- 1 - NC: 2025:KHC:1230 WP No. 34429 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13TH DAY OF JANUARY, 2025 BEFORE THE HON'BLE MR JUSTICE R DEVDAS WRIT PETITION NO. 34429 OF 2024 (GM-RES) BETWEEN: 1. 2. M/S. MANLEO FOODS PRIVATE LIMITED REP. BY MR.G.SHUBHA KUMAR C/O. GAANESHWARA M.S. AGED AROUND 35 YEARS, NO.462, 11TH A CROSS, 7TH A MAIN ROAD, SECTOR A, YELAHANKA NEW TOWN, YELAHANKA, BANGALORE 560 064 MR. SRIDHAR BABU K.S. S/O SRINIVASA SHETTY K.S. AGED ABOUT 55 YEARS PARTNER, M/S. SAPTHAGIRI AGRO INDUSTRY R/A SAPTHAGIRI NILAYA, 4TH CROSS NEAR WATER TANK VIDYANAGAR, TUMKUR-572101. …PETITIONERS (BY SMT. RAJALAKSHMI V S & SRI. V. MOHAN., ADVOCATES) AND: CANARA BANK ARM BRANCH-I, 2ND FLOOR, SPENCER TOWER, M.G.ROAD, BANGALORE-560 001 REP BY AUTHORISED OFFICER/CHIEF MANAGER …RESPONDENT (BY SRI. VIGNESH SHETTY., ADVOCATE) Digitally signed by DHARMALINGAM Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:1230 WP No. 34429 of 2024 THIS W.P. IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE AUCTION SALE NOTICE DTD. 26.11.2024 IN RESPECT OF THE SCHEDULE PROPERTIES (ANNX-A) PROPOSING TO CONDUCT THE AUCTION SALE ON 18.12.2024 IN RESPECT OF THE SCHEDULE PROPERTIES / RICE MILL PLANT AND MACHINERY AS (SL.NO.2) AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE R DEVDAS ORAL ORDER The 2nd petitioner, who was in fact arrayed as 2nd respondent earlier was thereafter transposed as the 2nd petitioner in this petition. The 2nd petitioner is the borrower at the hands of the 1st respondent-Bank. The prayer in this writ petition is to quash the Auction Sale Notice dated 26.11.2024; to direct the 1st respondent- Bank to restrain from conducting auction sale of the schedule property/Rice Mill units until refund of the petitioners deposit amount transferred to No-lien Account; etc. 2. Learned Counsel for the 1st respondent-Bank submits that the auction sale could not be conducted in - 3 - NC: 2025:KHC:1230 WP No. 34429 of 2024 terms of the Auction Sale Notice dated 26.11.2024. If it is the request of the petitioners now to refund the amount deposited on behalf of the petitioners under One Time Settlement (OTS) scheme, then, this Court could dispose of the writ petition while issuing such a direction to the respondent-Bank to consider the request made by the petitioners for refund of the amount deposited under the OTS scheme. 3. Having regard to the interim orders passed on 19.1.2024 and in view of the prayer made in the writ petition regarding the Auction Sale Notice dated 26.11.2024 and the fact that the auction could not be held by the respondent-Bank, the writ petition stands disposed of directing the 1st respondent-Bank to consider the request made by the petitioners for refund of the amount deposited by the petitioners under OTS scheme. 4. If the said amount is kept under No-lien Account and the petitioners have not fulfilled the conditions the 1st respondent-Bank will be duty bound to consider the - 4 - NC: 2025:KHC:1230 WP No. 34429 of 2024 representation given by the petitioners which includes the 2nd petitioner, who is the original borrower for refund of the amount deposited under OTS scheme. The same shall be considered as expeditiously as possible and at any rate within a period of two weeks from the date of receipt of copy of this order. Ordered accordingly. Sd/- (R DEVDAS) JUDGE DL CT: JL