- 1 - HC-KAR NC: 2025:KHC:30681 WP No. 23898 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 23898 OF 2025 (GM-RES) BETWEEN: M/S PEACOCK ENTERPRISES REGISTERED UNDER THE INDIAN PARTNERSHIP ACT, 1932 REPRESENTED BY ONE OF IS PARTNER SRI V SOMASUNDARA S/O MR. VENKATESHA AGED ABOUT 49 YEARS R/AT NO.29, 2ND CROSS, WEAVERS COLONY VISHWESHWARA NAGARA 2ND STAGE, MYSURU - 570008 …PETITIONER (BY SRI. SHIVARAMA BHAT O.,ADVOCATE) AND: 1. KARNATAKA BANK REPRESENTED BY ITS CHIEF MANAGER AND AUTHORIZED OFFICER A.R.M. BRANCH Digitally signed by VANAMALA N Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:30681 WP No. 23898 of 2025 BEHIND KARNATAKA BANK BUILDING C.A. NO.1, C BLOCK, AKKAMAHADEVI ROAD J.P.NAGAR, MYSURU - 570031. 2. YASHAWANTH PROPREITOR VIRAASAT 1996 VINTAGE KRISHNAMURTHYPURAM MYSURU - 570004. …RESPONDENTS (BY SRI.K.V. SHYAMA PRASAD., ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED SALE NOTICE DATED 01/07/2025 ISSUED BY THE RESPONDENT IN NO. ARMB.MYS.MY945. OR 123:2025-26 VIDE ANNEXURE-A ISSUED BY THE R1. IN SO FAR AS PETITIONER CONCERNED. 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:30681 WP No. 23898 of 2025 ORAL ORDER The petitioner, a borrower, is aggrieved by the sale of a secured asset under the provisions of Section 34 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [for short, 'the SARFAESI Act'] and the related Rules under the Security Interest [Enforcement] Rules, 2002. The first respondent has brought the secured asset for a reserved price of Rs.2,88,00,000/-, and the sale was scheduled to be held on 30.07.2025. 2. Sri Shivarama Bhat O., the learned counsel for the petitioner, submits that the respondent has granted a loan of Rs.1.6 crores based on a report filed by an evaluator valuing the secured asset in a sum of Rs.1,75,46,000/- about five years back and the same evaluator has now evaluated the property at Rs.6,29,26,400/-. The learned counsel emphasizes - 4 - HC-KAR NC: 2025:KHC:30681 WP No. 23898 of 2025 that there is gross under valuation of the secured asset because of collusion to favour a third party. 3. In response Sri K.V. Shyama Prasad, the learned counsel who is permitted to take notice for the first respondent, submits on instructions that the sale is completed and the auction purchaser has also deposited a substantial part of the price offered. The learned counsel submits that the petitioner must necessarily avail remedy under Section 17 of the SARFAESI Act. In rejoinder, Sri Shivarama Bhat O. submits that the petitioner is willing to pay the price offered by the auction purchaser [the second respondent] and therefore there must be no precipitation. 4. The question whether the first respondent has extended loan on the basis of the valuation filed in the year 2020 and the valuation by the same evaluator should be the basis for the reserved price notified must be examined by the DRT under Section - 5 - HC-KAR NC: 2025:KHC:30681 WP No. 23898 of 2025 17 of the SARFAESI Act as it should examine the petitioner’s offer in the light of Section 13(13) of the SARFAESI Act. The petitioner therefore must necessarily avail remedy under Section 17 of the SARFAESI Act, and this Court, in the circumstances in which the petitioner's grievance are canvassed in this writ proceedings, is of the view that there must be no precipitation for four [4] weeks within which time the petitioner can avail the remedy. Hence, the following: ORDER [A] The petition stands disposed of with liberty to the petitioner to avail remedy under Section 17 of the SARFAESI Act directing the respondents not to be precipitative for a period of four [4] weeks. [B] This Court also observes that if in the event the petitioner avails remedy as is now contemplated, the DRT shall consider - 6 - HC-KAR NC: 2025:KHC:30681 WP No. 23898 of 2025 the grant of any interim order uninfluenced by the arrangement that is provided by this Court. SD/- (B M SHYAM PRASAD) JUDGE SA ct:sr