- 1 - HC-KAR NC: 2025:KHC:34629 WP No. 30518 of 2024 C/W WP No. 30515 of 2024 WP No. 30559 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 30518 OF 2024 (GM-RES) C/W WRIT PETITION NO. 30515 OF 2024 (GM-RES) WRIT PETITION NO. 30559 OF 2024 (GM-RES) IN WP No. 30518/2024 BETWEEN: MYSORE EDUCATIONAL TRUST A REGISTERED TRUST HAVING OFFICE AT NO.123-127, METAGALLI, MYSORE-570016 REPRESENTED BY ITS SECRETARY, MR AMIR SADAN SAIFULLA. …PETITIONER (BY SRI. UDAYA HOLLA, SENIOR ADVOCATE FOR SRI. RAJENDRA, ADVOCATE) AND: 1. M/S KOTAK MAHINDRA BANK LIMITED HAVING ITS BRANCH OFFICE AT 6TH FLOOR, 12 BKC, BANDRA KURLA COMPLEX, Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:34629 WP No. 30518 of 2024 C/W WP No. 30515 of 2024 WP No. 30559 of 2024 BANDRA (EAST) MUMBAI-400051 REPRESENTED BY ITS AUTHORISED OFFICER, MR PARAG B DHOLAKIA. 2. THE DEPUTY COMMISSIONER AND DISTRICT MAGISTRATE GIRIBHOVIPALYA, SIDDARTHANAGAR, MYSORE-570011 3. THE TAHSILDHAR AND TALUK MAGISTRATE VINOBA ROAD, MYSURU-570005 4. M/S BELLS CONTROL LIMITED REPRESENTED BY THE OFFICIAL LIQUIDATOR, HIGH COURT OF KOLKATA, NO.9, OLD POST OFFICE STREET, 4TH AND 5TH FLOOR, KOLKATA-700001 5. M/S KOLKATA M A BUSINESS CENTRE PRIVATE LIMITED PLOT NO.123-127, METAGALLI INDUSTRIAL AREA, KASABA HOBLI, METAGALLI, MYSORE-570016 REPRESENTED BY ITS DIRECTOR. …RESPONDENTS (BY SRI. DHYAN CHINNAPPA, SENIOR ADVOCATE FOR SMT. JAI M. PATIL, ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO - 3 - HC-KAR NC: 2025:KHC:34629 WP No. 30518 of 2024 C/W WP No. 30515 of 2024 WP No. 30559 of 2024 DIRECT QUASHING THE ORDER BEARING NO. MAG(3)MISC/02/2024 DTD 14.06.2024 PASSED BY THE DC AND DISTRICT MAGISTRATE, MYSORE DISTRICT, THE R-2 HEREIN (ANNEXURE-L); DIRECT QUASHING THE NOTICE/LETTER BERING NO. MAG/2/135/2024-25 E-1383587 DTD 23.10.2024 PASSED BY THE TAHSILDAR AND TALUK MAGISTRATE, MYSORE TALUK, THE R-3 HEREIN (ANNEXURE-M). IN WP NO. 30515/2024 BETWEEN: SAALFO TECH PRIVATE LIMITED A PRIVATE LIMITED COMPANY REGISTERED UNDER THE PROVISIONS OF COMPANIES ACT 2013 HAVING ITS REGISTERED OFFICE AT NO.123-127, METAGALLI INDUSTRIAL AREA, METAGALLI, MYSORE-570016 REPRESENTED BY ITS DIRECTOR, MR. AHMED ALI KHAN. ...PETITIONER (BY SRI. UDAYA HOLLA, SENIOR ADVOCATE FOR SRI. RAJENDRA, ADVOCATE) AND: 1. M/S KOTAK MAINDRA BANK LIMITED HAVING ITS BRANCH OFFICE AT 6TH FLOOR, 12 BKC, BANDRA KURLA COMPLEX, BANDRA (EAST) MUMBAI-400051 REPRESENTED BY ITS AUTHORISED OFFICER, MR PARAG B DHOLAKIA. - 4 - HC-KAR NC: 2025:KHC:34629 WP No. 30518 of 2024 C/W WP No. 30515 of 2024 WP No. 30559 of 2024 2. THE DEPUTY COMMISSIONER AND DISTRICT MAGISTRATE GIRIBHOVIPALYA, SIDDARTHANAGAR, MYSORE-570011 3. THE TAHSILDHAR AND TALUK MAGISTRATE VINOBA ROAD, MYSURU-570005 4. M/S BELLS CONTROL LIMITED REPRESENTED BY THE OFFICIAL LIQUIDATOR, HIGH COURT OF KOLKATA, NO.9, OLD POST OFFICE STREET, 4TH AND 5TH FLOOR, KOLKATA-700001 5. M/S KOLKATA M A BUSINESS CENTRE PRIVATE LIMITED PLOT NO.123-127, METAGALLI INDUSTRIAL AREA, KASABA HOBLI, METAGALLI, MYSORE-570016 REPRESENTED BY ITS DIRECTOR. ...RESPONDENTS (BY SRI. DHYAN CHINNAPPA, SENIOR ADVOCATE FOR SMT. JAI M PATIL, ADVOCATE FOR R1; SRI. SHAMANTH NAIK, HCGP FOR R2 AND R3; SRI. DEEPAK, ADVOCATE FOR R4) - 5 - HC-KAR NC: 2025:KHC:34629 WP No. 30518 of 2024 C/W WP No. 30515 of 2024 WP No. 30559 of 2024 THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ORDER BEARING NO. MAG(3)MISC/02/2024 DTD 14.06.2024 PASSED BY THE DEPUTY COMMISSIONER AND DISTRICT MAGISTRATE, MYSORE DISTRICT, THE R-2 HEREIN (ANNEXURE-K); QUASH THE NOTICE/LETTER BEARING NO. MAG/2/135/2024-25 E-1383587 DTD 23.10.2024 PASSED BY THE TAHSILDAR AND TALUK MAGISTRATE, MYSORE TALUK, THE R-3 HEREIN (ANNEXURE-L). IN WP NO. 30559/2024 BETWEEN: 1. M/S M A COMPUTERS PVTLTD HAVING REGISTERED OFFICE AT PODDAR POINT, 113, PART STREET, GROUND FLOOR, KOLKATA 700016. REPRESENTED BY MR. MOHAMMAD IRFAN HAZI 2. M/S M A PROMOTERS PVT. LTD. HAVING REGISTERED OFFICE AT PODDAR POINT, 113, PART STREET, GROUND FLOOR, KOLKATA 700016. 3. KOLKATA M. A. BUSINESS CENTRE PVT. LTD. HAVING ITS REGISTERED OFFICE AT, NO. 113, PARK STREET, GROUND FLOOR, KOLKATA 700016. - 6 - HC-KAR NC: 2025:KHC:34629 WP No. 30518 of 2024 C/W WP No. 30515 of 2024 WP No. 30559 of 2024 REPRESENTED BY MR. MOHAMMAD IRFAN HAZI 4. FUTURE FOUNDATION EDUCATIONAL TRUST HAVING REGISTERED OFFICE AT PREMISES NO. 123-127, METAGALLI INDUSTRIAL AREA, MYSURU 560016, REPRESENTED BY MRS. SYEDA GOWHAR SULTANA 5. MAYA CHARITABLE TRUST HAVING REGISTERED OFFICE AT PREMISES NO. 123-127, METAGALLI INDUSTRIAL AREA, MYSURU 560016, REPRESENTED BY MR. MOHAMMED SHAMEEL ...PETITIONERS (BY SRI. B. VACHAN, ADVOCATE) AND: 1. KOTAK MAHINDRA BANK LIMITED HAVING REGISTERED OFFICE AT, 27, BKC, G-BLOCK, BANDRA KURLA COMPLEX, BANDRA (EAST), MUMBAI 400051. REPRESENTED BY ITS MANAGING DIRECTOR 2. BELLS CONTROL LIMITED HAVING ITS REGISTERED OFFICE AT, 21, CAMAC STREET, 11TH FLOOR, - 7 - HC-KAR NC: 2025:KHC:34629 WP No. 30518 of 2024 C/W WP No. 30515 of 2024 WP No. 30559 of 2024 KOLKATA 700016. REPRESENTED BY OFFICIAL LIQUIDATOR ...RESPONDENTS (BY SRI. DHYAN CHINNAPPA, SENIOR ADVOCATE FOR SMT. JAI M PATIL, ADVOCATE FOR C/R1; SRI. DEEPAK ADVOCATE FOR R2) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER DTD 14.06.2024 (ANNEXURE-G) PASSED BY THE DISTRICT MAGISTRATE, MYSURU DISTRICT, MYSURU IN M.A.G(3) MIS.NO. 02/2024; QUASH THE IMPUGNED NOTICE DTD 23.10.2024 (ANNEXURE-H) PASSED BY THE TAHSILDAR AND TALUK MAGISTRATE, MYSURU TALUK (ANNEXURE-H) IN M.A.G/2/135/2024-25RESTRAIN THE R-1 OR ANYONE ACTING ON BEHALF OF OR UNDER THE AUTHORITY OR ANYONE ACTING UNDER THEM FROM FORCEFULLY DISPOSSESSING THE PETITIONER FROM THE LEASED PROPERTY PURSUANT TO THE IMPUGNED ORDER AND IMPUGNED NOTICE AT ANNEXURE-G AND H RESPECTIVELY. - 8 - HC-KAR NC: 2025:KHC:34629 WP No. 30518 of 2024 C/W WP No. 30515 of 2024 WP No. 30559 of 2024 THESE PETITIONS, 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 in W.P.No.30518/2024 and W.P.No.30515/2024 assert benefit of sub-lease of respective portions of a larger property/ies [the secured asset/s]. The petitioners' common grievance is against the order dated 14.06.2024 in Misc.No.02/2024 - a proceeding under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [for short, 'SARFAESI Act']. 2. The petitioner in W.P.No.30518/2024 [the Educational Institution] contends that it is running a School and Pre-University Institution, and the petitioner in W.P.No.30515/2024 [the Industrial Unit] asserts that it is running Industrial Unit. The - 9 - HC-KAR NC: 2025:KHC:34629 WP No. 30518 of 2024 C/W WP No. 30515 of 2024 WP No. 30559 of 2024 petitioner in W.P.No.30559/2024 is also a sub-tenant and it asserts that it is also running an Educational Institution. This petitioner is joined by the landlords. 3. The Educational Institution, in terms of the liberty that is granted by this Court during the previous hearing dates, has placed on record documents to demonstrate that it indeed is engaged in running Educational Institutions. Mr. Udaya Holla, the learned Senior counsel for the Educational Institution, is heard on these documents and he has underscored: [a] the petitioner's Pre-University College is admitted to Grant-in-aid by the State Government, which is kept in vogue with the necessary remittances and the students being enrolled; [b] the petitioner in WP No. 30518/2024 is offering even Undergraduate courses and that if there is any immediate interference for dispossession, it would have a - 10 - HC-KAR NC: 2025:KHC:34629 WP No. 30518 of 2024 C/W WP No. 30515 of 2024 WP No. 30559 of 2024 deleterious effect insofar as the students as also the petitioner who asserts leasehold rights." 4. On the questions for consideration, Mr.Udaya Holla learned counsel for the petitioners in the afore two petitions, and Mr. B. Vachan, the learned counsel for the Industrial Unit, had canvassed the following, and this Court reserved liberty to elaborate: [a] The petitioners, who are aggrieved by the orders under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [SARFAESI Act], cannot avail remedy under Section 17 thereof. [b] In any event, this Court, even while relegating the petitioners to avail remedy under Section 17 of the SARFAESI Act, may have to protect the petitioners’ interests to the extent that would be just and reasonable because they are in the field of education or as an industry. - 11 - HC-KAR NC: 2025:KHC:34629 WP No. 30518 of 2024 C/W WP No. 30515 of 2024 WP No. 30559 of 2024 5. Mr. B. Vachan places on record the decision of the Apex Court in PNB Housing Finance Limited Vs. Manoj Saha and Another reported in 2025 SCC Online SC 1443 and submits that they would not request this Court to exercise jurisdiction under Article 226 of the Constitution of India in view of the following exposition by the Apex Court. 12. In 2016, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, was amended. By the amending Act, section 17(4A) was introduced with effect from September 1, 2016, enabling any person claiming to be lessees/tenants in respect of secured assets to approach the Debts Recovery Tribunal against measures under section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, including taking possession of the secured asset. Tribunal was empowered to declare such measures invalid and restore possession. The order of the Debts Recovery Tribunal was made appealable before the Appellate Tribunal under section 18 of the Securitisation and Reconstruction of - 12 - HC-KAR NC: 2025:KHC:34629 WP No. 30518 of 2024 C/W WP No. 30515 of 2024 WP No. 30559 of 2024 Financial Assets and Enforcement of Security Interest Act. In light of the aforesaid statutory scheme, this Court repeatedly deprecated interference of High Courts under Article 226/227 in matters pertaining to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest. 6. Indeed, this is a reasonable stand, and consequently, the petitions must be disposed of with liberty to the petitioners to avail their remedy under Section 17 of the SARFAESI Act with the Debt Recovery Tribunal [DRT] leaving open all questions to be decided by the DRT, including whether the Educational Institution and the Industrial Unit are entitled to the exclusion of the time spent in prosecuting these proceedings. 7. The other question for consideration is: whether there must be any protection to the petitioners until they avail the remedy under Section 17 of the SARFAESI Act, provided they avail their remedy within - 13 - HC-KAR NC: 2025:KHC:34629 WP No. 30518 of 2024 C/W WP No. 30515 of 2024 WP No. 30559 of 2024 a reasonable time. This Court is of the view that the Educational Institution has produced documents before this Court which prima facie show that both the School and the Pre-University Institutions are being run with a substantial number of students on its Rolls and that there should not be any precipitation if the petitioner avails remedy with under Section 17 of the SARFAESI Act within eight weeks from today. 8. This Court must also observe that any continuation of this interim arrangement must be considered only by the DRT but in the light of the circumstances specific to the Educational Institution. Insofar as the petitioner in W.P.No.30515/2024, this Court is of the view that a similar arrangement would be just and reasonable, but the continuation of the interim order beyond the period of eight weeks must be considered by the DRT in the circumstances specific to these petitioners. - 14 - HC-KAR NC: 2025:KHC:34629 WP No. 30518 of 2024 C/W WP No. 30515 of 2024 WP No. 30559 of 2024 The petitions stand disposed of with liberty and observation as aforesaid,. SD/- (B M SHYAM PRASAD) JUDGE RB