- 1 - HC-KAR NC: 2025:KHC:35478 WP No. 25244 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 25244 OF 2025 (GM-RES) BETWEEN: IMRAN PASHA C/O FAYAZ PASHA AGED ABOUT 30 YEARS NO. 102, 1ST FLOOR, MADINAH MANZIL 4TH CROSS AJJAPA, NEAR DINNUR WHITE HOUSE GATE, DINNUR MAIN ROAD, BENGALURU NORTH, R.T NAGAR, BENGALURU-560032 …PETITIONER (BY SRI. FAZIL AHMED., ADVOCATE) AND: 1. THE MALLESHWARAM CO OPERATIVE BANK LIMITED H.O NO.102, 7TH CROSS, MALLESHWARAM, BENGALURU- 560003 REPRESENTED BY ITS MANAGER Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:35478 WP No. 25244 of 2025 2. SRI. SYED AIJAZ AHMED, S/O. ABDUL RAHMAN 3. SMT. ASMA BEGUM, W/O. SRI SYED AIJAZ AHMED BOTH PARTIES RESIDING AT NO. 5, 1ST CROSS, 1ST MAIN ROAD, DINNUR, BENGALURU -560032. …RESPONDENTS (BY SRI. K.V.LOKESH, ADVOCATE FOR C/R1) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT THE RESPONDENT NO.1 TO TRANSFER A SUM OF RS. 20,00,000/- (RUPEES TWENTY LAKHS ONLY) TO THE PETITIONER FROM THE SURPLUS AMOUNT IN THE EVENT OF SALE OF SCHEDULE PROPERTY OF THE RESPONDENT NO. 2 AND 3, AFTER ADJUSTING THE OUTSTANDING LOAN DUES RECOVERABLE FROM THE RESPONDENT NO. 2 AND 3. THIS PETITION, COMING ON FOR FRESH MATTERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC:35478 WP No. 25244 of 2025 CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD ORAL ORDER The petitioner asserts that he has entered possession of the property secured with the first respondent as a tenant upon paying a sum of Rs.20,00,000/- to the second respondent [who is a borrower along with the third respondent]. The petitioner seeks direction to the first respondent in the following terms; Direction to the first Respondent to transfer a sum of Rs.20,00,000/- (Rupees Twenty Lakhs Only) to the petitioner from the surplus amount in the event of the sale of the second and third Respondents property after adjusting the outstanding loan dues recoverable from these Respondents. Mr. Fazil Ahmed, the learned counsel for the petitioner, and Mr. K. V. Lokesh, the learned counsel for the first respondent, are heard for the final disposal of the petition. - 4 - HC-KAR NC: 2025:KHC:35478 WP No. 25244 of 2025 2. It is not disputed that the petitioner has filed a writ petition in W.P. No.20750/2025 calling in question the proceedings initiated by the first respondent under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [for short, ‘the Act’] and that this petition was listed with the petitions in W.P.No.20734/2025 and W.P.No.20748/2025. The petitioner has filed even these petitions calling in question other proceedings under the Act. This Court has disposed of these writ petitions by order dated 23.07.2025, observing that the petitioners must avail their statutory remedy. 3. Mr. K. V. Lokesh submits that the prayer is premature because the first respondent has not brought the subject property to sale though possession is recovered and that even if there should be any direction, it is only after appropriate declaration by the jurisdictional Court in a proper - 5 - HC-KAR NC: 2025:KHC:35478 WP No. 25244 of 2025 suit. The learned counsel's submission is in response to the request by Mr. Fazil Ahmed for directions to the first respondent to pay to the petitioner any surplus that is received upon sale of the subject property. 4. This Court is of the view that the petitioner has come beforehand as the sale proceedings have not even begun, but this Court must observe that if in the event the first respondent does indeed receive any surplus, that must be paid to the petitioner subject to the say of the borrowers, and that if the borrowers raise any objection, the first respondent must hold the amount as a garnishee subject to the outcome in the dispute between the borrowers and the petitioner. The petition stands disposed of accordingly. Sd/- (B M SHYAM PRASAD) JUDGE RB