- 1 - HC-KAR NC: 2026:KHC:32006-DB WA No. 1382 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29TH DAY OF JUNE, 2026 PRESENT THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE AND THE HON'BLE MRS. JUSTICE K.S. HEMALEKHA WRIT APPEAL NO.1382 OF 2026 (GM-DRT) BETWEEN: 1. M/S. SREEDEVI INFRA CONSTRUCTION PVT. LTD., HAVING OFFICE AT NO.2345, GROUND FLOOR, 12TH CROSS, E-BLOCK, SHAHAKARANAGARA, BENGALURU-560 092 REP. BY ITS MANAGING DIRECTOR SMT. SREEDEVI B.T. W/O SRI. T.S. RAVISHANKAR. 2. SMT. SREEDEVI, W/O SRI. T.S. RAVISHANKAR, AGED ABOUT 50 YEARS, NO.101, ORCHID BLOCK, 1ST FLOOR, ESTEEM GARDENIA, SAHAKARANAGAR, BENGALURU-560 092. 3. SRI. T.S. RAVISHANKAR S/O SRI. T.L. SANGANNA, AGED ABOUT 60 YEARS, NO.101, ORCHID BLOCK, 1ST FLOOR, ESTEEM GARDENIA, SAHAKARANAGAR, BENGALURU-560 092. …APPELLANTS (BY SRI. D.R. RAVISHANKAR, SENIOR ADVOCATE A/W SRI H.S. PRASHANTH, ADVOCATE) Digitally signed by MAHALAKSHMI B M Location: High Court of Karnataka - 2 - HC-KAR NC: 2026:KHC:32006-DB WA No. 1382 of 2026 AND: 1. THE CANARA BANK, HEAD OFFICE, NO.112, J.C. ROAD, BENGALURU-560 002, REPRESENTED BY ITS MANAGING DIRECTOR. 2. THE CANARA BANK, ARM BRANCH-I, 2ND FLOOR, CIRCLE OFFICE, SPENCER TOWERS, NO.86, M.G. ROAD, BENGALURU-560 001 REP. BY IT'S CHIEF MANAGER/ AUTHORIZED OFFICER. …RESPONDENTS (BY SRI. SHETTY VIGNESH SHIVARAM, ADVOCATE FOR R-1 & R-2) THIS WRIT APPEAL IS FILED UNDER SECTION 4 OF THE KARNATAKA HIGH COURT ACT PRAYING TO CALL FOR THE RECORDS AND SET ASIDE THE ORDER DATED 28.04.2026 PASSED IN W.P.NO.12768/2026 INSOFAR AS NON-GRANT OF INTERIM PROTECTION IS CONCERNED AND STAY ALL FURTHER PROCEEDINGS PURSUANT TO THE E-AUCTION SALE NOTICE DATED 16.04.2026 INCLUDING THE AUCTION SCHEDULED ON 08/05/2026 PENDING DISPOSAL OF THE WRIT PETITION. THIS APPEAL COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE and HON'BLE MRS. JUSTICE K.S. HEMALEKHA - 3 - HC-KAR NC: 2026:KHC:32006-DB WA No. 1382 of 2026 ORAL JUDGMENT (PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE) 1. The learned Senior Counsel for the appellants states that, impugned order dated 28.04.2026 passed in W.P. No.12768/2026 is an ad interim order. Since the learned Single Judge has listed the petition for hearing on 09.07.2026, the present appeal be disposed of by extending the interim order passed in this appeal for a limited period, i.e., till 09.07.2026. 2. The interim order passed by the Vacation Court on 05.05.2026 is set out below: "Learned Senior Counsel appearing for the appellants, adverting to the One Time Settlement (OTS) proposal submitted by the appellants, would submit that the appellants had offered a sum of `15,00,00,000/- and, in order to demonstrate their bona fides, have also deposited a demand draft for a sum of `1,50,00,000/-. The said fact is evidenced from Annexure-A produced along with the appeal. The primary grievance of the appellants is that, during the subsistence of negotiations under the OTS scheme, the respondent No.1–Bank has proceeded to issue an auction/sale notice by fixing the reserve price at `10,10,86,000/-. Learned Senior Counsel would contend - 4 - HC-KAR NC: 2026:KHC:32006-DB WA No. 1382 of 2026 that the fixation of such reserve price is wholly arbitrary and runs contrary to the offer made by the appellants under the OTS proposal, which is substantially higher. Prima facie, this Court finds that the appellants have made out a case indicating that the reserve price fixed by the respondent No.1–Bank for sale of the secured asset is significantly lower than the amount offered under the OTS proposal. While this Court is not inclined to stay the auction proceedings at this stage, it is, however, deemed appropriate to safeguard the interest of the appellants by directing that the sale, if conducted, shall not be confirmed in the event the highest bid received is less than the amount offered by the appellants under the OTS scheme. Issue emergent notice to the respondents." 3. The learned counsel for the respondents submits that the sale was conducted on 08.05.2026 and a sale certificate has been issued. However, the same has not been confirmed in light of the interim order passed by this Court on 05.05.2026. It is also contended by the respondents that the appellants have no right to redeem the mortgaged property at this stage. 4. Without going into the other questions involved in the present case, we consider it apposite to dispose of the said appeal by - 5 - HC-KAR NC: 2026:KHC:32006-DB WA No. 1382 of 2026 extending the interim order for a further period, i.e., till 09.07.2026 and not beyond that date. 5. We clarify that we have not examined the merits of the contentions advanced by the learned counsel for the parties. Nothing stated in the order should be construed as an opinion of this Court, either prima facie or otherwise. The interim order is being extended solely on the ground that the said order has been subsisting till date and the learned Single Judge has now listed the matter for hearing on 09.07.2026. 6. In view of the above, the appeal is disposed of. Sd/- (VIBHU BAKHRU) CHIEF JUSTICE Sd/- (K.S. HEMALEKHA) JUDGE MBM List No.: 2 Sl No.: 27