- 1 - HC-KAR NC: 2025:KHC:35911 WP No. 25830 of 2025 C/W WP No. 6507 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 25830 OF 2025 (GM-RES) C/W WRIT PETITION NO. 6507 OF 2024 (GM-RES) IN WP No. 25830/2025 BETWEEN: 1. M/S PRIYA VEG SIT EXTENSION, TUMKURU REPRESENTED BY ITS PROPRIETOR. SRI. RAHUL.S S/O SHIVAKUMAR T.S AGED ABOUT 37 YEARS, AS PER HOTEL MANAGEMENT ACT. 2. SRI. SHIVAKUMAR T.S S/O LATE SIDDARAMANNA AGED ABOUT 76 YEARS, 3. SMT M SUBHASHINI W/O SRI SHIVAKUMAR AGED ABOUT 68 YEARS, ALL ARE RESIDING AT SIDDARAMANNA BUILDING, 3RD CROSS, BARLINE ROAD, GENERAL KARIYAPPA ROAD, Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:35911 WP No. 25830 of 2025 C/W WP No. 6507 of 2024 K.R. EXTENSION, TUMKURU-572101. 4. MS PRIYANKA S D/O SRI SHIVAKUMAR AGED ABOUT 38 YEARS, RESIDING AT SIDDARAMANNA BUILDING, 3RD CROSS, BARLINE ROAD, GENERAL KARIYAPPA ROAD, K.R. EXTENSION, TUMKURU-572101. …PETITIONERS (BY SRI. N R NAIK.,ADVOCATE) AND: THE PUNJAB NATIONAL BANK ASSET RECOVERY MANAGEMENT BRANCH, NO.26-27, RAHEJA TOWERS, M.G. ROAD, BENGALURU-560001 REPRESENTED BY ITS AUTHORIZED OFFICER. …RESPONDENT (BY SRI. VIGNESH S SHETTY.,ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO SET ASIDE THE AUCTION SALE NOTICE DATED 05.08.2025 ISSUED BY THE RESPONDENT BANK IN RESPECT OF PROPERTY WHICH WAS MORTGAGED BY THE PETITIONERS, WHICH IS PRODUCED AT ANNX-E. - 3 - HC-KAR NC: 2025:KHC:35911 WP No. 25830 of 2025 C/W WP No. 6507 of 2024 IN WP NO. 6507/2024 BETWEEN: 1. M/S PRIYA VEG SIT EXTENSION - TUMAKURU REPRSENTED BY ITS PROPRIETOR SRI RAHUL 2. SRI SHIVAKUMAR S S/O SRI LATE N SIDDARAMANNA AGED ABOUT 74 YEARS 3. MS PRIYANKA S D/O SHIVAKUMAR T S AGED ABOUT 36 YEARS 4. SRI M SUBHASHINI W/O SHIVA KUMAR T S AGED ABOUT 66 YEARS ALL ARE RESIDING AT SIDDARAMANNA BUILDING 3RD CROSS, BARLINE ROAD. K R EXTENSION, TUMKURU 572101. ...PETITIONERS (BY SRI. V. MOHAN., ADVOCATE) AND: 1. THE AUTHORIZED OFFICER PUNJAB NATIONAL BANK CRMD, BENGALURU EAST CIRCLE - 4 - HC-KAR NC: 2025:KHC:35911 WP No. 25830 of 2025 C/W WP No. 6507 of 2024 SASTRA DEPARTEMNT NO 26-27 RAHEJA TOWERS M G ROAD BENGALURU 560001. ...RESPONDENT (BY SRI. VIGNESH S. SHETTY., ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUION OF INDIA PRAYING TO a) QUASH /SET ASIDE THE IMPUGNED ORDER DATED 31/01/2024 PASSED BY THE PRL. SENIOR CIVIL JUDGE AND CJM TUMKUR, IN CRL. MISC. NO. 2452/2023 (ANNEXURE-A) AND ISSUED VACATING NOTICE DATED 20/02/2024 BASED ON THE SECTION 14 ORDER (ANNEXURE-C), SINCE THERE IS GROSS VIOLATION OF PROVISIONS OF THE ACT AND ON SUBSTANTIAL QUESTION OF LAW, WHICH THE HONBLE PRL. SENIOR CIVIL JUDGE AND CJM TUMKUR, IN CRL. MISC. NO. 242/2023, FAILED TO CONSIDER WHILE PASSING THE IMPUGNED ORDER. b) RESTRAIN THE RESPONDENT BANK FROM TAKING POSSESSION OF THE SCHEDULE PROPERTY BY VIRTUE OF THE IMPUGNED ORDER. THESE PETITIONS, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD - 5 - HC-KAR NC: 2025:KHC:35911 WP No. 25830 of 2025 C/W WP No. 6507 of 2024 ORAL ORDER The petitioners are borrowers and they are aggrieved by the respondent having recourse to the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [for short, 'the SARFAESI Act']. The petitioners in the writ petition in W.P. No. 6507/2024 have called in question the order dated 31.01.2024 in Criminal Miscellaneous No. 242/2023 on the file of the Principal Senior Civil Judge and CJM, Tumakuru, and in the next petition in the writ petition in W.P. No.25830/2025, the petitioners have called in question the respondent's decision to cause sale notice dated 05.08.2025 [Annexure-E]. 2. This Court in the writ petition in W.P. No.6507/2024 has granted an interim order on terms. The petitioner, to comply with the terms, had to deposit 20% of the outstanding amount within six weeks, and if there is to be any non-compliance, the - 6 - HC-KAR NC: 2025:KHC:35911 WP No. 25830 of 2025 C/W WP No. 6507 of 2024 petitioner will have to face the consequence of eviction. Sri Vignesh S Shetty, the learned counsel for the respondent, submits that the dues are in excess of Rs.4 Crores and in terms of the interim order, the petitioners have only paid a sum of Rs.8,00,000/- and nothing more, and as such, the respondent has caused sale notice dated 05.08.2025. 3. Sri Vignesh S Shetty emphasizes that the petitioners have suppressed the fact that 20% of the outstanding is not paid before filing the second petition. Sri N R Naik, the learned counsel for the petitioners, without disputing that only a sum of Rs.8,00,000/- is paid, submits that this Court must intervene to refer the matter to Lok Adalat so that there could be a settlement. 4. This Court's intervention at the first instance in the writ petition in W.P. No.6507/2024 is conditional and predicated on the liberty to the respondent to proceed further if there is non- - 7 - HC-KAR NC: 2025:KHC:35911 WP No. 25830 of 2025 C/W WP No. 6507 of 2024 compliance. The petitioners have not complied with the terms, and therefore, their grievance cannot be sustained in the present proceedings, and they must be at liberty, subject to all exceptions, to avail their remedy under Section 17 of the SARFAESI Act. Insofar as the other petition in the writ petition in W.P. No.25830/2025, this Court must observe that because the sale is not held as notified with this Court's interim order, and as such, this petition is rendered infructuous.. The petitions stand disposed of accordingly. Sd/- (B M SHYAM PRASAD) JUDGE AN/-