High Court stays auction of properties by banks during lockdown

It is not included in the exceptions provided by govt. in its order

The High Court of Karnataka has prima facie said that activities which are not included in the exceptions provided by the State government in the order of lockdown, including holding of auction of attached properties by banks, will constitute violation, attracting prosecution.

The court also stayed the process of e-auction 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 continuation of e-auction process, initiated prior to the lockdown, even after imposition of the lockdown by the government for arresting the spread of COVID-19.

The State government, in its order of March 23, excluded certain activities, and in respect of 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 violation of the Government Order, the court observed.

“It is hoped that the respondents and similarly situated organisations, institutions, statutory bodies, [and] authorities would do well to pay heed to the appeal by the State administration and try to implement it in letter and spirit,” Mr. Justice Narendar observed while holding that proposed auctions require to be averted till the restrictions imposed under the Government Order are revoked.

The government counsel had also informed the court that activities, which are not 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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Printable version | Apr 5, 2020 2:39:40 AM | https://www.thehindu.com/news/national/karnataka/high-court-stays-auction-of-properties-by-banks-during-lockdown/article31177035.ece

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