- 1 - HC-KAR NC: 2026:KHC:18413 WP No. 24685 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 6TH DAY OF APRIL, 2026 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI WRIT PETITION NO. 24685 OF 2025 (GM-DRT) BETWEEN: 1. MR. S.P.SHREESHA S/O. S.G.PRABHAKARA, AGED ABOUT 49 YEARS 2. MRS. PADMAJYOTHI SHREESHA, W/O. S.P. SHREESHA, AGED ABOUT 43 YEARS BOTH ARE RESIDING AT. NO.213, 2ND FLOOR, 5TH MAIN ROAD, OPP: BOI, HAMPINAGARA, RPC LAYOUT, VIJAYANAGARA 2ND STAGE, BENGALURU-560 040 …PETITIONERS (BY SRI. PRAKASH S. SURYAVANSHI, ADVOCATE) AND: 1. THE STANDARD CHARTERED BANK REPRESENTED BY ITS AUTHORISED OFFICER, BRANCH AT 26-27, 2ND FLOOR, EAST WING, RAHEJA TOWERS, M.G. ROAD, BENGALURU -560 001 2. MR. B.P. SOMU, S/O PUTTARAMAIAH Digitally signed by SUVARNA T Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:18413 WP No. 24685 of 2025 AGED ABOUT 71 YEARS, RESIDING AT NO. 2925, HAMPINAGAR, RPC LAYOUT MAIN ROAD, WEST OF CHORD ROAD, VIJAYANAGAR, BENGALURU – 560 026 …RESPONDENTS (BY SRI.VINAY HEGDE, ADVOCATE FOR SRI.RAVINDRANATH K., ADVOCATE FOR C/R1 V/O DATED: 21/08/2025, NOTICE TO R2 IS DISPENSED WITH) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT OF MANDAMUS DIRECTING THE 1ST RESPONDENT BANK TO ACCEPT REPAYMENT OF OUTSTANDING LOAN AS PER THE SETTLEMENT AGREEMENT DATED 02-11- 2023 (TRIPARTITE) AND RESTRAIN THE BANK FROM PROCEEDING WITH AUCTION OR CREATING THIRD-PARTY RIGHTS OVER THE PROPERTY. THIS PETITION, COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE SMT. JUSTICE LALITHA KANNEGANTI ORAL ORDER The present writ petition is filed seeking the following prayer: "PRAYER The Petitioners respectfully prays that this Hon'ble Court may kindly be pleased to: a) Issue a Writ of Mandamus directing the 1st Respondent Bank to accept repayment of outstanding loan as per the Settlement Agreement dated 02-11-2023 (Tripartite) as Annexure-L and restrain the Bank from proceeding with auction or creating third- party rights over the property. - 3 - HC-KAR NC: 2026:KHC:18413 WP No. 24685 of 2025 b) Restrain the Respondents from confirming the sale or creating any third-party interest in the said property. c) Direct the Respondents to consider Petitioners' proposal for settlement under applicable laws. d) Pass any other order in the interest of justice and equity." 2. It is the case of the petitioners that a Settlement Agreement dated 02.11.2023 was entered between the petitioners and the respondents. As per the said agreement, the petitioners have to pay an amount of Rs.8,01,00,000/- on or before thirty working days from the date of the agreement, being the settlement amount towards full and final settlement of the total outstanding amount to be paid to the Bank. 3. It is submitted that the petitioners were arrested for a period of one year and they were not in a position to pay the amount. It is the case of the petitioners that the Bank had conducted the auction without any notice to the petitioners, without setting aside the tripartite agreement and without any intimation. He had relied on clause No.17 of the agreement which states that "this agreement may not be modified, amended, waived, terminated or supplemented except in writing and executed by the parties". It is submitted that the - 4 - HC-KAR NC: 2026:KHC:18413 WP No. 24685 of 2025 petitioners are ready to pay the amount and settle the same with the Bank and there may be a direction to the respondents. 4. Learned counsel appearing for the respondent No.1/ Bank submits that an order under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (hereinafter referred to as SARFAESI Act) was passed on 07.03.2025 and the auction was conducted and sale certificate was issued on 24.06.2025, the writ petition is filed on 07.08.2025. According to the learned counsel for respondent No.1/Bank, the Bank had issued the notice to the petitioners and it has followed the procedure as contemplated under the Act. 5. In response to that, learned counsel appearing for the petitioners submits that the Bank had not issued any notice which is contrary to the SARFAESI Act and the Rules. 6. Having heard the learned counsels on either side, perused the entire material on record. This Court has perused the Settlement Agreement entered into between the parties. As per the settlement, an amount of Rs.8,01,00,000/- has to be - 5 - HC-KAR NC: 2026:KHC:18413 WP No. 24685 of 2025 paid within thirty working days from the date of agreement. According to the petitioners, as the petitioners were arrested due to issues related to their company, they could not pay the amount and there was no communication between the petitioners and respondent No.1/Bank. When the Bank has initiated the proceedings and the sale notice was issued and the auction itself was confirmed by the time this writ petition is filed, this Court cannot entertain a writ petition of this nature. The auction purchaser is also not a party to these proceedings. The moment the auction notice is issued, the right of redemption is not available to the borrowers in the light of the settled law. That apart, the petitioners have an effective alternative remedy before the Debts Recovery Tribunal. On all these counts, this Court is not inclined to entertain this writ petition. In that view of the matter, this Court is passing the following order: ORDER i. Accordingly, the writ petition is disposed of giving liberty to the petitioners to avail the appropriate remedy before the Debts Recovery Tribunal. - 6 - HC-KAR NC: 2026:KHC:18413 WP No. 24685 of 2025 ii. The petitioners shall have the benefit of Section 14 of the Limitation Act. iii. All I.As. in this petition shall stand closed. SD/- (LALITHA KANNEGANTI) JUDGE MEG List No.: 1 Sl No.: 46