- 1 - NC: 2025:KHC:12138 WP No. 5449 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21ST DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 5449 OF 2024 (GM-RES) BETWEEN: SUBBA RAO S/O LATE SHANKAR RAO AGED ABOUT 64 YEARS R/O MMC LEFT SIDE, SUBHASH NAGAR, 4TH CROSS, HOSAMANE BHADRAVATHI - 577 301 …PETITIONER (BY SRI. HALLI SHANTAPPA BASAPPA, ADVOCATE) AND: 1. THE AUTHORISED OFFICER CANARA BANK OPP. KSRTC BUS STAND, B.H. ROAD, BHADRAVATI - 577 301 HEAD OFFICE (0503) BENGALURU Digitally signed by NAGAVENI Location: High Court of Karnataka - 2 - NC: 2025:KHC:12138 WP No. 5449 of 2024 2. BAJAJ ALLIANZ GENERAL INSURANCE COMPANY LTD., NO.1335/A, C, D BLOCK, 1ST FLOOR, PANCHAMANTRA ROAD KUVEMPUNAGAR, CHAMRAJ MOHALLA MYSURU-570023, REP. BY MANAGER REG. UNDER INDIAN COMPANIES ACT, 1956 3. SMT. NETHRAVATHI W/O LATE MANJUNATH A R AGE MAJOIR R/O B.H. ROAD, 2ND CROSS BHADRAVATI - 577 301 …RESPONDENTS (BY SRI. NAGARALE SANTOSH SUBHASHCHANDRA, ADV. FOR R1; SRI. A.N. KRISHNA SWAMY, ADV. FOR R2; R3 - SERVED BUT UNREPRESENTED) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO a) TO QUASH THE DEMAND NOTICE DATED 02/09/2023 PUBLISHED IN DAILY NEWS PAPERS, VIDE REF NO. 0503/BDVT/12/2023-24 DATED 25/08/2023 VIDE ANNEXURE-H, TO THE WP AND ETC. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - NC: 2025:KHC:12138 WP No. 5449 of 2024 CORAM: HON'BLE MR JUSTICE M.NAGAPRASANNA ORAL ORDER The petitioner is before this Court seeking the following prayer: “a) To quash the Demand Notice dated 2/9/2023 published in daily news papers, Vide REF NO 0503/BDVT/12/2023-24 dated 25/8/2023, vide ANNEXURE-H, to the writ petition, and, b) To direct the respondent No.1 to recover outstanding loan of the borrower from the respondent No-2/Insurance Company, and also from the respondent No-3, and, c) Further direct the respondent No-1/Bank to return all the original property documents of the petitioner as per the letter dated 19/12/2023, vide ANNEXURE-J, and pass any other suitable order/s deems fit on the facts and circumstances of the case, in the interest of justice and equity." 2. The petitioner is said to be the guarantor of the principle borrower, who borrows an amount on 06.03.2018. The loan becoming sticky, the respondents wanted to initiate proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'the SARFAESI Act'), The principle borrower in the interregnum dies. The wife of the principle borrower is said to have applied for insurance claim to cover up the loan that was - 4 - NC: 2025:KHC:12138 WP No. 5449 of 2024 taken by the husband, the principle borrower. It is repudiated on the ground that the insurance policy does not cover the death of the kind that has happened of the principle borrower. The policy that is taken by the principle borrower, is as follows: “STANDARD FIRE AND SPECIAL PERILS POLICY SCHEDULE UIN, IRDAN113RP0012V01200102 Policy issuing office and Correspondence address for communication by policyholder for claim, service request, notice, summons, etc. No 1335/A, Situated at C, D Block, 1st floor, Panchamantra Road, Kuvempunagar, Chamraja Mohalla, Mysura, MYSORE-570023 Insured Name ARM FOODS Policy Number OG-20-3840-4008- 00000333 Consolidated Stamp Duty of Rs.0.5/- paid towards Insurance Stamps vide Challan No. MH011254450201920M Defaced No.0006230296201920 ORDER NO.CSD/322/2020/740/2020 ORDER DATED 15.02.2020 DEFACED DATE dated 15-FEB-20 timing 12:17:16 of General Stamp Office, Mumbai, India. Principal Location: Golden Heights, 4th Floor, No.1/2, 59th C Cross, 4th M Block, Rajajinagar, BANGALORE - 560010 PH:080-67195000 | Services Accounting Code: 997137 - Other property insurance services. No reverse charge is payable on these services. Schedule (1) | Printed on:19-Oct-2020 02:15:24 |Silent Print | WEB | 0572” 3. It is Standard Fire and Special Perils Policy Schedule. Therefore, the repudiation of the insurance company for the amount of insurance on the death cannot be on the policy afore-quoted. - 5 - NC: 2025:KHC:12138 WP No. 5449 of 2024 4. In that light, the repudiation does not warrant any interference. The petitioner is reserved liberty to avail of his remedy, as is available in law, at the relevant point in time, in the event the bank would take any steps under the SARFAESI Act. 5. With the aforesaid observations and liberty, the petition stands disposed. Sd/- (M.NAGAPRASANNA) JUDGE KG List No.: 1 Sl No.: 68