- 1 - NC: 2025:KHC:14018 WP No. 5306 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2ND DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 5306 OF 2024 (GM-RES) BETWEEN: 1. SMT. PRITHVI P W/O PRASANNA KUMAR AGED ABOUT 40 YEARS, R/AT NO.3000, 1ST FLOOR, 7TH CROSS, 5TH MAIN, 3RD STAGE, DATTAGALLI, KANAKADASANAGAR CHAMARAJA MOHALLA MYSORE-570017 2. SRI GURURAJE URS S/O LATE RAMACHANDRA RAJE URS AGED ABOUT 56 YEARS, R/AT NO.3000, 1ST FLOOR, 7TH CROSS, 5TH MAIN, 3RD STAGE, DATTAGALLI KANAKADASANAGAR CHAMARAJA MOHALLA MYSORE-570017 …PETITIONERS (BY SRI. SRIKANTH M., ADVOCATE) AND: 1. CANARA BANK S.O NO.1133 CH-36 BALLAL COMPLEX CIRCLE, Digitally signed by NAGAVENI Location: High Court of Karnataka - 2 - NC: 2025:KHC:14018 WP No. 5306 of 2024 K M PURAM CHAMARAJA MOHALLA MYSORE-570017 REP BY ITS AUTHORISED OFFICER AND CHIEF MANAGER 2. CANARA BANK ARM-1 BRANCH, NO.86, SPENCER TOWER, M G ROAD, BENGALURU-560001 REP BY ITS AUTHORISED OFFICER 3. SRI H S PRADEEP S/O SATHYANARAYANA H S AGED ABOUT 45 YEARS, R/AT NO.428/1, 6TH CROSS, 3RD MAIN, 1ST STAGE, VIJAYANAGAR DEVARAJ MOHALLA MYSORE-570017 4. SRI M P CHANDAN S/O NOT KNOWN AGED ABOUT 49 YEARS, R/AT NO.119, 6TH CROSS, JAYADEVANAGAR MYSORE-570016 …RESPONDENTS (BY SMT. NATASHA MURTHY, ADVOCATE FOR R1 & R2; R-4 SERVED AND UNREPRESENTED) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE - 3 - NC: 2025:KHC:14018 WP No. 5306 of 2024 IMPUGNED E AUCTION SALE NOTICE DATED 29.12.23 ISSUED UNDER SARFAESI ACT R/W RULE 8 (6) OF THE SECURITY INTEREST (ENFORCEMENT) RULES 2002, BY R2, FOUND AT ANNEXURE-E IN RESPECT OF SL.NO. 1 PROPERTY AND ALSO QUASH THE CONFIRMATION OF BID DATED 3.2.24, BY R2 IN FAVOUR OF R4, FOUND AT ANNEXURE-G AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE M.NAGAPRASANNA ORAL ORDER The petitioners are before this Court, seeking the following prayers: "I. Issue a writ, order or direction or writ of Certiorari to quash the Impugned E-Auction Sale Notice dated 29-12-2023 issued under SARFAESI Act R/w Rule 8 (6) of the Security Interest (Enforcement) Rules 2002, by Respondent No.2, found at ANNEXURE-E in respect of Sl.No.1 property and also Quash the confirmation of Bid dated 03-02-2024, by Respondent No.2 in favour of Respondent No.4, found at ANNEXURE-G. II. Issue a writ of mandamus directing respondent No.1 Bank to consider the representation dated 09- 10-2023, found at ANNEXURE-D, in the interest of Justice and Equity. III. Direct the 1st and 2n Respondent not to proceed against the petitioners Under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002, from dispossessing the petitioners from the schedule property. - 4 - NC: 2025:KHC:14018 WP No. 5306 of 2024 IV. Grant such other order, writ, as this Hon'ble court deems fit in the facts and circumstances of the case including the cost of this writ petition." 2. Heard Sri. Srikanth M., learned counsel appearing for the petitioners, Smt. Natasha Murthy, learned counsel appearing for respondent Nos.1 and 2 and have perused the material on record. 3. This Court, on 21.02.2024, had passed the following order: "Heard Smt. Lakshmy Iyengar, learned senior counsel for the petitioners and Sri Vignesh Shetty, learned counsel for the respondents - bank. The petitioners are the lessee at the hands of the borrower. The borrower defaults in payment of loan. The lessees have come forward to pay the amount and also participates in the auction proceedings. In the auction proceedings, the lessees bid comes upto Rs.83.80/- lakhs. The learned senior counsel submits that the auction proceedings were to be closed for Rs.83.80/- lakhs, but the auction is closed by accepting the bid of a person, who had bid an amount of Rs.84.80/- lakhs, which is Rs.1/- lakh beyond the bid amount offered by the petitioners. The petitioners are the ones who are already in possession on lease from the hands of the borrower, who have some right over and above the successful bidder – the stranger to the auction proceedings. Therefore, the petitioners who are willing and ready to pay Rs.83.80/- lakhs are directed to pay an amount of Rs.42.40/- lakhs within one week and another sum of Rs.42.40/- lakhs within two weeks thereafter. - 5 - NC: 2025:KHC:14018 WP No. 5306 of 2024 In the light of the aforesaid circumstance, further proceedings shall remain stayed. In the event, the petitioners would not abide by the undertaking made before this Court as observed (supra) and clear the entire dues on or before 18.03.2024, not only the interim order would get vacated, the petition itself would be dismissed. List the matter on 18.03.2024, in the fresh matters list." 4. Again on 26.03.2024, the following order: "Heard Smt. Lakshmy Iyengar, learned senior counsel for the petitioners and Sri Vignesh Shetty, learned counsel for respondent Nos.1 and 2 – bank. Learned counsel for petitioner on record files a memo for having served a notice upon the auction purchaser by way of hand summons. Awaiting the appearance of the auction purchaser, list the matter on 03.04.2024, in the fresh matters list. Interim order granted earlier, is extended till the next date of hearing." 5. Learned counsel appearing for the Bank submits that the petitioners have paid the entire amount. They are the tenants. They have purchased the property in the auction and nothing further would survive and all the other necessities have also been complied with. 6. In that light, nothing further would survive. - 6 - NC: 2025:KHC:14018 WP No. 5306 of 2024 7. The petition is disposed as having become infructuous. 8. The auction purchaser has withdrawn from the sale in the light of the pendency of the subject petition. 9. The Bank is at liberty to proceed in accordance with law. Sd/- (M.NAGAPRASANNA) JUDGE SJK List No.: 1 Sl No.: 84