- 1 - HC-KAR NC: 2025:KHC:54714 WP No. 37150 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI WRIT PETITION NO. 37150 OF 2025 (GM-DRT) BETWEEN: SMT VASANTHI N.M., W/O NAGA MARAKALA AGED ABOUT 63 YEARS RESIDING AT POORNIMA NIVAS POST KODI KANYANA VIA SASTHANA UDUPI-576 226 …PETITIONER (BY SRI. AJITH A SHETTY, ADVOCATE) AND: 1. UNION BANK OF INDIA MITRA TOWERS, KASTURBA RD, Digitally signed by MEGHA MOHAN Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:54714 WP No. 37150 of 2025 SHANTHALA NAGAR, ASHOK NAGAR, BENGALURU, KARNATAKA -560 001 BY ITS REGIONAL HEAD 2. UNION BANK OF INDIA PORT ROAD BRANCH MALPE, UDUPI-576 108 BY ITS BRANCH MANAGER …RESPONDENTS (BY SMT.DIVYA PURANDAR, ADVOCATE) THIS PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASHING THE IMPUGNED NOTICE DATED 31ST OCTOBER, 2025, BEARING REFERENCE NUMBER RO/UDUPI/CRLD/1-11-12- 2025-26 AS PER ANNEXURE J. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC:54714 WP No. 37150 of 2025 CORAM: HON'BLE SMT. JUSTICE LALITHA KANNEGANTI ORAL ORDER The present writ petition is filed seeking the following prayer: “WHEREFORE, the petitioners would most respectfully pray that this Hon’ble Court be pleased to; a. Issue a writ of certiorari, thereby quashing the impugned notice dated 31.10.2025, bearing reference number RO/UDUPI/CRLD/1-11-12- 2025-26 as per Annexure-J; b. Issue a writ of mandamus, directing respondent banks to reconcile the payments made 14.11.2024, 19.11.2024 and 04.12.2024 as per Annexures B, C and D respectively to the demand raised vide their demand notice dated 05.10.2024 as per Annexure-A; c. Issue a writ of mandamus, directing the respondent bank to consider the petitioner’s requests made vide letter dated 17.12.2024 as per Annexure-F; and d. Grant such other relief’s as this Hon’ble Court would deem fit to grant under the facts and circumstances of the present case in the interest of justice and equity.” 2. Learned counsel appearing for the petitioner submits that the demand notice was issued on 05.10.2024 stating that the outstanding amount is Rs.9,60,425/-. The petitioner after the demand notice had paid an amount of Rs.8,75,000/- which is an admitted fact. Then the bank had issued a possession notice dated 11.12.2024. Again in the - 4 - HC-KAR NC: 2025:KHC:54714 WP No. 37150 of 2025 possession notice, the amount that that was mentioned in the demand notice as it is mentioned as Rs.9,60,425/-. Then, the petitioner had addressed a letter to the bank dated 17.12.2024 stating about the amounts that are paid and the outstanding would be only an amount of Rs.95,425/-. Then, the bank had issued a reply dated 20.12.2024 stating that the outstanding amount is Rs.5,32,432/-. It is the contention of the learned counsel for the petitioner that as per notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, (hereinafter referred to as ‘SARFAESI Act’), the outstanding amount is Rs.9,60,425/-. When she had paid an amount of Rs.8,75,000/-, according to the bank, how the outstanding amount is Rs.5,32,432/-. It is submitted that in fact she had addressed letters to the bank. There is no clarity on how the bank had arrived at such an amount. 3. Learned counsel appearing to the respondent/bank submits that in the notice under Section 13(2) of SARFAESI act, the outstanding amount that is mentioned is the amount - 5 - HC-KAR NC: 2025:KHC:54714 WP No. 37150 of 2025 calculated without interest, after that they have calculated as such they have arrived at such amount. 4. Having heard the learned counsels on either side, perused the entire material on record. This Court do not find any force in the submission of the learned counsel appearing for the respondent/bank. She also does not deny the fact that whenever a notice is issued under Section 13(2) of SARFAESI Act, along with the interest whatever is the outstanding amount they will be mentioning in the notice. The bank cannot issue these kind of notices and make their own calculations and follow procedures that suit them. The banks are bound by the Reserve Bank of India guidelines and also the procedure laid down under the SARFAESI Act. It cannot be at the Whims and fancies of the bank. Considering all these, this Court is passing the following: ORDER i. Notices that are issued by the bank under Section 13(2) and 13(4) of SARFAESI Act are set aside. - 6 - HC-KAR NC: 2025:KHC:54714 WP No. 37150 of 2025 ii. Already the petitioner has made the representation to the bank, the bank shall first indicate to the petitioner what is the outstanding amount basing on the accounts and then shall proceed in accordance with law. iii. The amount in deposit before this Court shall be released in favour of the bank. iv. Accordingly, the writ petition is disposed of. v. All I.As., in the writ petition shall stand closed. SD/- (LALITHA KANNEGANTI) JUDGE BN List No.: 1 Sl No.: 34