- 1 - HC-KAR NC: 2026:KHC:20694 WP No. 7143 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16TH DAY OF APRIL, 2026 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI WRIT PETITION NO. 7143 OF 2026 (GM-DRT) BETWEEN: 1. SMT.RAMALAKSHMI, W/O R.VENKATESH GUPTHA, AGED ABOUT 56 YEARS, 2. SHRI R.VENKTESH GUPTHA, S/O RAMASHETTY Y., AGED ABOUT 60 YEARS ALL ARE R/AT JAGAJEEVAN NAGAR, OAVAGADA ROAD, OLD TOWN, 2ND CROSS, CHALLAKERE TALUK - 577 522, CHITRADURGA DISTRICT …PETITIONERS (BY SRI. P.N. NANJA REDDY, ADVOCATE) AND: 1. KARNATAKA GRAMIN BANK, REPRESENTED BY THE AUTHORISED OFFICER, RECOVERY AND LEGAL WING, REGIONAL OFFICE, I.U.D.P. LAYOUT, CHITRADURGA - 577 501. CHITRADURGA DISTRICT Digitally signed by SUVARNA T Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:20694 WP No. 7143 of 2026 2. THE MANAGER, KARNATAKA GRAMIN BANK, CHALLAKERE BRANCH, CHALLAKERE TOWN - 577 522, CHITRADURGA DISTRICT …RESPONDENTS (BY SRI. T.P. MUTHANNA, ADVOCATE FOR C/R1) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO A) ISSUE A WRIT OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT, ORDER QUASHING THE E-AUCTION/SALE NOTICE OF IMMOVABLE PROPEERTIES BY INVITING PUBLIC AUCTION UNDER RULES 8(6) AND 9 (IMMOVABLE) OF THE SECURITY INTEREST (ENFORCEMENT) RULES 2002 DATED 10.02.2026/11.02.2026 (ANNEXURE-P) PASSED BY THE 1ST RESPONDENT AS THE SAME IS ILLEGAL, ARBITRARY AND CONTRARY TO THE PROVISIONS OF SARFAESI ACT 2002 AND THE RULES MADE THEREUNDER ALSO IN VIOLATION OF PRINCIPLES OF NATURAL JUSTICE. 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 writ petition is filed seeking the following prayer: (a) Issue a writ of certiorari or any other appropriate writ, order quashing the e-auction / sale notice of immovable properties by inviting public auction under Rules 8(6) & 9 (Immovable) of the Security Interest (Enforcement) Rules 2002 dated 10.02.2026 / - 3 - HC-KAR NC: 2026:KHC:20694 WP No. 7143 of 2026 11.02.2026 (Annexure-P) passed by the 1st respondent as the same is illegal, arbitrary and contrary to the provisions of SARFAESI Act 2002 and the Rules made thereunder also in violation of principles of natural justice insofar as petitioner concerned only. (b) Issue a writ of mandamus or any other appropriate writ direction or directing to the respondent bank adhering to the OTS scheme offered by it and petitioners will be abide to it and direct the bank to return / restore the properties to be auctioned and grant of all the consequential benefits consequent upon quashing the orders at Annexure-N. 2. Learned counsel appearing for the respondent / bank submits that for the want of bidders, they could not proceed with the auction dated 10.02.2026. Hence, the writ petition has become infructuous. 3. Learned counsel appearing for the petitioners submits that the another prayer sought before this court is seeking a direction to adhere to the OTS scheme offered by it and there may be a direction to respondent / bank to consider - 4 - HC-KAR NC: 2026:KHC:20694 WP No. 7143 of 2026 the case of the petitioner under the One Time Settlement scheme. 4. Having heard the learned counsels on either side and perused the entire material on record. As far as prayer No.(a) is concerned, as the auction could not take place nothing survives for consideration. As far as prayer (b), this court is of the view that there cannot be mandamus to the bank to provide the One Time Settlement scheme. If the One Time Settlement scheme is available, the petitioner is at liberty to make his representation and the respondent / bank shall consider the same in accordance with law. Accordingly, writ petition is disposed of. All I.As. in the writ petition shall stand closed. SD/- (LALITHA KANNEGANTI) JUDGE SS List No.: 1 Sl No.: 26