- 1 - HC-KAR NC: 2026:KHC:5335 WP No. 1388 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 29TH DAY OF JANUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE ASHOK S.KINAGI WRIT PETITION NO. 1388 OF 2026 (GM-DRT) BETWEEN: 1. M/S. SHREEJITH AGENCIES (A FIRM REGISTERED UNDER THE PARTNERSHIP ACT) REPRESENTED BY PETITIONER 2 AND 3 HAVING OFFICE AT NO. 17/B, PART SHED NO.3, INDUSTRIAL AREA, MANDLI, KALLUR, SHIVAMOGA -577202. 2. SRI. KARTHIK S/O MANOHAR, AGED ABOUT 43 YEARS, 3. SMT. PRIYADARSHINI W/O KARTHIK, AGED ABOUT 33 YEARS, BOTH ARE RESIDING AT SHRIJITH NILAYA, C LOCK, 5TH CROSS, OPPOSITE TO GANAPATHI TEMPLE, GOPALA GOWADA EXTENSION, VTC. SHIMOGA, PO GOPALA EXTENSION, SHIVAMOGGA DISTRICT - 577 205. …PETITIONERS (BY SRI. LAKSHMIKANTH K.., ADVOCATE) Digitally signed by KIRAN KUMAR R Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:5335 WP No. 1388 of 2026 AND: 1. M/S. THE FEDERAL BANK LTD LCRD/BENGALURU DIVISION, NO.3, CHURCH STREET, 2ND FLOOR, MSR WEST PARK, M.G.ROAD, BENGALURU-560001. REPRESENTED BY ITS AUTHORISED OFFICER. MR.SHRIKRISHNA SHARMA.K. 2. M/S. SHREE KOLLUR MOOKAMBIKA WAREHOUSE BY ITS PROPRIETOR, SMT. BHAGYAMMA W/O. NAGARAJ CHALAGERI, KODAMAGGI VILLAGE, MASUR POST, SHIKARIPUR ROAD, HIREKERUR, RATTIHALLI-TALUK, HAVERI-DISTRICT - 581210 …RESPONDENTS (BY SRI. B.S. JEEVAN KUMAR, ADVOCATE FOR C/R1) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO (A) DIRECTION TO MODIFY THE IMPUGNED CONDITIONS IMPOSED IN THE ORDER DATED 16.12.2025 PASSED BY THE DEBTS RECOVERY TRIBUNAL-II, BENGALURU IN S.A.NO.468/2025 AT ANNEXURE-L, INSOFAR AS DEPOSITING THE AMOUNT IN EACH INSTALLMENT, (B) CONSEQUENTLY DIRECT THE TRIBUNAL TO KEPT IN ABEYANCE OF THE CONDITIONS IMPOSED IN THE IMPUGNED ORDER DATED 16.12.2025 PASSED BY THE DEBTS RECOVERY TRIBUNAL-II, BENGALURU IN S.A.NO.468/2025, TILL DECISION TAKEN BY THE CONSUMER FORUM IN C.C.NO.05/2026, PENDING ON THE FILE OF DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, AT SHIVAMOGGA FILED BY THE PETITIONER AGAINST THE RESPONDENT NO 1 AND 2. - 3 - HC-KAR NC: 2026:KHC:5335 WP No. 1388 of 2026 THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE ASHOK S.KINAGI ORAL ORDER 1. The petitioners have filed this petition seeking a direction to modify the impugned conditions imposed in the Order dated 16.12.2025 passed by the Debts Recovery Tribunal-II, Bengaluru (for short, ‘the Tribunal’) in S.A. No.468 of 2025, and also direct the Tribunal to keep in abeyance all the conditions imposed in the impugned order dated 16.12.2025 passed by the Tribunal in S.A. No.468 of 2025 vide Annexure “L”, till a decision is taken by the Consumer Forum in C.C. No.5 of 2026 pending on the file of the District Consumer Disputes Redressal Commission, Shivamagga. 2. Brief facts leading rise to the filing of this petition are as follows: - 4 - HC-KAR NC: 2026:KHC:5335 WP No. 1388 of 2026 3. The petitioners availed a loan from respondent No.1- Bank by pledging the goods with respondent No.2- warehouse. The petitioners have committed a default and hence, respondent No.1-Bank initiated a recovery proceedings against the petitioners and also filed a petition under Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, ‘the SARFAESI Act’) in Criminal Miscellaneous No.205 of 2025, while the petitioner filed S.A. No.468 of 2025 before the Debts Recovery Tribunal-II at Bengaluru. 4. Along with the petition, the petitioners made an application for stay under Section 22(2) of the Recovery of Debts and Bankruptcy Act, 1993, read with the provisions of the SARFAESI Act. The Tribunal on 16.12.2025 passed an order on the submissions made by the learned counsel for the petitioners. Later on, the petitioners filed an - 5 - HC-KAR NC: 2026:KHC:5335 WP No. 1388 of 2026 application to advance the date of hearing. The Tribunal has rejected the said application. Hence, this petition. 5. Heard the learned counsel for the petitioners and the learned counsel for respondent No.1. 6. Learned counsel for the petitioners submits that the petitioners were unable to pay the second instalment as per the order dated 16.12.2025 and sought time for payment of second instalment. He submits that the petitioners have filed an application to advance the date of hearing, but the Tribunal has refused to advance the date of hearing. He also submits that the petitioners have filed an application for extension of time for payment of second instalment. The Tribunal did not consider the said application. Hence, prays to issue a direction to the Tribunal to consider the application filed by the petitioner seeking for - 6 - HC-KAR NC: 2026:KHC:5335 WP No. 1388 of 2026 extension of time. Hence, on these grounds, he prays to allow the writ petition. 7. Per contra, learned counsel for respondent No.1 submits that the petitioner is a chronic defaulter and that on the basis of the submissions made by the learned counsel for the petitioners, the Tribunal passed an order on 16.12.2025. He submits that the petitioners have partly complied with the interim order passed by the Tribunal. The petitioners were supposed to pay the second instalment on or before 30.01.2026. He submits that the Tribunal was justified in not considering the application and hence, on these grounds, he prays to dismiss the writ petition. 8. Perused the records and considered the submissions made by the learned counsel for the parties. 9. It is an undisputed fact that the petitioners had availed a loan from respondent No.1-Bank and - 7 - HC-KAR NC: 2026:KHC:5335 WP No. 1388 of 2026 committed a default. Respondent No.1 initiated proceedings under the provisions of the SARFAESI Act and filed a petition under Section 14 of the SARFAESI Act in Criminal Misc. No.205 of 2025 on the file of the learned Principal Senior Civil Judge and CJM, Shivamogga. The said petition came to be allowed vide Order dated 21.11.2025. 10. The petitioner approached the Debts Recovery Tribunal in S.A. No.468 of 2025 along with an interlocutory application seeking stay of the order passed under Section 14 of the SARFAESI Act. The Tribunal passed an order on 16.12.2025, wherein the petitioners have undertaken to pay the amount of ₹30,00,000 on or before 30.12.2025, and further amount of ₹1,20,00,000/- in three instalments i.e., ₹40,00,000 each, first of which has to be paid on or before 30.01.2026 and the subsequent instalments on 29.02.2026 and 30.03.2026 respectively. - 8 - HC-KAR NC: 2026:KHC:5335 WP No. 1388 of 2026 11. Admittedly, pursuant to the impugned order passed by the Tribunal, the petitioners have paid an amount of ₹30,00,000/-. The petitioners were able to deposit ₹40,00,000/- on or before 30.01.2026. However, the petitioners have expressed their inability to pay the second instalment. 12. The petitioners had filed an application to advance the date of hearing along with an application for extension of time before the Tribunal. The Tribunal instead of taking up the matter on Board has rejected the application for advancement. 13. Since the petitioners have filed an application for extension of time, it is the duty of the Tribunal to consider the same and pass an appropriate order. As the Tribunal has not passed any order on the applications submitted by the petitioners, it would be just and appropriate on the part of this Court to - 9 - HC-KAR NC: 2026:KHC:5335 WP No. 1388 of 2026 direct the Tribunal to consider the applications and pass an appropriate order. 14. In view of the above discussion, I proceed to pass the following order: ORDER (I) The writ petition is disposed of directing Tribunal to consider the application for extension of time filed by the petitioners and pass an appropriate order in accordance with law within one week from the date of receipt of a copy of this order. Sd/- (ASHOK S.KINAGI) JUDGE RK CT:KHV List No.: 1 Sl No.: 1