- 1 - HC-KAR NC: 2025:KHC:29871 WP No. 4588 of 2025 C/W WP No. 26399 of 2023 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 1ST DAY OF AUGUST, 2025 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 4588 OF 2025 (GM-RES) C/W WRIT PETITION NO. 26399 OF 2023 (GM-RES) IN WP No. 4588/2025 BETWEEN: K.B. BOPANNA S/O. BELLIAPPA K.M AGED 46 YEARS R/AT. KALAKOOR VILLAGE BIRUNANI, VIRAJPET TALUK KODAGU DISTRICT-571249 …PETITIONER (BY SRI. VINITHA P C.,ADVOCATE) AND: 1. CANARA BANK BIRUNANI BRANCH PONNAMPET TALUK KODAGU DISTRICT. REPRESENTED BY ITS AUTHORIZED OFFICER / DIVISIONAL MANAGER. 2. THE AUTHORIZED OFFICER CANARA BANK REGIONAL OFFICE Digitally signed by VANAMALA N Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:29871 WP No. 4588 of 2025 C/W WP No. 26399 of 2023 MADIKERI-571201 KODAGU DISTRICT REP BY ASST MANAGER. …RESPONDENTS (BY SRI. VIGNESH S. SHETTY., ADVOCATE) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH ANNX-D THE IMPUGNED SALE NOTICE DATED 17.01.2025 BEARING NO. ROMDK/1472/AUC/SALE NOTICE/FEB/8/2024-2025 ISSUED BY RESPONDENT- 2; DIRECT THE RESPONDENT TO CONSIDER ANNX-A THE REQUEST LETTER DATED 27.05.2024 GIVEN BY THE PETITIONER TO SETTLE THE LOAN ACCOUNT BY CONSIDERING THE DEPOSIT OF RS. 24,00,000/-; DIRECTION THE RESPONDENT TO GIVE EFFECT TO ANNX-C THE LETTER DATED 30.12.2024 FOR ONE TIME SETTLEMENT OF RS. 40,00,000/-. IN WP NO. 26399/2023 BETWEEN: SRI BOPANNA KB (KUPPANANADA) S/O BELLIAPPA K M AGED ABOUT 45 YEARS RESIDING AT KALAKOOR VILLAGE BIRUNANI, VIRAJPET TALUK KODAGU DISTRICT - 571249 ...PETITIONER (BY SMT. VINUTHA P.C., ADVOCATE) - 3 - HC-KAR NC: 2025:KHC:29871 WP No. 4588 of 2025 C/W WP No. 26399 of 2023 AND: M/S CANARA BANK BIRUNANI BRANCH VIRAJPET TALUK KODAGU DISTRICT REPRESENTED BY ITS AUTHORIZED OFFICER SMT YASHODA G W/O CHIKKAHANUMANTHAIAH AGED 58 YEARS ...RESPONDENT (BY SRI.VIGNESH S SHETTY., ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUITON OF INDIA PRAYING TO ALLOW THE PETITION AND QUASH THE ORDER DATED 29/09/2023 IN CRL. MISC. NO. 43/2023 PASSED BY THE SENIOR CIVIL JUDGE AND CJM, KODAGU AT MADIKERI VIDE ANNEXURE-A. THESE PETITIONS, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD ORAL ORDER The petitioner admits to borrowing a loan from the respondent, but he is aggrieved with the proceedings initiated under the Securitization and Reconstruction of Financial Assets and Enforcement - 4 - HC-KAR NC: 2025:KHC:29871 WP No. 4588 of 2025 C/W WP No. 26399 of 2023 of Security Interest Act, 2002 [for short, 'the SARFAESI Act']. In the petition in W.P.No.26399/2025, the petitioner has called in question the order dated 29.09.2023 in Crl.Misc.No.43/2023 on the file of the Senior Civil Judge and C.J.M., Kodagu - Madikeri [for short, 'the Civil Court'] under Section 14 of the Act. 2. The Civil Court, by the impugned order dated 29.09.2023, has allowed the respondent's application holding that the respondent - Bank is entitled to take physical possession of the secured asset and appointing a learned member of the Bar as the Court Commissioner to deliver the possession. This Court on 28.11.2023, while entertaining this petition, has granted an interim order requiring the petitioner to deposit 30% of the loan amount outstanding with the Bank within seven weeks. It is not in dispute that the petitioner has deposited a sum of Rs.24,00,000/- in terms of this order. - 5 - HC-KAR NC: 2025:KHC:29871 WP No. 4588 of 2025 C/W WP No. 26399 of 2023 3. In the next petition in W.P.No.4588/2025, the petitioner has called in question the sale notice dated 17.01.2025 under Section 13 (4) of the SARFAESI Act while also seeking directions to the bank to consider its representation for a One Time Settlement offering a sum of Rs.40,00,000/-. Ms.Vinitha P.C., the learned counsel for the petitioner, submits that this Court must intervene with the impugned sale notice dated 17.01.2025 under Section 13(4) of the SARFAESI Act because it is issued in contravention of the interim order dated 28.11.2023 granted in W.P.No.26399/2023 and because the respondent has not considered the petitioner's representation in terms of the aforesaid order. 4. Mr. Vignesh S. Shetty, the learned counsel for the respondent, submits that this Court's interim order was to deposit 30% of the outstanding as of - 6 - HC-KAR NC: 2025:KHC:29871 WP No. 4588 of 2025 C/W WP No. 26399 of 2023 that date, and that deposit of Rs.24,00,000/- will not be 30% and therefore the impugned sale notice under Section 13(4) of the SARFAESI Act is issued. The learned counsel also submits that the petitioner has submitted no representation in terms of this Court’s interim order dated 28.11.2023 in W.P.No.26399/2023. Crucially, the learned counsel states that the sale is not held in terms of the impugned sale notice dated 17.01.2025. 5. Insofar as the petition in W.P.No.26399/2025 [challenge to the order dated 29.09.2023 in Crl.Misc.No.43/2023 under Section 14 of the SARFEASU Act], Ms. P.C. Vinitha, in response to the Court's query as to why the petitioner must not avail remedy under Section 17 of the SARFAESI Act, submits that this Court must ensure that the petitioner's interest is not prejudiced because the petitioner is willing to settle the outstanding dues and that the petitioner has had the benefit of the - 7 - HC-KAR NC: 2025:KHC:29871 WP No. 4588 of 2025 C/W WP No. 26399 of 2023 interim order against precipitative action in all these years. On the merits of the Bank having recourse to the provisions of the SARFEASI Act, Ms. P.C. Vinitha seeks to emphasize that the petitioner is aggrieved by the computation of the amount claimed as due. 6. The petitioner's grievance with the impugned sale notice dated 17.01.2025 is examined in the light of these rival submissions, and the undisputed fact that the impugned sale notice is rendered infructuous because no sale is held on the scheduled date. This Court opines that the petition in W.P.No.4588/2025 must be favoured, but without prejudice to the respondent to have recourse in law. As regards the petition in W.P.No.26399/2025, all the circumstances are considered, and this Court is of the view that the petitioner, if aggrieved by the impugned order dated 29.09.2023 under Section 14 of the SARFAESI Act, must avail remedy under Section 17 thereof but is entitled to some interim - 8 - HC-KAR NC: 2025:KHC:29871 WP No. 4588 of 2025 C/W WP No. 26399 of 2023 protection because of the interim protection extended by this Court. In the light of the afore, the following: ORDER [A] The petition in W.P.No.4588/2025 is disposed of observing that the impugned sale notice dated 17.01.2025 [Annexure-D] is rendered infructuous but without prejudice to the respondent - Bank to initiate fresh proceedings under the SARFAESI Act. [B] The petition in W.P.No.26399/2023 is disposed of with liberty to the petitioner to avail alternative remedy under Section 17 of the SARFAESI Act observing that the petitioner shall be entitled to the exclusion of time spent in prosecuting this petition and that all questions are left open to be decided in such proceedings. - 9 - HC-KAR NC: 2025:KHC:29871 WP No. 4588 of 2025 C/W WP No. 26399 of 2023 [C] The respondent - Bank, to ensure that the equities are made balanced, is directed not to take any precipitous action on possession for ten [10] weeks observing that if in case the petitioner avails the remedy under Section 17 of the SARFAESI Act, the Debt Recovery Tribunal shall consider the request for continuation of the interim order uninfluenced by the interim arrangement that is provided by this Court. SD/- (B M SHYAM PRASAD) JUDGE SA ct:sr