- 1 - HC-KAR NC: 2025:KHC:38297 WP No. 7973 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 23RD DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 7973 OF 2025 (GM-RES) BETWEEN: 1. MRS.VANITHA R W/O MR. RUDRA PAPALAH AGED ABOUT 4 YEARS D.NO. VL-904, PURVA VENEZIA APARTMENTS, SANDEEP UNNIKRISHNAN ROAD, NEAR GRVK, YELHANKA NEW TOWN, YELHANKA, BENGALURU 500064. 2. MR. RUDRA PAPAIAH G S/O MR. GURUSWAMY AGED ABOUT 57 YEARS D.NO. VL-904, PURVA VENEZIA APARTMENTS, SANDEEP UNNIKRISHNAN ROAD, NEAR GKVK, YELHANKA NEW TOWN, YELHANKA, BENGALURU-500064. …PETITIONERS (BY SRI. CHITHRALEKHA H R.,ADVOCATE) Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:38297 WP No. 7973 of 2025 AND: THE CENTRAL BANK OF INDIA IISC BRANCH GROUND FLOOR, 726/25, HMT MAIN ROAD, NEW M.S RAMAIAH ROAD, BENGALURU - 560054 REP BY ITS MANAGER. …RESPONDENT (BY SRI. Y P GOKUL.,ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE SRA/CBI/IISC/OD-CENT MORTGAGE-4006753288/ CGECL-5238072117/FITLL5107980287 ISSUED BY RESPONDENT DATED 11.03.2025 AS PER ANNX-A IN CONCERNED PETITIONER ONLY; QUASH THE POSSESSION NOTICE UNDER SRA/CBI/IISC/OD- CENT MORTGAGE-4006753288/ CGECL- 5238072117/ FITLL 5107980287/ GECL- 3873644815 DATED 05.11.2024 UNDER SECTION 13(2) OF SARFAESI ACT VIDE ANNX-K ISUED BY RESPONDENT; QUASH THE POSSESSION NOTICE UNDER SECTION 13(4).SRA/CBI/IISC/OD-CENT - 3 - HC-KAR NC: 2025:KHC:38297 WP No. 7973 of 2025 MORTGAGE-4006753288/CGECL-5238072117/ FITLL 5107980287/ GECL-3873644815 VIDE ANNX- K AND K2 HAS NOT ISSUED TO PETITIONERS AND THE BANK HAS ISSUED NOTICE TO HANDOVER THE PROPERTY WITHIN 7 DAYS FROM THE DATE OF NOTICE RECEIVED WHICH IS DATED 11.03.2025 AND 08.10.2024 IN CONCERNED PETITION ONLY AND FURTHER PASS AN APPROPRIATE ORDER DIRECTING THE RESPONDENT TO CONSIDER THE REPRESENTATION DATED 20.02.2025 VIDE ANNX-L IN CONCERNED PETITIONER ONLY. THIS PETITION, COMING ON FOR FRESH MATTERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD ORAL ORDER The petitioners have availed a Term Loan from the respondent and are admittedly in default. The respondent has initiated proceedings under the provisions of the Securitization and Reconstruction of - 4 - HC-KAR NC: 2025:KHC:38297 WP No. 7973 of 2025 Financial Assets and Enforcement of Security Interest Act, 2002 [for short, the SARFAESI Act] with the issuance of the initial Notice dated 05.11.2024 under Section 13[2] and the subsequent notice for possession under Section 13[4] of the SARFAESI Act. 2. This Court, on 18.03.2025, has granted interim order, and by the subsequent order dated 24.04.2025, this Court has extended the interim order subject to deposit of 25% of the amount in demand within a certain time line. In terms of this interim order, the petitioners had to deposit Rs. 21,00,000/- but the petitioners have only deposited a sum of Rs. 6,00,000/-. Therefore, this Court recorded that the interim order stands vacated. The present application is for reinstatement of this order. 3. It is undisputed that the petitioners have presently deposited a sum of Rs. 27,00,000/- and are in arrears in excess of Rs. 66,00,000/-. The learned - 5 - HC-KAR NC: 2025:KHC:38297 WP No. 7973 of 2025 counsel for the petitioners submits that this Court could consider disposing of the petition deferring precipitative action for some reasonable time as the petitioners propose to close the loan. The learned counsel for the respondent submits that the respondent is not able to recover its dues though the petitioners have been given the benefit of restructuring on six different occasions. 4. On merits, the petitioners' case hinges on a request for One Time Settlement [OTS]. In the circumstances, this Court is of the view that the respondent must defer taking precipitative action for a period up to 15.10.2025, which would enable the petitioners, if bona fide, to write off the loan and if the petitioners fail, the respondent must be at liberty to take action, in which event. The petitioners must, instead of invoking this Court's jurisdiction under Article 226 of the Constitution, avail alternative remedy under Section 17 of the SARFAESI Act. - 6 - HC-KAR NC: 2025:KHC:38297 WP No. 7973 of 2025 The petition stands disposed of in the afore terms. Sd/- (B M SHYAM PRASAD) JUDGE NV - 7 - HC-KAR NC: 2025:KHC:38297 WP No. 7973 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU [MRS.VANITHA R AND ANOTHER VS. THE CENTRAL BANK OF INDIA] 24.10.2025 (VIDEO CONFERENCING / PHYSICAL HEARING) CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD ORAL ORDER ON I.A.No.2/2025 This Court has disposed of this petition on 23.09.2025 and this Court's order in its material part reads as under: On merits, the petitioners' case hinges on a request for a One Time settlement [OTS]. In the circumstances, this Court is of the view that the respondent must defer taking precipitative action for a period up to 15.10.2025, which would enable the petitioners, if bona fide, to write off the loan and if the petitioners fail, the respondent must be at liberty to take action, in which event. The petitioners must, instead of invoking this Court's jurisdiction under Article - 8 - HC-KAR NC: 2025:KHC:38297 WP No. 7973 of 2025 226 of the Constitution, avail the alternative remedy under Section 17 of the SARFAESI Act. The present application [I.A.No.2/2025] is now filed for correction of this Court's order stating that there is an error in stipulating the date until which the respondent must defer the proceedings and the amount that is tendered by the petitioners. 2. When queried, the learned counsel for the respondent does not dispute that what is tendered by the petitioners is not Rs.6,00,000/- but Rs.6,50,000/-. Insofar as the purported error in mentioning the date, the learned counsel for the petitioners submits that she has had the advantage of looking into the stenographer's notebook and also the Video Clip of this Court's proceedings on the relevant date. However, nothing is stated in this regard in the application. - 9 - HC-KAR NC: 2025:KHC:38297 WP No. 7973 of 2025 3. This Court finds the assertion on the advantage of the access to the stenographer's book without obtaining a copy thereof rather strange. However, the period for which the respondent must defer taking precipitous action is considered not as a matter of correcting this Court's order but as a request for extension of time. The learned counsel for the respondent does not dispute that no further action has been taken after this Court's order dated 23.09.2025. 4. On a careful consideration and to ensure that the benefit that flows from this order is reasonably available to the petitioners, the application [I.A.No.2/2025] stands disposed of calling upon the respondent to defer taking precipitous action until 30.11.2025. The statement that a sum of Rs.6,50,000/- is paid, instead of Rs.6,00,000/- as mentioned in this Court's order, is taken on record. - 10 - HC-KAR NC: 2025:KHC:38297 WP No. 7973 of 2025 The application [I.A.No.2/2025] stands disposed of in these terms. Sd/- (B M SHYAM PRASAD) JUDGE RB List No.: 1 Sl No.: 4