- 1 - HC-KAR NC: 2026:KHC:16116 WP No. 19033 of 2022 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF MARCH, 2026 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI WRIT PETITION NO. 19033 OF 2022 (GM-DRT) BETWEEN: 1. M/S. ESS MULTIFOODS PVT. LTD., REPRESENTED BY ITS DIRECTOR SHRI NAGARAJ SHETTY/PETITIONER NO.2 SY NO.24/3, SITE NO.11, 12 HOSAHALLI NEAR SHOBHA FOREST VIEW APRMT., THALAGATTAPURA POST BENGALURU - 560 062. (COMPANY REGISTERED UNDER COMPANIES ACT, 2013) 2. MR. NAGARAJ SHETTY NO.39, AASHRAYA, 8TH CROSS NEW BANK COLONY, KONANAKUNTE BENGALURU - 560 062. 3. MS. RAHAMATH UNNISA NO.30/0, AASHIYANA, 1ST MAIN, MKS LAYOUT, 1ST STAGE, Digitally signed by SUVARNA T Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:16116 WP No. 19033 of 2022 DODDAKALLASANDRA BENGALURU - 560 062. …PETITIONERS (BY SMT. ANUPAMA HEGDE, ADVOCATE) AND: 1. CANARA BANK REPRESENTED BY ITS AUTHORISED OFFICER/MANAGER DODDAKALLASANDRA BRANCH NO.42, VENKATA REDDY LAYOUT, KANAKAPURA ROAD, BENGALURU - 560 062. …RESPONDENT (BY SRI. YUGANDHAR T, ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO-DIRECT THE RESPONDENT BANK NOT TO TAKE ANY COERCIVE ACTION AGAINST THE PETITIONERS PURSUANT TO THE POSSESSION NOTICE DTD 05.02.2022, AT ANNEXURE-G BY MODIFYING THE INTERIM ORDER DTD 24.08.2022 PASSED BY THE HONBLE DEBT RECOVERY TRIBUNAL IN I.A.NO.2322/2022 IN S.A.NO.546/2022 AT ANNEXURE-N AND ETC., - 3 - HC-KAR NC: 2026:KHC:16116 WP No. 19033 of 2022 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 ORAL ORDER The present writ petition is filed seeking the following prayers: “WHEREFORE, the petitioner most respectfully prays that this Hon’ble Court may be pleased to issue:- (i) A Writ in the Mandamus directing the Respondent Bank not to take any coercive action against the Petitioners pursuant to the possession notice dated 05/02/2022 (at ANNXURE-G), by modifying the Interim Order dated 24/08/2022 passed by the Hon'ble Debt Recovery Tribunal in Ι.Α.Νο.2322/2022 in S.A.No.546/2022(at ANNEXURE-N); (ii) A Writ in the Mandamus directing the Respondent Bank to consider the representation dated 17/09/2022 (at Annexure-P) given by the Petitioners to - 4 - HC-KAR NC: 2026:KHC:16116 WP No. 19033 of 2022 the Respondent Bank and to restructure the Loan of the Petitioners ; (iii) Any other order or direction as this Hon'ble Court deems fit under the facts and circumstances of the case; In the ends of justice and equity." 2. The petitioners have approached the Debts Recovery Tribunal by filing S.A. No. 546/2022. In the said proceedings, they filed I.A. No. 2322/2022 seeking stay. By order dated 24.08.2022, the Tribunal stayed the possession notice dated 05.02.2022 issued by the respondent/Bank, subject to the condition that the applicants shall pay a sum of Rs.1,11,50,000/- within two months, in two equal instalments of Rs.55,75,000/- on or before 23.09.2022 and another sum of Rs,55,75,000/- on or before 25.10.2022, respectively. Aggrieved by the said conditional order, the petitioners have come before this Court. 3. It is submitted by the learned counsel for the petitioners that, in an earlier round of litigation, when the petitioners had filed a writ petition, there is a direction to deposit a sum of Rs.70,00,000/- and the same has been paid. It is further contended that the petitioners’ account is classified as an MSME account and therefore, cannot be declared as a Non-Performing Asset and declaring it as an - 5 - HC-KAR NC: 2026:KHC:16116 WP No. 19033 of 2022 NPA, there is a procedure contemplated and guidelines in this regard are issued from time to time. As such, there shall be a direction to the respondent/Bank not to take any coercive steps against the petitioners and the order passed by DRT needs to be set aside. 4. Learned counsel appearing for the respondent/Bank submits that, in the earlier round of litigation, there is a direction to the petitioners to pay a sum of Rs.70,00,000/-. Though the said amount was paid, it was not paid within the timeline fixed by the Court. It is further submitted that, after disposal of the said writ petition, the petitioners have filed the S.A. questioning the action of the Bank. In the said S.A., an interim order has been passed and assailing the same, the petitioners have come before this Court. It is contended that the petitioners are approaching this Court with an intention to delay the proceedings by filing one petition after another. 5. Having heard the learned counsels on either side, perused the materials on record. 6. The petitioners have raised several grounds before this Court, which have already been raised before the DRT. The Tribunal would consider all these aspects in the pending S.A. proceedings. As per the respondent/Bank, the outstanding amount is Rs.5,62,00,000/-. The DRT, while granting interim relief, has directed the petitioners to deposit a sum of Rs.1,11,50,000/-. This Court do - 6 - HC-KAR NC: 2026:KHC:16116 WP No. 19033 of 2022 not find any reasons to interfere with the said order and it is also to be noted that, since the year 2022, the petitioners have been enjoying the benefit of the interim order. Therefore, there are no reasons to interfere with the order passed by the DRT. 7. In that view of the matter, this Court is passing the following: ORDER i. Accordingly, the writ petition is dismissed. ii. Pending IAs., if any, shall stand closed. SD/- (LALITHA KANNEGANTI) JUDGE SMC List No.: 1 Sl No.: 4