The problem of multiple class novelty detection is gaining increasing importance due to the large availability of multimedia data and the increasing requirement of the classification models to work in an open set scenario. To this end, novelty detection tries to answer this important question: given a test example should we even try to classify it? In this work, we design a novel deep learning framework, termed Segregation Network, which is trained using the mixup technique. We construct interpolated points using convex combinations of pairs of training data and use our novel loss function for prediction of its constituent classes. During testing, for each input query, mixed samples with the known class prototypes are generated and passed through the proposed network. The output of the network reveals the constituent classes which can be used to determine whether the incoming data is from the known class set or not. Our algorithm is trained using just the data from the known classes and does not require any auxiliary dataset or attributes. Extensive evaluation on two benchmark datasets namely Caltech-256 and Stanford Dogs and comparison with the state-of-the-art justifies the effectiveness of the proposed framework.