- 1 - HC-KAR NC: 2026:KHC-D:1559 WP No. 103798 of 2025 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 4TH DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI WRIT PETITION NO.103798 OF 2025 (GM-RES) BETWEEN: M/S SWATHI AGENCIES FERTILIZERS AND PESTICIDE DEALERS NAVALI ROAD, KARATAGI, DIST. KOPPAL BY ITS PROPRIETOR SRI. MAHESH SAJJAN S/O. MALKAJAPPA SAJJAN, AGE. 45 YEARS, OCC. BUSINESS, R/O. WARD NO.1 NEAR SHARANA BASAVESHWARA TEMPLE, KARATAGI, TQ. KARATAGI, DIST. KOPPAL-583229. …PETITIONER (BY SRI. HANUMANTHAREDDY SAHUKAR, ADVOCATE) AND: 1. THE STATE BANK OF INDIA CHIEF MANAGER RACC BRANCH, BAGODI SQUARE, OPPOSITE SAI BABA RICE MILL, R.G. ROAD, GANGAVATHI DIST. KOPPAL-583227. 2. THE BRANCH MANAGER STATE BANK OF INDIA KARATAGI BRANCH, KARATAGI DIST. KOPPAL-583229. Digitally signed by YASHAVANT NARAYANKAR Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC-D:1559 WP No. 103798 of 2025 3. THE STATE BANK OF INDIA ASSETS RECOVERY MANAGEMENT BRANCH (40564) 2ND FLOOR, A BLOCK, BKG COMPLEX MYSORE BANK CIRCLE, 1 AVENUE ROAD, BENGALURU-560009, REPRESENTED BY ITS AUTHORIZED OFFICER, SRI. RAMA NAGAPPA MOGER S/O. NAGAPPA MOGER, RECOVERY BRANCH HUBBALLI, DIST. DHARWAD.-580030. …RESPONDENTS (BY SRI. V.P. VADAVI, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF CONSTITUTION OF INDIA, PRAYING TO A. A WRIT IN THE NATURE OF CERTIORARI OR ANY OTHER WRIT OR ORDER OR DIRECTION QUASHING THE NOTICE DT.01.06.2022 BEARING NO.ADV/64181625463/39294253424/40258167424 ISSUED BY THE RESPONDENT NO.1, AND THE ORDER DATED 29.04.2025 IN CRL. MISC. NO.16/2025 PASSED BY THE LEARNED SENIOR CIVIL JUDGE AND CJM, KOPPAL, PRODUCED AS ANNEXURE-A AND C RESPECTIVELY. B. A WRIT IN THE NATURE OF MANDAMUS OR ANY OTHER WRIT OR ORDER OR DIRECTION DIRECTING THE RESPONDENTS TO PERMIT THE PETITIONER TO PAY THE LOAN AMOUNT IN A ONE TIME SETTLEMENT SCHEME. C. SUCH OTHER WRIT OR ORDER OR DIRECTION AS DEEMED FIT UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE INCLUDING AN ORDER FOR COST MAY KINDLY BE PASSED. THIS WRIT PETITION, COMING ON FOR FURTHER HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI - 3 - HC-KAR NC: 2026:KHC-D:1559 WP No. 103798 of 2025 ORAL ORDER The present writ petition is filed seeking the following prayers: “ i) A writ in the nature of certiorari or any other writ or order or direction quashing the notice dated 1.6.2022 bearing No. ADV/64181625463/39294253424/40258167424 issued by respondent No.1, and the order dated 29.4.2025 in Crl.Misc.No.16/2025 passed by the learned Senior Civil Judge and CJM, Koppal produced at Annexure-A and C respectively. ii) A writ in the nature of mandamus or any other writ or order or direction directing the respondents to permit the petitioner to pay the loan amount in One Time Settlement Scheme. iii) Such other writ or order or direction as deemed fit under the facts and circumstances of the case including an order for cost may kindly be passed.” 2. The facts of the case are that, the petitioner had availed a loan of Rs.45,00,000/- from respondent No.2/Bank on the security of the immovable property. When the petitioner failed to pay the amount, the account was declared as LPA and the proceedings were initiated under the SARFAESI Act. It is further stated that notice under Section 13(2) of the SARFAESI Act was issued on 01.06.2022. It is the case of the petitioner that due to Covid-19 pandemic, the petitioner could not repay - 4 - HC-KAR NC: 2026:KHC-D:1559 WP No. 103798 of 2025 the loan amount. Hence, the respondents/Bank had moved the Senior Civil Judge and CJM, Koppal under Section 14 of the SARFAESI Act and an order was passed on 29.04.2025 appointing the Court Commissioner to take possession and hand over the same to the respondents/Bank. Pursuant to the said order, the Court Commissioner had issued a notice dated 30.05.2025 calling upon the petitioner to hand over the vacant possession within seven days from the date of the notice. It is stated that the petitioner requested the respondents/Bank to give some time and OTS facility so as to repay the loan amount, due to loss in the business. 3. It is the grievance of the petitioner that the respondents/Bank did not consider the request of the petitioner for One Time Settlement. For consideration of reasonable request for One Time Settlement, the petitioner has come up before this Court. However, the prayer that is sought is to quash the order passed under Section 14 of the SARFAESI Act. Learned counsel appearing for the petitioner submits that he is ready for One Time Settlement. 4. When the matter came up on the last occasion, this Court had directed the respondents/Bank to get specific - 5 - HC-KAR NC: 2026:KHC-D:1559 WP No. 103798 of 2025 instructions as to whether One Time Settlement scheme is available for considering the case of the petitioner. It is the instruction of the learned counsel appearing for the respondents/Bank that there is no such scheme in place and it is submitted that they will not be able to consider the case of the petitioner for One Time Settlement. 5. Learned counsel appearing for the petitioner has placed a letter dated 08.01.2026 i.e., the Format of compromise offer letter to be obtained from the borrower. It is stated that a letter is given by the Bank and in that regard, an amount of Rs.5,10,000/- has been paid by the petitioner. 6. The petitioner has come up before this Court questioning the proceedings initiated under Section 14 of the SARFAESI Act. The writ petition filed before this Court is not maintainable for the reason that the petitioner has an effective alternative remedy of approaching the Debts Recovery Tribunal. Apart from that, this Court do not see any legal grounds. As far as One Time Settlement is concerned, in the light of the settled law, there cannot be any direction to the Bank to grant One Time Settlement to the petitioner/borrower. If the Bank comes forward to compromise with the petitioner, that is between the - 6 - HC-KAR NC: 2026:KHC-D:1559 WP No. 103798 of 2025 bank and the petitioner and they are at liberty to proceed so. However, the present writ petition cannot be entertained. Accordingly, this Court is passing the following: ORDER i) The writ petition is disposed of giving liberty to the petitioner to avail the appropriate remedy available to him. ii) All I.As. in this writ petition shall stand closed. Sd/- JUSTICE LALITHA KANNEGANTI JTR CT: UMD List No.: 1 Sl No.: 1