- 1 - HC-KAR NC: 2025:KHC:27037 WP No. 21552 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 21552 OF 2025 (GM-RES) BETWEEN: 1. M/S MAHALAKSHMI RICE MILL, NO.107, YAGAVAKOTE VILLAGE, MURUGAMALLA HOBLI, YAGAVAKOTE VILLAGE AND POST, CHINTHAMANI TALUK-563 146. SMT.K.R.SRILAKSHMI REPRESENTED BY ITS PROPRIETRIX, (PRINCIPAL BORROWER/MSME UNIT) 2. SMT.K.R.SRILAKSHMI AGED AROUND 47 YEARS YAGAVAKOTE VILLAGE, MURUGAMALLA HOBLI YAGAVAKOTE VILLAGE AND POST, CHINTHAMANI TALUK-563 146 (PROPRIETOR/BORROWER UNIT) 3. SRI. RAMESH.R. AGED AROUND 49 YEARS H.L.NO.196/285 AND 286, YAGAVAKOTE VILLAGE, MURUGAMALLA HOBLI, CHINTHAMANI TALUK - 563 146 (GUARANTOR) Digitally signed by PRAKASH N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:27037 WP No. 21552 of 2025 4. SRI. VENKATA RANGAIAH SHETTY, S/O. MR.LAKSHMAIAH, AGED AROUND 63 YEARS NO.500, 9TH CROSS, RAJAJINAGAR, BENGALURU-560 010 (GUARANTOR) … PETITIONERS (BY SRI. V MOHAN., ADVOCATE) AND: 1. CANARA BANK ASSET RECOVERY MANAGEMENT BRANCH-1, NO.86, SPENCER TOWER, M.G.ROAD, BANGALORE-560 001 REPRESENTED BY ITS AUTHORIZED OFFICER, SRI. RAJENDRA TRIPATHY (LENDER BANK-REGISTERED UNDER COMPANIES ACT … RESPONDENT (BY SRI. VIGNESH SHETTY., ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE RESPONDENT BANK'S AUCTION SALE NOTICE DTD. 02.07.2025 (ANNEXURE-A) VIDE NO.ARM-1/CR-710/158/2/2025/VB, THE AUCTION SALE AND ITS PROCEEDINGS DTD. 19.07.2025 AS NOTIFIED IN THE AUCTION SALE NOTICE (ANNEXURE-A) IN RESPECT OF THE SECURED MOVABLE ASSETS BELONGING TO 1ST PETITIONER/MSME IN THE INTEREST OF JUSTICE AND EQUITY AND ETC. THIS PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, ORDER WAS MADE THEREIN AS UNDER: - 3 - HC-KAR NC: 2025:KHC:27037 WP No. 21552 of 2025 CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV ORAL ORDER Sri. Vignesh Shetty, learned counsel accepts notice for respondent. 2. Petitioners have called in question the validity of the auction sale notice at Annexure-A dated 02.07.2025. 3. Petitioners have raised various contentions including that 1st petitioner belongs to MSME category and there must be restructuring of loan based on government policies and RBI circulars. 4. Learned Counsel for the respondent - Bank submits that the petitioners have substantive remedy before the Debts Recovery Tribunal in terms of Section 17 of the SARFAESI Act. It is submitted that in another writ petition by the same petitioners though with respect to immovable property in W.P.No.35788/2024, a conditional - 4 - HC-KAR NC: 2025:KHC:27037 WP No. 21552 of 2025 interim order was granted and the condition has not been fulfilled. 5. After hearing both the counsel for sometime, taking note that there is substantive remedy available for the petitioners, it would be appropriate to relegate the petitioners to avail of the substantive remedy provided for under Section 17 of the SARFAESI Act. 6. As the learned counsel for the petitioners submits that auction is due to take place on 19.07.2025, it is clarified that though the auction proceedings can go ahead, however, issuance of sale certificate to be deferred for a period of 3 weeks from today. It is for the petitioners to approach the DRT and obtain appropriate orders within the time stipulated above. On the lapse of period of 3 weeks as stipulated above, the protection granted would cease to have effect. It is clarified that the protection that is granted is only to enable the petitioner to avail of the substantive remedy and must not be construed to be an - 5 - HC-KAR NC: 2025:KHC:27037 WP No. 21552 of 2025 expression on the merits of the case. In the event of any objection on limitation, the time spent before this Court may be taken note of appropriately. All contentions are kept open. 7. Accordingly, the petition is disposed off. Sd/- (S SUNIL DUTT YADAV) JUDGE VP