- 1 - HC-KAR NC: 2025:KHC:30926 WP No. 20102 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 11TH DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 20102 OF 2025 (GM-RES) BETWEEN: PROPCARE DEVELOPERS PVT. LTD., A COMPANY REGISTERED UNDER THE COMPANIES ACT, REGISTERED OFFICE ATC-5, RICH HOMES, NO.5/1, RICHMOND ROAD, BENGALURU 560025, REPRESENTED BY ITS AUTHORIZED SIGNATORY SRI. GIRISH GUPTA. …PETITIONER (BY SRI. HARSHA D JOSHI.,ADVOCATE) AND: 1. ASSETS CARE AND RECONSTRUCTION ENTERPRISE LTD., (ACRE) REPRESENTED BY ITS AUTHORISED OFFICER OFFICE AT 14TH FLOOR, EROS CORPORATE TOWER, NEHRU PLACE, NEW DELHI-110019. 2. M.LOKESH, MAJOR IN AGE, Digitally signed by VANAMALA N Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:30926 WP No. 20102 of 2025 R/AT 67/4, 2ND FLOOR, COLES ROAD, FRAZER TOWN, BENGALURU 560005. 3. IRIS SUJAY CHARLES @ IRIS CHARLES, MAJOR IN AGE, R/AT NO.506, 1ST E CROSS, 3RD BLOCK, HRBR LAYOUT, ST. THOMAS TOWN POST, BENGALURU-560084. 4. GERSHOM CHARLES MAJOR IN AGE, R/AT NO.506, 1ST E CROSS, 3RD BLOCK, HRBR LAYOUT, ST. THOMAS TOWN POST, BENGALURU-560084. …RESPONDENTS THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO-QUASH ANNEXURE-H THE NOTICE DATED 15/05/2025 RESPONDENT IN NO. 10551/HHLBGM00266298 TO THE PETITIONER FOR TRANSFERRING OF OWNERSHIP TO THE 2ND RESPONDENT; DIRECT THE 1 RESPONDENT TO PERMIT THE PETITIONER TO REDEEM THE MORTGAGE IN RESPECT OF THE PRINCIPAL AMOUNT AVAILED BY THE 3RD AND 4TH RESPONDENTS BY THE PETITIONER. - 3 - HC-KAR NC: 2025:KHC:30926 WP No. 20102 of 2025 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 petitioner is a developer, and it is aggrieved by the initiation of proceedings by the first respondent under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [for short, 'the SARFAESI Act']. The petitioner is categorical amongst others that the subject property [an apartment] is brought to sale and the first respondent has received a bid from the second respondent and that such offer is more than the reserved price by Rs.50,000/-. Sri Harsha D. Joshi, the learned counsel for the petitioner, relying upon Clauses 15 and 16 of the Tripartite Agreement asserted by the petitioner with the first respondent and the purchaser [the - 4 - HC-KAR NC: 2025:KHC:30926 WP No. 20102 of 2025 borrower], who is in default, submits that the petitioner has a first right to redeem the charge over the subject property but the property is brought to sale without even notice to the petitioner. However, the learned counsel does not dispute that the petitioner has remedy under Section 17 of the SARFAESI Act and the learned counsel submits that this Court must intervene because there is violation in not extending due opportunity. This Court has perused the terms of the Tripartite Agreement relied upon by the petitioner, and this Court is of the opinion that the significance as also the import of such clauses must be examined by the DRT under Section 17 of the SARFAESI Act, and therefore, the petitioner must be relegated to avail such remedy. At this stage, Sri Harsha D. Joshi, the learned counsel for the petitioner, submits that this Court must grant interim protection so that the petitioner's right to possess the property, which is not - 5 - HC-KAR NC: 2025:KHC:30926 WP No. 20102 of 2025 made over to the purchaser/borrower, is not prejudiced. This Court has anxiously considered this request, and is of the view that this must also receive due consideration by the DRT in the light of the petitioner's grievance. As such, subject to all just exceptions in law, the petition stands disposed of. Sd/- (B M SHYAM PRASAD) JUDGE SA ct:sr