- 1 - HC-KAR NC: 2025:KHC:28357 WP No. 21354 of 2022 C/W WP No. 14985 of 2022 WP No. 25555 of 2023 AND 1 OTHER IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24TH DAY OF JULY, 2025 BEFORE THE HON'BLE MR. JUSTICE S SUNIL DUTT YADAV WRIT PETITION NO. 21354 OF 2022 (GM-RES) C/W WRIT PETITION NO. 14985 OF 2022 (GM-RES) WRIT PETITION NO. 25555 OF 2023 (GM-RES) WRIT PETITION NO. 22705 OF 2024 (GM-RES) IN WP No. 21354/2022 BETWEEN: 1. MALTOSE AGRI PRODUCTS PRIVATE LIMITED HUSKUR VILLAGE ARALUMALLIGE POST DODDABALLAPUR TALUK BENGALURU RURAL DISTRICT-561203 REP BY ITS DIRECTOR MR T ANAND INCORPORATED UNDER THE COMPANIES ACT, 1956. …PETITIONER (BY SRI. KARUNAKAR P., ADVOCATE) AND: 1. THE CHIEF MANAGER BANK OF INDIA BANGALORE ZONE NO.11, KEMPEGOWDA ROAD BENGALURU-560009. Digitally signed by PRAKASH N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:28357 WP No. 21354 of 2022 C/W WP No. 14985 of 2022 WP No. 25555 of 2023 AND 1 OTHER 2. THE CHIEF MANAGER BANK OF INDIA ASSET RECOVERY BRANCH NO.11, KEMPEGOWDA ROAD BENGALURU-560009. …RESPONDENTS (BY SRI. M MOHAMED IBRAHIM., ADVOCATE FOR R1 & R2) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT THE RESPONDENTS TO ACCEPT THE OTS SCHEME AGREED UPON BY THE RESPONDENT AS PER ANNEXURE-A BEARING REF:BZO/ARB/OTS/2020-21/3 CONSIDERING THE OFFER GIVEN BY THE PETITIONER AT ANNEXURE-B DATED 25.02.2025. IN WP NO. 14985/2022 BETWEEN: 1. SRI ANAND S/O THIMMEGOWDA, AGED ABOUT 54 YEARS, R/AT HUSKUR VILLAGE, ARALUMALLIGE POST, DODDABALLAPUR TALUK, BANGALORE RURAL 561203. ...PETITIONER (BY SRI. KARUNAKAR P., ADVOCATE) AND: 1. THE CHIEF MANAGER BANK OF INDIA, BANGALORE (MAIN) BRANCH, NO.11, K G ROAD, BENGALURU-560009. ...RESPONDENT (BY SRI. M MOHAMED IBRAHIM., ADVOCATE) - 3 - HC-KAR NC: 2025:KHC:28357 WP No. 21354 of 2022 C/W WP No. 14985 of 2022 WP No. 25555 of 2023 AND 1 OTHER THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO CONSIDER THE REQUEST OF PETITIONER AND ACCEPT THE OFFER AND CLOSE THE LOAN ACCOUNT OF T.ANAND BY ISSUING THE WRIT OF MANDAMUS. IN WP NO. 25555/2023 BETWEEN: 1. SMT N KALPANA W/O T ANAND, AGED ABOUT 26 YEARS, HUSKUR VILLAGE, ARALUMALLIGE POST, DODDABALLAPURA TALUK, BENGALURU RURAL DISTRICT. ...PETITIONER (BY SRI. P KARUNAKAR., ADVOCATE) AND: 1. THE BANK OF INDIA ASSET RECOVERY BRANCH, K.G.ROAD, BENGALURU - 560 001. ...RESPONDENT (BY SRI. M MOHAMED IBRAHIM., ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE LETTER OF REVOCATION DTD 04.01.2023 AT ANNEXURE-A BEARING NUMBER REF:BZO/ARB/OTS/2022-23/37 AND ETC., IN WP NO. 22705/2024 BETWEEN: 1. SMT N KALPANA W/O. T. ANAND, - 4 - HC-KAR NC: 2025:KHC:28357 WP No. 21354 of 2022 C/W WP No. 14985 of 2022 WP No. 25555 of 2023 AND 1 OTHER AGED ABOUT 45 YEARS, R/AT HUSKUR VILLAGE, ARALUMALLIGE POST, DODDABALLAPUR TALUK, BANGALORE RURAL - 561 203. ...PETITIONER (BY SRI. P KARUNAKAR., ADVOCATE) AND: 1. THE CHIEF MANAGER BANK OF INDIA, BANGALORE (MAIN) BRANCH, BANK OF INDIA BHAVAN, NO, 11, K.G ROAD BENGALURU- 560 009. 2. BANK OF INDIA, ASSET RECOVERY BRANCH, BANK OF INDIA BHAVAN, NO, 11, K.G ROAD BENGALURU- 560 009. ...RESPONDENTS (BY SRI. M MOHAMED IBRAHIM., ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE E-AUCTION NOTICE DTD. 05.08.2024 ISSUED BY THE R-2 THEREBY BRINGING THE SCHEDULE PROPERTY FOR AUCTION ON 09.09.2024 AT ANNX-A AND ETC., THESE PETITIONS, COMING ON FOR FRESH MATTERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE S SUNIL DUTT YADAV - 5 - HC-KAR NC: 2025:KHC:28357 WP No. 21354 of 2022 C/W WP No. 14985 of 2022 WP No. 25555 of 2023 AND 1 OTHER ORAL ORDER There is no representation on behalf of petitioners in all these petitions when the matter is called out. 2. Learned counsel for the respondent - Bank submits that these are petitions of the year 2022 and 2023 and that the reliefs sought for in all the petitions relate to One Time Settlement Scheme and the matters could be disposed off by a common order. 3. In W.P.No.21354/2022, petitioner - Maltose Agri Products Private Limited, has sought for issuance of writ of mandamus to direct the respondent to accept One Time Settlement Scheme agreed upon by the respondent on 05.11.2020 at Annexure-A1. In W.P.No.14985/2022, petitioner - Anand, who is the Director of Maltose Agri Products Private Limited, has sought for direction to the respondent to consider the request of petitioner and to accept the offer of settlement and to close the loan account. - 6 - HC-KAR NC: 2025:KHC:28357 WP No. 21354 of 2022 C/W WP No. 14985 of 2022 WP No. 25555 of 2023 AND 1 OTHER W.P.No.22705/2024, is filed by Smt. N. Kalpana who is stated to be the wife of Sri. T. Anand, petitioner in W.P.No. 14985/2022 and the petitioner has sought for setting aside of e-auction notice dated 05.08.2024 by the Bank. Petitioner has also sought for issuance of writ of mandamus to direct the respondent - Bank to close the loan in terms of One Time Settlement Scheme on 31.03.2022. W.P.No.2555/2023 has been filed by Smt. N. Kalpana W/o. T. Anand seeking for issuance of writ of certiorari to set aside Annexure-A which is a letter by the respondent - Bank revoking the OTS offer made in light of default committed by the petitioner. 4. Learned counsel for respondent - Bank submits that all writ petitions can be disposed off without adjudication as any action by the petitioners to redress their legal grievance would be only in terms of provisions - 7 - HC-KAR NC: 2025:KHC:28357 WP No. 21354 of 2022 C/W WP No. 14985 of 2022 WP No. 25555 of 2023 AND 1 OTHER of the SARFAESI Act. It is further submitted that no positive direction can be issued against the respondent - Bank regarding OTS. 5. In light of the law laid down by the Apex Court in the case of State Bank of India v. Arvindra Electronics Private Limited - (2023) 1 SCC 540 as well as in the judgment of the Apex Court in the case of Bijnor Urban Cooperative Bank Limited, Bijnoor and others v. Meenal Agarwal and others - (2023) 2 SCC 805, learned counsel for the respondent - Bank submits that the RBI guidelines relied upon by the petitioner being only in the nature of guidelines with respect to recovery, cannot be made use of and be relied upon and seek for issuance of mandamus to the respondent - Bank. Reliance is placed on the judgment of the Apex Court in the case of Oriental Bank of Commerce v. Sunder Lal Jain and another - (2008) 2 SCC 280. 6. Perused the reliefs sought for as noticed above. - 8 - HC-KAR NC: 2025:KHC:28357 WP No. 21354 of 2022 C/W WP No. 14985 of 2022 WP No. 25555 of 2023 AND 1 OTHER W.P.No.25555/23 7. Insofar as the relief as regards setting aside of the communication at Annexure-D in W.P.No.25555/2023, it is noticed that the respondent - Bank has communicated to the petitioner stating that the petitioner was eligible for OTS Scheme as was prevalent on 15.05.2023. 8. Prayer of the petitioner to set aside such communication cannot be considered as the Bank could offer settlement only in terms of the OTS in force at the time when offer is made. If that were to be so, question of setting aside of such offer does not arise. 9. Insofar as the relief sought to set aside the letter of revocation at Annexure-A is concerned, it is noticed that Annexure-A is a letter in the nature of communication to the petitioner - Mrs. Kalpana N observing that in light of default in complying with the terms and conditions stipulated in the OTS offer letter, the offer made stands revoked. Such communication by the - 9 - HC-KAR NC: 2025:KHC:28357 WP No. 21354 of 2022 C/W WP No. 14985 of 2022 WP No. 25555 of 2023 AND 1 OTHER Bank on the basis of default which has not been controverted by the petitioner cannot be interfered with in exercise of writ jurisdiction. W.P.No.21354/2022 10. Petitioner has sought for issuance of writ of mandamus to direct the respondent to accept OTS Scheme agreed upon by the respondent on 05.11.2020 at Annexure-A1 considering the offer given by the petitioner at Annexure-B. Petitioner has also sought for setting aside of the reply by the respondent - Bank dated 28.02.2022. 11. It is the settled position of law in light of the pronouncement by the Apex Court in the case of Arvindra (supra) that no positive direction can be issued to the Bank directing the financial institution to grant benefit of OTS to a borrower. The grant of benefit of OTS, needless to state is subject to eligibility criteria and element of discretion is vested with the Bank to look into the applicable guidelines while accepting such offer. The Court - 10 - HC-KAR NC: 2025:KHC:28357 WP No. 21354 of 2022 C/W WP No. 14985 of 2022 WP No. 25555 of 2023 AND 1 OTHER does not sit as an appellate Authority as against such decision taken and accordingly, the relief sought for in W.P.No.21354/2022 cannot be considered and petition stands rejected. W.P.No.22705/2024 12. Petitioner has sought for setting aside of the e-auction notice dated 05.08.2024 bringing the schedule property for auction on 09.09.2024. Petitioner has also sought for issuance of writ of mandamus directing the respondent to close the loan as per OTS Scheme. 13. Insofar as prayer (b) relating to OTS Scheme, as observed above in the order passed in W.P.No.21354/2022, the Court cannot grant a positive direction to the respondent - Bank to accept the OTS offer of the petitioner and in light of the observations made above, there is no warrant to exercise power of jurisdiction of review as regards such aspect. - 11 - HC-KAR NC: 2025:KHC:28357 WP No. 21354 of 2022 C/W WP No. 14985 of 2022 WP No. 25555 of 2023 AND 1 OTHER 14. As regards prayer (a) seeking for setting aside of e-auction notice, learned counsel for respondent - Bank submits that in light of pendency of the present proceedings, the sale auction notice is not proceeded further and has been given up. A memo is filed to the said effect by the learned counsel for respondent. 15. In light of the memo filed, the petition does not call for adjudication and accordingly, all the writ petitions are disposed off while reserving liberty to the respondent - Bank to take appropriate action afresh. W.P.No.14985/2022 16. W.P.No.14985/2022 has been filed seeking for issuance of an appropriate direction to the respondent - Bank to accept the offer and close the loan account. 17. Needless to state, no such direction can be issued as the Bank is also governed by relevant guidelines while making or accepting the offer of settlement and the - 12 - HC-KAR NC: 2025:KHC:28357 WP No. 21354 of 2022 C/W WP No. 14985 of 2022 WP No. 25555 of 2023 AND 1 OTHER Court cannot direct the Bank to act in contravention of the such guidelines. 18. In light of the above, all writ petitions are disposed off. Needless to state if the petitioners have any grievance that may be taken up in substantive proceedings, it is open for the petitioners to take appropriate action as is permissible in law. Sd/- (S SUNIL DUTT YADAV) JUDGE VP