- 1 - HC-KAR NC: 2026:KHC-D:2522 WP No. 101319 of 2026 IN THE HIGH COURT OF KARNATAKA, AT DHARWAD DATED THIS THE 18TH DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI WRIT PETITION NO. 101319 OF 2026 (GM-DRT) BETWEEN: 1. SHABAJ ISTAQ NALBAND S/O. ISTAQ NALBAND, AGE. 34 YEARS, OCC. BUSINESS, 2. M/S FARMERS ENGINEERING WORKS, REPRESENTED BY ITS PROPRIETOR, SHABAJ ISTAQ NALBAND, AGE. 34YEARS, OCC. BUSINESS, 3. ISHTAQ S/.O KARIMSAB NALBAND, AGE. MAJOR, OCC. BUSINESS, ALL ARE RESIDING AT PLOT NO. 2739/B, NALBAND GALLI, ATHANI, DISTRICT BELAGAVI, KARNATAKA 591304 …PETITIONERS (BY SRI. HARIPRASAD M. B., ADVOCATE) AND: CANARA BANK, A BODY CORPORATE CONSTITUTED UNDER THE BANKING COMPANIES, (ACQUISITION AND TRANSFER OF UNDERTAKING) ACT, 1970, HAVING ITS HEAD OFFICE AT: 112, J C ROAD, BENGALURU-560002 Digitally signed by YASHAVANT NARAYANKAR Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC-D:2522 WP No. 101319 of 2026 HAVING ITS BRANCH OFFICE AT: ATHANI AND GOKAK, BELAGAVI-590001, REPRESENTED BY ITS AUTHORIZED OFFICER. …RESPONDENT (BY SRI. SHRIYA S. KATAGIMATH, ADVOCATE) THIS WRIT PETITION IS FILED UNDER ARTICLE 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO, I. ISSUE A WRIT OF CERTIORARI OR ANY OTHER APPROPRIATE WRIT, ORDER OR DIRECTION QUASHING THE IMPUGNED ORDER DATED 12.01.2026 PASSED BY THE II ADDITIONAL SENIOR CIVIL JUDGE AND C.J.M., BELAGAVI IN CRIMINAL MISCELLANEOUS NO.180/2024, VIDE ANNEXURE- A; II. ISSUE A WRIT OF PROHIBITION OR ANY OTHER APPROPRIATE WRIT, ORDER OR DIRECTION, RESTRAINING THE RESPONDENT NO.1- BANK FROM TAKING ANY COERCIVE ACTION TO DISPOSSESS THE PETITIONERS FROM THE LAND IN QUESTION DURING THE PENDENCY OF THESE PROCEEDINGS, ON THE BASIS OF THE IMPUGNED ORDER DATED 12.01.2026 PASSED BY THE II ADDITIONAL SENIOR CIVIL JUDGE AND C.J.M., BELAGAVI IN CRIMINAL MISCELLANEOUS NO.180/2024, VIDE ANNEXURE-A ON THE FOLLOWING SCHEDULE PROPERTIES: SCHEDULE 1. SVY NO.1245/A, PLOT.NO.13 OF SATYAPRAMOD NAGARA ATHANI MEASURING 108 SQ.MTRS BOUNDED BY: NORTH: PLOT.NO.12 SOUTH: PLOT NO.14 - 3 - HC-KAR NC: 2026:KHC-D:2522 WP No. 101319 of 2026 EAST: ROAD WEST: SVY.NO.1243 2. CTS.NO.2739/B NEAR SHANTI SAGAR, NALABAND GALLI, ATHANI MEASURING 75.22 SQ.MTRS BOUNDED BY: NORTH: ROAD SOUTH: CTS.NO.2739/A EAST: ROAD WEST: CTS.NO.2749/A 3. R.S.NO.1078, VPC.NO.10946, PLOT.NO.S-11 NEAR KSSIDC, ATHANI BOUNDED BY: NORTH: PLOT.NO.S.12 SOUTH: PLOT.NO.S.10 EAST: ROAD WEST: PLOT.NO.S.16 III. GRANT ANY OTHER RELIEF WHICH THIS HON’BLE COURT MAY DEEM FIT AND PROPER IN THE FACTS AND CIRCUMSTANCES OF THE CASE IN THE INTEREST OF JUSTICE, EQUITY AND GOOD CONSCIENCE. THIS WRIT PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI - 4 - HC-KAR NC: 2026:KHC-D:2522 WP No. 101319 of 2026 ORAL ORDER The present writ petition is filed seeking the following prayer: I. “Issue a Writ of Certiorari or any other appropriate writ, order or direction quashing the impugned order dated 12.01.2026 passed by the II Additional Senior Civil Judge and C.J.M., Belagavi in Criminal Miscellaneous No.180/2024, vide ANNEXURE- A; II. Issue a Writ of Prohibition or any other appropriate writ, order or direction, restraining the Respondent No.1-Bank from taking any coercive action to dispossess the petitioners from the land in question during the pendency of these proceedings, on the basis of the impugned order dated 12.01.2026 passed by the II Additional Senior Civil Judge and C.J.M., Belagavi in Criminal Miscellaneous No.180/2024, vide ANNEXURE-A on the following Schedule Properties: SCHEDULE 1. Svy No.1245/A, Plot.No.13 of Satyapramod Nagara Athani measuring 108 sq.mtrs bounded by: NORTH: Plot.No.12 SOUTH: Plot No.14 EAST: Road WEST: Svy.No.1243 2. CTS.No.2739/B Near Shanti Sagar, Nalaband Galli, Athani measuring 75.22 sq.mtrs bounded by: NORTH: Road SOUTH: Cts.No.2739/A EAST: Road WEST: Cts.No.2749/A 3. R.S.No.1078, VPC.No.10946, Plot.No.S-11 Near KSSIDC, Athani bounded by: NORTH: Plot.No.S.12 SOUTH: Plot.No.S.10 EAST: Road - 5 - HC-KAR NC: 2026:KHC-D:2522 WP No. 101319 of 2026 WEST: Plot.No.S.16 III. Grant any other relief which this Hon’ble Court may deem fit and proper in the facts and circumstances of the case in the interest of justice, equity and good conscience.” 2. The facts of the case are that, the petitioners have availed the loan from the respondent/Bank and as the petitioners have failed to repay the loan, the loan account was declared as NPA. The respondent/Bank has initiated the proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, ‘SARFAESI Act’). The petitioner has approached the Debts Recovery Tribunal (for short, ‘DRT’) by filing S.A. No.285/2024 and also filed I.A. No.2207/2024. An order was passed on 03.01.2025, whereby, the Tribunal has allowed the stay petition and the possession notice dated 13.06.2024 issued by the Bank is stayed on conditional payment, directing the applicant to make a payment of Rs.54,98,000/- being the approximate 25% of the outstanding amount of Rs.2,19,95,396.81/- within two months in two instalments as undertaken by the counsel for the applicant/petitioner. The Tribunal directed that the first instalment of Rs.27,49,000/- shall be payable on or before - 6 - HC-KAR NC: 2026:KHC-D:2522 WP No. 101319 of 2026 02.02.2025 into the loan account with the secured creditor/respondent. Second instalment of Rs.27,49,000/- shall be payable on or before 01.03.2025 into the loan account with the secured creditor/respondent. If the applicant fails to make the payment on or before the stipulated dates, the respondent/Bank is at liberty to proceed under the Act. It is also clarified that in case, if the applicant defaults in payment as undertaken, the benefits of the order would stand vacated and the respondent/Bank is at liberty to proceed further with the measures under the Act. 3. Learned counsel appearing for the petitioners submits that, the petitioners have paid an amount of Rs.10,00,000/- and though they have paid the money, the respondent/Bank has initiated the proceedings under the SARFAESI Act, they approached the Magistrate under Section 14 of the SARFAESI Act and an order is passed. Questioning that order, the petitioners are before this Court. It is further submitted that, on 28.02.2025 an amount of Rs.33,18,750/- is credited to the loan account. It is submitted that, if a reasonable time is granted the petitioners would be repaying the amount. - 7 - HC-KAR NC: 2026:KHC-D:2522 WP No. 101319 of 2026 4. Learned counsel appearing for the respondent/Bank submits that the petitioners having approached the DRT by filing the S.A. No.285/2024 had failed to comply with the order. It is submitted that, they have an order passed by the DRT on 03.01.2025. It is submitted that, even before the Magistrate also right from 2024 till a period of 17 months, the matter was pending under Section 14 of the SARFAESI Act. The petitioners on one pretext or the other are trying to litigate the matter and there are no bonafides on the part of the petitioners. It is submitted that, they have failed to comply with the order passed by the DRT and it is submitted that when orders are passed under Section 14 of the SARFAESI Act, the remedy available to the petitioners is to approach the DRT under Section 17 of the SARFAESI Act. All the more reason that he has already approached the DRT, the present writ petition is not maintainable. 5. Having heard the learned counsels on either side, perused the material on record. The petitioners have approached the DRT earlier and an order was passed. For the reason best known to them, that order is not complied with. When the - 8 - HC-KAR NC: 2026:KHC-D:2522 WP No. 101319 of 2026 proceedings under Section 14 of the SARFAESI Act are initiated, generally in the proceedings under Section 14 of the SARFAESI Act, notice to the borrower is not necessary. However, the petitioners have appeared before the Magistrate and those proceedings were pending for a period of 17 months. Now, after the order is passed, they have come up before this Court stating that if some time is granted to them, they would pay the amount and also submit on the merits of the matter. This Court is not inclined to go into the merits of the matter. In this case, already auction notice is issued and sale is conducted. The Hon'ble Apex Court time and again has deprecated the practice of the High Courts in entertaining the petitions which are arising under the SARFAESI Act. When the separate tribunals are constituted for the effective adjudication of the disputes, the High Courts, unless in exceptional case, which warrants the interference of the Court under Article 226 of the Constitution of India, cannot interfere and pass orders. In this case, this Court finds no bonafides nor this Court finds it is an exceptional case which warrants interference of this Court under Article 226 of the Constitution of India. The petitioners have an effective alternative remedy - 9 - HC-KAR NC: 2026:KHC-D:2522 WP No. 101319 of 2026 before the Tribunal and this Court is not inclined to interfere. Hence, this Court is passing the following: ORDER (i) Accordingly, the writ petition is disposed of giving liberty to the petitioners to avail the appropriate remedy in accordance with law. (ii) All I.As. in this writ petition shall stand closed. Sd/- JUSTICE LALITHA KANNEGANTI RH CT: CNB List No.: 1 Sl No.: 31