- 1 - HC-KAR NC: 2025:KHC:53538 WP No. 37484 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 12TH DAY OF DECEMBER, 2025 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI WRIT PETITION NO. 37484 OF 2025 (GM-DRT) BETWEEN: 1. M/S. HYDERABAD HANDLOOM CENTRE A REGD. PARTNERSHIP FIRM BY ITS MANAGING PARTNERS, MARADI, J.N.MARKET, CHOWDESHWARI TEMPLE STREET, BENGALURU-560 068 2. SRI.G.N.ASHIRVAD, S/O LATE SRI GIRIAPPA NAGAPPA AGED ABOUT 63 YEARS NO.3, LAKSHMI ROAD 2ND CROSS, SHANTHINAGAR BANGALORE- 560 027 3. SRI.G.N.CHIRANJEEVI S/O LATE G.N.GIRIYAPPA AGED 67 YEARS NO.3, LAKSHMI ROAD 2ND CROSS, SHANTHINAGAR BANGALORE- 560 027 4. SMT. PADMABAI W/O G.N.ASHIRVAD AGED 60 YEARS R/@ NO 3,3RD FLOOR LAKSHMI ROAD, 2ND CROSS Digitally signed by MEGHA MOHAN Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2025:KHC:53538 WP No. 37484 of 2025 SHANTHINAGAR, BANGALORE- 560 027 5. SRI.G.N.VENKATESH S/O G.N.GIRIYAPPA AGED 53 YEARS NO.3, LAKSHMI ROAD, 2ND CROSS, SHANTHINAGAR, BANGALORE- 560 027 6. SRI.G.N JAGADIASH S/O G.N.GIRIYAPPA AGED 60 YEARS R/@ NO 3, 3RD FLOOR LAKSHMI ROAD, 2ND CROSS SHANTHINAGAR, BANGALORE- 560 027 7. SRI.G.N RAMESH S/O G.N.SATHYANARAYANA AGED 53 YEARS R/AT NO.3, LAKSHMI ROAD, 2ND CROSS, SHANTHINAGAR, BANGALORE-560 027 8. SRI.G.N SATHYANARAYANA S/O LATE G.N.NAGAPPA AGED 85 YEARS NO.3, LAKSHMI ROAD 2ND CROSS, SHANTHINAGAR BANGALORE-560 027 9. SRI. G.N GANESH S/O G.N.GIRIYAPPA AGED 47 YEARS R/@ NO 3, 3RD FLOOR - 3 - HC-KAR NC: 2025:KHC:53538 WP No. 37484 of 2025 LAKSHMI ROAD, 2ND CROSS SHANTHINAGAR, BANGALORE- 560 027 …PETITIONERS (BY SRI.M.R.RAJAGOPAL, SENIOR COUNSEL FOR SRI.THILAKRAJ S.V., ADVOCATE) AND: 1. ICICI BANK LIMITED REP. BY ITS AUTHORISED OFFICER, NO.4/10, MYTHRI CENTRE, HOSUR ROAD, BOMMANAHALLI, BENGALURU-560 068 2. SRI.G.N.PRAKASH S/O LATE G.N.GIRIYAPPA AGED 62 YEARS, R/O 442, 4TH BLOCK, 4TH FLOOR, RANKA PARK APARTMENTS LALBAGH ROAD, BANGALORE- 560 027 3. SRI.G.N.PANDURANGA S/O LATE GIRIYAPPA AGED 60 YEARS R/@ NO 3, 3RD FLOOR LAKSHMI ROAD, 2ND CROSS SHANTHINAGAR, BANGALORE- 560 027 4. SMT.G.N.JAMUNA BAI W/O LATE G.N. GRIYAPPA, AGED 86 YEARS, PRESENTLY AT NO.442, - 4 - HC-KAR NC: 2025:KHC:53538 WP No. 37484 of 2025 4TH FLOOR, 4TH BLOCK, RANKA PARK APARTMENT, LALBAGH ROAD, BANGALORE- 560 027 5. SRI. G.N.PADMABAI W/O SRI. ASHIRVAD, AGED ABOUT 64 YEARS, R/AT NO.3, LAKSHMI ROAD, 2ND CROSS, SHANTHINAGAR, BENGALURU-560 027 …RESPONDENTS (BY SRI.MANOJ K., ADVOCATE FOR SRI.MAHABALESHWARA G.C., ADVOCATE FOR C/R1) THIS PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE TENDER CUM E-AUCTION NOTICE PASSED BY THE R1 DATED 21.11.2025 AS PER ANNEXURE-J. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE SMT. JUSTICE LALITHA KANNEGANTI ORAL ORDER The present writ petition is filed seeking the following prayer: “Wherefore, the petitioner most respectfully pray that this Hon’ble Court be pleased to: - 5 - HC-KAR NC: 2025:KHC:53538 WP No. 37484 of 2025 i. Issue writ in the nature of certiorari to quash tender cum e-auction notice passed by the respondent No.1 dated 21.11.2025 as per Annexure-J; ii. Pass any appropriate writ, order or direction as this Hon’ble Court deem it fit and proper in the facts and circumstances of the case and allow this writ petition with costs, in the ends of justice and equity.” 2. Learned senior counsel appearing for the petitioners submits that respondent No.1/bank had issued the e-auction notice dated 21.11.2025. The outstanding amount is Rs.2 Crores and odd and the reserve price that is fixed is Rs.5 Crores and odd. It is submitted that the bank has failed the follow the procedure as contemplated under the SARFAESI Act and the auction is conducted within one month from the date of publication of notice. It is further submitted that in view of the differences between the family members of the petitioners/firm, they have initiated the auction proceedings. It is further submitted that earlier when an auction notification was issued, the petitioners have filed SA.No.170/2025 and by order dated 17.06.2025, an interim order was granted directing the petitioners to pay the first installment of Rs.10,00,000/- on or before scheduled sale on 18.06.2025, the second installment of Rs.34,82,000/- on or before 01.07.2025 and the third - 6 - HC-KAR NC: 2025:KHC:53538 WP No. 37484 of 2025 installment of Rs.34,82,000/- on or before 16.07.2025. It is submitted that the petitioners have complied with the same. Thereafter, as the auction could not be held, the SA was dismissed as infructuous. It is further submitted that there are disputes between the family members with regard to the operation of the bank account. In that regard, they have approached the Commercial Court and the matter is pending adjudication. It is submitted that only at the behest of the other minority members of the partnership firm the proceedings are initiated. Learned Senior Counsel submits that the e-auction that is scheduled to be held on 12.12.2025 shall be stayed and in fact, they want to regularize the account. 3. Learned counsel appearing for respondent No.1/ submits that similar submissions are made before the commercial Court. It is submitted that as far as SARFAESI proceedings are concerned, the pendency of the petition before the Commercial Court and being the party to that will not come in the way of the bank. The submission of the learned Senior Counsel with regard to the one month period from the date of auction notification, it will not apply to a second sale as second - 7 - HC-KAR NC: 2025:KHC:53538 WP No. 37484 of 2025 time the sale notification is issued. It is further submitted that earlier when the e-auction notice was issued when the petitioner had approached the Debt Recovery Tribunal, now they cannot come before this Court. It is further submitted that there is no illegality in issuing e-auction notice and the writ petition has to be dismissed on this ground and also on the ground of availability of an alternative remedy. 4. Having heard the learned Senior Counsel for the petitioner, the learned counsel for the respondent, perused the material on record. The legal submissions of the learned Senior Counsel that the auction is conducted within one month from the date of publication of the notice which is contrary to the SARFAESI Act. As rightly submitted by the learned counsel for the respondent/bank as it is a second sale, it is not required and such ground is not available to the petitioners. The petitioners having approached the Debt Recovery Tribunal in the first instance, but for the best reasons known to the petitioners, they have come before this Court questioning the e-auction notice issued by respondent No.1/bank. The parameters have laid down by the Hon’ble Apex Court in - 8 - HC-KAR NC: 2025:KHC:53538 WP No. 37484 of 2025 several judgments, it is made clear that the interference of the High Court in the matters pertaining to the proceedings under the SARFAESI Act are very limited and none of the grounds that are raised before this Court are the grounds on which this Court can interfere with the SARFAESI proceedings initiated by the bank. A submission is made by the learned Senior Counsel for the petitioners that he will advise the petitioner to approach the Debt Recovery Tribunal. In those circumstances, this Court is passing the following: ORDER i. Respondent No.1/bank can go ahead with the auction as scheduled on 12.12.2025. However, it shall not finalize the auction for a period of two weeks from today. ii. The petitioners are at liberty to approach the Debt Recovery Tribunal subject to the law of limitation. The time that is spent before this Court, will be exempted. It is open to the Tribunal to consider the aspect of limitation. - 9 - HC-KAR NC: 2025:KHC:53538 WP No. 37484 of 2025 iii. The Tribunal shall consider the application in accordance with law, uninfluenced by any of the observations that are made by this Court, which are for the purpose of deciding this writ petition. iv. Accordingly, the writ petition is disposed of. v. All I.As in this petition shall stand closed. SD/- (LALITHA KANNEGANTI) JUDGE BN List No.: 1 Sl No.: 1