Court in insolvency proceedings. The Bombay High Court had declared that certain sale deeds executed by the insolvent (Anant V. Hegde) in respect of properties situated in Bengaluru were null and void, and had directed the jurisdictional Sub‑Registrars in Karnataka to take consequential steps. Despite communication of the order, the Karnataka registration authorities failed to act. The Karnataka High Court allowed the writ petition, holding that: (i) under Article 226(2), the High Court can exercise jurisdiction if a part of the cause of action arises within its territory; (ii) once a High Court validly assumes jurisdiction and issues directions, those directions are binding on all authorities irrespective of their territorial location; (iii) the registering authorities are bound to give effect to binding judicial orders and cannot refuse compliance on the ground of territorial limitations; and (iv) a writ of mandamus was issued directing the respondents to implement the Bombay High Court’s directions within four weeks, with costs of Rs. 25,000/-.
Court: High Court of Karnataka
Coram: Sachin Shankar Magadum, J.
Date: April 9, 2026 (inferred from file name)
Citation: 2026:KHC:17970 (as per internal NC number)
Core Law: Constitutional Law (Article 226 – territorial jurisdiction, inter‑state enforcement of judicial orders), Insolvency Law (Presidency Towns Insolvency Act, 1909), SARFAESI Act, 2002, Registration Act, 1908.
2. Legal Framework
Constitution of India: Article 226 – writ jurisdiction; Article 226(2) – territorial jurisdiction based on cause of action (wholly or in part); principle that judicial orders of one High Court are binding on authorities in another State when the cause of action spills over.
Presidency Towns Insolvency Act, 1909: Section 17 – vesting of insolvent’s estate in Official Assignee.
SARFAESI Act, 2002: Section 13 – enforcement of security interest by secured creditors.
Registration Act, 1908: Duties of Sub‑Registrars to maintain public records; ministerial obligation to give effect to judicial declarations.
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