- 1 - HC-KAR NC: 2025:KHC:21640 WP No. 17866 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 17866 OF 2025 (GM-RES) BETWEEN: 1. SMT ALEEMA K S AGED 60 YEARS W/O K.A. EBRAHIM R/A KAGADI KATTE VILLAGE HANKOD POST, SOMWARPET TALUK KODAGU DISTRICT-571 235. 2. SAIDU K.M. AGED ABOUT 40 YEARS S/O K.E MOHAMMED KUNNI, R/O KAGADI KATTE VILLAGE, HANKOD POST, SOMEARPET TALUK, KODAGU DISTRICT-571 235. …PETITIONERS (BY MRS. KANCHAN S CHETTY., ADVOCATE) AND: 1. M/S CANARA BANK GOWDALLI BRANCH SOMWARPET TALUK, KODAGU DISTRICT-571 235 REPRESENTED BY ITS AUTHORIZED OFFICER SMT. JAYSHREE DAMODARAN, AGED 57 YEARS, W/O DAMODARAN …RESPONDENT (BY SRI. VIGNESH SHETTY., ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE WRIT OF Digitally signed by VIDYA G R Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:21640 WP No. 17866 of 2025 CERTIORARI TO QUASH THE ORDER PASSED BY THE HONBLE COURT OF SENIOR CIVIL JUDGE AND CJM KODAGU AT MADIKERI IN CRI MISC NO. 81/2024 IN ORDER DATED 25/02/2025 UNDER SECTION 14 TO TAKE THE PHYSICAL POSSESSION AS UNDER ANNEXURE-A. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE S SUNIL DUTT YADAV ORAL ORDER Petitioners have sought for setting aside of the order passed by the Senior Civil Judge and CJM, Kodagu- Madikeri under Section 14 of the SARFAESI Act at Annexure-A. 2. Learned counsel for respondent - Bank submits that the petition is not maintainable as the petitioners ought to have taken appropriate steps in terms of Section 17 of the Act before the DRT. 3. In light of the contentions raised it is relevant to take note of the observations of the Apex Court in the case of Union Bank of India v. Satyawati Tondon and Others - (2010) 8 SCC 110 that the appropriate remedy - 3 - HC-KAR NC: 2025:KHC:21640 WP No. 17866 of 2025 would be to relegate the petitioner to seek for substantive remedy before the Debt Recovery Tribunal. The relevant observations of the Apex Court are as follows: "43. Unfortunately, the High Court overlooked the settled law that the High Court will ordinarily not entertain a petition under Article 226 of the Constitution if an effective remedy is available to the aggrieved person and that this rule applies with greater rigour in matters involving recovery of taxes, cess, fees, other types of public money and the dues of banks and other financial institutions. In our view, while dealing with the petitions involving challenge to the action taken for recovery of the public dues, etc. the High Court must keep in mind that the legislations enacted by Parliament and State Legislatures for recovery of such dues are a code unto themselves inasmuch as they not only contain comprehensive procedure for recovery of the dues but also envisage constitution of quasi- judicial bodies for redressal of the grievance of any aggrieved person. Therefore, in all such cases, the High Court must insist that before availing remedy under Article 226 of the Constitution, a person must exhaust the remedies available under the relevant statute. - 4 - HC-KAR NC: 2025:KHC:21640 WP No. 17866 of 2025 44. While expressing the aforesaid view, we are conscious that the powers conferred upon the High Court under Article 226 of the Constitution to issue to any person or authority, including in appropriate cases, any Government, directions, orders or writs including the five prerogative writs for the enforcement of any of the rights conferred by Part III or for any other purpose are very wide and there is no express limitation on exercise of that power but, at the same time, we cannot be oblivious of the rules of self-imposed restraint evolved by this Court, which every High Court is bound to keep in view while exercising power under Article 226 of the Constitution. 45. It is true that the rule of exhaustion of alternative remedy is a rule of discretion and not one of compulsion, but it is difficult to fathom any reason why the High Court should entertain a petition filed under Article 226 of the Constitution and pass interim order ignoring the fact that the petitioner can avail effective alternative remedy by filing application, appeal, revision, etc. and the particular legislation contains a detailed mechanism for redressal of his grievance. 55. It is a matter of serious concern that despite repeated pronouncement of this Court, the High - 5 - HC-KAR NC: 2025:KHC:21640 WP No. 17866 of 2025 Courts continue to ignore the availability of statutory remedies under the DRT Act and the Sarfaesi Act and exercise jurisdiction under Article 226 for passing orders which have serious adverse impact on the right of banks and other financial institutions to recover their dues. We hope and trust that in future the High Courts will exercise their discretion in such matters with greater caution, care and circumspection." 4. In light of the observations made by the Apex Court, it can be noticed that several factual contention raised by the petitioners are the matters that cannot be adjudicated in the present proceedings. 5. Accordingly, the petition is disposed off relegating the petitioners to avail of the substantive remedy as regards the impugned proceedings. All contentions of both the sides are kept open. 6. In light of disposal of writ petition, it would meet the ends of justice by directing the respondent - Bank not to take any precipitative steps for a period of three weeks from today. - 6 - HC-KAR NC: 2025:KHC:21640 WP No. 17866 of 2025 7. The interim protection granted under this order is only to enable the petitioners to avail of the substantive remedy and must not be considered to be an order passed on the basis of adjudication on merits. Upon the lapse of the time stipulated, the protection granted would cease to operate and the authorities before whom petitioners may approach are to look at the matter afresh uninfluenced by the observations made herein. 8. Needless to state that while considering the aspect of limitation, in the event the proceedings are instituted before the DRT, time spent before this Court may be taken note of appropriately. Sd/- (S SUNIL DUTT YADAV) JUDGE VP