- 1 - HC-KAR NC: 2025:KHC:31553 WP No. 10386 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 14TH DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 10386 OF 2025 (GM-RES) BETWEEN: M/S MARUTHI BAR AND RESTAURANT NO. 97, JIGANI, ANEKAL TALUK, BENGALURU - 560105. REPRESENTED BY ITS PROPRIETOR, SRI N ANANDA REDDY, S/O LAKSHMAIAH NANJUNDA REDDY, AGED ABOUT 51 YEARS. …PETITIONER (BY SRI. SOMASHEKHARAIAH R P.,ADVOCATE) AND: M/S EDEL WEISS ASSET RECONSTRUCTION CO. LTD A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956 AND AS AN ASSET RECONSTRUCTION COMPANY, UNDER SEC 3 OF SECURITIZATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002 HAVING ITS REGISTERED OFFICE AT EDELWEISS HOUSE, 1ST FLOOR, Digitally signed by VANAMALA N Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:31553 WP No. 10386 of 2025 OFF. CST ROAD, KALINA, MUMBAI- 40098 ACTING IN ITS CAPACITY AS TRUSTEE OF EARC TRUST SC 410 REPRESENTED BY ITS AUTHORIZED OFFICER MR. K. RADHAKRISHNAN NAIR. …RESPONDENT (BY SRI.VIJAY S., ADVOCATE FOR C/R) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER DATED 11.02.2025 IN CRL.MISC.NO. 75/2025 ON THE FILE OF THE IX ADDL. CHIEF JUDICIAL MAGISTRATE, BENGALURU UNDER ANNX-B; DIRECTION TO THE RESPONDENT BANK DIRECTING THEM TO PERMIT THE PETITIONER TO AVAIL THE BENEFIT OF ONE TIME SETTLEMENT OR IN THE ALTERNATIVE TO RE-SCHEDULE THE LOAN OF THE PETITIONER BY CONSIDERING THE REPRESENTATION DATED. 25.03.2025 UNDER ANNX-D. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD ORAL ORDER The petitioner is a borrower in default, and the petitioner is aggrieved by the Order dated - 3 - HC-KAR NC: 2025:KHC:31553 WP No. 10386 of 2025 11.02.2025 under Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [for short, the 'SARFAESI Act'] in Criminal Miscellaneous No.75/2025 on the file of the IX Additional Chief Judicial Magistrate, Bengaluru. This Court has granted interim order on 07.04.2025 subject to terms, but this order stands vacated subsequently because the petitioner has not complied with the terms. Sri R.P. Somashekharaiah, on 13.08.2025 [the previous hearing date], has stated before this Court that the petitioner's representative is willing to deposit Rs. 37,00,000/- immediately and also undertake to pay the remaining amount within a reasonable time if the petitioner's request for One Time Settlement [OTS] is rejected. In continuation, Sri R.P. Somashekharaiah places on record an - 4 - HC-KAR NC: 2025:KHC:31553 WP No. 10386 of 2025 undertaking affidavit. The relevant part of this affidavit reads under: That it is submitted, that since, the petitioner was not able to arrange funds, the conditional order was not able to fulfilled. In these circumstances, now the petitioner with great the order difficultly has arranged the funds, as per dtd.7/4/2025 the petitioner is handing over demand draft bearing No. 189199 dtd.2/8/2025 drawn on Karnataka Bank Ltd., HSR Layout, Bengaluru for sum of Rs.37,00,000/-, in the name of M/s. Edel Weiss Asset Reconstruction Co. Ltd. i.e., 30% of the outstanding amount of Rs. 1,23,71,615/-- Now the petitioner and his family members are in street, and 3 months baby child and the mother of the baby child is in maternity period and the children are also very much affected. Therefore, the petitioner prays this Hon'ble Court to direct the respondent to restore/handover the possession of the schedule properties and the petitioner may be permitted to file representation seeking One time Settlement and if the One Time Settlement is granted, from the date of intimation from the Respondent, the petitioner undertakes to pay the amount within 3 months. That in case if the one time settlement is not considered, thereafter within 3 months undertakes to pay the amount as per the order made in criminal misc No. 75/2025, dtd. - 5 - HC-KAR NC: 2025:KHC:31553 WP No. 10386 of 2025 11/2/2025. In case if the petitioner fails to clear the dues, as stated above, the respondent may take possession of the property in accordance with law and the petitioner also undertakes that he will hand over possession after three months. In response, Sri Vijay S, the learned counsel for the respondent - Bank, submits that there is continued default and this Court may not show any indulgence while also stating that the respondent is willing to consider any request only if the entire amount that is due is paid within a reasonable time. This Court is of the considered view that the petitioner, if it proposes a quietus, cannot make a conditional offer insisting on OTS. However, if the petitioner is willing to immediately deposit Rs.37,00,000/- with an undertaking with the respondent in writing that [i] to pay the entire dues within three months [ii] to hand over the possession of the subject property without driving - 6 - HC-KAR NC: 2025:KHC:31553 WP No. 10386 of 2025 the respondent to further proceedings if the request for OTS is not considered, or if there is failure to deposit the remaining amount within the time permitted, the respondent must consider the receipt of deposit and restore immediate possession of the subject property on those conditions. This Court must also observe that if the petitioner is not willing to take the opportunity in terms of the above observation, it must necessarily avail remedies under the SARFAESI Act. In the light of the afore, the following: ORDER [A] The writ petition stands disposed of reserving liberty to the petitioner to avail the opportunity with the deposit of Rs.37,00,000/- along with a copy of this order calling upon the respondent to consider - 7 - HC-KAR NC: 2025:KHC:31553 WP No. 10386 of 2025 receiving such deposit and extending reasonable time on terms mentioned above. [B] It is needless to observe that if the respondent refuses, the petitioner must avail remedy under the SARFAESI Act. SD/- (B M SHYAM PRASAD) JUDGE NV