- 1 - HC-KAR NC: 2025:KHC:38585 WP No. 16780 of 2025 C/W WP No. 25509 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 16780 OF 2025 (CS-RES) C/W WRIT PETITION NO. 25509 OF 2024 (GM-RES) IN WP No. 16780/2025 BETWEEN: MR. NAGESH S/O. LATE K. RAJA, AGED ABOUT 57 YEARS, R/AT 6-134, SALIAN NILAYA, NEAR SRI KURUVAMBA BHAGAVATHI TEMPLE, KODICAL, DEREBAIL, MANGALORE, ASHOKNAGAR(MR), DAKSHINA KANNADA, KARNATAKA 575006. …PETITIONER (BY SRI. SOMASHEKHARAIAH.R.P.,ADVOCATE) AND: M/S DAKSHINA KANNADA ZILLA KENDRA SAHAKARI BANK LTD., (REGISTERED UNDER THE STATE COOPERATIVE Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:38585 WP No. 16780 of 2025 C/W WP No. 25509 of 2024 SOCIETIES ACT) KATIPALLA BRANCH, NANDADEEPA COMPLEX, 1ST FLOOR, M.R.P.L. ROAD, KATIPALLA - 575 030, MANGALORE. REPRESENTED BY ITS AUTHORIZED OFFICER. …RESPONDENT (BY SRI. RAKSHITH KUMAR., ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO-SETTING ASIDE THE SALE NOTICE 31-12-2024 ISSUED UNDER FORM NO.8 AND 9 BY THE COLLECTION OFFICER OF THE CO-OPERATIVE SOCIETIES D.K. DISTRICT CENTRAL CO-OPERATIVE BANK LTD., MANGALORE 575003 UNDER AMALJARI NO.656/2020-21 AND AWARD JRM/DDS/643/2019-20 VIDE ANNEXURE - B, STATING THAT THE ENTIRE RECOVERY PROCEEDINGS INITIATED BY THE RESPONDENT BANK AGAINST THE SCHEDULE PROPERTY ARE ILLEGAL AND IN VIOLATION OF THE KARNATAKA CO-OPERATIVE SOCIETIES RULES, 1960; SETTING ASIDE THE VACANT NOTICE DATED 04-04-2025 VIDE ANNEXURE C ISSUED BY THE COLLECTION OFFICER OF THE CO-OPERATIVE SOCIETIES D.K. DISTRICT CENTRAL CO-OPERATIVE BANK LTD., MANGALORE - 575003; ISSUE WRIT OF - 3 - HC-KAR NC: 2025:KHC:38585 WP No. 16780 of 2025 C/W WP No. 25509 of 2024 MANDAMUS TO THE RESPONDENT BANK, NOT TO TAKE ANY FURTHER ACTION AGAINST THE SCHEDULE PROPERTY, RESTORING THE POSSESSION OF THE SCHEDULE PROPERTY TO THE PETITIONER AND TO ACCEPT THE PETITIONERS BROTHER-IN-LAWS REQUEST TO ACCEPT RS.10.00 LAKH IN FULL AND FINAL SETTLEMENT OF HIS LOAN ACCOUNT BY GRANTING HIM A MORATORIUM TIME OF THREE MONTHS. IN WP NO. 25509/2024 BETWEEN: MR LOKESH S/O BABU MADIWALA, AGED ABOUT 43 YEARS, R/ATNO 2-11A, RAJESHWARI NILAYA, RAJIV NAGAR, SOORINJE POST, MANGALORE, DAKSHINA KANNADA - 575001. ...PETITIONER (BY SMT. KAVITHA D.,ADVOCATE) AND: M/S DAKSHINA KANNADA ZILLA KENDRA SAHAKARI BANK LTD (REGISTERED UNDER THE STATE CO OPERATIVE SOCIETIES ACT) KATIPALLA BRANCH, - 4 - HC-KAR NC: 2025:KHC:38585 WP No. 16780 of 2025 C/W WP No. 25509 of 2024 NANDADEEPA COMPLEX, 1ST FLOOR, M.R.P.L ROAD, KATIPALLA - 575030, MANGALORE REPRESENTED BY ITS AUTHORIZED OFFICER. ...RESPONDENT (BY SRI. RAKSHITH KUMAR.,ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO-SET ASIDE THE SALE NOTICE 26.07.2024 ISSUED UNDER FORM NO. 8 AND 9 BY THE COLLECTION OFFICER OF THE CO-OPERATIVE SOCIETIES D.K DISTRICT CENTRAL CO-OPERATIVE BANK LTD., MANGALORE - 575003 UNDER AMALJARI NO. 656/2020-21 AND AWARD JRM/DDS/643/2019-20 VIDE ANNEXURE-A, STATING THAT THE ENTIRE RECOVERY PROCEEDINGS INITIATED BY THE RESPONDENT BANK AGAINST THE SCHEDULE PROPERTY ARE ILLEGAL AND IN VIOLATION OF THE KARNATAKA CO-OPERATIVE SOCIETIES RULES, 1960; ISSUE WRIT OF MANDAMUS TO THE RESPONDENT BANK, NOT TO CONTINUE WITH FURTHER PROCEEDINGS BASED ON THE SALE NOTICE DATED 26.07.2024 AGAINST THE SCHEDULE PROPERTY AND TO ACCEPT THE PETITIONERS REQUEST TO GRANT HIM A MORATORIUM TIME OF THREE MONTHS TO ENABLE HIM TO REGULARIZE HIS LOAN ACCOUNT BY RESTRUCTURING THE SAME. THESE PETITIONS, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD - 5 - HC-KAR NC: 2025:KHC:38585 WP No. 16780 of 2025 C/W WP No. 25509 of 2024 ORAL ORDER These petitions are at the instance of a guarantor and a borrower. The petitioner in W.P.No. 16780/2025 is no more as represented to this Court on the previous hearing date viz., 21.08.2025 and no application is filed to bring the legal representatives on record. This petitioner, who is a relative of the borrower, has called in question the Sale notice dated 31.12.2024 issued by the Secured Creditor, the respondent. The borrower [the petitioner in W.P.No. 25509/2024] is granted interim order which reads as under: "Interim order as prayed for, subject to petitioner depositing a sum of Rs.4Lakh on or before 19.9.2024 and another sum of Rs.6Lakh within four weeks from thereafter, failing which, the interim order granted shall stand automatically vacated, and respondent - Bank is at liberty to proceed in accordance with law." It is now stated on record by the common respondent that because the borrower has not complied with the terms as afore that [a] the Sale Notice is issued [b] the sale is conducted on 26.02.2025 and sale is - 6 - HC-KAR NC: 2025:KHC:38585 WP No. 16780 of 2025 C/W WP No. 25509 of 2024 confirmed on 24.03.2025 [c] the Sale Certificate is also registered on 06.04.2025 [d] the possession is recovered on 28.05.2025 but the borrower taking law into his own hands has broken open the lock and taken possession. The question for consideration is whether this Court must intervene in these two petitions permitting the legal representatives of the deceased Nagesh to come on record. If there are subsequent proceedings, the concerned including the borrower must necessarily work out remedy under Section 17 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [for short 'the SARFAESI Act'] as would be available and there will be no reason for interference. Hence, the following ORDER The petitions stand disposed of observing that it should be open to the Secured Creditor to take possession of the property with the help of the jurisdictional Police subject to orders, if any, - 7 - HC-KAR NC: 2025:KHC:38585 WP No. 16780 of 2025 C/W WP No. 25509 of 2024 under Section 17 of the SARFAESI Act. It is ordered accordingly. Sd/- (B M SHYAM PRASAD) JUDGE NV