- 1 - HC-KAR NC: 2025:KHC:41371-DB RP No. 489 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16TH DAY OF OCTOBER, 2025 PRESENT THE HON'BLE MR. JUSTICE D K SINGH AND THE HON'BLE MR. JUSTICE RAJESH RAI K REVIEW PETITION NO. 489 OF 2024 BETWEEN: THE BANK OF BARODA HASSAN MAIN BRANCH, KRUTHIKA ARCADE, HN PURA ROAD, HASSAN 563 201 REPRESENTED BY ITS SENIOR MANAGER …PETITIONER (BY SRI. S.S. NAGANAND SENIOR COUNSEL FOR SRI. VIGNESH SHIVARAM SHETTY, ADVOCATE) AND: 1. FAZLER RAHMAN S/O. LATE HAJI ABDUL AZEEZ AGED ABOUT 87 YEARS, 2. SHAMIUNNISA W/O. FAZLER RAHMAN AGED ABOUT 78 YEARS, 3. AF DUREZ S/O. FAZLER RAHMAN AGED ABOUT 41 YEARS Digitally signed by PANKAJA S Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:41371-DB RP No. 489 of 2024 1 TO 3 R/A. NO.536, 16TH MAIN, III BLOCK, BEHIND BDA COMPLEX, KORAMANGALA, BENGALURU 560 034 4. TANVIR JABBAR S/O. ABDUL JABBAR AED ABOUT 50 YEARS R/A. NO. 819, KR PURAM, HASSAN 573 201 5. AZAM ALI S/O. LATE ZAFAR ALI AGED ABOUT 52 YEARS R/A. NO.71, VALLABHAI ROAD, HASSAN 563 201 6. MOHAMMED IDRESS S/O. LATE MOHAMMED SAB AGED ABOUT 47 YEARS R/A. NO.144, SUFI MANSION, RAILWAY STATION ROAD, SS PURAM, TUMKUR-572 202 7. STATE OF KARNATAKA REPRESENTED BY STATION HOUSE OFFICER AREHALLI POLICE STATION, BELUE ROAD, KARNATAKA-573 101 …RESPONDENTS (BY SRI. AJESH KUMAR S, ADVOCATE FOR R1, R3 TO R5, SRI. JAYA KUMAR S PATIL, SENIOR COUNSEL SRI. SANJAY KUMAR A, ADVOCATE FOR R6 SRI. M.N. SUDEV HEGDE, AGA FOR R7) THIS REVIEW PETITION IS FILED UNDER ORDER XLVII RULE (1) READ WITH SECTION 144 OF CPC PRAYING TO REVIEW THE COMMON ORDER DATED 23.02.2024 PASSED IN W.P. NO. 21752/2022 (GM-DRT) AND MAY BE PLEASED TO ORDER: - 3 - HC-KAR NC: 2025:KHC:41371-DB RP No. 489 of 2024 THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE D K SINGH and HON'BLE MR. JUSTICE RAJESH RAI K ORAL ORDER (PER: HON'BLE MR. JUSTICE D K SINGH) The present review petition has been filed seeking review of the judgment and order dated 23.02.2024 passed in W.P.No.21503/2022 (GM-GRT). The review petition has been filed with delay of 203 days. 2. Considering the averments made in the I.A.No.1/2024 seeking condonation of delay, we find the reasons assigned sufficient to condone the delay and thus, the delay of 203 days in filing the review petition is condoned. 3. The review petitioner has advanced loan to respondent Nos.1 to 3 and when the said respondents failed to repay the loan in terms of the agreement, the bank had initiated proceedings in O.A.Nos.89/2017 and 242/2017 before the Debts Recovery Tribunal (hereinafter - 4 - HC-KAR NC: 2025:KHC:41371-DB RP No. 489 of 2024 referred to as 'the DRT'). These OA stood allowed by the DRT by the order dated 03.03.2018 and passed decree for Rs.4,36,20,727/- from 01.12.2018 along with 18% interest which would come to Rs.51,58,718/-. The said order and decree was challenged by the borrowers before the Debt Recovery Appellate Tribunal (hereinafter referred to as 'the DRAT'), which came to be dismissed. The order passed by the DRAT in M.A.Nos.1/2021 and 2/2021 was the subject matter of challenge in Writ Petition No.21752/2022 & connected matters. 4. In the said writ petitions, this Court by the judgment and order dated 23.02.2024 directed the Bank to refund the entire amount to the auction purchaser along with interest at the rate of 18% per annum within a period of eight weeks. The auction proceedings were set aside by this Court. The Bank had preferred the SLP in (Civil) Diary No.20870/2024 before the Hon'ble Supreme Court against the judgement dated 23.02.2024 passed by the Division Bench of this Court in three writ petitions. - 5 - HC-KAR NC: 2025:KHC:41371-DB RP No. 489 of 2024 5. The Hon'ble Supreme Court had disposed the SLP by the order dated 06.08.2024. While disposing the SLP filed by the Bank, the Hon'ble Supreme Court clarified that the consequent to the judgment passed by the Co-ordinate Bench on 23.02.2024, the borrower would be liable to pay interest in terms of the decree passed by the DRT. 6. We find that the dismissal by the Hon'ble Supreme Court was in limine dismissal and it was not for the reasons. 7. Mr. S.S. Naganand, learned Senior Counsel assisted by Mr. Vignesh Shivaram Shetty, learned counsel for the petitioner submits that the Division Bench of this Court in its order dated 23.02.2024 has directed the Bank to refund the entire amount of the sale proceeds of the secured asset to the auction purchaser, whereas the bank has received only Rs.4,75,18,068/- out of the total sale proceeds of Rs.12,92,00,000/- and therefore, the bank - 6 - HC-KAR NC: 2025:KHC:41371-DB RP No. 489 of 2024 would be liable to refund the amount received by it along with simple interest at the rate of 18% p.a. 8. The counsel representing the borrower and the auction purchaser do not dispute the fact that the bank would be liable to pay the amount received by it and it would not be liable to pay the entire amount of the sale proceeds which has not been received by it. The balance sale proceeds are lying in deposit before the DRT, Bengaluru. 9. In view of the above, we clarify that the Bank is liable to refund the amount of Rs.4,75,18,068/- along with interest at 18% p.a. from the date when it received the amount and till it deposited before the recovery officer and any short fall in the interest should be made good within a period of two weeks. 10. The auction purchaser should move an application before the Debts Recovery Tribunal, Bengaluru for release of entire sale proceeds along with interest in its - 7 - HC-KAR NC: 2025:KHC:41371-DB RP No. 489 of 2024 favour within a period of two weeks from today and after the receipt of the amount, the auction purchaser should hand over possession of the secured assets to the Recovery Officer forthwith and the borrower will be entitled to recover the possession from the recovery officer after the borrower pays the outstanding dues to the Bank as per the order passed by this Court in W.P.Nos.21951/2022, 21725/2022 and 21752/2022. SD/- (D K SINGH) JUDGE SD/- (RAJESH RAI K) JUDGE CR List No.: 1 Sl No.: 16 - 8 - HC-KAR NC: 2025:KHC:41371-DB RP No. 489 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU [THE BANK OF BARODA VS. FAZLER RAHMAN AND OTHERS] 28.11.2025 (VIDEO CONFERENCING / PHYSICAL HEARING) CORAM: HON'BLE MR. JUSTICE D K SINGH and HON'BLE MR. JUSTICE RAJESH RAI K ORAL ORDER ON I.A.NO.2/2025 (PER: HON'BLE MR. JUSTICE D K SINGH) This application is filed for correction of the judgment dated 16.10.2025 passed in R.P.No.489/2024. In terms of the final order dated 03.03.2018 passed by the Debts Recovery Tribunal, Bengaluru in O.A.Nos.89/2017 and 242/2017, the recovery certificate dated 06.04.2018 was issued by the DRT. The relevant portion of the recovery certificate reads as under, "In terms of Final Order dated 3rd day of March 2018 passed by this Tribunal in the above mentioned case, it is ordered that the Applicant Certificate Holder Bank is entitled to recover Rs.3,41,07,747/- (Rupees Three Crores forty one lakhs seven thousand seven hundred forty seven only). Out of which (i) a sum of Rs.38,91,552/- (Rupees Thirty eight lakhs ninety one thousand five hundred fifty two only) with interest at the rate of 13% p.a. compounded yearly from defendants No.1 to - 9 - HC-KAR NC: 2025:KHC:41371-DB RP No. 489 of 2024 4 and (ii) a sum of Rs.2,42,05,677/- (Rupees Two Crores forty two lakhs five thousand six hundred seventy seven only) together with interest at the rate 13% p.a. compounded yearly from defendants No.1 to 3 & 5 from the date of filing of OA i.e. 08-12-2016 till the date of realization along with cost as per cost memo attached in full jointly, severally, from the Certificate Debtors hereinafter referred to as:- Certified Debtors: 1. Mr.Fazler Rahman 2. Mrs.Shamimunnisa 3. Mr.A.F. Durez 4. Mr. Tanvir Jabbar 5. Mr. Azam Ali" The recovery certificate is for Rs.3,41,07,747/- for two loans advanced by the Bank. This amount of Rs.3,41,07,747/- is apportioned in respect of two loans for "Rs.38,91,552/-" and "Rs.2,42,05,677/-". The said amount has been directed to be paid along with interest at the rate of 13% p.a. from the date of filing of O.A. i.e., 08.12.2016 till the date of realization. In view thereof, we correct the figure and date in the paragraph No.3 of the judgment and in place of figure - 10 - HC-KAR NC: 2025:KHC:41371-DB RP No. 489 of 2024 "Rs.4,36,20,727/-" the figures of "Rs.3,41,07,747/-" with interest at the rate of 13% from 08.12.2016 is substituted. Thus, the application is allowed. The judgment in question is modified accordingly. The learned counsel for the respondents will have a liberty to take steps for correction of recovery certificate, if he feels that there is any mistake in the recovery certificate. SD/- (D K SINGH) JUDGE SD/- (RAJESH RAI K) JUDGE CR List No.: 1 Sl No.: 7