- 1 - HC-KAR NC: 2025:KHC:32811 WP No. 25434 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 25434 OF 2025 (GM-RES) BETWEEN: ASHVA HEALTH TECH LTD A COMPANY REGISTERED UNDER THE COMPANIES ACT, 2013 HAVING ITS OFFICE AT PLOT 180D2/E VASANTHANARASAPURA IND AREA, 1ST PHASE TUMKUR, BENGALURU-572128. REPRESENTED BY ITS DIRECTOR SHILIKA LILARAMANI …PETITIONER (BY SRI. SIDDHARTH SUMAN.,ADVOCATE) AND: SOUTH INDIAN BANK LTD 'SIB HOUSE' T.B. ROAD, THRISSUR-1 KERALA-680001 REPRESENTED BY ITS CHIEF MANAGER AND AUTHORIZED OFFICER ALSO AT SIB ARCADE, NO. 61, WHEELER ROAD, COX TOWN, BENGALURU-560 005 Digitally signed by VANAMALA N Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:32811 WP No. 25434 of 2025 ALSO AT NO. 74, SUMERU TOWER, NEXT TO ST. JOSEPH S COLLEGE OF COMMERCE, BRIGADE ROAD, BANGALORE - 560 025. …RESPONDENT (BY SRI.FRANCIS XAVIER., ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT THE RESPONDENT BANK TO HAND OVER POSSESSION OF THE SCHEDULE PROPERTY FORTHWITH TO THE PETITIONER AS THE ACTION OF THE RESPONDENT BANK DATED 06/08/2025 IS ARBITRARY, ILLEGAL AND WHOLLY UNJUST. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD - 3 - HC-KAR NC: 2025:KHC:32811 WP No. 25434 of 2025 ORAL ORDER The petitioner is admittedly a tenant under the borrower [though with some cross holdings], and is aggrieved by the respondent's decision to bring the subject property under seal. On the previous hearing date [21.08.2025], Sri Siddharth Suman, the learned counsel for the petitioner, while inviting this Court's attention to the Debt Settlement Agreement [DSA] [Annexure-F], had placed on record that the borrower ensured deposit of Rs.7 Crores [which was payable before 30.06.2025] in an escrow account and that the borrower was also willing to ensure that such amount is made over to the respondent with interest if any. Sri Francis Xavier, the learned counsel for the respondent, who was called upon to take notice, responds stating that the respondent, being entitled to in terms of the DSA, has recalled the settlement and that it would be entitled to recover the amount as would be due originally subject to adjustments for - 4 - HC-KAR NC: 2025:KHC:32811 WP No. 25434 of 2025 the amount that are already received. The learned counsel emphasizes that the petitioner cannot have any claim over machinery or stock-in-trade as that will also be part of the secured asset liable to consequence under the DSA. In rejoinder, Sri Siddharth Suman submits that this Court may consider calling upon the respondent to receive today a Demand Draft for a sum of Rs.7 Crores with another sum of Rs.35 lakhs and break open the seal. The learned counsels also propose to rely upon certain other circumstances, but this Court is not persuaded to pass any order with the petitioner categorically admitting that it is only a tenant and because if there has to be any offer in terms of the DSA, it has to be by the borrower. At this stage, Sri Siddharth Suman, on instructions, submits that the petition could be disposed of permitting the petitioner to retrieve the machinery and stock-in-trade that is covered under the petitioner's invoices and that - 5 - HC-KAR NC: 2025:KHC:32811 WP No. 25434 of 2025 would be a distinct set of assets from the assets that are mentioned in the DSA. Sri Francis Xavier is heard on the request as aforesaid, and this Court is of the view that if the respondent is pursuing with measures for default by the borrower and the petitioner-tenant is willing to take back stock in trade and the machinery covered under its invoices, the respondent must permit the petitioner to take possession of such machinery and stock-in-trade without precipitation and without giving room for further litigation but without prejudice to the borrower's cause as some statements are also made on its behalf. Hence, the following: ORDER [a] The petition stands disposed of calling upon the respondent to permit the petitioner to take back the machinery and the stock-in-trade under its invoices that are dated subsequent to the DSA. - 6 - HC-KAR NC: 2025:KHC:32811 WP No. 25434 of 2025 [b] The petitioner is reserved with liberty to file a certified copy of this order and to take back stock-in-trade and machinery as aforesaid. Sd/- (B M SHYAM PRASAD) JUDGE AN/-