- 1 - HC-KAR NC: 2026:KHC:26207-DB WP No. 28074 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF JUNE, 2026 PRESENT THE HON'BLE MR. JUSTICE D K SINGH AND THE HON'BLE MR. JUSTICE T.M.NADAF WRIT PETITION NO. 28074 OF 2024 (GM-DRT) BETWEEN: SRI. RAJESH KUMAR S/O SRI. CHOUDAIAH AGED AROUND 45 YEARS NO.25, 7TH MAIN ROAD, PADARAYANAPURA BENGALURU - 560 026 ALSO AT NO.18 (OLD NO.40), 9TH CROSS, BHUVANESWARI NAGAR, BSK III STAGE, KATHRIGUPPE, BENGALURU - 560 085 (PETITIONER - BORROWER OF HOUSING LOAN) …PETITIONER (BY SRI V. MOHAN, ADVOCATE) AND: AUTHORISED OFFICER REP. BY ITS GENERAL MANAGER STATE BANK OF INDIA STRESSED ASSET RECOVERY BRANCH MYSORE BANK BUILDING, BKG COMPLEX, "A" BLOCK, 2ND FLOOR, AVENUE ROAD, Digitally signed by SHARADAVANI B Location: High Court of Karnataka - 2 - HC-KAR NC: 2026:KHC:26207-DB WP No. 28074 of 2024 BENGALURU - 560 009 BANKING COMPANY INCORPORATED UNDER BANKING REGULATIONS ACT, IN 1949 …RESPONDENT (BY MS. DIVYA PURANDAR, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO a. QUASH THE ORDER DATED 09.07.2024 PASSED IN IA 6/2023 (ANNEXURE-A) IN SERIAL No.13 OF THE ORDER BY DRAT, CHENNAI IN AIR (SA) 445/2022, DIRECTING THE PETITIONER TO DEPOSIT 50% OF THE DEMAND NOTICE AMOUNT AND TO QUASH THE ORDER OF REJECTION OF PETITIONER'S APPEAL IN AIR (SA) 445/2022 DATED 29.08.2024 (ANNEXURE-B) PASSED BY THE LEARNED DRAT, CHENNAI, GIVING EFFECT TO ORDER DATED 09.07.2024, NAMELY DEPOSIT REQUIRED UNDER SEC. 18(1) OF SARFAESI ACT AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE D K SINGH and HON'BLE MR. JUSTICE T.M.NADAF ORAL ORDER (PER: HON'BLE MR. JUSTICE D K SINGH) 1. Heard Sri V. Mohan, learned counsel for the petitioner and Smt. Divya Purandar, learned counsel appearing for respondent-bank. - 3 - HC-KAR NC: 2026:KHC:26207-DB WP No. 28074 of 2024 2. The present writ petition is filed impugning the order dated 09.07.2024 passed in IA 6/2023 in AIR (SA) 445/2022, whereby the petitioner was directed to deposit 50% of the demand notice amount for entertaining the petitioner's appeal as per the provision of 18 of SARFAESI Act. Since the petitioner was not in a position to comply with the order dated 9th July 2024, the petitioner's appeal came to be rejected by the order dated 29.08.2024 for his failure to meet the pre deposit condition of deposit of 50% of the demand notice amount as directed by the Debt Recovery Appellate Tribunal at Chennai. 3. The learned counsel for the petitioner submits that the Tribunal ought to have considered the financial and other conditions of the petitioner where the petitioner's property has been taken over by the bank and ought to have reduced the condition of the pre deposit to 25%. He further submits that he has already deposited `12,56,445/- and a meagre sum is required to be deposited for making 25% of deposit condition as required - 4 - HC-KAR NC: 2026:KHC:26207-DB WP No. 28074 of 2024 under Section 18(1) of SARFAESI Act for entertaining the appeal. He further submits that he is ready to deposit `1,21,800/- immediately, so that to make 25% of the pre deposit for maintaining the appeal. 4. The learned counsel for the bank has submitted that sale has already been taken place in the year 2022, and this is a delaying tactics adopted by the petitioner to keep the proceedings alive and he is not bonafide prosecuting the appeal and therefore, the writ petition may be dismissed. 5. We have considered the submissions of both sides. 6. Under II proviso of Sub-Section (1) of Section 18 of the SARFAESI Act, for maintaining an appeal, the appellant is required to make deposit of 50% of the amount as demanded by the Financial Institutions. However, III proviso gives a discretion to the Tribunal to reduce the amount of 50% to 25%. When the petitioner is ready to deposit 25%, we deem it appropriate to allow this - 5 - HC-KAR NC: 2026:KHC:26207-DB WP No. 28074 of 2024 writ petition and set aside the impugned order passed by the Debt Recovery Appellate Tribunal and direct the petitioner to make good of 25% of the demand notice of pre deposit within a period of one week. 7. On making good the deficit amount for 25% of the pre deposit condition, the appeal shall be restored to its original number and shall be decided on merits and dispose of the same in accordance with law. 8. With the above said direction and observation, this petition stands disposed of. 9. Both the parties are directed to appear before Debt Recovery Appellate Tribunal on 18.06.2026. Sd/- (D K SINGH) JUDGE Sd/- (T.M.NADAF) JUDGE tsn* List No.: 2 Sl No.: 16