- 1 - HC-KAR NC: 2025:KHC:36241 WP No. 21477 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO.21477 OF 2024 (GM-RES) BETWEEN: SRI. SIRAJ SON OF BAHOODDIN @ BASHA SAB AGED ABOUT 55 YEARS RESIDINGA T GOODS SHED COLONY SHANTHI NAGAR TUMAKURU - 572 102 …PETITIONER (BY SRI. FAYAZ SAB B G, ADVOCATE) AND: 1. THE CANARA BANK REPRSENTED BY ITS BRANCH MANAGER ASHOKA ROAD, P. B. NO.39 NEAR BSNL OFFICE AND KSRTC BUS STAND TUMAKURU - 572 101 2. THE AUTHORIZED OFFICER UNDER SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND EFORCEMENT OF SECURITY INTEREST ACT, 2002, CANARA BANK REGIONAL OFFICE, RECOVERY SECTION, 3RD FLOOR, MARUTHI TOWERS B. H. ROAD, NEAR SIT MAIN GATE Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:36241 WP No. 21477 of 2024 TUMAKURU – 572 103 …RESPONDENTS (BY SRI. K. V. LOKESH, ADVOCATE FOR R1 & R2) THIS W.P. IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA PRAYING TO a) QUASH AN IMPUGNED DEMAND NOTICE BEARING NO.LGLTMK/282/2024-2025, DATED 29.06.2024 UNDER SECTION 13(2) OF THE SECURITIZATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002 WHEREIN DEMANDED TO PAY A SUM OF RS.1,12,43,018/- (RUPEES ONE CRORE, TWELVE LAKHS, FORTY THREE THOUSAND AND EIGHTEEN ONLY), WHICH IS PRODUCED HEREWITH FOR THE KIND PERUSAL OF THIS HON’BLE COURT AND MARKED AS ANNEXURE-G AS ILLEGAL, ARBITRARY, CAPRICIOUS, WITHOUT APPLICATION OF MIND, IN THE INTEREST OF JUSTICE AND EQUITY SO FAR AS PETITIONER IS CONCERNED; b) ISSUE A WRIT OF MANDAMUS, IN THE NATURE OF ORDER/DIRECTION DIRECTING THE RESPONDENT BANK TO CONSIDER HIS REQUEST FOR ONE TIME SETTLEMENT DATED 30.07.2024 AFTER WEIGHING OFF THE INTEREST AND PENAL INTEREST, IN THE INTEREST OF JUSTICE AND EQUITY, WHICH IS PRODUCED HEREWITH AND MARKED AS ANNEXURE-H, IN THE INTEREST OF JUSTICE AND EQUITY. THIS PETITION COMING ON FOR ORDERS THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD - 3 - HC-KAR NC: 2025:KHC:36241 WP No. 21477 of 2024 ORAL ORDER The petitioner has called in question the Notice issued by the respondents under Section13(2) of the Securitization And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002 (for short, ‘the SARFAESI Act’). This Court, on 08.08.2024, has granted an interim order staying further proceedings subject to deposit of a sum of Rs.24,00,000/- within four weeks, and this Court has observed that if the petitioner fails, the respondent-Bank will be at liberty to proceed in accordance with law. Sri. Fayaz Sab B.G., the learned counsel for the petitioner, submits that the petitioner has complied with the condition and that this Court must direct the respondents to defer continuation of the proceedings under the SARFAESI Act until the petitioner’s application for OTS is considered. Sri. - 4 - HC-KAR NC: 2025:KHC:36241 WP No. 21477 of 2024 K.V. Lokesh, the learned counsel for the respondents, submits that the petitioner, even if he could have any grievance with the notice, could raise objections as contemplated under Section 13(3-A) of the SARFAESI Act and there would be no occasion for any interference. The petitioner's request for interfering with the proceedings under the SARFAESI Act and for directions to consider his representation for OTS are examined in the light of the provisions under Sections 13 and 13(3-A) of the SARFAESI Act and that the petitioner cannot assert a right to seek OTS and that the proceedings under the SARFAESI Act have been stalled for over 12 months. This Court is of the view that the petition must be disposed of calling upon the respondents to issue a fresh Notice under Section 13 with liberty to the petitioner under Section 13(3-A) of the SARFAESI Act. Hence, the following - 5 - HC-KAR NC: 2025:KHC:36241 WP No. 21477 of 2024 ORDER The petition stands disposed of calling upon the respondents to issue a fresh Notice under Section 13 with liberty to the petitioner under Section 13(3-A) of the SARFAESI Act, and insofar as the amount deposited by the petitioner in terms of this Court's interim order, if there is any dispute, this Court opines that it is to be resolved only under Section17 of SARFAESI Act. SD/- (B M SHYAM PRASAD) JUDGE JJ List No.: 2 Sl No.: 8