- 1 - HC-KAR NC: 2025:KHC:30299 WP No. 23590 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 5TH DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 23590 OF 2025 (GM-RES) BETWEEN: 1. SRI VIJAYEENDRA G MUDDEBIHALKAR ALIAS MUDDEBIHALKAR GOVINDARAO VIJAYEENDRA AGED ABOUT 64 YEARS S/O LATE GOVINDRAO MUDDEBIHALKAR, 2. SMT. SUNITA MUDDEBIHALKAR @ SUNITA V MUDDEBIHALKAR AGED ABOUT 59 YEARS, W/O SRI VIJAYEENDRA G MUDDEBIHALKAR 3. SRI VAIBHAV MUDDEBIHALKAR @ VAIBHAV V MUDDEBIHALKAR AGED ABOUT 35 YEARS S/O SRI VIJAYEENDRA G MUDDEBIHALKAR ALL ARE RESIDING AT NO.163, SHRI VITTALA, 11TH MAIN, 9TH BLOCK, 2ND STAGE, NAGARBHAVI, BENGALURU - 560072. &PETITIONERS (BY SRI. ABHISHEK R HUDDAR.,ADVOCATE) Digitally signed by VANAMALA N Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:30299 WP No. 23590 of 2025 AND: 1. UNION OF INDIA REPRESENTED BY ITS SECRETARY, MINISTRY OF FINANCE NORTH BLOCK, NEW DELHI - 110 001. 2. RESERVE BANK OF INDIA ESTABLISHED UNDER RESERVE BANK OF INDIA ACT, 1934 HAVING ITS REGIONAL BRANCH AT POST BOX NO. 5467 NRUPATHUNGA ROAD BENGALURU - 560001. REP BY ITS MANAGER 3. TRANS UNION CIBIL LIMITED (FORMERLY CREDIT INFORMATION BUREAU (INDIA) LIMITED) HAVING REGD. CORPORATE OFFICE AT ONE WORLD CENTRE, TOWER 2A, 19TH FLOOR, SENPATI BAPAT MARG ELPHINSTONE ROAD MUMBAI - 400013 REP BY ITS AUTHORIZED OFFICER. 4. M/S SIGMA BUILDERS HAVING O/A SY NO.223, ATTIBELE, SARJAPURA ROAD, INDLABELE VILLAGE, ATTIBELE HOBLI, ANEKAL TALUK, BENGALURU - 562107 REP BY ITS DIRECTOR SRI BALAJI T - 3 - HC-KAR NC: 2025:KHC:30299 WP No. 23590 of 2025 5. M/S VAHE PROJECTS HAVING O/AT SITE NO.2, SY NO. 29/1 3RD CROSS, BEHIND HIGH SCHOOL, VARTHUR, BENGALURU - 560087 REP BY ITS DIRECTOR SRI SUDHAKAR 6. SRI PRAMOD AGED ABOUT MAJOR, 7. SRI GIRISH AGED ABOUT 60 YEARS, S/O LATE GOVINDRAO MUDDEBIHALKAR, R/AT NO. 616, 1ST FLOOR, 9TH D MAIN ROAD, RPC LAYOUT, VIJAYANAGARA BENGALURU - 560104. 8. M/S PNB BANK, HAVING O/AT NO. 26-27, RAHEJA TOWERS, MG ROAD, BENGALURU - 560001 REP BY ITS MANAGER. 9. M/S ICICI BANK, HAVING O/AT NO. 4/10, MYTHREE TOWER, BOMMANAHALLI, HOSUR ROAD BENGALURU - 560068 REP BY ITS MANAGER. 10. M/S HDFC BANK HAVING O/AT HDFC HOUSE, NO. 51 KASTURBA ROAD - 4 - HC-KAR NC: 2025:KHC:30299 WP No. 23590 of 2025 BENGALURU - 560001 REP BY ITS MANAGER. 11. M/S LIC HAVING O/AT 2ND FLOOR, HAYES CENTRE, HAYES ROAD, SHANTALA NAGAR ASHOK NAGAR BENGALURU - 560025 REP BY ITS MANAGER. 12. M/S ADITYA BIRLA HOUSING FINANCE HAVING O/AT NO.1(78) STAR AVENUE, 3RD FLOOR, 6TH CROSS, VICTORIA LAYOUT, VICTORIA ROAD BENGALURU - 560047 REP BY ITS MANAGER. &RESPONDENTS (BY SRI.H. SHANTHI BHUSHAN., DSGI ADVOCATE FOR R1; SRI. RAGHURAM CADAMBI, ADVOCATE FOR R10) THIS WP IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO A. ISSUE APPROPRIATE WRIT OR ORDER OR DIRECTION IN THE NATURE OF MANDAMUS RESTRAINING THE RESPONDENT NO.8 TO 12- BANKS/FINANCIAL INSTITUTIONS FROM TAKING ANY COERCIVE MEASURES AGAINST THE PETITIONERS FROM - 5 - HC-KAR NC: 2025:KHC:30299 WP No. 23590 of 2025 RECOVERING ANY AMOUNT COMPRISED IN LOAN ACCOUNT NUMBERS, WHICH IS PRODUCED AT ANNEXURE A DATED 26.07.25. ISSUE APPROPRIATE WRIT OR ORDER OR DIRECTION IN THE NATURE OF MANDAMUS TO RESPONDENT NOs.8 TO 12 TO DISCHARGE THE PETITIONERS FROM THE LOAN AND ISSUE THE NO OBJECTION CERTIFICATE IN LOAN ACCOUNT NUMBERS, WHICH IS PRODUCED AT ANNEXURE-A DATED 26.07.25; C. ISSUE APPROPRIATE WRIT OR ORDER OR DIRECTION IN THE NATURE OF MANDAMUS TO RESPONDENT NO.3 TO REFRAME THE CIBIL SCORES AFTER DISCHARGE FROM THE LOAN IN LOAN ACCOUNT NUMBERS, PENDING WITH RESPONDENT NO.8 TO 12, AT ANNEXURE -A DATED 26.07.25 AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD - 6 - HC-KAR NC: 2025:KHC:30299 WP No. 23590 of 2025 ORAL ORDER The petitioners have admittedly entered into a certain tripartite agreement with certain Builders and Financial Institutions who are arrayed as respondents, and they seek directions which read as under: [a] Issue appropriate writ or order or direction in the nature of mandamus restraining the Respondent Nos.8 to 12 - Banks/Financial Institutions from taking any coercive measures against the petitioners from recovering any amount comprised in Loan Account numbers, which is produced at Annexure-A dated 26.07.2025. [b] Issue appropriate writ or order or direction in the nature of mandamus to Respondent No.8 to 12 to discharge the petitioners from the Loan and issue the No Objection Certificate in Loan Account numbers, which is produced at Annexure-A dated 26.07.2025. [c] Issue appropriate writ or order or direction in the nature of mandamus, declaring the action of Respondent Nos.6 and 7 and - 7 - HC-KAR NC: 2025:KHC:30299 WP No. 23590 of 2025 Respondent No.8 to 12 to be illegal, arbitrary and without the authority of law. Sri Abhishek R Huddar, the learned counsel for the petitioners, submits that the petitioners were induced to enter into a tripartite agreement with assurance of being given completed apartments in the project but today they are made victims because the Builders have abandoned the project and they have to face consequences of proceedings initiated by the Financial Institutions to recover the amounts due. This Court is not inclined to grant any indulgence when it is admitted that the petitioners are parties to tripartite agreement and if consequentially proceedings are initiated, they must defend those proceedings on all grounds that could be available to them. This Court must also state that the petitions of this nature are too frequent to be ignored and the Secretary, Ministry of Finance, Union - 8 - HC-KAR NC: 2025:KHC:30299 WP No. 23590 of 2025 of India, must take note of the same to see whether regulations must be in place. While so observing and leaving open all contentions to the petitioners if there is occasion for the same, the petition stands disposed of calling upon Sri H Shanthi Bhushan, the learned Deputy Solicitor General, to forward a copy of this order to the Secretary, Minister of Finance for due consideration subject to all norms. Sd/- (B M SHYAM PRASAD) JUDGE AN/-