- 1 - HC-KAR NC: 2025:KHC:46062 WP No. 14664 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI WRIT PETITION NO. 14664 OF 2025 (GM-DRT) BETWEEN: 1. M/S. SHOMA AUTOMATION PVT. LTD., HAVING REGISTERED OFFICE AT C-28, 2ND MAIN, 2ND STAGE, PEENYA INDUSTRIAL AREA, BANGALORE-560058. AND ALSO AT: M/S. SHOMA AUTOMATION PVT. LTD., HAVING REGISTERED OFFICE AT C-28, 2ND CROSS, 2ND STAGE, PEENYA INDUSTRIAL AREA, BANGALORE- 560058 REP. BY ITS DIRECTORS REG. UNDER COMPANIES ACT OF 2013. 2. MR. MADHUKAR A. PATIL, S/O SRI AJJANAGOUDA A PATIL, DIRECTOR M/S. SHOMA AUTOMATION PVT. LTD., NO.44, GF-1, MADHAVA RESIDENCY, DOLLAR SCHEME, 2ND CIRCULAR ROAD, NANDINI LAYOUT, BANGALORE- 560096. 3. MRS. C.P. SUNITHA W/O SRI.K.S.SRIDHAR, NO.63, 1ST FLOOR, 1ST CROSS, 10TH MAIN, MEI COLONY, Digitally signed by MEGHA MOHAN Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:46062 WP No. 14664 of 2025 MEENYA INDUSTRIAL AREA, 3RD PHASE, BANGALORE- 560058. …PETITIONERS (BY SMT. JAYALAKSHMI K.B., ADVOCATE) AND: STATE BANK OF INDIA SSI PEENYA INDUSTRIAL ESTATE BRANCH (40284) NO.120, NEAR TVS CROSS, 100 FEET ROAD, 3RD PHASE, PEENYA INDUSTRIAL AREA, 1ST STAGE, BANGALORE, KARNATAKA-560058 REP. BY ITS AUTHORISED OFFICER (MANAGER) MR. CHRISTIEVE JOSEPH …RESPONDENT (BY SRI. NANDISH PATIL, ADVOCATE SRI VINAY PAUL T.K., ADV. FOR C/R) THIS PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECTION TO THE RESPONDENT TO REGULARISE THE ACCOUNT OF THE PETITIONER AND CONSEQUENTLY RESTRAINED THE RESPONDENT FROM TAKING OVER POSSESSION OF THE SCHEDULE PROPERTY VIDE ANNEX-D DATED 01.02.2025. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE SMT. JUSTICE LALITHA KANNEGANTI - 3 - HC-KAR NC: 2025:KHC:46062 WP No. 14664 of 2025 ORAL ORDER The present writ petition is filed seeking the following prayer: “WHEREFORE, the petitioners humbly pray that this Hon'ble Court may kindly be pleased to pass and order/ Writ/direction/mandamus/certiorari to a. Issue direction to the respondent to regularize the account of the petitioner and consequently restrained the respondent from taking over possession of the schedule property vide ANNEXURE-D dated 01/02/2025. b. Grant such other and further reliefs based on nature and circumstances of the above case in the interest of Justice and equity.” 2. The facts of the case are that the petitioners have obtained loan of an amount of Rs.1,00,00,000/- from the respondent/bank by mortgaging the property. It is stated that as the petitioners committed default in payment of monthly installments the secured creditor had declared the petitioners’ loan account as non-performing asset (NPA) on 30.06.2023 and issued the statutory notice and initiated the proceedings under the SARFAESI Act. It is also stated that the respondent/bank had filed Crl.Misc.7731/2023 before the XXXI ACMM, Bengaluru and an order was passed by the Magistrate under Section 14 of the SARFAESI Act. It is also stated that when the - 4 - HC-KAR NC: 2025:KHC:46062 WP No. 14664 of 2025 respondent/bank had approached the XXXI ACMM, Bengaluru the petitioners have approached the respondent/bank to clear the debt. The respondent/bank was not ready to issue the OTS. The petitioners asked the bank to furnish the details of the outstanding amount. The bank had issued a statement stating that the outstanding amount is Rs.1,44,05,560/-. Petitioners have filed W.P.No.10483/2024 questioning the order that is passed under Section 14 of the SARFAESI Act in Crl.Misc.No.7731/2023, a Co-ordinate Bench of this Court by order dated 27.05.2024, had directed the Debt Recovery Tribunal to consider and pass appropriate orders in SA.No.472/2023, which is posted on 24.06.2024 in accordance with law. It was further directed that subject to compliance of the directions issued by the Court in interim order dated 05.04.2024 passed in the writ petition shall continue and remain in force and subsist between the parties till disposal of SA.No.472/2023. It is stated that the petitioners have paid an amount of Rs.50,00,000/- to the respondent/bank as per the order of the Co-ordinate Bench of this Court. They have approached the respondent/bank and requested them to regularize the account as it is a business account and there are - 5 - HC-KAR NC: 2025:KHC:46062 WP No. 14664 of 2025 work orders issued by the company. A notice was issued to vacate the premises on 01.02.2025 and the petitioners have approached the bank to clear the debt and requested the bank to regularize the account. The respondent/bank had rejected the request and has taken possession. Hence, the petitioners are before this Court. 3. Learned counsel appearing for the petitioners submits that as the petitioners could not pay the amount during the COVID period, the respondent/bank had declared the account as a non-performing asset. She relied on the judgment of the Hon’ble Apex Court in the case of Small scale Industrial Manufactures Association Vs. Union of India1. Relying on the said judgment, it is submitted that during the COVID period when certain guidelines are issued by the RBI, during that time the banks cannot declare the asset as a non- performing asset. In the light of the said judgment, all the proceedings initiated by the bank is bad and have to be set aside. Further, there shall be a direction to the bank to regularize the account. 1(2021) 8 SCC 511 - 6 - HC-KAR NC: 2025:KHC:46062 WP No. 14664 of 2025 4. Learned counsel appearing for the respondent/bank submits that already the SA and OA are pending before the Debt Recovery Tribunal and whatever the reliefs that the petitioners are entitled, all those grounds can be raised before the Debt Recovery Tribunal and they cannot come before this Court seeking such reliefs. It is further submitted that according to the petitioners, the account is declared as a non- performing asset on 30.06.2023 and the judgment which the learned counsel for the petitioners is relying upon is reported in the year 2021. It is submitted that the question of COVID period and declaring the account as NPA in the Covid period and RBI guidelines will not apply to the facts of this case and the writ petition needs to be dismissed. 5. Having heard the learned counsels on either side, perused the material on record. In this writ petition, there is no interim order. The petitioners have come before this Court seeking a relief to regularize the account of the petitioners and consequently restraining the respondent/bank from taking over the possession of the schedule property. Earlier, when a possession notice was issued and an order was passed by the XXXI ACMM in Crl.Misc.7731/2023 under Section 14 of the - 7 - HC-KAR NC: 2025:KHC:46062 WP No. 14664 of 2025 SARFAESI Act, the same was questioned before the Debt Recovery Tribunal and the pending DRT proceedings, they have approached this Court by filing a writ petition and the Co- ordinate Bench of this Court had directed the Debt Recovery Tribunal to dispose of the matters. When a OA and SA are pending before the Debt Recovery Tribunal, why the petitioners have come before this Court no convincing reasons are forthcoming. The judgment of the Hon’ble Apex Court in the case of Small scale Industrial Manufactures Association referred supra was passed in the year 2021, during the Covid period, which has no application to this case. The accounts of the petitioners are declared as NPA in the year 2023. This Court basing on the above judgment cannot direct the bank to regularize the account contrary to the guidelines issued by the Reserve Bank of India and there cannot be a mandamus to the bank asking them to regularize the account. When the petitioners in the entire writ petition has not even stated what is the illegality in the proceeding/action initiated by the bank. The petitioners are approaching this Court by filing one petition after the other without seeking these reliefs in the pending OA. - 8 - HC-KAR NC: 2025:KHC:46062 WP No. 14664 of 2025 In that view of the matter, this Court do not find any reasons to interfere. Hence, this Court is passing the following: ORDER i. Accordingly, the writ petition is dismissed. ii. All I.As., in this writ petition shall stand closed. SD/- (LALITHA KANNEGANTI) JUDGE BN CT:bms List No.: 5 Sl No.: 8