- 1 - HC-KAR NC: 2025:KHC-D:8475 WP No. 104244 of 2025 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 8TH DAY OF JULY 2025 BEFORE THE HON'BLE MR. JUSTICE PRADEEP SINGH YERUR WRIT PETITION NO. 104244 OF 2025 (GM-RES) BETWEEN: PRASHANT B. ANGADI S/O. BASAVARAJ, AGED ABOUT 32 YEARS, OCC: AGRICULTURE, R/O. WARD NO.2, LAXMIPETH NEAR MAIN BAZAR, ILKAL-587125, TQ: HUNGUND, DIST: BAGALKOT. …PETITIONER (BY SRI. RAJASHEKHAR BURJI, ADVOCATE) AND: 1. CANARA BANK, REGIONAL OFFICE, BAGALKOT-587101, REPRESENTED BY ITS AUTHORISED OFFICER, MRS. SUNITHA C. W/O. R. RAMESH, AGED ABOUT 47 YEARS, BAGALKOTE-587101, TQ: AND DIST: BAGALKOT. 2. NETRA B. EMMI, AGED ABOUT 56 YEARS, OCC: AGRICULTURE, R/O. WARD NO.2, LAXMIPETH, NEAR MAIN BAZAR, ILKAL-587125, TQ: HUNGUND, DIST: BAGALKOTE. 3. BASAVARAJ EMMI, AGED ABOUT 65 YEARS, OCC: AGRICULTURE, R/O. WARD NO.2, LAXMIPETH, NEAR MAIN BAZAR, ILKAL-587125, TQ: HUNGUND, DIST: BAGALKOTE. 4. BASAVARAJ AMARAYYA B. AGED ABOUT 60 YEARS, OCC: AGRICULTURE, R/O. OMKAR TALKIES, ILKAL-587125, TQ: HUNGUND, DIST: BAGALKOTE. …RESPONDENTS (BY SRI. SURESH S. GUNDI, ADVOCATE FOR R1; R2-R4 DISPENSED WITH) VIJAYALAKSHMI M KANKUPPI Location: HIGH COURT OF KARNATAKA DHARWAD BENCH - 2 - HC-KAR NC: 2025:KHC-D:8475 WP No. 104244 of 2025 THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ALLOW THIS WRIT PETITION AND ISSUE A WRIT OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT OR ORDER OR DIRECTION TO SET-ASIDE THE ORDER DATED 16.06.2025 PASSED BY THE COURT OF PRL. SENIOR CIVIL JUDGE AND CJM AT BAGALKOT CRL. MISC. NO.56/2025 PRODUCED AT ANNEXURE-A AND ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, ORDER WAS MADE THEREIN AS UNDER: ORAL ORDER (PER: THE HON'BLE MR. JUSTICE PRADEEP SINGH YERUR) Heard learned counsel for the petitioner. 2. Learned counsel for the petitioner submits that the petitioner is ready and willing to pay the entire outstanding amount due to the 1st respondent/Bank, if reasonable time is granted. 3. Learned counsel for respondent No.1/Bank submits that if the amount is paid, respondent No.1 would not have any objections. But in case of non-payment he may be permitted to proceed further in accordance with law. Such submission is placed on record. 4. Petitioner has called in question the order passed by the Principal Senior Civil Judge and CJM, Bagalkote in Criminal Miscellaneous No.56/2025 filed by respondent - 3 - HC-KAR NC: 2025:KHC-D:8475 WP No. 104244 of 2025 No.1/Bank under Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, ‘the SARFAESI Act’). Petitioner had obtained financial assistance from respondent No.1/Bank and due to the non-payment of the same; said account was treated as ‘non-performing asset’ by the 1st respondent/Bank. Accordingly, Bank claimed the amount of Rs.24,63,197.72/- due as on 31.01.2025 from the petitioner in respect of loan so obtained. Thereafter, a demand notice was issued under Section 13(2) of the SARFAESI Act calling upon the petitioner to repay the entire loan amount within 60 days from the date of issuance of notice. Accordingly, respondent No.1/Bank had issued notice on 09.04.2025 under Section 13(4) of the SARFAESI Act. Since the petitioner has failed to made payment of outstanding amount due, hence respondent No.1 has initiated the proceedings under Section 14 of the SARFAESI Act before the Principal Senior Civil Judge and Chief Judicial Magistrate, Bagalkote in Criminal - 4 - HC-KAR NC: 2025:KHC-D:8475 WP No. 104244 of 2025 Miscellaneous No.56/2025 for seeking permission to take the possession of the property. 5. It is the grievance of petitioner that no notice was given prior to initiation of the proceedings under Section 14 of the SARFAESI Act’ therefore for not having followed the required procedures, he is before this Court to seeking quashing of the proceedings initiated by the 1st respondent/Bank under the SARFAESI Act. 6. It is also stated by the petitioner that he is ready and willing to pay the entire loan amount and the Bank to accept ‘one time settlement proposal’ by the petitioner so settle the loan account of the petitioner, in order to protect the immoveable property of the petitioner. Hence, the present petition to quash the order dated 16.06.2025 passed in Criminal Miscellaneous No.56/2025 is filed by the petitioner. 7. Learned counsel Sri Suresh S. Gundi, appearing for respondent No.1/Bank primarily contends that the petition is not maintainable as there is alternative - 5 - HC-KAR NC: 2025:KHC-D:8475 WP No. 104244 of 2025 efficacious remedy available to the petitioner, which he has not exhausted before approaching this Court under Article 226 of the Constitution of India. He further contends that when there is an alternative efficacious remedy is available, this Court generally does not interfere with the proceedings for recovery of the amount, which is admittedly due to the Bank. In view of the fact that the petitioner has agreed to pay the outstanding amount, learned counsel for the 1st respondent/Bank is willing to show the some leniency to the petitioner to make good payment within reasonable time and show his bonafides by making some payments and thereafter Bank may consider one time settlement. 8. Considering the fact that the petitioner is ready and willing to pay the outstanding amount and present property being only source of his shelter, this Court deems it appropriate to dispose of the matter in the following manner: - 6 - HC-KAR NC: 2025:KHC-D:8475 WP No. 104244 of 2025 ORDER (i) Petition is disposed of. (ii) Petitioner is granted four weeks time to pay 50% of the outstanding amount due to the 1st respondent/Bank as per the demand, pursuant to which, petitioner shall pay the balance amount within six weeks thereafter. (iii) It is made clear that if amount is not paid within time specified, respondent No.1/Bank is at liberty to proceed further in accordance with law. (iv) Petitioner is also at liberty to make proposal for OTS which the Bank shall consider in accordance with law. Sd/- (PRADEEP SINGH YERUR) JUDGE CKK CT-MCK List No.: 1 Sl No.: 8