- 1 - NC: 2025:KHC-D:3353 WP No. 101196 of 2023 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 19TH DAY OF FEBRUARY, 2025 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO.101196 OF 2023 (GM-RES) BETWEEN: SRI MALIYAPPA S/O. MALLAPPA DABAGAL, AGE: 46 YEARS, OCC: AGRICULTURE, R/O: 36 JAYANAGAR, SHARADA BUILDING, 2ND CROSS, NEAR ANNIGERI COLLEGE, TQ: AND DIST: DHARWAD, PIN CODE – 580 001. …PETITIONER (BY SRI S. M. KALWAD, ADVOCATE) AND: 1. THE SOUTH INDIAN BANK LTD., REGIONAL OFFICE AT SIB ARCADE, 61, WHEELER ROAD, COX TOWN, BENGALURU – 560 005, R/BY ITS MANAGER. 2. THE SOUTH INDIAN BANK LTD., BRANCH KARWAR, AT H. NO.1081, GROUND FLOOR, KAIKINI ROAD, KARWAR, DIST: UTTAR KANNADA, PIN CODE – 581 301, R/BY ITS BRANCH MANAGER. …RESPONDENTS (BY SRI GIRISH S. HULMANI, ADVOCATE FOR R2; NOTICE TO R1 IS SERVED) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT OR ORDER OR DIRECTION IN THE NATURE OF WRIT OF MANDAMUS WITH DIRECTION TO THE RESPONDENTS TO REIMBURSE THE EXCESS AMOUNT RECEIVED OUT OF THE SALE PROCEEDINGS CONDUCTED BY THE RESPONDENTS IN RESPECT OF PETITIONERS PROPERTY BEARING CMC NO.1747/C MEASURING 639.39 SQ.FT AND ALSO A COMMERCIAL SHOP MEASURING 286 SQ.FT. IN SY.NO.1282 HISSA OF BAAD-II VILLAGE, BAAD CIRCLE, KARWAR TALUK, UK DISTRICT. ISSUE A WRIT OR ORDER OR DIRECTION IN THE NATURE OF WRIT OF MANDAMUS WITH DIRECTION TO THE RESPONDENTS Digitally signed by VISHAL NINGAPPA PATTIHAL Location: High Court of Karnataka, Dharwad Bench - 2 - NC: 2025:KHC-D:3353 WP No. 101196 of 2023 TO RELEASE THE EXCESS AMOUNT OF THE SALE PROCEEDINGS TO THE PETITIONER WITH 18% RATE OF INTEREST FOR THE DELAYED PAYMENT FROM THE DATE OF SALE AUCTION AND ETC., THIS WRIT PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: ORAL ORDER (PER: THE HON'BLE MR. JUSTICE M.NAGAPRASANNA) 1. The petitioner is before this Court seeking the following prayer: “A Issue A Writ Or Order Or Direction In The Nature Of Writ of mandamus with direction to the Respondents to reimburse the excess amount received out of the sale proceedings conducted by the respondents in respect of Petitioner’s property bearing CMC No.1747/c measuring 639.39 Sq.ft and also a commercial shop measuring 286 Sq.ft. in Sy.No.1282 Hissa of Baad-II village, Baad circle, Karwar Taluk, UK District. B. Issue a Writ or Order or Direction in the nature of writ of mandamus with direction to the Respondents to release the excess amount of the sale proceedings to the Petitioner with 18% rate of interest for the delayed payment from the date of sale auction. C. Issue any other writ or direction as this Hon’ble court deems fit under the facts and circumstances of the case”. 2. Owing to the contentions this Court on 23.01.2025 had passed the following order: “The petition is preferred for the purpose of refund of excess amount over and above the loan amount that - 3 - NC: 2025:KHC-D:3353 WP No. 101196 of 2023 was to be paid by the petitioner in a sale that has taken place of the said property. Therefore the respondent to place on record the amount at which the properties sold and the loan that was to be paid by the petitioner by the next date of hearing. List on 30.01.2025 in the fresh matter.” 3. Again on a subsequent contention on 30.01.2025 the following order: “The learned counsel Sri.Girish Hulmani has placed 7th auction notifications issued to sell the property of the petitioner. The first auction notification had a reserve price of Rs.61,62,000/- and 7th auction, for want of buyers was reduced to Rs.35,00,000/-. The property is then sold on the 7th auction Rs.35,00,000/-. The petitioner-borrower right from the date of borrowing the amount in the year 2015 has not paid a rupee to the bank. Therefore, the bank was constrained to initiate proceedings invoking the SARFAESI Act. The subject petition is preferred seeking refund of the amount in excess to the loan that they have secured pursuant to the sale of the property of the petitioner. Loan was at Rs.37,00,000/- and the property is said to have been sold at Rs.35,00,000/-. The counsel for the petitioner now contends that no notice of such sale was ever issued to the petitioner. - 4 - NC: 2025:KHC-D:3353 WP No. 101196 of 2023 Therefore the respondent shall place on record prima facie evidence of issuance of notice to the petitioner. In the event notice is issued the remedy to the petitioner would lie before the Debt Recovery Tribunal and the Court would not assess the quantum of sale in exercise of its jurisdiction under Article 226 of the Constitution of India. List this matter on 06.02.2025.” 4. Learned counsel Sri.Girish Hulmani appearing for appearing for the respondent-Bank has now placed a memo appending to it all seven sale notices notified and according to him, were within the knowledge of the petitioner. Not a rupee has come about. Learned counsel seeks to project that the property of Rs.62,00,000/- is reduced and sold for a song. It became inevitable to the Bank as no buyer came about for seven consecutive auction notices and in the seventh auction notice the price had to be reduced. Prima facie no fault can be, however it is for the petitioner to approach the Debt. Recovery Tribunal and agitate all the grievances that he has - 5 - NC: 2025:KHC-D:3353 WP No. 101196 of 2023 projected in the subject petition before the Debt. Recovery Tribunal. 5. Reserving such liberty, the petition stands disposed. Sd/- (M.NAGAPRASANNA) JUDGE RHR/CT-ASC List No.: 1 Sl No.: 11