- 1 - HC-KAR NC: 2026:KHC:17809 WP No. 8706 of 2026 C/W WP No. 2667 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 1ST DAY OF APRIL, 2026 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI WRIT PETITION NO. 8706 OF 2026 (GM-DRT) C/W WRIT PETITION NO. 2667 OF 2026 (GM-DRT) IN WP No. 8706/2026 BETWEEN: SRI. MURALIDHAR N, AGED ABOUT 54 YEARS, S/O M. NARAYANA, R/AT. NO. 21, 4TH CROSS, 7TH BLOCK, JAYANAGAR, BENGALURU - 560 082. …PETITIONER (BY SRI. MAHESHKIRAN SHETTY S, ADVOCATE) AND: 1. RESERVE BANK OF INDIA CENTRAL OFFICE, 10TH FLOOR, CENTRAL OFFICE BUILDING, SHAHID BHAGAT SINGH MARG, POST BOX NO. 10014, MUMBAI - 400 001, REPRESENTED BY ITS AUTHORISED OFFICER. 2. CANARA BANK SOUTH END CIRCLE BRANCH, NO. 96, SOUTH END ROAD, Digitally signed by SUVARNA T Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:17809 WP No. 8706 of 2026 C/W WP No. 2667 of 2026 SOUTH END CIRCLE, BENGALURU - 560 004, REPRESENTED BY ITS AUTHORIZED OFFICER/CHIEF MANAGER …RESPONDENTS (BY SRI. C. VINAYSWAMY, ADVOCATE FOR C/R2) THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO A) ISSUE A WRIT IN THE NATURE OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT OR DIRECTION TO QUASH THE NOTICE UNDER SECTION 13 (4) OF THE SARFAESI ACT, 2002 BY THE RESPONDENT NO. 2 BANK BEARING REFERENCE NO. ARMII/SN/01/2025-26 DATED 23.02.2026 VIDE ANNEXURE-Z AND ETC., IN WP NO. 2667/2026 BETWEEN: SRI. MURALIDHAR N AGED ABOUT 54 YEARS, S/O M. NARAYANA R/AT NO. 21, 4TH CROSS, 7TH BLOCK JAYANAGAR, BENGALURU - 560 082 ...PETITIONER (BY SRI. MAHESHKIRAN SHETTY S, ADVOCATE) AND: 1. RESERVE BANK OF INDIA CENTRAL OFFICE, 10TH FLOOR, - 3 - HC-KAR NC: 2026:KHC:17809 WP No. 8706 of 2026 C/W WP No. 2667 of 2026 CENTRAL OFFICE BUILDING, SHAHID BHAGAT SINGH MARG, POST BOX NO. 10014, MUMBAI - 400 001, REPRESENTED BY ITS AUTHORISED OFFICER. 2. CANARA BANK SOUTH END CIRCLE BRANCH, NO. 96, SOUTH END ROAD, SOUTH END CIRCLE, BENGALURU - 560 004, REPRESENTED BY ITS AUTHORIZED OFFICER/CHIEF MANAGER. ...RESPONDENTS (BY SRI. VINAYSWAMY C, ADVOCATE) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTIUTION OF INDIA PRAYING TO QUASH THE ORDER ISSUED BY THE RESPONDENT NO. 2 REJECTING THE REPRESENTATION OF THE PETITIONER BEARING REFERENCE NO. ARM II/MN/01/2025-26 DATED 12.06.2025 VIDE ANNEXURE-R AND ETC., THESE PETITIONS, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE SMT. JUSTICE LALITHA KANNEGANTI - 4 - HC-KAR NC: 2026:KHC:17809 WP No. 8706 of 2026 C/W WP No. 2667 of 2026 ORAL ORDER W.P.No.8706/2026 is filed by the petitioner seeking the following prayer: "Wherefore, it is prayed that this Hon'ble Court may kindly be pleased to: a) Issue a writ in the nature of certiorari or any other appropriate writ or direction to quash the notice under section 13(4) of the SARFAESI Act, 2002 by the respondent NO.2 Bank bearing reference No.ARMII/SN/01/2025-26 dated 23.02.2026 vide Annexure-Z; b) Issue a writ in the nature of certiorari or any other appropriate writ or direction to quash the sale notice issued by the respondent No.2 bank dated 23.02.2026 fixing the date of auction as 08.04.2026 vide Annexure-AA; c) Issue a writ in the nature of certiorari or any other appropriate writ or direction to quash the notice under section 13(4) of the SARFAESI Act, 2002 issued by the respondent No.2 bank bearing reference No.ARMII/SN/01/2025-26 DATED 03.03.2026 vide Annexure-BB; d) Issue a writ in the nature of certiorari or any other appropriate writ or direction to quash the sale notice issued by the respondent No.2 bank dated 03.03.2026 fixing the date of auction as 09.04.2026 vide Annexure-CC; e) Issue a writ in the nature of mandamus or any other appropriate writ or order of direction directing the respondent No.2 bank to restore the physical possession of the immovable property bearing Site No.72, situated at 6th phase, 4th H Block, Banashankari, Bengaluru; measuring East to West 12 Meters and North to South 18 Meters to the petitioner, detailed in under mentioned schedule below. f) issue a writ in the nature of mandamus or any other appropriate writ or order of direction directing the respondent No.2 to regularize the over draft facilities under various accounts of the petitioner with immediate effect and allow the - 5 - HC-KAR NC: 2026:KHC:17809 WP No. 8706 of 2026 C/W WP No. 2667 of 2026 petitioner to operate the O.D. accounts and provide the facilities that are provided to the MSMEs as per the guidelines of the respondent No.2 as per the circular in this regard issued by the 1st respondent - Reserve Bank of India dated 17.03.2016 bearing No.RBI/2015-16/338 vide Annexure-B; g) Issue such other relief's as it deems fit to grant in favour of the petitioner by this Hon'ble Court in view of the facts and circumstances of the cases, in the interest of justice in so far as the petitioner is concerned in the above writ petition." 2. W.P.No.2667/2026 is filed by the petitioner seeking the following prayer: "WHEREFORE, it is prayed that this Hon'ble Court may kindly be pleased to: a) Issue a Writ in the nature of Certiorari or any other appropriate Writ or direction to quash the order issued by the Respondent No.2 rejecting the representation of the petitioner bearing reference No.ARM II/MN/01/2025-26 dated 12.06.2025 vide Annexure-R; b) Issue a Writ in the nature of Certiorari or any other appropriate Writ or direction to quash the order dated 07.12.2024 passed by the Chief Judicial Magistrate, Rural Court, Bengaluru, Bengaluru Rural in Criminal Misc.No.1767/2024 vide Annexure-M; c) Issue a Writ in the nature of Certiorari or any other appropriate Writ or direction to quash the possession notice issued by the Respondent No.2 Bank under Section 13(4) of the SARFAESI Act, 2002 bearing reference No.01/1173/Muralidhar/PN/24-25 dated 19.07.2024 vide Annexure-H; d) Issue a Writ in the nature of Certiorari or any other appropriate Writ or direction to quash the vacation notice issued by the Respondent No.2 Bank dated 23.01.2026 vide Annexure-T; - 6 - HC-KAR NC: 2026:KHC:17809 WP No. 8706 of 2026 C/W WP No. 2667 of 2026 e) Issue a Writ in the nature of Mandamus or any other appropriate Writ or order or direction directing the Respondent No.2 to regularize the Over Draft facilities under various accounts of the petitioner with immediate effect and allow the petitioner to operate the O.D. Accounts and provide the facilities that are provided to the MSMEs as per the guidelines of the Respondent No.2 as per the Circular in this regard issued by the 1st Respondent-Reserve Bank of India dated 17.03.2016 bearing No.RBI/2015-16/338 vide Annexure-B; f) Issue such other relief's as it deems fit to grant in favour of the petitioner by this Hon'ble Court in view of the facts and circumstances of the cases, in the interest of justice. 3. When these matters came up on 17.03.2026, learned counsel for the petitioner had submitted that the petitioner is ready and willing to pay the entire outstanding amount and on the last occasion, he had handed over the demand drafts for an amount of Rs.1 Crore. As per the undertaking affidavit, the petitioner is ready to pay the remaining outstanding amount of Rs.8,51,22,747/- in 6 equal instalments within 6 months from 01.04.2026. It is also stated that respondent No.2/bank had taken the physical possession of the property bearing BDA Site No.72, situated at 80 Ft. Road, 4th 'H' Block, Banashankari 6th Stage, Subramanyapura Post, Bengaluru, measuring 2,324 Sq. Ft. standing in the name of Mrs. Roopa that there may be a direction to respondent - 7 - HC-KAR NC: 2026:KHC:17809 WP No. 8706 of 2026 C/W WP No. 2667 of 2026 No.2/bank to restore the physical possession of the property. It is also stated that in default in repayment, the bank is at liberty to proceed in accordance with law under the SARFAESI Act, 2002 and the relevant Rules. 4. Learned counsel appearing for the petitioner submits that there are about 3 properties which are mortgaged to the bank, among them possession of one property is taken by the bank. It is the case that the outstanding amount is Rs.8,51,22,747/-. The property is worth Rs.25 Crores. It is submitted that there may be a direction to the bank to restore the possession and in case, if he fails to pay the amount, he voluntarily will hand over the possession of the property to the bank. 5. Learned counsel appearing for respondent No.2/ bank submits that the petitioner has not complied with the earlier order passed by this Court. It is submitted that if the petitioner pays the substantial amount, then the bank will consider the aspect of re-delivery of the possession of the property. It is submitted that a huge amount is pending from a long time and at this point of time, if the possession of the - 8 - HC-KAR NC: 2026:KHC:17809 WP No. 8706 of 2026 C/W WP No. 2667 of 2026 property is given back to the petitioner, it would be very difficult and again they have to follow the procedure. 6. Having heard the learned counsels on either side, perused the affidavit that is placed before this Court. Generally, this Court is not interfering with the matter pertaining to the SARFAESI Act, 2002, in the light of the settled law, as there is an effective alternative remedy available to both the parties. However, considering the fact that the petitioner is ready to deposit the amount, as this settlement is in the interest of both the petitioner as well as the secured creditor, this Court had directed the petitioner to file the undertaking affidavit. Now, an affidavit is placed before this Court. As per the sale notice the properties are worth about Rs.28 Crores. Among three properties only one property is taken into possession by the bank. When this matter came up on the last occasion, the petitioner had paid an amount of Rs.1 Crore. In these circumstances by imposing certain conditions, this Court deems it appropriate to dispose of the writ petition as per the following: - 9 - HC-KAR NC: 2026:KHC:17809 WP No. 8706 of 2026 C/W WP No. 2667 of 2026 ORDER i. In the light of the affidavit filed by the petitioner, he shall clear the balance amount i.e., Rs.8,51,22,747/- within six instalments. As the petitioner had already paid an amount of Rs.1 Crore on 25.03.2026, the first instalment will start from 25.04.2026. By 25.09.2026 the petitioner shall clear the entire outstanding amount. ii. While paying the last instalment, whatever are the expenses or interest that are accrued shall be informed by respondent No.2/bank to the petitioner and in addition to the last instalment, the petitioner shall pay the amount. iii. Respondent No.2/bank shall forthwith deliver the possession of the property. iv. Even if any one instalment is not paid, the petitioner shall deliver the possession of the property to the bank and the bank is always at liberty to take back the possession of the property without initiating any further proceedings. v. If the petitioner fails to pay any one instalment, the bank is at liberty to proceed further and the petitioner shall pay an amount of Rs.10,00,000/- - 10 - HC-KAR NC: 2026:KHC:17809 WP No. 8706 of 2026 C/W WP No. 2667 of 2026 towards costs as he has failed to honour the terms of the affidavit filed before this Court. vi. Accordingly, both the writ petitions are disposed of. vii. All I.As., in both the writ petitions shall stand closed. SD/- (LALITHA KANNEGANTI) JUDGE BN List No.: 1 Sl No.: 32