- 1 - HC-KAR NC: 2025:KHC:29426 WP No. 7244 of 2025 C/W WP No. 11986 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 30TH DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 7244 OF 2025 (GM-DRT) C/W WRIT PETITION NO. 11986 OF 2021 (GM-RES) IN W.P.No. 7244/2025 BETWEEN: MR. YOGISH B R S/O. LATE RAMANNA B.L., AGED ABOUT 48 YEARS, PRESENTLY RESIDING NO. 18, 19TH CROSS, SAMPANGIRAMA NAGAR, KARNATAKA 560027. …PETITIONER (BY SRI. ANAND K.,ADVOCATE) AND: UNION BANK OF INDIA REPRESENTED BY ITS, AUTHORIZED OFFICER/MANAGER, SSI BRANCH NO. 43/1, 1ST FLOOR, TUMKUR ROAD, INDUSTRIAL SUBURB, BENGALURU 560002. …RESPONDENT (BY SRI. VIGNESH SHETTY.,ADVOCATE) Digitally signed by VANAMALA N Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:29426 WP No. 7244 of 2025 C/W WP No. 11986 of 2021 THIS W.P. IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE FOR SETTLING SALE PROCLAMATION IN R.C.NO. 518/2019 IN O.A.NO. 962/2017 DATED 13.02.2025 AND WARRANT OF ATTACHMENT OF IMMOVABLE PROPERTY IN DRC/518/2019 IN O.A.NO. 962/2017 ISSUED DATED 13.02.2025 IN RESPECT OF SCHEDULE PROPERTY VIDE ANNX-M AND M1.DIRECT THE RESPONDENT TO COMMUNICATE THE DECISION AND TERMS AND CONDITIONS OF THE ONE-TIME SETTLEMENT (OTS) AS SANCTIONED LETTER DTD. 08.05.2019 VIDE REF NO. NPA/YOGESH BR AS 502806650000604 ANNX-C REQUSTED BY THE PETITIONER; DIRECT THE RESPONDENT TO CONSIDER THE FRESH REPRESENTATION SUBMITTED BY THE PETITIONER AND TO CLOSE THE ACCOUNT AS PER THE OTS SANCTIONED DURING OCTOBER 2023. IN W.P.No. 11986/2021 BETWEEN MR YOGISH B R S/O LATE RAMANNA B L AGED ABOUT 48 YEARS R/AT NO.18, 19TH CROSS, SAMPANGIRAMA NAGAR BENGALURU - 560 027. ...PETITIONER (By SMT. SANDHYA U PRABHU, ADVOCATE) - 3 - HC-KAR NC: 2025:KHC:29426 WP No. 7244 of 2025 C/W WP No. 11986 of 2021 AND : UNION BANK OF INDIA REPRESENTED BY ITS AUTHORIZED OFFICER SSI BRANCH NO.43/1, 1ST FLOOR TUMKUR ROAD, INDUSTRIAL SUBRUB BENGALURU - 560 022. …RESPONDENT (By SRI.VIGNESH SHETTY, ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO- QUASH THE SALE NOTICE DATED 11.06.2021 VIDE ANNEXURE-E ISSUED BY THE RESPONDENT BANK IN RESPECT OF SCHEDULE PROPERTY DIRECT THE RESPONDENT TO REVIVE THE ONE TIME SETTLEMENT PROPOSAL DATED 08.05.2019 AT ANNEXURE-C WITH THE NOMINAL INTEREST THESE PETITIONS, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD - 4 - HC-KAR NC: 2025:KHC:29426 WP No. 7244 of 2025 C/W WP No. 11986 of 2021 ORAL ORDER These petitions are by a borrower, and because the petitioner is aggrieved by the initiation of proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [for short, 'the SARFAESI Act'] and recovery proceedings in terms of the recovery certificate issued under the Provisions of the Recovery of Debt and Bankruptcy Act, 1996. 2. The petitioner in W.P.No.11986/2021 has called in question the Sale Notice dated 11.06.2021 under the SARFAESI Act and in W.P.No.7244/2025 has sought for quashing of the attachment warrant issued consequent to the Recovery Certificate. The petitioner has also sought for directions to the Bank to communicate its decision on the offer for One Time Settlement. - 5 - HC-KAR NC: 2025:KHC:29426 WP No. 7244 of 2025 C/W WP No. 11986 of 2021 3. Sri Vignesh Shetty, the learned counsel for the respondent - Bank, is categorical that the petition in W.P.No.11986/2021 is rendered infructuous because no sale could be completed in terms of the impugned notice. The learned counsel is also categorical that the amount of Rs.5,00,000/- deposited in terms of the interim order granted by this Court in such petition on 15.07.2021 is duly accounted to the benefit of the petitioner. Sri Anand K., the learned counsel for the respondent - Bank, submits that the Bank could not have initiated any proceedings even under the Recovery Certificate because this Court in W.P.No.11986/2021 [one of these two present petitions] has stayed all further proceedings. 4. This Court must observe that what was in question in W.P.No.11986/2021 was the decision to bring the petitioner's property [the secured asset] to sale under the provisions of the SARFAESI Act and - 6 - HC-KAR NC: 2025:KHC:29426 WP No. 7244 of 2025 C/W WP No. 11986 of 2021 the interim order will operate only in that sphere and that cannot be a reason to tie down the proceedings that are initiated pursuant to a Recovery Certificate issued on completion of trial. Therefore, there is no reason for interference in the second petition in W.P.No.7244/2025 on such ground, but other circumstances such as the following are considered for complete adjudication in so far as these proceedings. 5. Sri Anand K. reiterates that the petitioner is willing to settle the entire outstanding and not risk a property that is worth more than crores of rupees to be brought to sale to recover a loan which is about Rs.10,00,000/-. When queried in this regard, Sri.Vignesh Shetty submits that if the petitioner makes another offer, it will be duly considered but the petitioner must make such offer within a reasonable time. In this regard, the learned counsel invites this Court's attention to this Court's order in - 7 - HC-KAR NC: 2025:KHC:29426 WP No. 7244 of 2025 C/W WP No. 11986 of 2021 W.P.No.18419/2022, which is disposed of on 10.07.2024, permitting the petitioner to file a fresh proposal for closure of the loan. 6. In rejoinder Sri. Anand K. submits that the petitioner is constrained because his email is blocked and the bank has not permitted him to make any offer. Be that as it may, with a statement now being made on behalf of the respondent that the petitioner's request, if made bona fide and within a reasonable time, would be considered by a reasoned order strictly in accordance with law, this Court is of the view that the petition must be disposed of in the light of such terms. Hence, the following: ORDER [A] The petition in W.P.No.11986/2021 stands disposed of as having become infructuous. The petition in W.P.No.7244/2025 stands disposed of with liberty to the petitioner to file, within two [2] weeks from the date of receipt of a certified copy of this order, a - 8 - HC-KAR NC: 2025:KHC:29426 WP No. 7244 of 2025 C/W WP No. 11986 of 2021 proposal for closure of the account either by way of One Time Settlement or otherwise. [B] The respondent - Bank is called upon to consider such representation and communicate the decision within four [4] weeks from the date of receipt of a representation. [C] It is needless to submit that if the petitioner does not make a representation as now permitted or if the bank rejects the request by a reasoned order, the bank would be at liberty to proceed in accordance with law but without prejudice to the remedy that may be available in law to the petitioner. Sd/- (B M SHYAM PRASAD) JUDGE SA ct:sr