- 1 - HC-KAR NC: 2025:KHC:43564 WP No. 19944 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI WRIT PETITION NO. 19944 OF 2025 (GM-DRT) BETWEEN: SANKAR NARAYANAN, AGED ABOUT 52 YEARS, S/O RAMAN K.S., R/O FLAT NO.304, MY DREAM KEERTHI RIVIERA, 6TH CROSS, 6TH G MAIN, KAGGADASAPURA, BENGALURU – 560 093. ALSO AT: M/S.KALKI FLUID POWER PRIVATE LIMITED (INCORPORATED UNDER COMPANY ACT, 1956) B - 56, NGEF INDUSTRIAL ESTATE, MAHADEVAPURA BENGALURU – 560 048. …PETITIONER (BY SRI. ARUNA U., ADVOCATE) AND: 1. AUTHORISED OFFICER, CANARA BANK, MAHADEVAPURA SME BRANCH, DYAVASANDRA INDUSTRIAL ESTATE, MAHADEVAPURA, Digitally signed by MEGHA MOHAN Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:43564 WP No. 19944 of 2025 WHITEFIELD ROAD, BENGALURU – 560 048. 2. THE MANAGER, CANARA BANK, OCTAGONAL HALL, KSIDC BUILDING, DYAVASANDRA INDUSTRIAL ESTATE, MAHADEVAPURA, WHITEFIELD ROAD, BENGALURU – 560 048. …RESPONDENTS (BY SRI. SANDEEP S., ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT OF CERTIORARI QUASHING THE IMPUGNED ORDER OF HONORABLE DRT-1, BANGALORE IN SA NO 287/2023 DATED 30-05-2025 STATED IN ANNEXURE H; B. CONSEQUENT TO PRAYER ABOVE, ISSUE A WRIT OF CERTIORARI QUASHING THE IMPUGNED PROCEEDINGS OF THE RESPONDENTS OF ISSUING POSSESSION NOTICE UNDER SECTION 13(4) OF THE SARFAESI ACT BY THE AUTHORIZED OFFICER DATED 25-04- 2023 WITH REF:2421/SME/MDPR/KALKI/POSS/13(4)/2022-23 ATTACHED AS ANNEXURE F; C. CONSEQUENT TO PRAYER ABOVE, ISSUE A WRIT OF CERTIORARI QUASHING THE IMPUGNED PROCEEDINGS OF THE RESPONDENTS OF ISSUING E-AUCTION SALE NOTICE FOR SALE OF SCHEDULE PROPERTY DATED 26-05-2023 BY THE AUTHORIZED OFFICER ATTACHED AS ANNEXURE G AND TO PASS SUCH OTHER ORDER(S) OR - 3 - HC-KAR NC: 2025:KHC:43564 WP No. 19944 of 2025 RELIEF(S) WITH COST AS THIS HONORABLE COURT DEEM FIT IN THIS INTEREST OF JUSTICE AND EQUITY. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE SMT. JUSTICE LALITHA KANNEGANTI ORAL ORDER The present writ petition is filed seeking the following prayers: “a. Issue a writ of Certiorari quashing the impugned order of Honorable DRT-1, Bangalore in SA No.287/2023 dated 30-05-2025 stated in Annexure H. b. Consequent to prayer above, issue a writ of Certiorari quashing the impugned proceedings of the Respondents of issuing Possession Notice under Section 13(4) of the SARFAESI Act by the Authorized Officer dated 25-04-2023 with ref:2421/SME/MDPR/KALKI/POSS/13(4)/2022-23 attached as Annexure F. c. Consequent to prayer above, issue a writ of Certiorari quashing the impugned proceedings of the Respondents of issuing E-Auction sale Notice for sale of Schedule Property dated 26-05-2023 by the Authorized Officer attached as Annexure G. d. And to pass such other order(s) or relief(s) with cost as this Honorable Court deem fit in this interest of justice and equity.” - 4 - HC-KAR NC: 2025:KHC:43564 WP No. 19944 of 2025 2. The petitioner has approached the Debt Recovery Tribunal questioning the notice issued under section 13(4) of the SARFAESI Act, 2002 dated 25.04.2023 in respect of the immovable property by taking symbolic possession. The petitioner has availed a term loan of Rs.3,64,09,235.80/-. He has submitted a letter dated 16.02.2021 requesting for a One Time Settlement outstanding under the term loan and the working capital accounts but the bank accepted the same only on 24.03.2022 and issued a letter dated 25.03.2022 intimating that the proposal for One Time Settlement as against the down payment of a sum of Rs.3,50,00,000/- has been accepted by the competent authority. The applicant had paid an amount of Rs.2,90,00,000/- and thereupon one of the secured assets was released from charge. Then the bank has issued a demand notice dated 04.02.2022 under section 13(2) of the Act calling upon the petitioner to pay an amount of Rs.3,64,09,235.80/- within 60 days from the date of receipt of the notice and it is the case that the account was declared as NPA only on 26.02.2022. When the petitioner was about to pay the balance amount of Rs.60,00,000/-, the bank has issued a possession notice on 25.04.2023 under section 13(4) of the Act. Instead of - 5 - HC-KAR NC: 2025:KHC:43564 WP No. 19944 of 2025 issuing a fresh demand notice, the Debt Recovery Tribunal had dismissed the application permitting the bank to continue with the further proceedings pursuant to the possession notice dated 25.04.2023. Thereafter, the bank has issued a auction notification dated 26.05.2023. 3. When the matter came up on the last occasion, this Court had directed the respondent-Bank to submit what is the outstanding. It is submitted that the One Time Settlement amount is adjusted, appropriated to various accounts of the petitioner. One account bearing No.2421755000137 stands closed on 28.04.2022, the remaining two loan accounts are pending and yet to be closed and the present outstanding dues on these two accounts, one is Rs.1,02,23,825.18/- and in respect of the second account, it is Rs.54,666.22/-. The total outstanding is Rs.1,02,78,491.4/-. 4. Learned counsel appearing for the respondent submits that pursuant to the order passed by the DRT, after appropriating the amounts to the different bank accounts, now for the outstanding amount of Rs.1,02,78,491.4/-, they will be initiating the SARFAESI proceedings. The Bank has already - 6 - HC-KAR NC: 2025:KHC:43564 WP No. 19944 of 2025 issued notice for exercising the right of redemption under Section 13(8) of the SARFAESI Act and also bringing to the notice of the petitioner what is the outstanding amount as on 8.8.2025 and the amount that is stated before this Court is the outstanding as on 27.10.2025. It is submitted that pursuant to the notice under section 13(8), if the petitioner is interested to redeem the mortgage by clearing the amounts, the petitioner is at liberty to do so and on other grounds, this Court is not inclined to interfere. 5. Learned counsel for the petitioner submits that the respondents shall initiate proceedings afresh under section 13(2). Learned counsel for the respondent submits that when the account is still NPA and as per the order of the DRT, they can proceed with from the stage of section 13(4). In that regard, with all these details, they have already addressed a letter. 6. This Court finds force in the argument of the learned counsel for respondent, they cannot initiate the proceedings - 7 - HC-KAR NC: 2025:KHC:43564 WP No. 19944 of 2025 from section 13(2). This Court do not find any merits in the Writ Petition. Hence, this Court is passing the following: ORDER i. Accordingly, the writ petition is dismissed. ii. All I.As. in this petition shall stand closed. Sd/- (LALITHA KANNEGANTI) JUDGE CBC List No.: 2 Sl No.: 21