- 1 - HC-KAR NC: 2025:KHC:32553 WP No. 22410 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 21ST DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 22410 OF 2025 (GM-RES) BETWEEN: H. N. VIJAY SHANKAR AGED ABOUT 45 YEARS SON OF LATE H M NAGESH RESIDING AT NO. 127/B, GOVT HOSPITAL ROAD VIVEKANANDA NAGARA BYRAPURA T NARASIPUR MYSURU, KARNATAKA AT PO BYRAPURA DIST MYOSRE KARNATAKA 571124. …PETITIONER (BY SRI. RUDRABHUSHAN C B.,ADVOCATE) AND: AXIS BANK DOOR NO. 31 OLD NO. 41 Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:32553 WP No. 22410 of 2025 SOUTH MADA STREET MYLAPORE CHENNAI 600004. …RESPONDENT (BY SRI. FRANCIS XAVIER.,ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH / SET ASIDE THE IMPUGNED SHOW CAUSE NOTICE DATED 10.07.2025 BEARING REF. NO. SCN- WD/WEST/FY25-26/JULY 10, 2025-16 ISSUED BY RESPONDENT BANK IN FAVOUR OF THE PETITIONER VIDE ANENXURE -A. THIS PETITION, COMING ON FOR FRESH MATTERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD - 3 - HC-KAR NC: 2025:KHC:32553 WP No. 22410 of 2025 ORAL ORDER The petitioner, admittedly a borrower, has called in question the Show Cause Notice dated 10.07.2025 [Annexure-A]. This Court, on 29.07.2025, while recording that this Court must examine whether the respondent’s hands must be tied from initiating proceedings to recover its dues under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [for short, 'the SARFAESI Act'] and from publishing material showing that the petitioner is a 'Willful Defaulter', has opined that this Court is not persuaded to grant any interim order insofar as the proceedings under the SARFAESI Act while restraining the respondent from publishing any material about the petitioner being a Willful Defaulter. The direction against publication is to ensure that the petition is not rendered infructuous. - 4 - HC-KAR NC: 2025:KHC:32553 WP No. 22410 of 2025 2. Sri Rudrabhushan C.B., the learned counsel for the petitioner, submits that the petitioner's cause is with the constitution of the Willful Defaulters Identification Committee and in this regard, the learned counsel proposes to invite this Court's attention to the terms of the RBI Master directions on treatment of Willful Defaulters and large Defaulters. However, Sri Francis Xavier, the learned counsel for the respondent, states as follows: [a] that the petitioner, after the proceedings before this Court on 29.07.2025, has caused a response which is received on 05.08.2025, [b] that this response will be considered by the Review Committee with due opportunity as is contemplated under Chapter II of the Master Directions, [c] that it could also be open to the petitioner to point out its grievance about the constitution of the Committee, - 5 - HC-KAR NC: 2025:KHC:32553 WP No. 22410 of 2025 [d] that in any event if the Review Committee holds against the petitioner, the petitioner will always have the cause of action to approach this Court. 3. On the proceedings under the SARFAESI Act and the publication of material indicating that the petitioner is a Willful Defaulter, Sri Francis Xavier submits, on instructions, that no publication is caused so far and there will be no publication until the conclusion of the proceedings before the Review Committee and that SARFAESI proceedings are separate simultaneous proceedings that are being prosecuted which will be without prejudice to the remedies that will be available to the petitioner. 4. These submissions are considered, and this Court is of the view that the Review Committee must examine all the contentions raised by the petitioner, including as to its own constitution without prejudice to the petitioner to avail remedy - 6 - HC-KAR NC: 2025:KHC:32553 WP No. 22410 of 2025 before the Court in the event there is any conclusion against him in the culmination of such proceedings. It is needless to observe that there shall be no publication of the petitioner being a Willful Defaulter until the conclusion of the proceedings before the Review Committee. The petitioner will also be at liberty to work its remedy under the SARFAESI Act. The petition stands disposed of accordingly. SD/- (B M SHYAM PRASAD) JUDGE SA ct:sr