- 1 - HC-KAR NC: 2025:KHC:30070 WP No. 6358 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 6358 OF 2024 (GM-RES) BETWEEN: 1. MR G N CHANDRASHEKHAR S/O LATE NINGAPPA, AGED ABOUT 55 YEARS, 2. MRS PADMASHRI CHANDRASHEKAR W/O G N CHANDRASHEKAR, AGED ABOUT 49 YEARS, BOTH ARE RESIDING AT NO 50, 3RD CROSS, FIRST MAIN, HARALUR MAIN ROAD, ROYAL PLACID PHASE 2, HSR LAYOUT, BENGALURU 560102 …PETITIONERS (BY SRI. RAJENDRA M A., ADVOCATE) Digitally signed by VANAMALA N Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:30070 WP No. 6358 of 2024 AND: 1. THE AUTHORIZED OFFICER UNION BANK OF INDIA, VIDYANAGARA BRANCH, NO 54/1, CRM COMPLEX, KOGILU MAIN ROAD, MARUTHINAGARA YELAHANKA, BENGALURU 560064 REPRESENTED BY ITS GENERAL MANAGER …RESPONDENT (BY SRI. MONESH KUMAR K B., ADVOCATE FOR R1; SRI. B. S. SACHIN, ADVOCATE FOR R2) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH/SET ASIDE THE ENTIRE AUCTION PROCEEDINGS TO BE HELD ON 28.02.24 BASED ON THE AUCTION SALE DTD 07.02.24 ANNEXURE- A. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD - 3 - HC-KAR NC: 2025:KHC:30070 WP No. 6358 of 2024 ORAL ORDER The petitioners have borrowed loan from the respondent, and because of an alleged default, the respondent has initiated the impugned proceedings under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [for short, 'SARFAESI Act] in terms of Annexure - A. This Court, on 28.02.2024 has granted interim order directing the respondent not to issue sale certificate, and if the auction is completed, not to confirm the sale. This order is the condition that the petitioners shall deposit 20% of the amount in due. 2. Mr. M. A. Rajendra, the learned counsel for the petitioners, submits that the petitioners have not only complied with the conditions imposed by this Court while granting the interim order on 28.02.2024, the petitioners are also regularly paying EMI and the loan will have to be therefore - 4 - HC-KAR NC: 2025:KHC:30070 WP No. 6358 of 2024 regularized. Mr. K. B. Monesh Kumar, the learned counsel for the first respondent, submits that the petition is rendered infructuous because not only is the sale complete but also confirmed, and the learned counsel emphasizes that the sale is confirmed because the petitioners did not inform the Bank about the terms of the impugned order and that he has no instructions on the petitioners paying EMI. 3. The petitioners rely upon a set of circumstances to substantiate the grievance with the impugned proceedings, but it would suffice for this Court to observe that the merits of such grievance will have to be examined under Section 17 of the SARFAESI Act by the Competent Authority and no special circumstances are made out for this Court's interference on such grievance. When queried, Mr. M. A. Rajendra submits that the petitioners continue to be in possession of the subject property. - 5 - HC-KAR NC: 2025:KHC:30070 WP No. 6358 of 2024 If this is so, the respondent will have to have recourse to Section 14 of the SARFAESI Act. 4. These presents the gamut of circumstances in which the Debt Recovery Tribunal [DRT] will have to adjudicate on the questions that arise if the petitioners indeed avail the remedy under Section 17 thereof, and there must be some interim arrangement with the petitioners being relegated to the alternative remedy. However, this Court must also provide for the closure of the dispute if the petitioners do not avail the remedy as is now permitted. In the light of the afore, the following: ORDER [a] The petition stands disposed of with liberty to the petitioners, subject to all just exceptions to law, to avail their alternative remedy against Section 17 of the SARFAESI Act calling in question the - 6 - HC-KAR NC: 2025:KHC:30070 WP No. 6358 of 2024 action by the respondent to bring the subject property to sale. [b] The respondent is directed to defer coercive measures for a period of six [6] weeks from today observing that if the petitioners do not avail this remedy, the respondent will be at liberty to compute the amount received from the petitioners and the sale, if there is any surplus and repay the same to the petitioners. [c] If the petitioners avail remedy as now permitted, the DRT is called upon to consider any request for interim order uninfluenced by the interim order that has prevailed as of today and the protection that is extended in terms of this order. Sd/- (B M SHYAM PRASAD) JUDGE RB