- 1 - HC-KAR NC: 2025:KHC:35403 WP No. 10906 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 10906 OF 2025 (GM-RES) BETWEEN: 1. HABIB AGRO INDUSTRIES (THROUGH ITS PARTNERS) P.B.NO. 155, BOOTHANA HOSUR, MANDYA-571 403 2. ABID ALI KHAN (SON AS WELL AS CO-BORROWER AS WELL AS LEGAL HEIR OF LATE HABIB KHAN) HABIB AGRO INDUSTRIES P.B.NO. 155, BOOTHANA HOSUR, MANDYA-571 403 3. SADAT ALI KHAN (SON AS WELL AS CO-BORROWER AS WELL AS LEGAL HEIR OF LATE HABIB KHAN) PARTNER, HABIB AGRO INDUSTRIES P.B NO. 155, BOOTHANA HOSUR, MANDYA-571403, KARNATAKA 4. INAYATH ALI KHAN ALIAS INAYAT ALI KHAN (SON AS WELL AS CO-BORROWER AS WELL AS LEGAL HEIR OF LATE HABIB KHAN) HABIB AGRO INDUSTRIES P.B NO. 155, BOOTHANA HOSUR, Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:35403 WP No. 10906 of 2025 MANDYA-571 403, 5. MOHAMMED ALI KHAN (SON AS WELL AS CO-BORROWER AS WELL AS LEGAL HEIR OF LATE HABIB KHAN), HABIB AGRO INDUSTRIES P.B NO. 155, BOOTHANA HOSUR, MANDYA-571 403, KARNATAKA P2 TO 5 ARE RESIDING ALSO AT MUNICIPAL NO.4530, NEW NO. L7, SITE NO 23, 1ST CROSS, ST. MARRY'S ROAD, N.R.MOHALLA, MYSURU-570 007, KARNATAKA 6. SAYEEDA BEGUM (WIFE AS WELL AS LEGAL HEIR OF LATE HABIB KHAN) MUNICIPAL NO. 4530, NEW NO. L7, SITE NO. 23, 1ST CROSS, ST. MARY'S ROAD, N.R. MOHALLA, MYSURU-570 007, KARNATAKA 7. FARHANA KHANUM (DAUGHTER AS WELL AS LEGAL HEIR OF LATE HABIB KHAN), FLAT NO. 103, ARAFA ABODE, WHEELERS ROAD, COOKS TOWN, BENGALURU - 560 005, KARNATAKA 8. FARZANA AGA (DAUGHTER AS WELL AS LEGAL HEIR OF LATE HABIB KHAN), NO. 8/1, CAMPBEL STREET CROSS, ASHOK NAGAR, BENGALURU - 560 025, KARNATAKA - 3 - HC-KAR NC: 2025:KHC:35403 WP No. 10906 of 2025 ALSO ALL AT MODEL HOUSE NO. 3 BANNIMANTAP MAIN RAOD, (DR. NELSON MANDELA ROAD) BANNIMANTAP LAYOUT, MANDI MOHALLA MYSURU 570015 KARNATAKA MODEL HOUSE NO. 2, BANNIMANTAP MAIN ROAD (DR. NELSON MANDELA ROAD) BANNIMANTAP A LAYOUT, MANDI MOHALLA MYSURU 570015 KARNATAKA …PETITIONERS (BY SRI. RAJENDRA M A.,ADVOCATE) AND: ASSETS CARE AND RECONSTRUCTION ENTERPRISES LIMITED 14TH FLOOR, EROS CORPORATE TOWER, NEHRU PLACE, NEW DELHI - 110 009 REPRESENTED BY ITS AUTHORISED OFFICER KALPAK SAWANGIKAR …RESPONDENT (BY SRI. FRANCIS XAVIER.,ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTUTITON OF INDIA PRAYING TO - 4 - HC-KAR NC: 2025:KHC:35403 WP No. 10906 of 2025 QUASH THE PROCEEDINGS INITIATED U/S 14 OF THE SARFAESI ACT BEFORE THE HONBLE CHIEF JUDICIAL MAGISTRATE AT MYSURU IN CRL MISC NO. 9/2025; DECLARE THAT THE ASSIGNMENT AGREEMENT DTD 27.06.2023 ADN 4.08.2023 IS NOT LEGALLY ENFORCEABLE IN KARNATAKA DUE TO NON PAYMENT OF RQUISITE STAMP DUTY AND REGISTRATION. 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 petitioners have sought for the reliefs as under: a. Quash the proceedings initiated u/s 14 of the SARFAESI Act before the Hon'ble Chief Judicial Magistrate at Mysuru in Crl.Misc.No.09/2025. b. Declare that the assignment agreement dated 27.06.2023 and 04.08.2023 is not legally enforceable in Karnataka due to non-payment of requisite stamp duty and registration [Annexure-B]. c. Restrain the Respondents from taking any further coercive measures under the SARFAESI Act or under RDB Act, 1993, - 5 - HC-KAR NC: 2025:KHC:35403 WP No. 10906 of 2025 until the question of law regarding the assignment agreement's validity is adjudicated by the Hon'ble DRT." The fulcrum of the petitioners' case for the aforesaid reliefs is based on the assertion that the Assignment Agreements dated 27.06.2023 and 04.08.2023 are not enforceable because requisite stamp duty is not paid and it is not registered. Mr. M. A. Rajendra, the learned counsel for the petitioners, and Mr. Francis Xavier, the learned counsel for the respondent, are heard. This Court must record that the learned counsels are in unison stating that the Debt Recovery Tribunal [DRT] is seized of the very question in the pending application in S.A.No.167/2023. This Court is of the view that the DRT can examine the question whether the agreements relied upon by the respondent are duly stamped and whether it requires registration and that when the DRT is seized of the - 6 - HC-KAR NC: 2025:KHC:35403 WP No. 10906 of 2025 question, there is no occasion for this Court to intervene. As such, the petition stands disposed of. Sd/- (B M SHYAM PRASAD) JUDGE RB