- 1 - NC: 2025:KHC:13756 WP No. 12356 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2ND DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 12356 OF 2024 (GM-RES) BETWEEN: 1. SRI V THULASI RAM SON OF SRI. VISHWANATH, AGED ABOUT 53 YEARS, RESIDENT OF HOUSE NO. 3208, 6TH MAIN ROAD, 13TH CROSS, HAL 2ND STAGE, INDIRA NAGAR, BENGALURU-560 008. 2. SMT. BHUVANESHWARI WIFE OF SHRI. THULASI RAM, AGED ABOUT 44 YEARS, RESIDENT OF HOUSE NO. 3208, 6TH MAIN ROAD, 13TH CROSS, HAL 2ND STAGE, INDIRA NAGAR, BENGALURU-560 008. …PETITIONERS (BY SRI. X M JOSEPH, ADVOCATE) AND: 1. CANARA BANK MAGADI ROAD II BRANCH, NO. 46, MAGADI MAIN ROAD, BESIDE ANJAN CINEMAS, BENGALURU-560 023, Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:13756 WP No. 12356 of 2024 REPRESENTED BY ITS AUTHORISED OFFICER UNDER SARFAESI ACT, 2002. …RESPONDENT (BY SRI. SHETTY VIGNESH SHIVARAM, ADVOCATE) *** THIS WRIT PETITION IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO A) ORDER / DIRECTION TO HOLD THAT UNDER SECTION 13(4) OF THE SARFAESI ACT, 2002, VIDE ANNEXURE-A, THE RIGHT TO SECURITISATION ACCRUES AND CRYSTALIZES IN FAVOUR OF SECURED CREDITOR-RESPONDENT BANK ONLY UPON CLASSIFICATION OF ACCOUNT AS SUBSTANDARD, LOSS ASSET OR DOUBTFUL IN TERMS OF SECTION 2(1)(o) OF SAID ACT 2002 SUBJECT TO COMPLIANCE WITH PARA NO. 4 OF THE RBI MASTER CIRCULAR ANNEXURE-B RBI/2015-16/101/DBR NO.BPBE 2/21.0.048 2015 DTD 01.07.2015 AND NOT IN TERMS OF SECTION 2(1)(j) OF SARFAESI ACT, 2002; B) ORDER/DIRECTION TO HOLD THAT PROVISO (iv) AND (v) TO SECTION 14 OF SARFAESI ACT, 2002 VIDE ANNEXURE-A, HAS NO PRECEDENCE OVER SECTIONS 2(1)(o), 13(2) AND 13(4) OF SARFAESI ACT, 2002, ETC. THIS WRIT PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE SURAJ GOVINDARAJ ORAL ORDER 1. The petitioners are before this Court seeking for the following reliefs: "A. Issue an appropriate WRIT order/direction to hold that under section 13(4) of the SARFAESI Act, 2002, vide Annexure-A, the right to - 3 - NC: 2025:KHC:13756 WP No. 12356 of 2024 Securitisation accrues and crystalizes in favour of secured creditor-respondent Bank only upon classification of account as substandard, loss asset or doubtful in terms of Section 2(1)(o) of said Act 2002 subject to compliance with para no. 4 of the RBI master circular Annexure-B RBI/2015-16/101/DBR No.BPBE 2/21.0.048 2015 dtd 01.07.2015 and not in terms of section 2(1)(j) of SARFAESI ACT, 2002; B. Issue an appropriate WRIT order/direction to hold that proviso (iv) and (v) to section 14 of SARFAESI ACT, 2002 vide Annexure-A, has no precedence over Sections 2(1)(o), 13(2) and 13(4) of SARFAESI ACT, 2002; C. Issue a writ of certiorari to quash ANNEXURE- L, the order dated 20-04-2024 in Crl.Misc.No.50231/2021, passed by the Learned Additional Chief Metropolitan Magistrate, Mayo Hall Court complex, Bengaluru as arbitrary for omission of mandatory compliance with "act of satisfaction" contemplated in 2nd Proviso to Section 14 of SARFAESI Act, 2002; D. Issue a Writ of certiorari to quash ANNEXURE- L, the order dated 20-0-2024 in Crl.Misc.No.50231/2021, passed by the Learned X Additional Chief Metropolitan magistrate, Mayo Hall Court Complex, Bengaluru as over reaching, the determination in W.P.No.19289/2021 by this Hon'ble Court, inter alia, the validity of the statutory demand notice which denies the petitioners, their entitlement to relief of Rs.90 lakhs under GECL, their entitlement of COVID-19 reliefs announced by Government of India and Reserve Bank of India; E. Issue a Writ of certiorari to quash ANNEXURE- L, the order dated 20-0-2024 in Crl.Misc.No.50231/2021,passed by the X Additional Chief Metropolitan Magistrate, Mayo Hall Court Complex, Bengaluru as overrides the judicial procedures suggested by the Hon'ble Supreme Court in D.K. Trivedi:1986 Suppl.SCC 20@ Para 83, to the effect that when an issue - 4 - NC: 2025:KHC:13756 WP No. 12356 of 2024 touching the issue before lower court, is in sub- judice, pending determination in Higher Court, the lower Court shall stay its hand; F. Issue any other order/direction as deem fit and proper in the circumstances of the present case and to allow this writ petition with costs." 2. A memo dated 02.04.2025, signed by the learned counsel for the petitioners has been filed. 3. Accepting the said memo and the submission of the learned counsel for the petitioners, the petition is dismissed as not pressed. 4. Pending I.A.No.1/2024 does not survive for consideration. SD/- (SURAJ GOVINDARAJ) JUDGE BMV* List No.: 1 Sl No.: 8.3