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2025 DAILYLAW 65967 (KAR)

THE BANK OF BARODA v. THE BAGALKOT TOWN DEVELOPMENT AUTHORITY

WP/104923/2025 · 2025-08-18

Suraj Govindaraj

body2025

Judgment text

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- 1 - HC-KAR NC: 2025:KHC-D:10324 WP No. 104923 of 2025 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 18TH DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 104923 OF 2025 (GM-RES) BETWEEN: THE BANK OF BARODA SHAHAPUR BRANCH, BELAGAVI-590001, REP. BY ITS CHIEF MANAGER, AKASH SINGHAL S/O. ARUN KUMAR GUPTAM AGE: 40 YEARS, OCC. CHIEF MANAGER, BANK BARODA, SHAHAPUR BRANCH, BELAGAVI. …PETITIONER (BY SRI. HIREMATH MALLIKARJUN SHANKARAYYA, ADVOCATE) AND: 1. THE BAGALKOT TOWN DEVELOPMENT AUTHORITY, OLD SBI BUILDING, NEAR OLD TAHSILDAR OFFICE, BAGALKOT-587101, DIST. BAGALKOT. REP. BY ITS CHIEF ENGINEER. 2. THE REHABILITATION OFFICER BAGALKOT TOWN DEVELOPMENT AUTHORITY (BTDA), NAVANAGAR, BAGALKOT-587101. …RESPONDENTS (BY SRI. SANJAY CHAND, ADVOCATE) THIS WP IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO I. ISSUE A WRIT OF MANDAMUS OR ANY OTHER WRIT OR DIRECTION IN THE NATURE OF WRIT THEREBY DIRECTING THE RESPONDENTS HEREIN TO CONSIDER THE LETTER/REPRESENTATION Digitally signed by V N BADIGER Location: High Court of Karnataka, Dharwad Bench, Dharwad - 2 - HC-KAR NC: 2025:KHC-D:10324 WP No. 104923 of 2025 DT.31.05.2024 (ANNEXURE-T) AND ALSO LETTER/REPRESENTATION DT.04.02.2025 (ANNEXURE-V) AND TO ISSUE NOC FOR PROPERTY SCHEDULED AND PASS APPROPRIATE ORDERS BY ALLOWING THIS WRIT PETITION, IN THE INTEREST OF JUSTICE.II. GRANT SUCH OTHER OR FURTHER RELIEF AS THIS HON BLE COURT MAY DEEM FIT IN THE CIRCUMSTANCES, INCLUDING COSTS. THIS PETITION, COMING ON FOR PRILIMINARY HEARING THIS DAY, ORDER WAS MADE THEREIN AS UNDER: ORAL ORDER (PER: THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ) 1. Sri Sanjay Chanal, learned counsel, accepts notice for Respondent Nos. 1 and 2. 2. The petitioner is before this Court seeking the following reliefs: i. Issue a writ of mandamus or any other writ or direction in the nature of writ thereby directing the respondents herein to consider the letter/representation dt.31.05.2024 (Annexure-T) and also letter/representation dt.04.02.2025 (Annexure-V) and to issue NOC for property scheduled and pass appropriate orders by allowing this writ petition, in the interest of justice. ii. Grant such other or further relief as this Hon’ble Court may deem fit in the circumstances, including costs. - 3 - HC-KAR NC: 2025:KHC-D:10324 WP No. 104923 of 2025 3. The petitioner bank had extended credit facilities to one Mr. Rajkumar Sugatekar and Mr.Ramchandra Hunugundeppa Sugatekar. As regards which, the property bearing Plot No. C19, Sector No. 15, Navanagar, Bagalkot Town, Bagalkot, had been mortgaged. The borrowers, having created a security interest in the said property, failed to repay the outstanding dues. Consequently, the account of the borrowers was declared as a Non- Performing Asset. The petitioner bank thereafter initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to the ‘SARFAESI Act’). Following due procedure, the property was brought to auction. In the auction held on 24.04.2024, one Shri.Akash Ingale was declared as the successful bidder. The petitioner/bank, being required to execute the necessary sale deed in favour of the successful auction purchaser, presented the sale deed before the Sub- Registrar. However, the Sub-Registrar indicated that No Objection Certificate from the respondents was required. In response, an application in the form of a - 4 - HC-KAR NC: 2025:KHC-D:10324 WP No. 104923 of 2025 letter/representation was submitted by the petitioner on 31.05.2024, vide Annexure–T, followed by another representation dated 04.02.2025 vide Annexure–V. Despite these representations, the respondents have not issued the NOC as required. 4. It is in that background that the petitioner has been constrained to approach this Court seeking appropriate directions. When a bank exercises its rights under the SARFAESI Act, conducts an auction, and executes a sale deed, it is incumbent upon the Sub-Registrar to register the sale deed on the basis of the sale deed executed between the bank and the auction purchaser. For the said purposes, if any NOC or similar clearance is required from the town planning authority, the respondents herein, it is their duty either to issue such NOC at the earliest or to reject the same with valid reasons. 5. In the present case, the respondents have failed to act upon the representations made and have remained inactive for over a year. However, in the interest of - 5 - HC-KAR NC: 2025:KHC-D:10324 WP No. 104923 of 2025 justice, one more opportunity is granted to the respondents. Accordingly, I pass the following: ORDER i) The writ petition is allowed. ii) A writ of mandamus is issued directing the respondents to consider the petitioner's representations dated 31.05.2024 vide Annexure–T and 04.02.2025 vide Annexure–V and to pass appropriate order in accordance with law, within a period of 15 days from the date of receipt of certified copy of this order. Sd/- (SURAJ GOVINDARAJ) JUDGE VB CT:PA List No.: 1 Sl No.: 26