Eih Associated Hotels Limited vs. State Of Karnataka
Held
The High Court held that in view of the bank guarantee furnished by the petitioner, the condition imposed by the learned Sessions Judge in Order dated 31.03.2023 in Criminal R.P. No.560/2022, marking a lien, is hereby set aside. The Court accepted the bank guarantee as adequate security. It was made clear that the bank guarantee is subject to the final result of the investigation or prayer. The writ petition was allowed in part, modifying the direction issued by the Trial Magistrate. The ratio decidendi is that a bank guarantee can be accepted as a substitute for a lien, provided it is subject to the final outcome of the proceedings.
Facts
The petitioner, EIH Associated Hotels Limited, filed a writ petition before the High Court of Karnataka. The petition challenged an order passed by the learned Sessions Judge in Criminal R.P. No. 560/2022, which had directed the marking of a lien. The petitioner had furnished a bank guarantee. The writ petition was filed under Article 227 of the Constitution of India read with Section 528 of the BNSS, 2023, seeking to call for records in C.C. No. 100/2022 pending before the I Additional Chief Metropolitan Magistrate, Bengaluru. The specific tax period and the amount in dispute are not explicitly stated in the provided text. The procedural history involves an order by the Trial Magistrate, a subsequent Criminal Revision Petition before the Sessions Judge, and now this writ petition.
Key Issues
1. Whether the condition imposed by the learned Sessions Judge in Order dated 31.03.2023 in Criminal R.P. No.560/2022, marking a lien, is liable to be set aside in view of the furnishing of a bank guarantee by the petitioner? (Question of law). Petitioner's Contention: The petitioner argued that by furnishing a bank guarantee, the condition imposed by the Sessions Judge, which involved marking a lien, should be set aside. The petitioner relied on the fact that a bank guarantee was provided as sufficient security. Respondent's Contention: The respondent (State of Karnataka) did not record any specific arguments against the petitioner's prayer in the provided text. The court's order indicates that the bank guarantee was accepted, and the lien was set aside, suggesting no objection was raised or sustained.
Sections Cited
Section 528
AI-generated summary — verify with the full judgment below
- 1 -
HC-KAR
CNR: KAHC010001602025 NC: 2026:KHC:60336 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29TH DAY OF OCTOBER, 2026 BEFORE THE HON'BLE MR. JUSTICE V SRISHANANDA WRIT PETITION NO. 270 OF 2025 (GM-RES)
BETWEEN:
EIH ASSOCIATED HOTELS LIMITED REPRESENTED BY ITS AUTHORISED SIGNATORY MR. R. SHANKAR AGED ABOUT 60 YEARS TRIDENT UDAIPUR - UNIT OF EIH ASSOCIATED HOTELS HAVING ITS REGISTERED OFFICE AT 1/24, GST ROAD, MEENAMBAKKAM, CHENNAI - 600 027 COMPANY REGISTERED UNDER THE COMPANIES ACT, 1956. …PETITIONER (BY SRI. VIVEKANANDA N., ADVOCATE) AND:
STATE OF KARNATAKA THROUGH SOUTH EAST CEN POLICE STATION, BENGALURU REPRESENTED BY STATE PUBLIC PROSECUTOR HIGH COURT OF KARNATAKA: 560 001. …RESPONDENT (BY SMT. K.P. YASHODHA, AGA) MANJUNATHA Location: HIGH COURT OF KARNATAKA HC-KAR
CNR: KAHC010001602025 NC: 2026:KHC:60336 THIS W.P. IS FILED UNDER ARTICLE 227 OF THE CONSTITUTION OF INDIA READ WITH SECTION 528 OF THE BNSS, 2023 PRAYING
The judgment continues below.
Read the full judgment
A free account opens 10 full GST judgments a month (one account works on both bharattax.net and this site). Re-reading one you have already opened does not count again.
The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.
Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.