- 1 - HC-KAR NC: 2025:KHC:36770 WP No. 24956 of 2025 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. 24956 OF 2025 (GM-RES) BETWEEN: 1. SMT. SUJAYA W/O NARAYANA POOJARY, AGED ABOUT 48 YEARS, 2. MR. MANOJ, S/O NARAYANA POOJARY, AGED ABOUT 29 YEARS, BOTH ARE RESIDING AT NO. 1K2-219(1), ANUGRAHA HOUSE, KUVETTU VILLAGE, PANDESHWRA, BELTHANGADY TALUK, D.K-57421 …PETITIONERS (BY SMT. SHWETHA NAYAK., ADVOCATE) AND: 1. STATE BANK OF INDIA REP. BY ITS BRANCH MANAGER, HAVING ITS OFFICE AT BELTAHNGADY BRANCH, MAIN ROAD, BELTHANGADY, DAKSHINA KANNADA 574 214 Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:36770 WP No. 24956 of 2025 2. MR. MANISH S/O NARAYANA POOJARY AGED ABOUT 22 YEARS R/AT NO.1 K2-219(1), ANUGRAHA HOUSE KUVETTU VILLAGE PANDESHWRA BELTHANGADY, DAKSHINA KANNADA 574 217. …RESPONDENTS (BY SRI. VIGNESH SHETTY, ADVOCATE FOR R1) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH ALL FURTHER PROCEEDINGS PURSUANT TO THE NOTICE DTD 08.07.2025 ISSUED BY THE RESPONDENT BANK VIDE ANNX-A AND GRANT AN INTERIM ORDER TO STAY THE FURTHER PROCEEDINGS PURSUANT TO NOTICE DTD 8.07.2025 ISSUED BY THE RESPONDENT BANK VIDE ANNX-A. 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 - 3 - HC-KAR NC: 2025:KHC:36770 WP No. 24956 of 2025 ORAL ORDER The petitioners have called in question the first respondent's notice dated 08.07.2025 issued under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [for short, 'the SARFAESI Act'] and the Security Interest [Enforcement] Rules, 2002 [for short, 'the Rules']. The impugned notice also reads that the petitioners' attention is invited to the provisions of Section 13[8] of the SARFAESI Act for redemption of the Secured Asset. The respondent has issued this impugned notice as the petitioners have defaulted in the loan availed and they will have to pay Rs.41,11,172/- as of 24.06.2025 with future interest and other expenses. 2. Smt. Shwetha Nayak, the learned counsel for the petitioners, has sought for this Court's - 4 - HC-KAR NC: 2025:KHC:36770 WP No. 24956 of 2025 intervention essentially arguing the following as recorded by this Court on 03.09.2025. [a] the petitioners will only have to pay a sum of Rs.2,10,000/- to regularise the loan [6-7 instalments], [b] the loan is for repayment in 360 EMIs, and [c] the petitioners have paid 23-24 EMIs. 3. Sri Vignesh V Shetty, the learned counsel for the first respondent who is called upon to secure instructions, submits that the petitioners have defaulted in repaying the loan as per the stipulated EMI and therefore the impugned possession notice is issued. The learned counsel submits that the petitioners have an alternative remedy under Section 17 of the SARFAESI Act and under no circumstance indulgence can be shown unless the petitioners offer a sum of Rs.4,87,000/- and other incidental - 5 - HC-KAR NC: 2025:KHC:36770 WP No. 24956 of 2025 expenses before 30.09.2025 for regularization of the loan. In rejoinder, Smt. Shwetha Nayak submits that this Court may grant four weeks to the petitioners to clear the aforesaid amount deferring the consequences from the impugned possession notice. 4. It cannot be gainsaid that the petitioners will have to avail their remedy under Section 17 of the SARFAESI Act if they are aggrieved by the impugned possession notice. As such, this Court is not persuaded to interfere with the impugned notice, and the only question that remains for consideration is whether the first respondent must be called to defer further proceedings consequent to the impugned possession notice with the petitioners willing to offer outstanding and the incidental expenses within four weeks. This Court opines that the petitioners must have a reasonable opportunity if they really intend to regularize the entire outstanding, and that in the event the petitioners do - 6 - HC-KAR NC: 2025:KHC:36770 WP No. 24956 of 2025 not avail the opportunity and propose to contest the merits of the impugned possession notice, they must necessarily avail their remedy under Section 17 of the SARFAESI Act. As such, the following ORDER [a] The petition stands disposed of reserving liberty to the petitioners to offer Rs.4,87,000/- and every such other amount as called upon by the first respondent to regularise the loan and the petitioners will be at liberty to offer the aforesaid amount by 21.10.2025. The respondents shall defer proceedings under the impugned possession notice until such date. [b] It is needless to observe that if the petitioners fail to avail this opportunity, the first respondent will be at liberty to take every recourse as would be permissible in law and in that event the - 7 - HC-KAR NC: 2025:KHC:36770 WP No. 24956 of 2025 petitioners must avail the remedy only under Section 17 of the SARFAESI Act. SD/- (B M SHYAM PRASAD) JUDGE AN/-