- 1 - HC-KAR NC: 2025:KHC:33617 CA No. 64 of 2025 IN COP NO.58 of 2006 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE E.S.INDIRESH COMPANY APPLICATION NO.64 OF 2025 IN COMPANY PETITION NO.58 OF 2006 BETWEEN: 1. SRI. S.V. RAMASWAMY S/O. LATE VIJERAGHAVAN, AGED ABOUT 76 YEARS, RESIDING AT NO.358, HIG, 13TH CROSS, 5TH MAIN, RMV 2ND STAGE, DOLLAR COLONY, BENGALURU - 560 094. 2. MRS. USHA RAMASWAMY, W/O. S.V. RAMASWAMY, AGED ABOUT 71 YEARS, RESIDING AT NO.358, HIG, 13TH CROSS, 5TH MAIN, RMV 2ND STAGE, DOLLAR COLONY, BENGALURU - 560094. …APPLICANTS (BY SRI. SOURABH R.K., ADVOCATE) AND: 1. OFFICIAL LIQUIDATOR OF M/S. U AND I SYSTEM DESIGN LIMITED, (IN LIQUIDATION), ATTACHED TO THE HIGH COURT OF KARNATAKA, Digitally signed by SHARMA ANAND CHAYA Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:33617 CA No. 64 of 2025 IN COP NO.58 of 2006 CORPORATE BHAVAN, NO.26-27, 12TH FLOOR, RAHEJA TOWERS, M. G. ROAD, BENGALURU - 560001 …RESPONDENT (BY SRI. JAGADEESHGOUD PATIL, ADVOCATE FOR OL) THIS APPLICATION IS FILED UNDER RULE 7 AND RULE 9 OF THE COMPANIES COURT RULE 1959 READ WITH SECTION 460(6) OF THE COMPANIES ACT, 1956 PRAYING TO CONDONE THE DELAY OF 2,576 DAYS FROM 08.03.2018 TILL 26.03.2025 IN FILING THE DECLARATION OF CLAIM OR DEBT FOR A SUM OF RS.24,07,50,000/- (RUPEES TWENTY FOUR CRORES SEVEN LAKHS AND FIFTY THOUSAND ONLY) IN FORM NO.66 UNDER RULE 151 OF THE COMPANIES COURT RULE, 1959 AND ETC., THIS APPLICATION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE E.S.INDIRESH ORAL ORDER Heard learned counsel appearing for the parties on CA No.64 of 2024. 2. It is the case of the applicants that the applicants have availed loan from Bank of India to the - 3 - HC-KAR NC: 2025:KHC:33617 CA No. 64 of 2025 IN COP NO.58 of 2006 tune of Rs.3,22,00,000/- and the applicants were guarantors to the said loan and had mortgaged their immovable assets as security to the loan is concerned. It is stated that, the respondent-Bank had invoked the Recovery Procedure under the SARFAESI Act, 2002 (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002). In the meanwhile, the secured assets of the applicants was auctioned by E-Auction on 12.01.2016. Sale Certificate was issued in favour of the 2nd highest bidder and same was disputed by the applicants in SA No. 146 of 2020 (Annexure-A). It is also stated that the proceedings in SA No. 146 of 2020 was challenged before the Appellate Tribunal in RA (SA) No.37 of 2023 before DRT and during the pendency of the said appeal, the cancellation of the Sale Certificate to an extent of Rs.14,47,19,570/- was refunded to the said bidder. Taking into consideration the factual aspects - 4 - HC-KAR NC: 2025:KHC:33617 CA No. 64 of 2025 IN COP NO.58 of 2006 on record, as the order passed by this Court, it is forthcoming from the records that, applicants herein have filed petition before this court in W.P.No.20301 of 2024 and this court allowed the petition vide order dated 03.02.2025 and the said order was challenged by the unsuccessful bidder before the Hon'ble Supreme Court in S.L.P (C) No.5621 of 2025, which came to be dismissed by an order dated 28.02.2025 and same has reached finality. 3. In that view of the matter, taking into consideration, the claim made by the applicants are concerned, the applicants have shown bonafide by depositing Rs.6,57,50,000/- on 19.02.2025. Therefore, taking into consideration aforementioned aspect on record, I am of the opinion that, delay of 2576 days in filing the application for declaration of claim and debt is hereby condoned subject to the - 5 - HC-KAR NC: 2025:KHC:33617 CA No. 64 of 2025 IN COP NO.58 of 2006 condition specified in Section 167 of the Companies ( Court) Rules, 1959. In that view of the matter, the application is disposed of accordingly. 4. It is made clear that, applicants have shown bonafide by depositing amount with the Bank of India, however, the claim insofar as the winding up proceedings is concerned, same will be adjudicated by the learned Official Liquidator in accordance with law. Ordered accordingly. SD/- (E.S.INDIRESH) JUDGE SB List No.: 1 Sl No.: 18