[Coronavirus] Karnataka HC stays auction of properties by banks till lockdown orders are revoked

While dealing with a batch of writ petitions, the Karnataka High Court recently allowed an interim application and stayed the auction of properties by banks during the 21-day Coronavirus lockdown period. .The Court held that those activities which are not included in the exceptions provided by the state government in its order imposing the lockdown - including holding of auction of attached properties by banks - will constitute a violation of the order.."Prima facie, this Court was of the opinion that any activity by any of the Departments beyond the exceptions provided under the Government Order dated 23.03.2020, including the holding of auctions by Banks, would constitute a violation of the Government Order entailing prosecution."Karnataka High Court.A Single Judge Bench of Justice G Narendar noted that the state government, in its order on March 23, had excluded certain activities from the ambit of the lockdown..The petitioners had submitted that despite the prevailing circumstances, in the first case, the banker [Canara Bank] has been receiving bids from various interested parties. In other writ petitions, it was submitted that e-auctions are being conducted and that the Government Order would not deter the banks from proceeding further..Responding to the above, the Government Advocate submitted that even the state administration was, prima facie, of the opinion that all actions undertaken, which are not specifically exempted under the Government Order dated March 23, would be in breach of the provisions of the order..Thus, the Court was inclined to grant interim protection to the petitioners and further stayed the bank auctions till the restrictions imposed under the Government Order are revoked. .The Court further stated, "It is hoped that the respondents and similarly situated organizations, Institutions, statutory bodies, authorities would do well to pay heed to the appeal by the State administration and try to implement it in letter and spirit.".[Read the order]