- 1 - HC-KAR NC: 2026:KHC:18416-DB WA No. 872 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 6TH DAY OF APRIL, 2026 PRESENT THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE AND THE HON'BLE MR. JUSTICE C.M. POONACHA WRIT APPEAL NO. 872 OF 2024 (GM-DRT) BETWEEN: 1. SRI. SUBBANNA S/O LATE CHIKKATHIMMAIAH AGED ABOUT 75 YEARS 2. SRI S C MUNIRAJ S/O LATE CHIKKATHIMMAIAH AGED ABOUT 55 YEARS BOTH ARE R/AT SURADENUPURA VILLAGE HESARAGHATTA HOBLI BENGALURU NORTH TALUK BENGALURU 560088 …APPELLANTS (BY SRI. RAHUL S REDDY, ADVOCATE) AND: 1. CANARA BANK ASSET RECOVERY MANAGEMENT BRANCH-1, 2ND FLOOR CIRCLE OFFICE, No. 86, SPENCER TOWER M G ROAD, Digitally signed by NIRMALA DEVI Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:18416-DB WA No. 872 of 2024 BANGALORE 560001 REP BY ITS SENIOR MANAGER B RAVIPRASAD 2. THE SUB REGISTRAR DODDABALLAPURA BENGALURU RURAL DISTRICT BENGALURU 561203 3. SRI R SRINIVASA MURTHY S/O K RAMACHANDRAPPA AGED ABOUT 63 YEARS PROPRIETOR M/S ARUN FLORICULTURE R/AT NO 1872, 2ND WARD DEVARAJANAGAR DODDABALLAPURA BENGALURU RURAL DISTRICT 561203 4. S MOHAN KUMAR S/O R SRINIVASA MURTHY AGED ABOUT 34 YEARS R/AT NO 1875, 2ND WARD DEVARAAJANAGARA DODDABALLAPURA BENGALURU RURAL DISTRICT 561203 5. SMT SHARADAMMA W/O K RAMACHANDRAPPA AGED ABOUT 75 YEARS R/AT No. 1875, 2ND WARD DEVRAAJANAGAR DODDABALLAPUR BENGALURU RURAL DISTRICT 561203 6. GANGAVARAM PULLA R REDDY S/O LATE GANGAVARAM NARAYANA REDDY AGED MAJOR R/AT D -15, - 3 - HC-KAR NC: 2026:KHC:18416-DB WA No. 872 of 2024 SAI MANYATHA RESIDENCY NAGAVARA NEAR MANYATHA BACK GATE BENGALURU 560045 …RESPONDENTS (BY MS. PREETHU R, ADVOCATE FOR SRI. SHETTY VIGNESH SHIVARAM, ADVOCATE FOR R1 SMT. NAMITHA MAHESH B G, AGA FOR R2 SRI. S.A. KHADRI, ADVOCATE FOR C/R5) THIS WRIT APPEAL IS FILED U/S 4 OF THE KARNATAKA HIGH COURT ACT PRAYING TO CALL FOR THE CONCERNED RECORDS IN W.P NO. 28806/2023 AND SET ASIDE THE JUDGMENT DATED 10.01.2024 PASSED IN WP NO. 28806/2023, AND CONSEQUENTLY REMAND BACK THE MATTER TO THE LEARNED SINGLE JUDGE BY PERMITTING THE APPELLANTS TO IMPLEAD THEMSELVES AS A PARTY TO THE PROCEEDINGS AND HEAR AFRESH IN THE INTEREST OF JUSTICE AND EQUITY. THIS APPEAL, COMING ON FOR PRELIMINARY HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER: CORAM: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE and HON'BLE MR. JUSTICE C.M. POONACHA - 4 - HC-KAR NC: 2026:KHC:18416-DB WA No. 872 of 2024 ORAL JUDGMENT (PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE) 1. For the reasons stated in the application, I.A.1/2024, the same is allowed, and the delay of 115 days caused in filing the appeal is condoned. 2. The appellants have filed the present appeal impugning an order dated 10.01.2024 passed by the learned Single Judge in W.P. No. 28806/2023 (GM-DRT). The said petition was preferred by respondent No.1 [Canara Bank], inter alia, seeking directions to respondent No.2 [Sub-Registrar] to register the Sale Certificate dated 08.09.2023, issued by the Canara Bank in favour of respondent No.6 [the auction purchaser]. The said certificate was in respect of land measuring 1 acre 38 guntas falling in Sy.No.74 [old Sy.No.26/6] of Hosahudya Village, Kasaba Hobli, Doddaballapura Taluk, Bengaluru Rural District [the subject land]. 3. The appellants claim that the subject land belonged to respondents Nos.3 and 5, and they had agreed to sell the subject property for a sum of `1,05,75,000/- and executed an Agreement of Sale on 24.11.2007 on receiving an advance amount of - 5 - HC-KAR NC: 2026:KHC:18416-DB WA No. 872 of 2024 `36,00,000/-. The appellant claims that further payments were made on several dates, the last instalment of an amount of `6,69,000/- was paid on 19.04.2013. An aggregate amount of `95,75,000/- was paid. The balance amount of `10,00,000/- to be paid at the time of execution and registration of the Sale Deed, was retained. The appellants claim that immediately after the said payments, they approached respondents Nos.3 to 5, calling upon them to execute the Sale Deed. However, they failed to do so. The appellants filed a suit for specific performance, O.S. No.391/2013, before the Court of Senior Civil Judge and JMFC., Doddaballapura. The said suit was decreed on 12.12.2017. 4. Thereafter, the appellants filed an execution petition, being Ex.No.23/2018, before the Senior Civil Judge, Doddaballapura. In the said proceedings, the Court appointed a Commissioner to execute and register the Sale Deed in favour of the appellants. The Court Commissioner executed the Sale Deed on 12.12.2022 and delivered possession of the property to the appellants. 5. However, in the meantime, respondent Nos. 3 to 5 created a mortgage in respect to certain immovable properties, including the - 6 - HC-KAR NC: 2026:KHC:18416-DB WA No. 872 of 2024 subject land, in favour of Canara Bank. The same was for securing a loan of `1,05,78,000/-, which is stated to have been availed by respondent No.3. Respondent Nos. 4 and 5 also stood as guarantors for the performance of the repayment obligations. 6. The said borrower/guarantors defaulted in the repayment obligations to Canara Bank. Consequently, Canara Bank instituted an action before the Debt Recovery Tribunal, Bengaluru [DRT] under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (now known as Recovery of Debts and Bankruptcy Act, 1993). The said action [O.A No.1650/2014] was for a claim of `2,18,11,949/- along with interest and costs. The same was decreed on 31.08.2015 in favour of Canara Bank for a sum of `2,18,11,949/- and a recovery certificate for an amount of `8,31,72,601/- was issued by the learned DRT. 7. Pursuant to the said proceedings, the subject land was put to auction, and respondent No. 6 purchased the same in an open auction. The Canara Bank issued the Sale Certificate dated 08.09.2023 in favour of respondent No.6. However, the Sub Registrar failed to register the same on the ground that the Sale - 7 - HC-KAR NC: 2026:KHC:18416-DB WA No. 872 of 2024 Deed in respect of the subject property had been executed and registered in favour of the appellants pursuant to an order dated 03.02.2023 passed by the learned Senior Civil Judge in Ex.23/2018. The Sub-Registrar also issued an endorsement to the aforesaid effect. 8. The aforementioned endorsement was assailed in the Writ Petition No.28806/2023 [GM-DRT], which came to be allowed in terms of the impugned order. 9. It appears that there is no dispute that the subject property was mortgaged to Canara Bank. The averments made in the writ petition indicate that the said mortgage was created on 18.05.2009 by deposit of title deeds. This was much prior to the suit filed by the appellants. The subject land was sold to enforce the said security interest. 10. This being the case, the registration of the subject land pursuant to the sale certificate in favour of respondent No.6 cannot be interdicted. The appellant could not have acquired title to the subject land, as the same was mortgaged prior to the sale deed executed in favour of the appellant. In view of the above, we find - 8 - HC-KAR NC: 2026:KHC:18416-DB WA No. 872 of 2024 no ground to interfere with the impugned order. The appeal is accordingly, dismissed. 11. All pending applications are also disposed of. SD/- (VIBHU BAKHRU) CHIEF JUSTICE SD/- (C.M. POONACHA) JUDGE BS - List No.: 2 Sl No.: 27