- 1 - HC-KAR NC: 2026:KHC:19500 WP No. 4574 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8TH DAY OF APRIL, 2026 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI WRIT PETITION NO. 4574 OF 2026 (GM-DRT) BETWEEN: 1. M/S. SGR MINERAL AND METALS PVT. LTD., A REGISTERED COMPANY, REPRESENTED BY ITS DIRECTOR AND GUARANTOR, SRI K.R. NAGESH, OFFICE AT NO.53, 3RD FLOOR, EMPIRE TOWER, RAILWAY PARALLEL ROAD, KUMARA PARK WEST, BENGALURU – 560 004. 2. SRI K.R. NAGESH, S/O LATE RADHAKRISHNAIAH, AGED ABOUT 49 YEARS, RESIDING AT NO. 126, 2ND CROSS, K.G. NAGAR, BENGALURU. …PETITIONERS (BY SMT. SANGEETA SANGANNAVAR.,ADVOCATE) AND: UNION BANK OF INDIA, REPRESENTED BY ITS AUTHORIZED OFFICER, ASSET RECOVERY BRANCH, NO.2/3, RAJA BUILDING, N.R. ROAD, BENGALURU – 560 002 …RESPONDENT (BY SRI. SHETTY VIGNESH SHIVARAM.,ADVOCATE) Digitally signed by SUVARNA T Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:19500 WP No. 4574 of 2026 THIS WP IS FILED UNDER ARTICLE 227 OF THE CONSTITUTION OF INDIA PRAYING TO SET ASIDE THE ORDERED 30-01-2026 AT ANNX-G PASSED BY THE DEBITS RECOVERY TRIBUNAL H AT BENGALURU IN S.A. NO.331/2025 INSOFAR AS IT PERMITS CONFIRMATION OF SALE OF PROPERTY NO. 03 IS CONCERNED AND DECLARE THAT THE PETITIONERS RIGHT OF REDEMPTION SUBSISTS TILL ISSUANCE OF SALE CERTIFICATE AND ETC., THIS PETITION, COMING ON FOR DISMISSAL, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE SMT. JUSTICE LALITHA KANNEGANTI ORAL ORDER The present writ petition is filed seeking the following prayer: "PRAYER Wherefore, the Petitioners respectfully pray that this Hon'ble Court may be pleased to: a) Set Aside the order dated 30-01-2026 at ANNEXURE G passed by the Debts Recovery Tribunal-II at Bengaluru, in S.A. No.331/2025 insofar as it permits confirmation of sale of Property No.03 is concerned; b) Declare that the Petitioners' right of redemption subsists till issuance of sale certificate; c) Direct the Respondent Bank not to issue, act upon, or register any sale certificate in respect of the Schedule Properties; d) Direct the Debts Recovery Tribunal to consider the Petitioners' request for settlement of entire dues by end of March 2026, after giving due credit to the amounts already deposited; - 3 - HC-KAR NC: 2026:KHC:19500 WP No. 4574 of 2026 e) Grant such other reliefs as this Hon'ble Court deems fit in the interest of justice and equity." 2. The Tribunal had passed an order whereby the Tribunal had permitted the respondent/Bank to confirm the sale, subject to the outcome of the S.A. and receive the balance amount, if any. All further proceedings will be deferred till next posting date. 3. Learned counsel appearing for the petitioners submits that the Tribunal ought not to have permitted the Bank to confirm the sale. It is submitted that the petitioners have paid an amount of Rs.35,00,000/- and they are ready to pay the remaining amount if three months' time is granted. 4. Learned counsel appearing for the respondent/Bank submits that the sale is confirmed and the S.A. is pending before the Tribunal. The petitioners have already questioned the sale, if there is any irregularity, as the confirmation of sale is subject to the outcome of the S.A., the same will be considered by the Tribunal. At this point of time, the Bank cannot accept the amount from the petitioner. - 4 - HC-KAR NC: 2026:KHC:19500 WP No. 4574 of 2026 5. Having heard the learned counsels on either side, perused the entire material on record. Once the Bank has issued the auction notification, in the light of the amendment to Section 13(8) of the SARFAESI Act, the borrower will lose the right of redemption. The petitioners have questioned the auction proceedings before the DRT. Now, this order dated 30.01.2026 is subject to the result of the S.A. In the pending S.A., if the Tribunal comes to the conclusion that the sale that is conducted by the Bank is irregular, the Tribunal would be passing appropriate orders. In that view of the matter, this Court cannot find fault with the order passed by the Tribunal and this Court cannot permit the petitioners to pay the amount. In that view of the matter, this Court is passing the following: ORDER i. Accordingly, the writ petition is disposed of giving liberty to the petitioners to agitate all the rights before the Debts Recovery Tribunal in the pending S.A.No.331/2025. ii. The respondent/Bank shall furnish all the details pertaining to the sale to the petitioners. - 5 - HC-KAR NC: 2026:KHC:19500 WP No. 4574 of 2026 iii. All I.As. in this petition shall stand closed. SD/- (LALITHA KANNEGANTI) JUDGE MEG List No.: 1 Sl No.: 65