- 1 - HC-KAR NC: 2026:KHC-D:242 WP No. 107628 of 2025 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 12TH DAY OF JANUARY, 2026 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI WRIT PETITION NO.107628 OF 2025 (GM-DRT) BETWEEN: 1. MR. KOSAGI PRASAD ANANDRAJ S/O LATE MR. ANANDRAJ KOSAGI, AGED ABOUT 78 YEAS, OCC. CHAIRMAN OF VELANGANI SOCIETY R/A. HONDAKATTI BUILDING, 2ND CROSS, VIDYA NAGAR, HUBLI-580021. 2. MRS. INDIRA CAROLINE PRASAD KASOGI W/O. MR. KOSAGI ANANDRAJ PRASAD, AGED ABOUT 77 YEARS, OCC. HOUSEWIFE, R/A. HONDAKATTI BUILDING, 2ND CROSS, VIDYA NAGAR,, HUBLI-580021, DIST. DHARWAD. 3. MR. ANTHONY KIRAN KOSAGI S/O. MR. KOSGAI ANANDRAJ PRASAD, AGED ABOUT 28 YEARS, OCC. TRUSTEE OF SOCIETY R/A. HONDAKATTI BUILDING, 2ND CROSS, HOSUR TALI, HUBLI-580021. 4. VELANGANI EDUCATION SOCIETY THROUGH ITS AUTHORISED SIGNATORY/TRUSTEE, MR. KOSAGI ANANDRAJ PRASAD, C/O. ST. ANTONY PUBLIC SCHOOL, SIDDESWAR PARK, VIDYA NAGAR, HUBBALLI-580031, DIST. DHARWAD. 5. M/S. SAINT ANTONY'S PUBLIC SCHOOL REPRESENTED BY ITS AUTHORISED SIGNATORY, MR. KOSGAI ANANDRAJ PRASAD, Digitally signed by YASHAVANT NARAYANKAR Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC-D:242 WP No. 107628 of 2025 (BEING RUN BY VELANGANI EDUCATION SOCIETY REGISTERED SIDDESWAR PARK, VIDYA NAGAR, HUBBALLI-580031, DHARWAD DISTRICT KARNATAKA. …PETITIONERS (BY MISS. GAYATRI S.R., ADVOCATE) AND: EQUITAS SMALL FINANCE BANK LTD., HAVING ITS BRANCH OFFICE AT: SITE NO.1/542/2B/2K, NEAR CHETANA COLLEGE SHIRUR PARK, PHASE 4 VIDYANAGAR, HUBBALLI, DHARWAD-580021, HAVING ITS CORPORATE OFFICE AT: 4TH FLOOR, PHASE II, SPENCER PLAZA, NO.769, MOUNT ROAD, ANNA SALAI, CHENNAI, TAMIL NADU, INDIA-600 002, R/BY MR. SHIVASHANKAR PATIL. …RESPONDENT (BY SRI. SACHIN C.ANGADI, ADV. (APPEARED THROUGH VC) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO, a. ISSUE A WRIT OF CERTIORARI QUASHING THE IMPUGNED ORDER DATED 17.04.2025 IN CRIMINAL MISC. IN CRL. MISC. NO.93/2025 BY THE I ADDL. SENIOR CIVIL JUDGE AND CJM, DHARWAD UNDER SECTION 14 OF THE SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002 WHICH IS PRODUCED AT ANNEXURE-D. b. ISSUE A WRIT OF MANDAMUS DIRECTING THE RESPONDENT BANK TO FURNISH THE DETAILED STATEMENT OF ACCOUNTS OF THE PETITIONERS’ LOAN ACCOUNT; c. ISSUE A WRIT OF MANDAMUS DIRECTING THE RESPONDENT BANK TO REGULARISE THE LOAN ACCOUNT OF THE PETITIONERS AND ETC.,. - 3 - HC-KAR NC: 2026:KHC-D:242 WP No. 107628 of 2025 THIS WRIT PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI ORAL ORDER The present writ petition is filed seeking the following prayer: “PRAYER WHEREFORE, it is most respectfully prayed that this Hon'ble Court may be pleased to; a. Issue a writ of certiorari quashing the impugned order dated 17.04.2025 in criminal Misc. in Crl. Misc. No.93/2025 by the I Addl. Senior Civil Judge and CJM, Dharwad under section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 which is produced at Annexure-D; b. Issue a writ of mandamus directing the respondent bank to furnish the detailed statement of accounts of the petitioners' loan account; c. Issue a writ of mandamus directing the respondent Bank to regularise the loan account of the petitioners d. Pass such other order or orders as this Hon'ble Court deems fit in the facts and circumstances of the case in the interest of justice.” 2. The petitioner No.1 is the Chairman of the Velangani Society and petitioner Nos.2 and 3 are the Trustees of the Velangani Society. They have established educational institutions in Hubli. They have availed loan from the respondent bank. It is stated that during the COVID-19 pandemic, the petitioners have - 4 - HC-KAR NC: 2026:KHC-D:242 WP No. 107628 of 2025 suffered huge losses and setbacks and they were not in a position to pay the amount. The petitioner Nos.1 to 3 had approached the respondent bank requesting them to restructure the loan account. The respondent bank without considering the request of the petitioner had classified the loan account as Non- Performing Asset on 29.08.2023. Thereafter, the respondent Bank issued Demand Notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as SARFAESI Act) on 21.12.2023 demanding the petitioners to pay overdue amount of Rs.6,28,58,000/-. Thereafter, Possession Notice was issued on 03.04.2024 to recover the overdue amount and the Sale Notice was issued on 15.06.2024. The respondent Bank had taken symbolic possession of the scheduled properties. It is stated that earlier, the petitioners had filed WP.No.102514/2024 challenging the Possession Notice dated 03.04.2024 and an interim order was granted on 25.04.2024, subject to the condition that the petitioners shall deposit an amount of Rs.50,00,000/- within a period of 2 weeks and another sum of Rs.50,00,000/- within a period of 4 weeks from the date of the interim order. As the petitioners could not pay - 5 - HC-KAR NC: 2026:KHC-D:242 WP No. 107628 of 2025 the amount, the writ petition came to be dismissed by order dated 23.07.2024. The respondent bank had filed Crl.Misc.No.93/2025 before the I Additional Senior Civil Judge and CJM, Dharwad under Section 14 of the SARFAESI Act and the same was allowed by order dated 17.04.2025. It is stated that the petitioners had also approached the Debts Recovery Tribunal, Bangalore by filing SA.No.324/2024 and however, the petitioners did not prosecute the same as they were negotiating with the bank for settlement. 3. Learned counsel appearing for the petitioners submits that an order was passed on 15.10.2025 directing the petitioner to deposit an amount of Rs.1 crore to the bank. Pursuant to the said order, they have paid an amount of Rs.1 crore. Further, they have also filed an undertaking affidavit stating that they will pay an amount of Rs.20,00,000/- every month for the months of December 2025, January 2026 and February 2026 and that the remaining outstanding dues will be paid on or before 31.03.2026. It is submitted that the school admissions will start in the month of March 2026 and they would be able to have the resources to repay the amount. Hence, the undertaking affidavit - 6 - HC-KAR NC: 2026:KHC-D:242 WP No. 107628 of 2025 may be taken on record and the writ petition may be disposed of. 4. Learned counsel appearing for the respondent bank submits that the petitioners are coming up with one writ petition after the other and earlier they had carried the matter to the Hon’ble Apex Court. It is submitted that they have also approached the DRT and only to protract the proceedings, they are coming up with these kinds of applications. It is submitted that the outstanding comes to a huge amount as on today. It is submitted that as the petitioners have an alternative remedy and in the light of the settled law, the writ petition is not maintainable before this Court. The petitioners who are the chronic defaulters are not entitled for any relief from this Court. It is submitted that this is the third writ petition. Learned counsel submits that in the objections, the bank has stated that any timeline exceeding two months for paying the outstanding amount will not be acceptable to the bank and if the petitioners are ready to pay the amount within two months, the bank has no objection. - 7 - HC-KAR NC: 2026:KHC-D:242 WP No. 107628 of 2025 5. Having heard the learned counsels on either side, perused the entire material on record. First, why the petitioners have come before this Court by filing a writ petition when the proceedings are initiated by the bank under the SARFAESI Act? What are the compelling reasons that this writ petition has to be entertained by this Court when the petitioners have an effective alternative remedy? These aspects are not stated by the petitioners. The petitioner No.1 is the Chairman of the Velangani Society and petitioner Nos.2 and 3 are the Trustees of the Velangani Society and they have established educational institutions. Earlier, the petitioners had filed a writ petition, obtained an order and failed to comply with the same and this Court had dismissed the said writ petition. Now this is the third writ petition. As rightly argued by the learned counsel appearing for the respondent bank, such writ petition cannot be entertained by this Court in the light of the alternative remedy that is available to the petitioner and also looking at the conduct of the petitioners. However, considering the fact that already an interim order is passed by the Co-ordinate Bench of this Court and that order is complied with and the fact that the petitioners have filed an undertaking affidavit stating that they will clear the entire - 8 - HC-KAR NC: 2026:KHC-D:242 WP No. 107628 of 2025 amount by 31.03.2026, balancing the interests of both the parties, this Court deems it appropriate to pass the following order: ORDER i. As per the undertaking affidavit, the petitioners shall pay an amount of Rs.20,00,000/- by end of January 2026, end of February 2026 and shall clear the total outstanding amount by 31.03.2026. ii. The respondent/bank shall communicate to the petitioners what exactly is the outstanding amount as on 31.03.2026. iii. If the petitioners fail to pay the amount, the respondent bank is at liberty to take further steps under the SARFAESI Act. iv. Once the entire amounts are paid by 31.03.2026, the bank shall redeliver the possession of the property. - 9 - HC-KAR NC: 2026:KHC-D:242 WP No. 107628 of 2025 v. Accordingly, the writ petition is disposed of. vi. All I.As. in this petition shall stand closed. Sd/- JUSTICE LALITHA KANNEGANTI MEG List No.: 1 Sl No.: 20