- 1 - HC-KAR NC: 2025:KHC:19270 WP No. 16238 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 6TH DAY OF JUNE, 2025 BEFORE THE HON'BLE MR JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 16238 OF 2025 (GM-RES) BETWEEN: 1. NAGANNA M S/O MADE GOWDA AGED ABOUT 49 YEARS, 2. SAVITHA R W/O NAGANNA M AGED ABOUT 41 YEARS, BOTH R/AT NO.39, 6TH MAIN, 7TH CROSS, BALAJI LAYOUT, BENGALURU - 560 068 … PETITIONERS (BY SRI. B.N. MAHESHCHANDRA, ADVOCATE FOR SRI MANIKANTA H B.,ADVOCATE) AND: 1. CAN FIN HOMES LTD., REGISTERED UNDER COMPANIES ACT, 1956 OFFICE AT NO.29/1, SIR M N KRISHNA RAO ROAD, BASAVANAGUDI, BENGALURU- 560 004 Digitally signed by PRAKASH N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:19270 WP No. 16238 of 2025 REPRESENTED BY ITS AUTHORIZED SIGNATORY … RESPONDENT (BY SRI. D. NARAYANASWAMY., ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASHING THE NOTICE ISSUED UNDER SECTION 13(2) OF THE SARFAESI ACT 2002 DATED 17.03.2025 ISSUED BY THE RESPONDENT PERTAINING TO THE SECURED PROPERTY PRODUCED AT ANNEXURE-F AND ETC. 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 The petitioner has sought for issuance of writ of certiorari to set aside the notice at Annexure-F under Section 13 (2) of the SARFAESI Act. 2. Various contentions have been raised by the petitioners including that the commercial loan of the petitioners is in effect closed as the liability of the loan has been taken over by LIC Housing Finance Limited. - 3 - HC-KAR NC: 2025:KHC:19270 WP No. 16238 of 2025 3. It is further submitted that the loan of Rs.5 Lakhs separately granted is a unsecured loan and the same cannot be enforced under the provisions of SARFAESI Act. 4. Learned counsel for respondent-bank would submit that taking over of loan liability by LIC Housing Finance Limited without obtaining 'No Objection Certificate' from the Bank will not be binding on the respondent-Bank. 5. It is further submitted that loan of Rs.5 Lakhs was part of commercial housing loan and not a separate loan and accordingly, single action with respect to two loans is maintainable. 6. All such contentions involve factual adjudication and it is open for the petitioners to raise the contention as has been raised herein in the substantive remedy of appeal under statute as is permissible in law. - 4 - HC-KAR NC: 2025:KHC:19270 WP No. 16238 of 2025 7. Section 17 of the SARFAESI Act provides for redressal of grievances relating to auction under Section 13 of the Act. 8. Accordingly, taking note of the law laid down by the Apex Court in the case of Union Bank of India v. Stayawati Tondon and Others reported in (2010) 8 SCC 110, it would be appropriate to relegate the petitioners to seek for substantive remedy before the Debt Recovery Tribunal. Once there is statutory scheme providing for remedy, petition ought not to be entertained unless exceptional circumstances are made out. This court finds out that there are no exceptional circumstances. 9. Accordingly, the petition is disposed off as not calling for any further adjudication. All contentions are kept open. Petitioners are at liberty to challenge the impugned action as is permissible in law. 10. In light of disposal of the writ petition, it would meet the ends of justice by directing the respondent-bank - 5 - HC-KAR NC: 2025:KHC:19270 WP No. 16238 of 2025 not to take any precipitative steps for a period of two weeks from today. Sd/- (S SUNIL DUTT YADAV) JUDGE NP/-