- 1 - NC: 2025:KHC:5910 WP No. 3423 of 2022 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 10TH DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MR JUSTICE R DEVDAS WRIT PETITION NO. 3423 OF 2022 (GM-RES) BETWEEN: 1. SCHOOL BOOK COMPANY A PARTNERSHIP FIRM HAVING ITS OFFICE AT CAR STRET MANGALORE 575001 REP BY ITS PARTNER MR. SUNIL BHANDARY 2. MR. P. GANESH BHANDARY S/O ALTE P. KAMALASKHA BHANDARY AGED ABOUT 57 YEARS PARTNER OF THE FIRM SHCHOOL BOOK COMPANY R/A SANGAM, GANDHINAGAR 5TH CROSS, GANDHINAGAR MANGALORE 575003 3. MR. P. SUSRAJ BHANDARY S/O SRI. P. PADMANABHA BHANDARY AGED ABOUT 57 YEARS PARTNER OF THE FIRM SHCOOL BOOK COMPANY R/A PADMANABH URWA MARIGUDI CROSS ROAD, ASHOKNAGAR MANGALORE 575006 Digitally signed by DHARMALINGAM Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:5910 WP No. 3423 of 2022 4. MR. P. SUNIL BHANDARY S/O SRI. P. PADMANABHA BHANDARY AGED ABOUT 56 YEARS PARTNER OF THE FIRM SCHOOL BOOK COMPANY R/A NIKUNJ URWA MARIGUDI CROSS ROAD, ASHOKNAGAR MANGALORE 575006 5. MR. P. RAMACHANDRA BHANDARY S/O SRI. MOHANDAS BHANDARY AGED ABOUT 41 YEARS PARTNER OF THE FIRM SCHOOL BOOK COMPANY R/A LAXMI NARASIMHA GANDHINAGAR, 5TH CROSS GANDHINAGAR MANGALORE 575003 …PETITIONERS (BY SRI. CYRIL PRASAD PAIS., ADVOCATE) AND: UNION BANK OF INDIA HAVING ITS BRANCH AT CAR STREET BRANCH MANGALORE 575001 REP. BY ITS CHIEF MANAGER …RESPONDENT (BY SMT. DIVYA PURANDAR., ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECTING THE RESPONDENTS BANK TO DE-FREEZE THE ACCOUNT OF - 3 - NC: 2025:KHC:5910 WP No. 3423 of 2022 THE P1 FIRM VIDE CURRENT A/C NO.510331000000202 AND C.C.B.D A/C NO.560261000000013, CONSEQUENTLY HOLD THAT THE ACTION OF THE RESPONDENT BANK IS ILLEGAL,ARBITRARY AGAINST LAW AND DIRECT THE RESPONDENT BANK TO PAY DAMAGES OF RS.50,00,000/- TO THE PETITIONER FIRM FOR THEIR ILLEGAL AND UNETHICAL ACTS.GRANT COSTS OF THE ABOVE WRIT PETITION AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE R DEVDAS ORAL ORDER The first petitioner which is a partnership firm doing business in the name and style of ‘School Book Company’, and has an existence of more than a century, is aggrieved by the defreezing of its account at the hands of the respondent-Bank. 2. It is contended that the petitioner-firm has assets worth more than Rs.15.5 crores mortgaged to the respondent-Bank. The petitioner-firm has discharged its liability to the tune of Rs.2.98 crores and there was no - 4 - NC: 2025:KHC:5910 WP No. 3423 of 2022 reason for the respondent-Bank to have taken the drastic step of freezing the accounts. 3. On the previous occasion, this Court had directed the learned counsel for the respondent-Bank to seek instructions regarding the submissions made by the learned counsel for petitioners. Today, learned Counsel for the respondent-Bank submits on instructions that the petitioner-firm has discharged its loan liability. It is also submitted that the statutory dues payable by the petitioner-partnership firm is being paid through the Current Account. Learned Counsel submits that the action was taken pursuant to a public notice appearing in the newspaper on 21.01.2021 that all the partners have decided to dissolve the partnership firm. 4. Learned Counsel submits that only one of the partners has retired and he appears to have given such a public notice. However, the partnership firm has been continued at the hands of the other partners and they - 5 - NC: 2025:KHC:5910 WP No. 3423 of 2022 have been doing business and they are also transacting business in other banks. 5. Having regard to the grievances raised by the petitioners, this Court is of the considered opinion that if the present partners who are running the business, come before the respondent-Bank and present their credentials seeking to continue the partnership firm, the respondent- Bank shall consider the same and defreeze the account and permit them to continue their business with the respondent-Bank. The action could not have been taken on a piece of information that was published in the newspaper. The writ petition is accordingly disposed of. Sd/- (R DEVDAS) JUDGE JT/- CT: JL