- 1 - HC-KAR NC: 2025:KHC:34804 WP No. 26895 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 26895 OF 2025 (GM-DRT) BETWEEN: SRI NANJUNDESHWARA EDUCATION SOCIETY REPRESENTED THROUGH ITS SECRETARY VIJAY NAYAK MUNIYAPPA SRS SCHOOL, 2ND MAIN ROAD WILSON GARDEN ROAD BANGALORE 560030. ALSO AT: SRS SCHOOL 2ND MAIN ROAD WILSON GARDEN ROAD BENGALURU 560030 …PETITIONER (BY SRI. M A RAJENDRA.,ADVOCATE) AND: 1. M/S PROTIUM FINANCE LIMITED (FORMERLY GROWTH SOURCE FINANCIAL TECHNOLOGIES LTD.) REGISTERED OFFICE AT NIRLON KNOWLEDGE PARK (NKP) B2 7TH FLOOR PAHADI VILLAGE OFF WESTERN EXPRESS HIGHWAY GOREGAON (E)MUMBAI MUMBAI CITY 400063 Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:34804 WP No. 26895 of 2025 BRANCH OFFICE AT NO 79-1 1ST FLOOR VANI VILAS ROAD BASAVANGUDI BENGALURU 560004. 2. MR. AKSHAY RAJA NAYAK S/O MR. RAJA NAYAK NO 1104, 19TH B MAIN ROAD 2ND A CROSS J.P.NAGAR 2ND PHASE, BANGALORE-560078 3. MR. VIJAY NAYAK MUNIYAPPA S/O MR. MUNIYAPPA NO 1 OLD NO42 4A, 4TH FLOOR RUBIS APARTMENT 5TH CROSS, RMV EXTENSION, SADASHIVNAGAR BENGALURU 560080 4. MR ARJUN RAJA NAYAK NO 1104 19THB MAIN ROAD 2ND A CROSS J.P.NAGAR 2ND PHASE BANGALORE 560078 …RESPONDENTS (BY SRI. CHANDRASHEKAR S.N., ADVOCATE) THIS WRIT PETITION UNDER ARTICLES 226 AND 227 OF CONSTITUTION OF INDIA IS FILED PRAYING TO PASS ORDERS ON I.A.NO.2364/2025, IN DIARY NO.2057/2025, PENDING ADJUDICATION BEFORE THE HON'BLE DRT-II, BENGALURU AT ANNEXURE-E. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD - 3 - HC-KAR NC: 2025:KHC:34804 WP No. 26895 of 2025 ORAL ORDER The petitioner, a society which is running an educational institution, has filed this petition being aggrieved by the order dated 05.08.2025 by the Debts Recovery Tribunal [for short `the DRT'] in Dairy No.2057 of 2025. The DRT by its impugned order has granted interim order, but on the stipulation that the petitioner shall remit ₹30,00,000/- with the first respondent before 22.08.2025. The DRT has thus intervened only because the petitioner runs an educational institution. 2. It is undisputed that the petitioner has deposited ₹20,00,000/- on 21.08.2025 and is in default because the remaining amount of Rs.10,00,000/- is not paid. The first respondent has sealed the petitioner's premises which continues to be under seal. It is now stated that in the proceedings with the DRT, the first respondent has filed objections stating that the dues for regularization of - 4 - HC-KAR NC: 2025:KHC:34804 WP No. 26895 of 2025 the loan will be in a sum of ₹15,00,000/- and that the first respondent, notwithstanding all the earlier proceedings and the pending proceedings, is willing to accommodate the petitioner if this amount of Rs.15,00,000/- and three EMIs are paid in advance. 3. Sri M. A. Rajendra, the learned counsel for the petitioner, submits that the petitioner is willing to tender ₹15,00,000/- by 08.09.2025 and is also willing to deposit post dated cheques for the three EMIs as is being insisted upon by the first respondent. Sri Chandrasekhar S N, the learned counsel for the first respondent, without disputing the aforesaid, submits that this Court may permit the petitioner to deposit ₹15,00,000/-, as is now stated with certain directions to the first respondent to break the seal but insist upon the petitioner to pay three EMIs in advance and the learned counsel emphasizes that this would be imperative given the petitioner's conduct. - 5 - HC-KAR NC: 2025:KHC:34804 WP No. 26895 of 2025 5. These submissions are considered in the light of the fact that the proceedings in SA No.178/2025 [Dairy No.2057/2025] is still pending consideration and the DRT will have to consider the consequences of the default if there is any in the petition offering the three EMIs. However, to balance the mutual interest in the circumstances as aforesaid, this Court is of the view that the petition must be disposed of with liberty to the petitioner to deposit ₹15,00,000/- with the first respondent calling upon the first respondent to break open the seal to permit the petitioner to recommence the school; and that insofar as the first respondent’s demand for payment of three EMIs upfront, this Court is of the view that the petitioner must deposit post dated cheques for these amounts simultaneously with the deposit of ₹15,00,000/- and that the DRT must consider in the pending matter the orders that must - 6 - HC-KAR NC: 2025:KHC:34804 WP No. 26895 of 2025 be if there is any default in ensuring those cheques are honoured as and when they become due. With the above directions and observations, the petition stands disposed of. SD/- (B M SHYAM PRASAD) JUDGE BKM List No.: 1 Sl No.: 11