- 1 - HC-KAR NC: 2025:KHC:53320 WP No. 7071 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI WRIT PETITION NO.7071/2025 (GM-DRT) BETWEEN: 1. M/S. PRASIDHI PROPERTIES PRIVATE LIMITED REGD. UNDER COMPANIES ACT EARLIER AT 2624, 7TH CROSS, 14TH MAIN, E BLOCK, SAHAKARANAGARA, BENGALURU, KARNATAKA- 560092, NOW AT NO.2535, 9TH A' CROSS, 13TH MAIN, 'E' BLOCK, SHANKARANAGAR BANGALORE- 560092 REPT. BY ITS DIRECTOR K SUBRAMANYA RAJU, S/O LATE KONDULU CHENGAMMA RAJU. 2. K SUBRAMANYA RAJU, S/O LATE KONDULU CHENGAMMA RAJU, AGED ABOUT 65 YEARS, (PARTNER, M/S DECCAN ENGINEERS AND CONSTRUCTION), R/AT NO.2624, 7TH CROSS, 14TH MAIN, 'E BLOCK, SAHAKARANAGARA, BENGALURU, KARNATAKA - 560092. PRESENTLY R/AT NO.8, SRI SAI NIVAS, 4TH CROSS, 3RD MAIN, CENTRAL EXCISE LAYOUT, BHOOPSANDRA, SANJAYA NAGAR, Digitally signed by MEGHA MOHAN Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:53320 WP No. 7071 of 2025 BENGALURU-560094. …PETITIONERS (BY SRI. ASHWIN KUMAR H., ADVOCATE) AND: 1. THE KARNATAKA BANK LIMITED ASSET RECOVERY MANAGEMENT BRANCH, 1ST FLOOR, FKCCI BUILDING, KEMPEGOWDA ROAD, BENGALURU, KARANATKA-560009 REP. BY ITS CHIEF MANAGER. 2. M/S. SMLP PURE LIVING REPT. BY ITS PARTNER MR. B.B. UMESHA & MRS. RADHIKA S.C. SY.NO.38/6, NELUKUNTE VILLAGE JALA HOBLI, BENGALURU-561203. …RESPONDENTS (BY SRI. NITIN CHANDRA M., ADVOCATE FOR C/R1 SRI. YASHODHAR HEDGE, ADVOCATE FOR R2) THIS PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO SET ASIDE THE SALE NOTICE DATED.11.12.2024, ISSUED BY THE RESPONDENT VIDE ANNEXURE-C AND ALL FURTHER ACTION PURSUANT TO ISSUANCE OF SALE NOTICE DATED 11.12.2024 AND SET ASIDE FINAL ORDER DATED.28.02.2025 IN SA.NO.16/2025 PASSED BY THE DEBTS RECOVERY TRIBUNAL- 1 VIDE ANNEXURE-F. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE SMT. JUSTICE LALITHA KANNEGANTI - 3 - HC-KAR NC: 2025:KHC:53320 WP No. 7071 of 2025 ORAL ORDER The present writ petition is filed seeking the following prayer: “WHEREFORE, the petitioner most humbly prays that this Hon'ble court be pleased to: i. ISSUE A writ in the nature of certiorari to set aside the sale notice dated.11.12.2024, issued by the respondent vide Annexure-C and all further action pursuant to issuance of sale notice dated 11.12.2024. ii. ISSUE A writ of appropriate nature to set aside final order dated.28.02.2025 in SA.No.16/2025 passed by the Debts Recovery Tribunal-1 vide Annexure-F; and iii. PASS such other orders as may be deemed appropriate in the ends of justice and equity.” This writ petition is filed questioning the order passed in SA.No.16/2025 by the DRT dated 28.02.2025. The petitioner before this court is a borrower and the respondent No.1 is the Bank and respondent No.2 is the auction purchaser. 2. A joint memo is filed on behalf of the Borrower and the Bank and also the auction purchaser is placed before this court. As per the said memo, the auction purchaser and the Bank have no objection to set aside the order passed in the SA. The - 4 - HC-KAR NC: 2025:KHC:53320 WP No. 7071 of 2025 Bank has considered refund of 25% of the bid amount that is deposited by the auction purchaser without any interest. The respondent No.1/Bank confirms that the entire secured debt pertaining to the petitioner's company only is satisfied and the subject loan account being the over draft A/c No.1137000100012401 is having credit balance as on date. The petitioner’s have also authorized the Bank to deduct the applicable salary charges, cost incurred towards recovery of the secured debt including litigation expenses by the respondent No.1/bank before closure of the over draft of above referred account. The bank has agreed to return all the original documents of secured assets mortgaged for securing the credit facility pursuant to the memorandum of deposit of the Title deeds dated 22.03.2012 and the instruments of Construction re-deposit of title deed dated on 21.04.2016 and thereby executes the discharge dates before the jurisdictional of Sub- Registrar’s Office, evidencing the discharge of the mortgage after closure of the over draft account. 3. Petitioner No.2 and his wife who is not the party to this writ petition who are guarantors under the individual capacity to the secured debt availed by the petitioner No.1 have also - 5 - HC-KAR NC: 2025:KHC:53320 WP No. 7071 of 2025 consented to this compromise and pursuant to the compromise no party can claim any rights against each other. All the parties are present before the court. The joint memo is taken on record. Hence, this court is passing the following: ORDER i. In the light of the joint memo dated 05.12.2025 the order impugned passed in SA.No.16/2025 dated 28.02.2025 by the DRT is set aside and the joint memo shall be annexed to the order. ii. This order is restricted to as far as the petitioner’s company is concerned. In the light of the joint memo, the bank shall refund the 25% of the amount within one month from today. iii. Accordingly, the writ petition is disposed off. iv. All pending I.As., in the writ petition shall stand closed. SD/- (LALITHA KANNEGANTI) JUDGE TS CT:bms,List No.: 1 Sl No.: 78