- 1 - HC-KAR NC: 2025:KHC:46058 WP No. 28563 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI WRIT PETITION NO. 28563 OF 2024 (GM-DRT) BETWEEN: M/S. PEBBALIO CONCRETE PRODUCTS AND PIPPALI CREATIVE SOLUTIONS PVT. LTD., NO.24, A CROSS TANKSHORE ROAD BTM LAYOUT , BENGALURU-560 076 REP. BY DIRECTOR AND PARTNER MR. SRIDHAR R PHONE NO. 9845377787 PAN NO. AAQFP1215B IFSC CODE: CNRB000267. …PETITIONER (BY SRI. BALARAM M. L., ADV.) AND: M/S. CANARA BANK HSR LAYOUT BRANCH Digitally signed by MEGHA MOHAN Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:46058 WP No. 28563 of 2024 AVANI ARCADE, L-1135 17TH CROSS, 80 FT ROAD SECTOR 7, HSR LAYOUT BANGALORE- 560 102 REP. BY THE CHIEF MANAGER AND AUTHORIZED OFFICER. …RESPONDENT (BY SRI. VASANT S KOPPAR, ADVOCATE M/S. M.V. KINI, & CO, ADVOCATES) THIS PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE SALE NOTICE DATED 07.10.2024 ISSUED BY THE RESPONDENT BANK AS PER THE ANNX-A1. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE SMT. JUSTICE LALITHA KANNEGANTI - 3 - HC-KAR NC: 2025:KHC:46058 WP No. 28563 of 2024 ORAL ORDER The present writ petition is filed seeking the following prayer: “Wherefore, the petitioner humbly and respectfully prays to pass following order; i. To issue Writ of Certiorari, to quash the sale notice dated 07.10.2024 issued by the respondent/bank as per the Annexure-A, bearing Ref.No.SN/PEBBALIO/PIPPALI/2673/2024. ii. To pass such order or issue writ as this Hon’ble Court may deem fit on the facts and circumstances of this case, in the interest of justice and equity.” 2. It is the case of the petitioner that the respondent/ bank had declared the account of the petitioner as NPA during August 2021 during which period the pandemic was at its peak, the Government had imposed strict guidelines and in the said period no one can move outside the house. The restrictions were imposed from March 2020 itself and Reserve Bank of India had issued guidelines regarding the maintenance of the loan accounts of the banks and financial institutions. The Reserve Bank of India issued circulars about the classification - 4 - HC-KAR NC: 2025:KHC:46058 WP No. 28563 of 2024 of the assets and instead of proceeding to recover the loan by classifying the accounts as NPA, directed all the banks and financial institutions to fund the borrowers to sustain the effect of the pandemic. It is stated that contrary to the Reserve Bank guidelines, the bank had declared the account as NPA during August 2020. It is stated that the petitioner has paid more than an amount of Rs.2.05 Crores after the account being classified as NPA. The respondent/bank had issued a separate demand notice to the company as well partnership firm, so also the possession notice. But, the bank had preferred to issue single notice to enforce the liability. It is urged that declaring the account as NPA is contrary to law laid down by the Hon’ble Apex Court as well as the guidelines issued by the Reserve Bank of India. 3. Learned counsel appearing for the petitioner has argued in similar lines and submits that declaring the account as a non performing asset is bad and contrary to law. 4. Learned counsel appearing for the respondent/bank submits that the prayer that is sought is to quash the sale notice dated 07.10.2024. It is submitted that the Co-ordinate - 5 - HC-KAR NC: 2025:KHC:46058 WP No. 28563 of 2024 bench of this Court, had granted stay on 23.10.2024 on the condition that the petitioner shall deposit an amount of Rs.10,00,000/- on or before 24.10.2024 by 11.00 am., failing which, the interim order granted stands automatically vacated and the respondent/bank is at liberty to proceed with the auction. As on today the outstanding amount is Rs.5,32,00,000/- and odd. It is submitted that as per the order passed by the Co-ordinate bench of this Court, the petitioner has paid Rs.10,00,000/-. It is further submitted that the petitioner has questioned the auction sale notice and the sale itself could not be conducted on that day, hence nothing survives for consideration in this writ petition. It is submitted that if the petitioner wants to agitate on any other grounds, he has to go before the Debt Recovery Tribunal. When he has an effective alternative remedy, the writ petition is not maintainable. 5. Having heard the learned counsels on either side, perused the material on record. This writ petition is filed questioning the sale notice. The petitioner had not sought any specific prayer with regard to the illegality in declaring the account as NPA and the writ petition is filed on 23.10.2024. As - 6 - HC-KAR NC: 2025:KHC:46058 WP No. 28563 of 2024 per the interim order, the petitioner had not paid the amount and the sale was also not conducted. Hence, as rightly argued by the respondent/bank nothing remains to be adjudicated by this Court and the petitioner can raise all the other grounds by approaching the Debt Recovery Tribunal. It is submitted by the learned counsel for the petitioner that the reasonable time may be granted to approach the Debt Recovery Tribunal. Under Section 17 of the SARFAESI Act, the party has to approach the Tribunal within 45 days. The petitioner is entitled for the benefit under Section 14 of the Limitation Act. It is open to the Tribunal to decide from the cause of action till he filed the writ petition whether it is within limitation or not. Accordingly, this Court is passing the following: ORDER i. The writ petition is disposed of by giving liberty to the petitioner to avail the appropriate remedy before the Debt Recovery Tribunal. ii. The respondent/bank shall not take any coercive steps till 08.12.2025. - 7 - HC-KAR NC: 2025:KHC:46058 WP No. 28563 of 2024 iii. The Debt Recovery Tribunal shall decide the aspect of limitation independently i.e., from the date of cause of action till the petitioner filed the writ petition. iv. All I.As., in the writ petition shall stand closed. SD/- (LALITHA KANNEGANTI) JUDGE BN CT:bms List No.: 5 Sl No.: 3