- 1 - HC-KAR NC: 2025:KHC:37372 WP No. 35153 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 35153 OF 2024 (GM-RES) BETWEEN: 1. M/S S S R MOTORS A PARTNERSHIP FIRM REGISTERED UNDER THE PROVISIONS OF THE INDIAN PARTNERSHIP FIRM ACT 1932 HAVING ITS OFFICE AT SAIRAM COMPLEX B R HILLS ROAD ARAMASAMUDRA TOWN CHAMARAJANAGARA 571313 REPRESENTED BY ITS PARTNER SRI BHASKAR R S. 2. SRI BHASKAR R S S/O SHIVASHANKAR ACHARYA AGED ABOUT 57 YEARS RESIDING AT NO. 425 OLD POLICE STATION ROAD RAMASAMUDRA TOWN CHAMARAJANAGARA 571313. …PETITIONERS (BY SRI. MALLIKARJUN N.K., ADVOCATE) Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:37372 WP No. 35153 of 2024 AND: 1. STATE BANK OF INDIA STRESSED ASSETS RECOVERY BRANCH (05173) BUILDING NO. 11/90 3RD FLOOR NEAR OLD SHIVAJI THEATRE J C ROAD, BENGALURU 560 002 REPRESENTED BY ITS AUTHORIZED OFFICER AND CHIEF MANAGER. 2. CHEIF MANAGER STATE BANK OF INDIA STRESSED ASSETS RECOVERY BRANCH BUILDIGN NO. 11/90, 3RD FLOOR NEAR OLD SHIVAJI THEATER J C ROAD BENGALURU 560 002. 3. SRI PAWAN KUAMR P S/O PUTTARANGAIAH M AGE MAJOR RESIDING AT NO. 13/79 TOWN CLUB ROAD DR B R AMBEDKAR EXTENSION CHAMARAJANAGARA 571313 …RESPONDENTS (BY SRI. NANDISH PATIL.,ADVOCATE FOR R1 AND R2) - 3 - HC-KAR NC: 2025:KHC:37372 WP No. 35153 of 2024 THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DECLARE THAT SALE CERTIFICATE DATED 19.12.2023 REG ON 22.12.23 VIDE ANNX-A THROUGH E-AUCTION CONDUCTED BY THE RESPONDENTS IS ILLEGAL AND BY PLAYING FRAUD AND MISREPRESENTATION AGAINST THE PETITIONERS; QUASH THE CERTIFICATE OF SALE DATED 19.12.2023 REGISTERED ON 22.12.2023 IN FAVOUR OF THE R-3 VIDE ANNX-A; CONSEQUENTLY DIRECT THE RESPONDENTS TO HAND OVER THE PROPERTY IN FAVOUR OF THE PETITIONER BY COLLECTING THE DUE AMOUNT; IMPOSE A COST OF RS.1 CRORE ON THE RESPONDENTS FOR PLAYING FRAUD AGAINST THE PETITIONERS BY PUTTING HIM UNDER TOTAL DURESS AND CAUSING HIM SEVERAL MENTAL AGONIES. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 4 - HC-KAR NC: 2025:KHC:37372 WP No. 35153 of 2024 CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD ORAL ORDER The petitioners, a firm and its partner, have called in question the Certificate of Sale dated 19.12.2023 [Annexure-A] issued after auction as contemplated under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [for short, 'SARFAESI Act']. The impugned Certificate of Sale is dated 19.12.2023. Sri Mallikarjuna N.K., the learned counsel for the petitioner, submits that this Court must make an exception to the caution against interfering under Article 226 of the Constitution of India with the proceedings under the SARFAESI Act because the petitioners can demonstrate fraud in bringing about the secured asset for sale, and the learned counsel - 5 - HC-KAR NC: 2025:KHC:37372 WP No. 35153 of 2024 proposes to rely upon initiation of certain penal proceedings. As against the afore, Sri Nandish Patil, the learned counsel for the first and second respondents [the secured creditors], submits that the petitioner had called in question the Sale Notice dated 16.10.2023 in W.P.No.27319/2023 [GM-RES]. This Court, because it was pointed out that the sale is complete, has disposed of the petition as not maintainable. In rejoinder, Sri Mallikarjuna N.K. submits that the petitioner alleges fraud in the circumstances first stated because of the turn of events. Be these as it may, this Court is of the view that all questions relating to the circumstances in which the Certificate of Sale is issued must be examined under Section 17 of the SARFAESI Act. - 6 - HC-KAR NC: 2025:KHC:37372 WP No. 35153 of 2024 As such, the petition, subject to all just exceptions, stands disposed of with liberty to the petitioners to avail such alternative remedy. SD/- (B M SHYAM PRASAD) JUDGE SA ct:sr - 7 - HC-KAR NC: 2025:KHC:37372 WP No. 35153 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU [M/S S S R MOTORS AND ANOTHER VS. STATE BANK OF INDIA AND OTHERS] 14.10.2025 (VIDEO CONFERENCING / PHYSICAL HEARING) CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD ORAL ORDER ON 'FOR BEING SPOKEN TO' This petition is disposed of on 18.09.2025 observing that all questions relating to the circumstances on which the respondent - the Bank has issued Certificate of Sale in favour of the auction purchaser must be examined under Section 17 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. However, the petition is listed on a memo being moved by Mr. Mallikarjun N. K, the learned counsel for the petitioners. The learned counsel submits that this Court may observe that the petitioners are entitled to seek exclusion of the time spent in prosecuting this petition. This Court is of the view - 8 - HC-KAR NC: 2025:KHC:37372 WP No. 35153 of 2024 that even if the petitioners could urge such ground, it must be considered by the Tribunal and there cannot be any observation in the present proceedings. With the observation as aforesaid, it is reiterated that the petition stands disposed of in terms of the order dated 18.09.2025. SD/- (B M SHYAM PRASAD) JUDGE RB List No.: 1 Sl No.: 1