Massive fraud unearthed in Bangalore Civil Court: Prime properties usurped through bogus compromise decrees- HC initiates swift action

Massive fraud unearthed in Bangalore Civil Court: Prime properties usurped through bogus compromise decrees- HC initiates swift action

On 26.04.2018, a suit (S.C. No. 678 of 2018) for eviction came be to be filed before the court of Small Cases, Bengaluru. Since the court was closed for vacation on 27.04.2018, the case was put up before the court on 29.05.2018 and notice was issued. 

On 31.05.2018, the matter was advanced, the Respondent appeared before the court and a compromise petition was filed wherein the Respondent agreed to hand over possession of the property. Based on the compromise petition the court decreed the matter on 31.05.2015.

Massive fraud has been discovered in Civil Court, Bangalore prompting the High Court of Karnataka to initiate swift action. Mr. Ponnappa, Advocate gives the complete details as below.

The case that came up before the court on 29.05.2018 for the first time and the same was decreed in two days i.e. on 31.05.2018. It would be interesting to note that the addresses of the Plaintiff, the Plaintiff’s GPA holder and the Defendant were the same (including the door number).

The Plaintiff in S.C 678 of 2018 filed execution petition (Ex 1515 of 2018) to execute the decree in S.C. No. 678 of 2018. The court issued delivery warrant to execute the decree and also directed the jurisdictional police to assist the Bailiff in executing the decree.

On March 12, 2019, the Partners of Shah Harialal Bhikabhai & Co were in for a rude shock, as the court bailiff landed with a huge retinue of police and forcibly removed them from the property. All that they were informed was that they were executing the court order in Ex 1515 of 2018. It took some time for the partners to even realize what was happening since they were not aware of any such litigation which was filed against them.

Thereafter, when they secured the case papers, to their shock they released that a fraudulent suit was filed against their property by rank strangers. Thereafter an application was filed under Order XXI Rule 99 and the court initiated an enquiry. All notices issued by the court to the Plaintiff, Plaintiff’s GPA holder and the Defendant (S. C 678 of 2018 and Ex 1515 of 2018) were returned with the endorsement  "no such person".

While the enquiry was pending, the persons who had obtained the decree through fraud started demolishing the building in the property. The police refused to intervene, since these people were put in possession of the property by the court and it was these very police who had in compliance of the order of the court, granted the court bailiff police protection to enforce the decree.

Left with no other option, M/s Shah Harilal Bhikabhai & Co. approached the High Court and filed a writ petition (W.P. No. 7714 of 2020) challenging the decree in S.C No. 678 of 2018. The High Court allowed the writ petition on 04.11.2020, set aside the decree and directed the Registrar to initiate a domestic enquiry and also directed the Registrar to initiate police investigation.

The preliminary domestic enquiry revealed startling facts, nearly 71 false suits were filed before the Court of Small Causes and prime properties were usurped. Noting the magnitude of the fraud, the investigation was entrusted to C.I.D. The CID has formed a special team headed by Dy. S.P. comprising of cyber and forensic experts to investigate the matter.

On 02.07.2021, noting the enormity of the fraud, Justice Krishna Dixit has directed W.P. No. 7714 of 2020 to be converted into P.I.L and has directed the registry to place the file before the Hon’ble Chief Justice.

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