- 1 - HC-KAR NC: 2025:KHC:31395 WP No. 11656 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13TH DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 11656 OF 2025 (GM-RES) BETWEEN: 1. MR. B M JANARDHAN, S/O LATE B.N.MARIYAPPA, AGED ABOUT 50 YEARS, R/AT NO.43/3, G BLOCK, 3RD FLOOR, SRI. SRINIVASA NILAYAMA, OPP.HDFC BANK, SHAKARA NAGAR, BENGALURU- 560092. 2. MRS. RUDRAMMA.V, W/O LATE B.N.MARIYAPPA, AGED ABOUT 73 YEARS, R/AT NO.13, 2nd CROSS, SHABRINAGARA BYATARAYANAPURA SAHAKARA NAGAR, BENGALURU - 560 092. …PETITIONERS (BY SRI. R. KIRAN., ADVOCATE) AND: THE AUTHORIZED OFFICER, KOTAK MAHINDRA BANK LIMITED, HAVING ITS BRANCH OFFICE AT NO.22, NEAR TRINITY CIRCLE, M.G.ROAD, BENGALURU-560001. …RESPONDENT (BY SRI. DILEEP D..,ADVOCATE) Digitally signed by VANAMALA N Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:31395 WP No. 11656 of 2025 THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE DATED 7.02.2025 ISSUED IN RESPECT OF PETITION SCHEDULE PROPERTY UNDER SECTION 13(2) OF THE SECURITIZATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT 2002 VIDE ANNX-G ISSUED BY THE RESPONDENT; DIRECTING THE RESPONDENT NOT TO PROCEED WITH THE SALE AND NOT TO TAKE POSSESSION IN RESPECT OF PETITION SCHEDULE PROPERTY AND TO REGULARIZE THE LOAN ACCOUNT NO. LAP184057767. THIS PETITION, COMING ON FOR FRESH MATTERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD ORAL ORDER The petitioners are aggrieved by the proceedings initiated by the respondent under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [for short, the 'SARFAESI Act']. This Court has granted an interim order on 25.04.2025 subject to - 3 - HC-KAR NC: 2025:KHC:31395 WP No. 11656 of 2025 deposit of Rs.15,00,000/- within six weeks. It is now stated in unison that the petitioners have deposited Rs.15,00,000/- with the respondent and have continued to pay the EMIs as stipulated and that though possession notice is issued under the SARFAESI Act, actual possession is not taken. However, the learned counsel for the respondent - Secured Creditor, submits that the petitioners were given the benefit of restructuring on the stipulation that the petitioners shall not default 12 months EMIs to come out of the NPA status and because the petitioners have defaulted, the status of the loan as NPA would continue. The learned counsel submits that the disposal must be in the light of these circumstances. This Court must observe that if despite some delay in complying with the interim order of this Court, the petitioner has deposited Rs.15,00,000/- and also further EMIs, there will be no justification - 4 - HC-KAR NC: 2025:KHC:31395 WP No. 11656 of 2025 for the continuation of the proceedings under the SARFAESI Act. Therefore, leaving open all the consequences that could be if there is any further default, the petition stands disposed of observing that the impugned proceedings under the SARFAESI Act are rendered infructuous for the present with liberty to the first respondent to recommence proceedings under the SARFAESI Act. Sd/- (B M SHYAM PRASAD) JUDGE NV