- 1 - HC-KAR NC: 2025:KHC:36926 WP No. 27126 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 27126 OF 2024 (GM-RES) BETWEEN: 1. SRI K M AJITH APPAIAH S/O. MONNAIAH, AGED ABOUT 55 YEARS, R/AT T. SHETTIGERI VILLAGE AND POST, VIRAJPET TALUK, KODAGU DISTRICT-571 249. 2. AIYAPPA. K. A. S/O. K. M. AJITH APPAIAH, AGED ABOUT 25 YEARS, R/AT T. SHETTIGERI VILLAGE AND POST, VIRAJPET TALUK, KODAGU DISTRICT-571 249. 3. SMT. ASHA. K. A. W/O. K. M. AJITH APPAIAH, Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:36926 WP No. 27126 of 2024 AGED ABOUT 49 YEARS, R/AT T. SHETTIGERI VILLAGE AND POST, VIRAJPET TALUK, KODAGU DISTRICT-571 249. …PETITIONERS (BY SRI. KISHAN G.M., ADVOCATE FOR SRI. VINOD KUMAR M., ADVOCATE) AND: THE CANARA BANK A BANK REGISTERED UNDER GONIKOPPAL BRANCH, GONIKOPPAL, VIRAJAPET, KODAGU DISTRICT-571 213, REPRESENTED BY ITS MANAGER. …RESPONDENT (BY SRI. VIGNESH S. SHETTY, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO-QUASH THE DEMAND NOTICE ISSUED BY THE RESPONDENT BANK UNDER SEC 13(2) OF THE ACT DTD 28.05.2024 BEARING NO. GONIKOPPAL/0686840007125/2024-2025 PRODUCED AT ANNEXURE-C AND QUASH THE POSSESSION NOTICE PUBLISHED IN INDIAN - 3 - HC-KAR NC: 2025:KHC:36926 WP No. 27126 of 2024 EXPRESS DAILY DTD 12.09.2024, UNDER ISSUED BY THE RESPONDENT UNDER SEC 13(4) OF THE SECURITISATION ACT (ANNEXURE-D). THIS PETITION, COMING ON FOR FRESH MATTERS LIST, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD ORAL ORDER The petitioners are owners of a residential property in Virajpet and they have availed loan from the respondent - Bank as against the security for such residential property. The petitioners are aggrieved by the notice dated 28.05.2024 [Annexure - C] under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [for short, 'the SARFAESI Act'] as also the notice for public possession dated 12.09.2024 [Annexure - D] under Section 13(4) thereof. 2. This Court on 01.10.2024 has granted interim order staying the operation of the impugned - 4 - HC-KAR NC: 2025:KHC:36926 WP No. 27126 of 2024 possession notice [dated 12.09.2024] subject to the condition that the petitioners shall deposit a sum of Rs.5,00,000/-. There is no dispute that the petitioner has complied with this condition, and the only question for consideration is: whether this Court must interdict the impugned proceedings under the SARFAESI Act or relegate the petitioners to avail the remedy with the Debt Recovery Tribunal [DRT] under Section 17 of the SARFAESI Act. 3. Mr. Vignesh S. Shetty, the learned counsel for the respondent, is vehement in his submissions that the petitioners have not made out any case for this Court to intervene under Article 226 of the Constitution of India, and this Court indeed finds this submission overwhelming. As such, the petition must be disposed of relegating the petitioners to their alternative remedy under Section 17 of the SARFAESI Act. However, Mr. Kishan G. M, the learned counsel for the petitioners, submits that this Court must - 5 - HC-KAR NC: 2025:KHC:36926 WP No. 27126 of 2024 protect the petitioners' interest in the interregnum in view of the fact that the petitioners have had the advantage of an interim order for almost a year. 4. Mr. Vignesh S. Shetty is heard in the light of the same, and this Court is of the view that the respondent must not be precipitous until 30.10.2025 so that the petitioners have reasonable opportunity to avail their statutory remedy. As such, the petition stands disposed of directing accordingly and also observing that if the petitioners do indeed avail their liberty in terms of the liberty now reserved, the DRT shall consider continuing the interim protection uninfluenced by the turn of events before this Court. Sd/- (B M SHYAM PRASAD) JUDGE RB