Bengaluru, Sept. 3 -- The Karnataka High Court has directed parties to maintain status quo over a disputed parcel of land and restrained the creation of third-party rights until the next hearing in a case involving competing claims over property which the Karnataka Industrial Areas Development Board (KIADB) maintains was acquired for its purposes.

The proceedings have also brought before the court questions raised in a writ petition over a mortgage transaction involving Canara Bank, under which title deeds relating to the property were allegedly deposited to secure credit facilities aggregating Rs 85 lakh.

The bank's subsequent handling of the transaction has also been questioned in the writ petition. Royal Fragrances Pvt Ltd complained...