- 1 - HC-KAR NC: 2025:KHC:35476 WP No. 25153 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. 25153 OF 2025 (GM-RES) BETWEEN: 1. SRI.RAVI KUMAR MADHAPPAN S/O K. MADHAPPAN, AGED ABOUT 48 YEARS, NO. 72/1, J.J. NIVAS, 2ND FLOOR, 11TH CROSS, 1ST MAIN, PAI LAYOUT, TIN FACTORY, BANGALORE 560 016 2. SMT. PADMAPRIYA V W/O RAVI KUMAR MADHAPPAN, NO. 72/1, J.J. NIVAS, 2ND FLOOR, 11TH CROSS, 1ST MAIN, PAI LAYOUT, TIN FACTORY, BANGALORE 560 016 &PETITIONERS (BY SRI. RAJESHA SHETTIGAR, ADVOCATE) AND: 1. UNION OF INDIA REPRESENTED BY ITS SECRETARY, MINISTRY OF FINANCE, Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:35476 WP No. 25153 of 2025 NORTH BLOCK, NEW DELHI - 110 001 2. THE RESERVE BANK OF INDIA, ESTABLISHED UNDER THE RESERVE BANK OF INDIA ACT, HAVING OFFICE AT NRUPATHUNGA ROAD, BENAGALURU - 560 001 REPRESENTED BY ITS MANAGER, 3. THE NATIONAL HOUSING BANK, CORE 5-A, INDIA HABITAT CENTER, LODHI ROAD, NEW DELHI - 110 003 REPRESENTED ITS AUTHORISED OFFICER 4. TRANS UNION CIBIL LIMITED (FORMERLY KNOWN AS CREDIT INFORMATION BUREAU (INDIA) LTD) ONE INDIA BULL CENTRE, TOWER 2A, 19TH FLOOR, SEPNAPATHI BAPATM MARG, ELPHINSTONE ROAD, MUMBAI 400 013 REPRESENTED BY ITS AUTHORISED OFFICER, 5. M/S PNB HOUSING FINANCE LIMITED, HEAD OFFICE AT 9TH FLOOR, ANTRIKSH BHAVAN, 22, KASTRUBA GANDHI MARG, NEW DELHI 110 001 REPRESENTED BY ITS AUTHORISED OFFICER, 6. M/S PNB HOUSING FINANCE LIMITED, (MARTHAHALLI BRANCH) 3RD FLOOR, SAI ARCADE, NO. 56, MARTHAHALLI, - 3 - HC-KAR NC: 2025:KHC:35476 WP No. 25153 of 2025 SARJAPUR OUTER RING ROAD, KARIYAMMANA AGRAHARA, BELLANDUR, BANGALORE - 560 103, REPRESENTED BY ITS MANAGER, 7. M/S PNB HOUSING FINANCE LTD (RECOVERY DEPARTMENT) NO. 40, 27TH CROSS ROAD, NEAR CHOCO WORLD, 4TH BLOCK, JAYANAGAR, BANGALORE - 560 011 REPRESENTED BY ITS RECOVERY OFFICER, 8. M/S SHWETHA AND GEETHA CONSTRUCTIONS INDIA PVT. LTD A COMPANY INCORPORATED UNDER COMPANIES ACT, 1956 OFFICE AT SITE NO. 132, IGGLURU VILLAGE, ATTIBELE HOBLI, ANCHEKAL TALUK, BANGALORE - 560 099 REPRESENTED BY ITS MANAGING DIRECTOR &RESPONDENTS (BY SRI. KUSHALAPPA B M., CGC) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT, RESTRAIN THE RESPONDENT NO.6 AND 7 FROM TAKING ANY PRECIPITATE ACTION AGAINST THE PETITIONERS; ISSUE A WRIT IN THE NATURE OF MANDAMUS OR ANY OTHER APPROPRIATE WRIT, ORDER OR DIRECTION TO THE RESPONDENT NO.6 AND 7 BANK TO ISSUE NO DUE - 4 - HC-KAR NC: 2025:KHC:35476 WP No. 25153 of 2025 CERTIFICATE/NO OBJECTION CERTIFICATE IN FAVOUR OF THE PETITIONERS WITH RESPECT TO LOAN ACCOUNT NO. HOU/MRH/1017/438825. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD ORAL ORDER The petitioners have admittedly entered into a Tripartite Agreement with a builder and certain financial institutions and they seek for the reliefs as under, [A] Issue a writ in the nature of mandamus or any other appropriate writ, order or direction, restraining the Respondent Nos.6 & 7 from taking any precipitate action against the Petitioners. - 5 - HC-KAR NC: 2025:KHC:35476 WP No. 25153 of 2025 [B] Issue a writ in the nature of mandamus or any other appropriate writ, order or direction to the Respondent Nos.6 & 7 bank to issue No due Certificate/no objection certificate in favour of the Petitioners with respect to loan account No. HOU/MRH/1017/438825. [C] Issue a writ in the nature of mandamus or any other appropriate writ, order or direction to the Respondent No.8 to refund the entire amount paid by the petitioners along with interest at the rate of 12%. [D] Direct the Respondent No.4, to rectify/modify the CIBIL Scores of the Petitioners by removing the entry of the outstanding amount reflecting against the Petitioners' loan account No. HOU/MRH/1017/438825, [as per Annexures - J and K]. [E] Direct the Respondent No.6 Institution to assist the Respondent No.4 in clearing the CIBIL score of the Petitioners by removing the entry - 6 - HC-KAR NC: 2025:KHC:35476 WP No. 25153 of 2025 of the outstanding amount reflecting against the Petitioners' loan account No. HOU/MRH/1017/438825. The petitioners, as regards the grievance and the cause for the present petition, assert that [i] the Builder, as a matter of its sale policy, constrained the petitioners to sign a Tripartite Agreement and acting under such Agreement, the respondent - Bank has disbursed the loan amount, [ii] the Builder [the eighth respondent] because has disbursed loan in breach of the Agreement, coercive measures cannot be taken against them, and [iii] in terms of the Tripartite Agreement, the Builder has undertaken to make all the pre-EMIs. Mr. Rajesha Shettigar, the learned counsel relies upon a decision of the Co-ordinate Bench of this Court in W.P.No.17696/2021 and connected matters, to bolster the petitioners' case, but he also fairly submits that this decision is called in question - 7 - HC-KAR NC: 2025:KHC:35476 WP No. 25153 of 2025 in an Intra-Court appeal that is pending consideration. This Court, in similar circumstances, because of the question involved and the factual matrix, has opined that the concerned must avail their remedy dependent on the proceedings that the concerned Bank could start. This Court has also opined that all the ramifications of the terms of the contract must be examined in such proceedings. As such, the petition stands disposed of subject to all just exceptions. SD/- (B M SHYAM PRASAD) JUDGE RB