- 1 - HC-KAR NC: 2025:KHC:37373 WP No. 6994 of 2025 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. 6994 OF 2025 (GM-RES) BETWEEN: M/S. INNOFIVE QUALITY PRODUCTS PVT LTD NO.II-95(9), M/S MAMA AGRO INDUSTRY NEAR GANGAVISHVESHWARA SABHA BHAVAN, NEELAVARA, UDUPI-576 213 REGISTERED UNDER COMPANIES ACT, 2013 (MSME) REPRESENTED BY ITS MANAGING DIRECTOR, SMT. SINDHU SANJAY SHENOY, W/O. SANJAY SHENOY, G-01, B WING, SHAMBHAVI SOVEREIGN, PERAMPALLI ROAD, MANIPAL, UDUPI-576 104. …PETITIONER (BY SRI. MAHESH KIRAN SHETTY.,ADVOCATE) Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:37373 WP No. 6994 of 2025 AND: 1. THE RESERVE BANK OF INDIA CENTRAL OFFICE, 10TH FLOOR, CENTRAL OFFICE BUILDING, SHAHID BHAGAT SINGH MARG, POST BOX NO. 10014, MUMBAI-400 001, REPRESENTED BY ITS AUTHORIZED OFFICER. 2. UNION BANK OF INDIA A BODY CORPORATE CONSTITUTED UNDER THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1970 AND HAVING ITS HEAD OFFICE AT 239, VIDHANA BHAVAN MARG, NARIMAN POINT, MUMBAI-400 021. BRANCH OFFICE AT MANIPAL BRANCH SH, 33 EXTN, WARD NO. 16, MANIPAL (SHIVALLI), UDUPI-576 104, IFSC CODE UBIN0901288 REPRESENTED BY ITS AUTHORIZED OFFICER, MARUTHESH S. A., BRANCH MANAGER, - 3 - HC-KAR NC: 2025:KHC:37373 WP No. 6994 of 2025 MANIPAL BRANCH. …RESPONDENTS (BY SMT.DIVYA PURANDAR., ADVOCATE FOR C/R2) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE SALE NOTICE DATED 21.02.2025 BEARING NO. RD/UDUPI/CRLD/MAR/2024-25 ISSUED BY R-2 VIDE ANNX-A; DIRECT THE R-2 TO REGULARIZE THE LOAN ACCOUNT OF THE PETITIONER WITH IMMEDIATE EFFECT AND PROVIDE THE FACILITIES THAT ARE PROVIDED TO THE MSME AS PER THE GUIDELINES OF THE R-2 AS PER THE CIRCULAR IN THIS REGARD ISSUED BY THE R-1 RESERVED BANK OF INDIA DATED 17.03.2016 BEARING NO. RBI/2015-16/338 VIDE ANNEXURE- C. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD - 4 - HC-KAR NC: 2025:KHC:37373 WP No. 6994 of 2025 ORAL ORDER The petitioner [a borrower] is aggrieved by the Sale Notice dated 21.01.2025 [Annexure-A] issued by the second respondent [the secured creditor]. This Court on 10.03.2025 has granted interim order directing the second respondent not to issue Sale Certificate to the auction purchaser provided the petitioner pays the entire amount [as undertaken before the DRT in the earlier proceedings] within eight [8] weeks putting the petitioner on condition to pay a sum of Rs.1 Crore within four [4] weeks from the date of this order. Mr.Mahesh Kiran Shetty, the learned counsel for the petitioner, does not dispute that the petitioner has not even complied with the first condition, and with this admission, Ms.Divya Purandar, the learned counsel for the secured creditor, submits that this - 5 - HC-KAR NC: 2025:KHC:37373 WP No. 6994 of 2025 Court must dismiss the petition on the sole ground that the petitioner has abused the indulgence in making a false statement not just once but twice over. When queried, Ms. Divya Purandar supports that sale is not held because of want of bidders. These submissions are considered as also the undisputed fact that the petitioner's earlier challenge to a prior auction sale under Section 17 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [for short, 'the SARFAESI Act'] is disposed of in view of the undertaking to discharge the entire amount which forms the basis for this Court's order. This Court is of the opinion that the petitioner cannot resort to repeated assurances and defeat the rights available to a secured creditor under the SARFAESI Act. As such, the petition stands disposed of observing that if there is another auction by the secured creditor and - 6 - HC-KAR NC: 2025:KHC:37373 WP No. 6994 of 2025 yet another challenge by the petitioner, this conduct must be considered. SD/- (B M SHYAM PRASAD) JUDGE SA List No.: 2 Sl No.: 6