- 1 - HC-KAR NC: 2026:KHC-D:1275 WP No. 100705 of 2026 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 31ST DAY OF JANUARY 2026 BEFORE THE HON'BLE MRS JUSTICE K.S.HEMALEKHA WRIT PETITION NO. 100705 OF 2026 (GM-DRT) BETWEEN: MR. AKKIWALI NAQEEB AHMED AGE: 60 YEARS, OCC: BUSINESS, R/O. NO.9, LAXMI BALAKRISHNA SQUARE, STATION ROAD, HUBBALLI, DIST: DHARWAD. …PETITIONER (BY SRI. SADIQ N.GOODWALA, ADVOCATE) AND: 1. THE AUTHORIZED OFFICER HDFC BANK LTD., #51, HDFC HOUSE, KASTURBA ROAD, BANGALORE-560001. 2. MR. AKKIWALI ABDUL KHADIRJILANI OCC: BUSINESS, R/O. PLOT NO.46, WARD NO.29, VILLAGE BENGERI DISTRICT, HUBLI, STREET NEAR SANGINI VILLA, HOUSE NO.46, HUBALLI-DHARWAD-580023. …RESPONDENTS (BY SRI. SACHIN C.ANGADI, ADVOCATE FOR R1) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A WRIT IN A NATURE OF CERTIORARI QUASHING THE IMPUGNED DEMAND NOTICE DATED 07.01.2026 ISSUED BY RESPONDENT NO.1 BANK VIDE ANNEXURE-A; TO ISSUE A WRIT IN A NATURE OF MANDAMUS DIRECTING RESPONDENT BANK TO CONSIDER THE REQUEST OF PETITIONER DATED 21.01.2026 FOR PAYMENT OF DUE INSTALLMENTS VIDE ANNEXURE-B AND ETC. THIS WRIT PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, ORDER WAS MADE THEREIN AS UNDER: GIRIJA A. BYAHATTI Digitally signed by GIRIJA A. BYAHATTI Location: HIGH COURT OF KARNATAKA DHARWAD BENCH Date: 2026.02.03 10:47:38 +0530 - 2 - HC-KAR NC: 2026:KHC-D:1275 WP No. 100705 of 2026 CORAM: THE HON'BLE MRS JUSTICE K.S.HEMALEKHA ORAL ORDER 1. Challenging the issuance of demand/possession notice dated 07.01.2026 issued by the respondent–HDFC Bank under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“SARFAESI Act”, for short), the petitioner has approached this Court in this writ petition. 2. The petitioner, a 60 year old businessman, availed a loan of ₹31,00,000/- in December 2019. It is his case that owing severe financial difficulties during COVID- 19 pandemic, his business suffered losses and was eventually shut down. The monthly EMI payable is ₹42,000/-, the petitioner admittedly defaulted in payment of EMIs for the months of November 2025, December 2025 and January 2026, aggregating to ₹1,68,000/- pursuant to which the impugned demand notice came to be issued. - 3 - HC-KAR NC: 2026:KHC-D:1275 WP No. 100705 of 2026 3. Learned counsel for the petitioner submits that the petitioner is willing to regularize the account and has filed an undertaking affidavit, undertaking to clear arrears within a stipulated time to adhere to the repayment schedule henceforth. He seeks indulgence of this Court to take the undertaking on record. 4. Per contra, learned counsel appearing for the respondent - Bank submits that the petitioner is a chronic defaulter, that the loan account has been classified as NPA on four occasions, that on earlier three occasions, the respondent - Bank has permitted regularization purely on humanitarian grounds and the repayment instruments issued by the petitioner were dishonoured on 43 occasions. It is further contended that as on 31.01.2026, the overdue amount is approximately ₹2,50,000/-, and the total outstanding liability is about ₹38,50,000/-. It is urged that the petitioner has an efficacious alternative remedy under the SARFAESI Act and that the writ - 4 - HC-KAR NC: 2026:KHC-D:1275 WP No. 100705 of 2026 petition is not maintainable in view of the law laid down by the Hon’ble Apex Court in several decisions. 5. This Court has considered the rival submissions and perused the material on record. 6. The petitioner has filed an undertaking affidavit which reads thus: “UNDERTAKING AFFIDAVIT I, Mr. Akkiwali Naqeeb Ahemed, Age: 60 years, Occ: Business, R/o: No.09, Laxmi Balkrishna Square, Station Road, Hubli City, Dharwad- 580020, today at Dharwad, do hereby solemnly affirm and state on oath as follows: 1. I state that I am the Petitioner in the above Writ Petition and I know the facts of the case. Hence I am swearing to this affidavit. 2. That, I have challenged the impugned demand notice dated 01.01.2026 issued by Respondent No.1 Bank vide Annexure-A for non-payment of 4 installments of Rs. 1,68,000/-. That, I shall pay the outstanding installments mentioned in demand notice of Rs1,68,000/- on or before 08.02.2026. - 5 - HC-KAR NC: 2026:KHC-D:1275 WP No. 100705 of 2026 3. That, I undertake to pay the installments for the amount due installments January- 2026 and Februray-2026 on or before 28.02.2026 (Rs.42,000/- per month instalment). 4. That, I further undertake in case of default of installments in future I have no objection to take coercive steps by Respondent No.1 Bank for recovery of loan amount.” 7. The petitioner has unequivocally undertaken that he shall clear the outstanding arrears as mentioned in the demand notice payable to the respondent-Bank on or before 08.02.2026, and further undertakes to pay the installments for the months of January and February 2026 on or before 28.02.2026, and to regularly service the loan account in future, without default while also conceding liberty to the bank to initiate recovery proceedings in accordance with law in the event of any further default. 8. In view of the undertaking given by the petitioner, without expressing any opinion on the merits of the - 6 - HC-KAR NC: 2026:KHC-D:1275 WP No. 100705 of 2026 rival consideration, this Court is of the considered view that the ends of justice would be met by disposing the writ petition in terms of the undertaking while safeguarding the respondent-Bank and pass the following: ORDER i. The writ petition stands disposed of. ii. The petitioner shall clear the outstanding installments on or before 08.02.2026 and shall continue to pay future installments regularly when as and when they fall, due upon renewal/regularization of the loan account. iii. In the event of any future default, the respondent- Bank is at liberty to proceed strictly in accordance with law, including by taking steps under the SARFAESI Act. Sd/- JUSTICE K.S.HEMALEKHA gab Ct:VH List No.: 1 Sl No.: 13