- 1 - HC-KAR NC: 2025:KHC:40990 WP No. 30991 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 15TH DAY OF OCTOBER, 2025 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI WRIT PETITION NO. 30991 OF 2025 (GM-DRT) BETWEEN: 1. RAMAPPA C S/O CHINNAPPA, AGED ABOUT 60 YEARS, R/AT BHATARAHALLI VILLAGE, SHILLENGERE POST, HUTTUR HOBLI, KOLAR TALUK, KOLAR DISTRICT 563101. 2. SMT RENUKA DEVI H W/O RAMAPPA C, AGED ABOUT 47 YEARS, R/AT BHATARAHALLI VILLAGE, SHILLENGERE POST, HUTTUR HOBLI, KOLAR TALUK, KOLAR DISTRICT 563101. …PETITIONERS (BY SRI. RAJESWARA.P.N.,ADVOCATE) AND: 1. THE UNION BANK OF INDIA DOOMLIGHT CIRCLE KOLAR BRANCH, SRI RANGA NEXUS, BEHIND BESCOM OFFICE, NEAR DOOMLIGHT CIRCLE, Digitally signed by MEGHA MOHAN Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:40990 WP No. 30991 of 2025 KOLAR 563101 REP BY ITS AUTHORISED OFFICER. …RESPONDENT (BY SMT DIVYA PURANDAR., ADVOCATE) THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE NOTICE DATED 23.09.2025 BRINGING THE PETITIONERS PROPERTY TO E-PUBLIC AUCTION ON 15/10/2025 TIMING 12.00 PM TO 5.00 PM ISSUED BY THE RESPONDENT (ANNX-A). BEARING DCB/ /SN/2025-26 AND GRANT AN INTERIM ORDER TO STAY THE E-AUCTION OF SCHEDULE PROPERTY SCHEDULED TO BE HELD ON 15.10.2025 TIMING 12.00 PM 05.00 PM VIDE NOTICE DATED 23.09.2025 AT ANNX-A, BEARING NO.DCB/ /SN/2025-26 DURING THE PENDENCY OF THE ABOVE WP.C THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN 'B' - GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE SMT. JUSTICE LALITHA KANNEGANTI - 3 - HC-KAR NC: 2025:KHC:40990 WP No. 30991 of 2025 ORAL ORDER The present writ petition is filed seeking the following prayer: (i) Issue a writ of Certiorari: quashing the notice dated 23.09.2025 bringing the petitioners property e-public auction on 15.10.2025 timing 12.00 p.m to 5.00 p.m issued by the respondent (Annexure-A), bearing No.DCB/ /SN/2025-26 (ii) Pass such other orders as this Hon'ble Court deems fit to pass under the facts and circumstances of the case, in the interest of justice and equity. 2. The petitioners are the borrowers from the respondent/ bank. They have approached the bank for agricultural cash credit loan of an amount of Rs.25,00,000/-. After considering the proposal, the bank sanctioned the agricultural cash credit loan of an amount of Rs.20,00,000/- and borrowers agreed to repay the loan amount in 3 years subject to annual review on or before December 2018 and agreed to repay the same with interest at 10.85% per annum. The borrowers have mortgaged the house property, as they have failed to repay the loan and the account has been classified as a Non Performing Asset (NPA). A demand notice was issued on 20.11.2021 and legal notice dated 01.12.2021 calling upon the borrowers to repay the entire outstanding loan amount. As there was no response - 4 - HC-KAR NC: 2025:KHC:40990 WP No. 30991 of 2025 from the borrowers, the bank had filed O.A.No.59/2023. The Tribunal allowed the OA.No.59/2023 and permitted the bank to recover from the borrowers an amount of Rs.21,97,024/- by order dated 02.04.2024. Pursuant to the same, the bank has obtained an order under Section 14 on 09.07.2025. The Court Commissioner by notice dated 09.07.2025 called upon the petitioners to vacate the schedule property. On 22.07.2025 the petitioners paid an amount of Rs.8,00,000/- as an upfront amount for one time settlement. Thereafter, the bank has issued the notice under Rule 9 of the Security Interest (Enforcement) Rules and the E-Auction is scheduled on 15.10.2025. 3. Learned counsel appearing for the petitioners submits that the bank has to issue a clear notice of 30 days before putting the properties to sale. According to him, in this case the bank in less than 30 days has issued the sale notification which is bad in law. It is in clear violation of the procedure contemplated under the SARFAESI Act and the petitioners are constrained to approach this Court. It is submitted that he is a retired employee. In fact, he wanted to clear the dues and he - 5 - HC-KAR NC: 2025:KHC:40990 WP No. 30991 of 2025 is waiting for the terminal benefits. Once he receives the same, he will be paying the amounts. Further, on instructions, the learned counsel appearing for the petitioners submits that petitioners will pay an amount of Rs.7,00,000/- by 25.10.2025 and every month they will be paying an amount of Rs.5,00,000/- and within 3 months they will pay the entire amount. 4. Learned counsel appearing for the respondent/bank submits that in fact an amount of Rs.8,00,000/- is paid as upfront amount for one time settlement. As per the RBI guidelines for one time settlement they have to keep the property for auction at least 3 to 4 times. In this case, it is only second sale notification. As such an amount of Rs.8,00,000/- that is paid is not appropriated by the bank. Further, it is submitted that it is not the first sale. But in fact, it is the second sale notification. As such 15 days notice is contemplated under Rule 9 of the Security Interest (Enforcement) Rules. In case of first sale, it is 30 days and in case of second sale, it is 15 days. Learned counsel submits - 6 - HC-KAR NC: 2025:KHC:40990 WP No. 30991 of 2025 that there is no procedural irregularity and the writ petition is not maintainable before this Court. 5. Having heard the learned counsels on either side, perused the material on record. In a matter of this nature generally this Court do not interfere as there is a effective alternate remedy available to the petitioner. However, considering the facts and circumstances of the case, where the borrower is a retired employee, the outstanding amount is Rs.30,00,000/- and he has come forward to pay the amount within 3 instalments and it is a residential building, this Court deems it appropriate to pass the following: ORDER i. Accordingly, the notice dated 23.09.2025 is set aside on the condition that: a. Petitioners shall pay an amount of Rs.7,00,000/- by 25.10.2025. b. Further by 25.11.2025, the petitioners shall pay an amount of Rs.5,00,000/-. By 25.12.2025, an - 7 - HC-KAR NC: 2025:KHC:40990 WP No. 30991 of 2025 amount of Rs.5,00,000/- and by 25.01.2026 an amount of Rs.5,00,000/- along with the miscellaneous/incidental expenses incurred by the Bank. c. The amount of Rs.8,00,000/- which is lying with the bank as an upfront amount for a one-time settlement, the bank is at liberty to appropriate the amount. d. If the petitioners fail to pay any of the instalments as stipulated above, the bank is at liberty to proceed with the auction. ii. Accordingly, the writ petition is disposed of. iii. All I.As. in this petition shall stand closed. SD/- (LALITHA KANNEGANTI) JUDGE RJ List No.: 2 Sl No.: 16