- 1 - HC-KAR NC: 2025:KHC:44148 WP No. 25018 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF NOVEMBER, 2025 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI WRIT PETITION NO. 25018 OF 2025 (GM-DRT) BETWEEN: M/S NADELLA AGROTECH PRIVATE LTD., A COMPANY REGISTERED UNDER COMPANIES ACT BY ITS DIRECTOR, SRI ENKATA PHANI NADELLA S/O MR. N V SAMBASIVA RAO AGED 45 YEARS, INDUSTRIAL AREA SY.NO. 10/1PL, 11/8AP,12/3P,12/4P BYKAMPADY, MANGALORE 575011 …PETITIONER (BY SMT. SANDHYA U. PRABHU., ADVOCATE) AND: THE AUTHORIZED OFFICER/MANAGER UNION BANK OF INDIA MG ROAD, BRANCH MCC BUILDING, MG ROAD LALBHAGH, MANGLAORE- 575 003 …RESPONDENT (BY SRI. ASHWIN SHANKAR.B., ADVOCATE FOR SRI. MANMOHAN P N, ADVOCATE FOR C/R) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECTING THE RESPONDENT TO CONSIDER THE REPLY GIVEN BY THE PETITIONER TO THE RESPONDENT ON 06/08/25 FOR THE DEMAND NOTICE, PRODUCED AT ANNX-G. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN B GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: Digitally signed by MEGHA MOHAN Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:44148 WP No. 25018 of 2025 CORAM: HON'BLE SMT. JUSTICE LALITHA KANNEGANTI ORAL ORDER The present writ petition is filed seeking a writ of mandamus directing the respondent to consider the reply given by the petitioner on 06.08.2025 for the demand notice. 2. The facts of the case are that the petitioner had obtained a overdraft facility for an amount of Rs.15,00,00,000/- by Hypothecating stock, Book Debts and three properties. The Director of the petitioner's company had closed account maintained by them with ICICI Bank by paying a sum of Rs.30,00,00,000/-. The petitioner had availed a term loan of Rs.32,80,00,000/- by mortgaging some other properties. 3. It is stated that the petitioner was regularly servicing the loan account and recently the respondent Bank issued a demand notice by wrongly classifying the loan account as a non performing asset (NPA). A demand notice was issued to the petitioner under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security - 3 - HC-KAR NC: 2025:KHC:44148 WP No. 25018 of 2025 Interest Act, 2002,( for short "SARFAESI Act"). The petitioner's had replied to the demand notice and had requested 90 days time for closure of the loan account by selling the house property and some other property which is not the security given to the respondent/Bank. The property available as a security for recovery of dues of Rs.15,00,00,000/- is only worth of Rs.4,00,00,000/- and the petitioner had undertaken to close the loan of Rs.15,00,00,000/- in entirety without asking for any discount. 4. It is submitted that in spite of representation given by the petitioner to the Bank as a response to the 13(2) notice of SARFAESI Act, the respondent/Bank had failed to consider the same. It is submitted that when the petitioner is ready to clear the entire loan amount, the respondent/Bank ought to have granted a reasonable time for the petitioner as he is not seeking any reduction/concession on the amounts. 5. The Order dated 09.10.2025 discloses that: “The learned counsel for the petitioner seeks for and is granted a week's time to make a submission as to what amount would be paid to respondent/Bank and by what time”. - 4 - HC-KAR NC: 2025:KHC:44148 WP No. 25018 of 2025 Interim order granted earlier i.e., on 28.08.2025 was extended where the Court directed that: “unless the representation is duly considered no notice shall be published under Section 13(4) of the SARFAESI Act.” 6. When this matter came up before this Court on 28.10.2025, this Court had recorded the submission of the learned counsel appearing for the petitioner that by 03.11.2025, she will come up with an undertaking affidavit within what time the petitioner is going to clear the outstanding loan amount, and the matter was adjourned for 03.11.2025. Today, when the matter came up, the learned counsel appearing for the petitioner has placed before this Court the undertaking affidavit and as per the affidavit, she is ready to pay an amount of Rs.15,00,00,000/- as per the schedule mentioned below: Sl.No. DATE AMOUNT 1. 28.11.2025 Rs.25,00,000/- 2. 30.12.2025 Rs.1,50,00,000/- 3. 30.01.2026 Rs.3,25,00,000/- 4. 27.02.2026 Rs.3,25,00,000/- 5. 10.03.2026 Rs.3,25,00,000/- 6. 25.03.2026 Rs.3,50,00,000/- 7. It is submitted that in the light of the undertaking affidavit, the writ petition may be disposed of directing the - 5 - HC-KAR NC: 2025:KHC:44148 WP No. 25018 of 2025 respondent/Bank not to take any coercive steps as the petitioner is ready to pay the amount by 25.03.2026. The learned counsel appearing for the respondent/Bank submits that the outstanding amount as per 13(2) notice is Rs.15,16,82,710.74. The learned counsel for the petitioner submits that in the last instalment i.e. on 25.03.2026 as per the Bank whatever is the outstanding/incidental expenses remaining if any, they would be clearing the same. 8. In the light of the undertaking affidavit that is filed before this Court, this Court deems it appropriate to pass the following: ORDER i. The petitioner shall pay the amount as per the Schedule in the affidavit i.e., mentioned below: Sl.No. DATE AMOUNT 1. 28.11.2025 Rs.25,00,000/- 2. 30.12.2025 Rs.1,50,00,000/- 3. 30.01.2026 Rs.3,25,00,000/- 4. 27.02.2026 Rs.3,25,00,000/- 5. 10.03.2026 Rs.3,25,00,000/- 6. 25.03.2026 Rs.3,50,00,000/- - 6 - HC-KAR NC: 2025:KHC:44148 WP No. 25018 of 2025 ii. If there is any default in any one instalment, the respondent/Bank is at liberty to take further steps under the SARFAESI Act. iii. With regard to any incidental or outstanding amount, the respondent/Bank shall inform the petitioner within ten days from today and the petitioner shall pay the same along with the last instalment and shall clear the same. iv. Accordingly, the writ petition stands disposed of. v. All I.As., in the writ petition shall stand closed. SD/- (LALITHA KANNEGANTI) JUDGE HR List No.: 2 Sl No.: 28