- 1 - HC-KAR NC: 2025:KHC:30116 WP No. 15523 of 2025 C/W WP No. 17603 of 2023 WP No. 19768 of 2023 AND 5 OTHERS 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. 15523 OF 2025 (GM-POLICE) C/W WRIT PETITION NO. 17603 OF 2023 (GM-RES) WRIT PETITION NO. 19768 OF 2023 (GM-RES) WRIT PETITION NO. 19770 OF 2023 (GM-RES) WRIT PETITION NO. 19844 OF 2023 (GM-RES) WRIT PETITION NO. 19900 OF 2023 (GM-RES) WRIT PETITION NO. 20048 OF 2023 (GM-RES) WRIT PETITION NO. 20134 OF 2023 (GM-RES) IN WP No. 15523/2025 BETWEEN: M/S. THE JANATHA CO OPERATIVE BANK LTD ADM OFF 156, 8TH MAIN ROAD, 17TH CROSS, MALLESWARAM WEST,BANGALORE-560055. REPRESENTED BY ITS AUTHORIZED SIGNATORY MR. VINODA SHIVARAMAIH ASST MANAGER. …PETITIONER (BY SRI. K V LOKESH.,ADVOCATE) Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:30116 WP No. 15523 of 2025 C/W WP No. 17603 of 2023 WP No. 19768 of 2023 AND 5 OTHERS AND: STATE OF KARNATAKA BY BASAVESHWARANAGARA POLICE STATION SHAKTHI GANAPATHI NAGAR, BASAVESHWARANAGAR, BENGALURU CITY-560079. …RESPONDENT (BY SMT. K.P. YASHODHA, AGA) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT TO THE RESPONDENT TO REGISTER FIRST INFORMATION REPORT (FIR) U/S 154 OF CRIMINAL PROCEDURE CODE 1973 AND CAUSE NECESSARY POLICE PROTECTION TO THE PETITIONER BANK TO HAVE ACCESS TO THEIR PROPERTY. IN WP NO. 17603/2023 BETWEEN: 1. SMT. SHARADAMMA, W/O LATE SRI. VENKATASWAMY, AGED ABOUT 60 YEARS, 2. SRI.SRINIVASAN.V S/O LATE SRI. VENKATASWAMY, AGED ABOUT 36 YEARS, 3. SRI. MANJUNATH.V S/O LATE SRI. VENKATASWAMY, - 3 - HC-KAR NC: 2025:KHC:30116 WP No. 15523 of 2025 C/W WP No. 17603 of 2023 WP No. 19768 of 2023 AND 5 OTHERS AGED ABOUT 35 YEARS, ALL ARE RESIDING AT NO. 98 10TH MAIN ROAD, MANJUNATH NAGAR, BANGALORE-560010. ...PETITIONERS (BY SRI. PRAVEENA KUMARA NIRVANI.,ADVOCATE) AND: THE JANATHA CO-OPERATIVE BANK LTD., H.O. 17TH CROSS, 8TH MAIN, MALLESHWARAM, BANGALORE-560055 REPRESENTED BY ITS AUTHORIZED OFFICER MANAGER. ...RESPONDENT (BY SRI.K.V. LOKESH., ADVOCATE FOR C/R) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE POSSESSION NOTICE DATED 17.10.2022 ISSUED BY RESPONDENT IN VIDE ANNX-L; TO PROVIDE A SUFFICIENT TIME TO REPAYMENT OF LOAN AMOUNT IN ONE TIME SETTLEMENT SCHEME. IN WP NO. 19768/2023 BETWEEN: SHIVANNA. H. T. S/O. LATE TIMAPPAIAH, AGED ABOUT 50 YEARS, RESIDING AT NO. 98, 3RD FLOOR, 10TH MAIN ROAD, 1ST BLOCK, 3RD STAGE, - 4 - HC-KAR NC: 2025:KHC:30116 WP No. 15523 of 2025 C/W WP No. 17603 of 2023 WP No. 19768 of 2023 AND 5 OTHERS MANJUNATHANAGARA, BANGALORE-560 010. ...PETITIONER (BY SRI. HEGDE V S.,ADVOCATE) AND: 1. THE JANATHA CO-OPERATIVE BANK LTD., NO.156, 8TH MAIN ROAD, 17TH CROSS, MALLESWARAM WEST, BENGALURU-560 055. REPRESENTED BY THE CHIEF EXECUTIVE OFFICER/AUTHORIZED OFFICER. 2. SMT. SHARADAMMA W/O. VENKATASWAMY, AGED ABOUT 70 YEARS, 3. SRINIVASAN S/O. VENKATASWAMY, AGED ABOUT 50 YEARS, 4. MANJUNATHA S/O. VENKATASWAMY, AGED ABOUT 45 YEARS, ALL ARE RESIDING AT NO. 98, 10TH MAIN ROAD, 1ST BLOK, 3RD STAGE, MANJUNATHANAGARA, BANGALORE-560 010. ...RESPONDENTS (BY SRI. LOKESH K V.,ADVOCATE FOR R1) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO A) QUASH THE ANNEXURE-A NO. JCB/HO/ECO/259/2023-2024 THE PUBLIC AUCTION - 5 - HC-KAR NC: 2025:KHC:30116 WP No. 15523 of 2025 C/W WP No. 17603 of 2023 WP No. 19768 of 2023 AND 5 OTHERS SALE NOTICE DATED 08/08/2023 ISSUED BY THE R1; B) ALTERNATIVELY ORDER R1 RETURN THE LEASE AMOUNT OF RS. 8,01,000/- (EIGHT LAKH ONE THOUSAND ONLY). IN WP NO. 19770/2023 BETWEEN: VEERABHADRA S/O. SHAMANDE GOWDA, AGED ABOUT 45 YEARS, RESIDING AT NO. 98, 1ST FLOOR, 10TH MAIN ROAD, 1ST BLOCK, 3RD STAGE, MANJUNATHANAGARA, BANGALORE-560 010. ...PETITIONER (BY SRI. HEGDE V S.,ADVOCATE) AND: 1. THE JANATHA CO-OPERATIVE BANK LTD., NO.156, 8TH MAIN ROAD, 17TH CROSS, MALLESWARAM WEST, BENGALURU-560 055. REPRESENTED BY THE CHIEF EXECUTIVE OFFICER/AUTHORIZED OFFICER. 2. SMT. SHARADAMMA W/O. VENKATASWAMY, AGED ABOUT 70 YEARS, 3. SRINIVASAN S/O. VENKATASWAMY, AGED ABOUT 50 YEARS, - 6 - HC-KAR NC: 2025:KHC:30116 WP No. 15523 of 2025 C/W WP No. 17603 of 2023 WP No. 19768 of 2023 AND 5 OTHERS 4. MANJUNATHA S/O. VENKATASWAMY, AGED ABOUT 45 YEARS, ALL ARE RESIDING AT NO. 98, 10TH MAIN ROAD, 1ST BLOK, 3RD STAGE, MANJUNATHANAGARA, BANGALORE-560 010. ...RESPONDENTS (BY SRI. LOKESH K V., ADVOCATE FOR R1) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO-QUASH THE ANNEXURE-A NO. JCB/HO/CEO/259/2023-24 DATED 08/08/2023 THE PUBLIC AUCTION SALE NOTICE DATED 8.8.23 ISSUED BY THE R1; ALTERNATIVELY ORDER R1 RETURN THE LEASE AMOUNT OF RS.8,50,000-00 (EIGHT LAKH FIFTY THOUSAND ONLY). IN WP NO. 19844/2023 BETWEEN: 1. N.GOPINATH S/O LATE NARASIMAHA MURTHY, AGED ABOUT 55 YEARS, 2. SMT. MAHADEVI G BHAT W/O N. GOPINATH AGED ABOUT 40 YEARS, 3. G SAHANA D/O N GOPINATH AGED ABOUT 22 YEARS, - 7 - HC-KAR NC: 2025:KHC:30116 WP No. 15523 of 2025 C/W WP No. 17603 of 2023 WP No. 19768 of 2023 AND 5 OTHERS ALL ARE RES AT NO. 98 GROUND FLOOR, 10TH MAIN ROAD, 1ST BLOCK, 3RD STAGE, MANJUNATHANAGARA BANGALORE-560010. ...PETITIONERS (BY SRI. HEGDE V S.,ADVOCATE) AND: 1. THE JANATHA CO-OPERATIVE BANK LTD NO. 156, 8TH MAIN ROAD, 17TH CROSS, MALLESWARAM WEST, BENGALURU-560055 REPT. BY THE CHIEF EXECUTIVE OFFICER/ AUTHORIZED OFFICER - 560 005. 2. SMT. SHARADAMMA W/O VENKATASWAMY AGED ABOUT 70 YEARS, 3. SRINIVASAN S/O VENKATASWAMY AGED ABOUT 50 YEARS, 4. MANJUNATHA S/O VENKATASWAMY AGED ABOUT 45 YEARS, ALL ARE RES AT NO. 98 10TH MAIN ROAD, 1ST BLOCK, 3RD STAGE, MANJUNATHANAGARA BANGALORE-560010. ...RESPONDENTS (BY SRI. LOKESH K V, ADVOCATE FOR R1; - 8 - HC-KAR NC: 2025:KHC:30116 WP No. 15523 of 2025 C/W WP No. 17603 of 2023 WP No. 19768 of 2023 AND 5 OTHERS R4 SERVED) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO A) QUASH THE ANNEXURE-A NO.JCB/HO/CEO/259/2023-2024 THE PUBLIC ACTION SALE NOTICE DATED 08/08/2023 ISSUED BY THE R1 B) ALTERNATIVELY ORDER R1 RETURN THE LEASE AMOUNT OF RS. 8,00,000/- (EIGHT LAKH ONLY). IN WP NO. 8,00,000/- (EIGHT LAKH ONLY). IN WP NO. 19900/2023 BETWEEN: DHAREAPPA S/O DHULAPPA KANTI, AGED ABOUT 50 YEARS, RES AT NO 98, 1ST FLOOR 10TH MAIN ROAD, 1ST BLOCK, 3RD STAGE, MANJUNATHANAGARA, BANGALORE 560010. ...PETITIONER (BY SRI. HEGDE V S.,ADVOCATE) AND: 1. THE JANATHA CO-OPERATIVE BANK LTD NO 156, 8TH MAIN ROAD, 17TH CROSS, MALLESHWARAM WEST, BENGALURU 560055 REPT BY THE CHIEF EXECUTIVE OFFICER/ AUTHORISED OFFICER - 560 055. 2. SMT SHARADAMMA W/O VENKATASWAMY AGED ABOUT 70 YEARS, - 9 - HC-KAR NC: 2025:KHC:30116 WP No. 15523 of 2025 C/W WP No. 17603 of 2023 WP No. 19768 of 2023 AND 5 OTHERS 3. SRINIVASAN S/O VENKATASWAMY AGED ABOUT 50 YEARS, 4. MANJUNATHA S/O VENKATASWAMY AGED ABOUT 45 YEARS, ALL ARE RES AT NO 98, 10TH MAIN ROAD, 1ST BLOCK, 3RD STAGE, MANJUNATHANAGARA, BANGALORE 560010. ...RESPONDENTS (BY SRI.K.V. LOKESH., ADVOCATE FOR R1) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO-QUASH THE ANNEXURE-A NO.3CB/HO/CEO/259/2023-2024 THE PUBLIC AUCTION SALE NOTICE DATED 8.8.23 ISSUED BY THE R1; ALTERNATIVELY ORDER R1 RETURN THE LEASE AMOUNT OF RS.12,00,000-00 (TWELVE LAKH ONLY). IN WP NO. 20048/2023 BETWEEN: MUNIRA BEGAM W/O KAMALUDIEN, AGED ABOUT 50 YEARS, RES AT NO 98, 2ND FLOOR, 10TH MAIN ROAD, 1ST BLOCK, 3RD STAGE, MANJUNATHANAGARA, BANGALORE 560010 ...PETITIONER (BY SRI. HEGDE V S.,ADVOCATE) - 10 - HC-KAR NC: 2025:KHC:30116 WP No. 15523 of 2025 C/W WP No. 17603 of 2023 WP No. 19768 of 2023 AND 5 OTHERS AND: 1. THE JANATHA CO-OPERATIVE BANK LTD NO 156, 8TH MAIN ROAD, 17TH CROSS, MALLESHWARAM WEST, BENGALURU 560055 REPT BY THE CHIEF EXECUTIVE OFFICER/ AUTHORISED OFFICER. 2. SMT SHARDAMMA W/O VENKATASWAMY, AGED ABOUT 70 YEARS, 3. SRINIVASAN S/O VENKATASWAMY, AGED ABOUT 50 YEARS, 4. MANJUNATHA S/O VENKATASWAMY, AGED ABOUT 45 YEARS, ALL ARE RES AT NO 98, 10TH MAIN ROAD, 1ST BLOCK, 3RD STAGE, MANJUNATHANAGARA, BANGALORE 560010. ...RESPONDENTS (BY SRI. LOKESH K V., ADVOCATE FOR C/R1; R4 SERVED) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO A) QUASH THE ANNEXURE-A NO.JCB/HO/CEO/259/2023-2024 THE PUBLIC AUCTION SALE NOTICE DATED 08/08/2023 ISSUED BY THE R1; B) ALTERNATIVELY ORDER R1 RETURN THE - 11 - HC-KAR NC: 2025:KHC:30116 WP No. 15523 of 2025 C/W WP No. 17603 of 2023 WP No. 19768 of 2023 AND 5 OTHERS LEASE AMOUNT OF RS.8,00,000/- (EIGHT LAKH ONLY). IN WP NO. IN WP NO. 20134/2023 BETWEEN: MALAMMA @ MALLAMMA S PATIL W/O. LATE SANGANA GOWDA PATIL, AGED ABOUT 40 YEARS, RESIDING AT NO. 98, GROUND FLOOR, 10TH MAIN ROAD, 1ST BLOCK, 3RD STAGE, MANJUNATHANAGARA, BANGALORE-56 0010. ...PETITIONER (BY SRI. HEGDE V S.,ADVOCATE) AND: 1. THE JANATHA CO-OPERATIVE BANK LTD., NO.156, 8TH MAIN ROAD, 17TH CROSS, MALLESWARAM WEST, BENGALURU-560 055. REPRESENTED BY THE CHIEF EXECUTIVE OFFICER/AUTHORIZED OFFICER. 2. SMT. SHARADAMMA W/O. VENKATASWAMY, AGED ABOUT 70 YEARS, 3. SRINIVASAN S/O. VENKATASWAMY, AGED ABOUT 50 YEARS, 4. MANJUNATHA - 12 - HC-KAR NC: 2025:KHC:30116 WP No. 15523 of 2025 C/W WP No. 17603 of 2023 WP No. 19768 of 2023 AND 5 OTHERS S/O. VENKATASWAMY, AGED ABOUT 45 YEARS, ALL ARERESIDING AT NO. 98, 10TH MAIN ROAD, 1ST BLOK, 3RD STAGE, MANJUNATHANAGARA, BANGALORE-560 010. ...RESPONDENTS (BY SRI. LOKESH K V., ADVOCATE FOR R1; R4 SERVED) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO A) QUASH THE ANNEXURE-A THE PUBLIC AUCTION SALE NOTICE NO. JCB/HO/CEO/259/2023-24 DATED 08/08/2023 ISSUED BY THE R1; B) ALTERNATIVELY ORDER R1 RETURN THE LEASE AMOUNT OF RS. 12,00,000/- (TWELVE LAKH ONLY). THESE PETITIONS, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD - 13 - HC-KAR NC: 2025:KHC:30116 WP No. 15523 of 2025 C/W WP No. 17603 of 2023 WP No. 19768 of 2023 AND 5 OTHERS ORAL ORDER These petitions are by a group of persons, and amongst these petitioners is the Secured Creditor. The Secured Creditor's petition is in W. P. No. 15523/2025, and the Secured Creditor seeks directions to the jurisdictional Police [the Basaveshwaranagar Police Station] to register a First Information Report [FIR] and extend protection to the Secured Creditor to ensure possession is taken as permitted by the Jurisdictional Magistrate under Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [for short ‘the SARFAESI Act']. The writ petition in W.P. No. 17603/2023 is by the borrowers, and the other writ petitions are by the tenants who assert that they were once in possession of the different tenements in the subject property under the borrowers. - 14 - HC-KAR NC: 2025:KHC:30116 WP No. 15523 of 2025 C/W WP No. 17603 of 2023 WP No. 19768 of 2023 AND 5 OTHERS 2. This Court on the previous hearing date has formulated two questions for the final disposal of these petitions. These questions are: [a] Whether a secured creditor who has had the advantage of Orders under Section 14 of the SARFAESI Act from the learned Magistrate must repeatedly be at the doorsteps of the Police concerned to take possession. [b] Whether this Court must provide for an inquiry under Section 17[4A] of the SARFAESI Act at the instance of the tenants who assert that they are entitled to receive deposits/ advances from a secured creditor because they have paid such deposits/ advances to the landlord and the secured creditor has received surplus on sale of the property. 3. To answer the first question, Smt. K.P. Yashodha, a learned Additional Government - 15 - HC-KAR NC: 2025:KHC:30116 WP No. 15523 of 2025 C/W WP No. 17603 of 2023 WP No. 19768 of 2023 AND 5 OTHERS Advocate, was called upon to secure instructions from the Station House Officer on the measures taken to ensure that the Court Commissioner appointed by the learned Magistrate is enabled to take possession. This question is rendered infructuous with the learned counsels stating in unison that the Secured Creditor has taken possession. 4. On the second question, Sri Praveen Kumara Niravi, the learned counsel for the borrowers, submits that the borrowers' grievance is with the Secured Creditor bringing the subject property to sale for a value much lower than its actual market value. This Court must keep open the remedy available to these borrowers, if any, under Section 17 of the SARFAESI Act, and the petition in W.P. No. 17603/2023 could be disposed of with liberty in this regard. - 16 - HC-KAR NC: 2025:KHC:30116 WP No. 15523 of 2025 C/W WP No. 17603 of 2023 WP No. 19768 of 2023 AND 5 OTHERS 5. Sri V.S. Hegde, the learned counsel for the petitioners–tenants who assert that they were tenants in the different tenements in the subject property but were forcibly dispossessed after the orders under Section 14 of the SARFAESI Act, submits that these petitioners' right to invoke the jurisdiction of the Debt Recovery Tribunal [the DRT] will not be under Section 17[4A] of the SARFAESI Act but under other provisions of Section 17. The learned counsel further submits that on behalf of these petitioners he would present the following question for consideration: Whether the Secured Creditor has realised a value which is much higher than the due, and if indeed the Secured Creditor has received such value, should the surplus be distributed pro rata amongst these petitioners. - 17 - HC-KAR NC: 2025:KHC:30116 WP No. 15523 of 2025 C/W WP No. 17603 of 2023 WP No. 19768 of 2023 AND 5 OTHERS 6. Sri V.S. Hegde emphasizes that this question requires an inquiry that is contemplated under Section 17 of the SARFAESI Act, and in fact, Sri V.S. Hegde proposes to place on record a decision of the Punjab and Haryana High Court to bolster his case. Sri K. V. Lokesh, the learned counsel for the first respondent, submits that the enquiry under Section 17 would not encompass an enquiry as is now sought for and even if such enquiry is possible, it would only be at the instance of those tenants who are extended some protection under Section 17[4A] of the SARFAESI Act. 7. The question of reserving liberty to the borrowers and relegating the tenants to invoke the jurisdiction of the Debt Recovery Tribunal under Section 17 of the SARFAESI Act is examined. This Court is of the view that the borrowers would definitely have their remedy under Section 17 of the SARFAESI Act if they can demonstrate that the - 18 - HC-KAR NC: 2025:KHC:30116 WP No. 15523 of 2025 C/W WP No. 17603 of 2023 WP No. 19768 of 2023 AND 5 OTHERS Secured Creditor has brought the Secured Asset to sale at a lower value, and they must be at liberty but subject to all just exceptions so that the Secured Creditor is not prejudiced by this liberty. As regards the enquiry at the instance of the tenants under Section 17 of the SARFEASI Act subject to the provisions of Section 17[4A], this Court is of the considered view that these tenants must also be at liberty to invoke the DRT’s jurisdiction and that the DRT must consider the maintainability of the application based on the rival submissions. In the light of the afore, the following ORDER [A] The writ petition in W.P. No. 15523/2025 is disposed of as having become infructuous. [B] The writ petition in W.P.No.17603/2023 is disposed of with liberty to the petitioners, subject - 19 - HC-KAR NC: 2025:KHC:30116 WP No. 15523 of 2025 C/W WP No. 17603 of 2023 WP No. 19768 of 2023 AND 5 OTHERS to all just exceptions in law, to avail remedy under Section 17 of the SARFAESI Act. [C] The writ petitions in W.P.Nos.19768/2023, 19770/2023, 19844/2023, 19900/2023, 20048/2023, 20134/2023 are also disposed of with liberty to the corresponding writ petitioners to invoke the jurisdiction of the DRT under Section 17 of the SARFAESI Act leaving open all contentions to be considered in such proceedings. SD/- (B M SHYAM PRASAD) JUDGE NV