- 1 - HC-KAR NC: 2026:KHC:23794 WP No. 19453 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF APRIL, 2026 BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI WRIT PETITION NO. 19453 OF 2021 (GM-DRT) BETWEEN: H.N.SHIVAKUMAR S/O NARASIMHAIAH AGED ABOUT 44 YEARS RESIDING AT VAJRANAKHA UPPARAHALLI URDU SCHOOL ROAD BEHIND SACRED HEART TUMAKURU …PETITIONER (BY SRI. RAVI C.K., ADVOCATE) AND: 1. MAHILA CO -OPERATIVE BANK LTD NO.12, SRI SAI ARCADE OLD MARKET CIRCLE CHKKAPETE ROAD TUMAKURU-572 101 REPRESENTED BY ITS MANAGER 2. MAHILA CO-OPERATIVE BANK LTD., NO.13 AND 14, SOUTH END ROAD Digitally signed by SUVARNA T Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:23794 WP No. 19453 of 2021 SESHADRIPURAM BENGALURU-560 020 REPRESENTED BY ITS MANAGER SMT B.RASHMI 3. DEPUTY COMMISSIONER TUMAKURU DISTRICT OFFICE OF THE DEPUTY COMMISSIONER TUMAKURU 4. TAHSILDAR TUMAKURU TALUK TALUK OFFICE, TUMAKURU-572 101 …RESPONDENTS (BY SRI.K.RAM BHAT, ADVOCATE FOR C/R2 SRI.MANJUNATH K., HCGP FOR R3 & R4) THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE NOTICE DATED: 06.07.2019 ISSUED BY R-2 VIDE ANNEXURE-C DATED:06.09.2021 ISSUED BY R-2 VIDE ANNEXURE-D, 01.10.2021 ISSUED BY R-2 VIDE ANNEXURE-E AND ORDER DATED: 06.08.2020 PASSED BY R-3 VIDE ANNEXURE-F. - 3 - HC-KAR NC: 2026:KHC:23794 WP No. 19453 of 2021 THIS PETITION, COMING ON FOR ORDERS, 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 prayers: "a) to issue a writ in the nature of Mandamus or Certiorari or any other writ or direction to the Respondents. And b) to quash the notices dated 06.07.2019 issued by Respondent No.2 vide Annexure-C, MCB/ADM/326/19-20, dated 06.09.2021 issued by Respondent No.2 vide Annexure-D, 01.10.2021 issued by Respondent No.2 vide Annexure-E and Order dated 06.08.2020 MSC(R-7)CR 134/2019-20 passed by Respondent No.3 vide Annexure-F. or c) to pass such other order/s as this Hon'ble Court deems fit in the facts and circumstances of the case, in the interest of justice and equity." 2. The facts of the case are that the petitioner has availed a loan from respondent No.1/Bank and executed a mortgage in its favour. A notice dated 06.07.2019 was issued - 4 - HC-KAR NC: 2026:KHC:23794 WP No. 19453 of 2021 under Section 13(2) of the SARFAESI Act, mentioning that the loan amount is Rs.70,00,000/-, and the balance amount as on that date was Rs.69,40,995/-, inclusive of principal and interest. Therefore, within a period of 7 days, the outstanding amount of Rs.69,40,995/- shall be paid, failing which, the action will be initiated against the petitioner under the SARFAESI Act. It is stated that respondent No. 2 does not have the locus standi or authority to issue the notice under the SARFAESI Act, since the deposit of title deeds was executed by the petitioner in favour of respondent No. 1, and it is mentioned in the body of the contract that all executed documents and other documents pertaining to the suit schedule property will be in the custody of respondent No.1. On 06.09.2021, respondent No. 2 issued a notice demanding a sum of Rs. 71,14,798/- and if the amount is not paid within 60 days, the property would be taken into the custody of respondent No. 2/Bank. Thereafter, on 01.10.2021, respondent No. 2 issued a sale notice. It is also stated that the Deputy Commissioner of Tumakuru District had earlier passed an order dated 06.08.2020 under Section 14(1) of the SARFAESI Act. On 17.03.2018, the petitioner had deposited two cheques with - 5 - HC-KAR NC: 2026:KHC:23794 WP No. 19453 of 2021 respondent No. 1/Bank, and the amount was credited to the petitioner’s Savings Bank account. However, it is contended that the respondent/Bank could not have adjusted the said amount. It is further stated that erroneous calculations were made while calculating the principal and interest. Some of the cash transactions made by the petitioner have not been entered properly in the account statement, with a mala fide intention. Aggrieved by the arbitrary action of the respondent, the petitioner has approached this Court. 3. Learned counsel appearing for the petitioner submits that the respondent/Bank has no authority to initiate proceedings under the SARFAESI Act. It is further submitted that there are discrepancies in the calculations and the amounts mentioned with regard to the loan account. It is submitted that, pursuant to the interim order passed by a Co- ordinate Bench of this Court dated 21.02.2022, the petitioner has already deposited a sum of Rs. 15,00,000/- before this Court. Learned counsel further submits that possession of the property has not been re-delivered. It is also submitted that the petitioner is ready to pay the outstanding amount, provided - 6 - HC-KAR NC: 2026:KHC:23794 WP No. 19453 of 2021 a correct statement of accounts is given by the respondent. Accordingly, it is prayed that the writ petition be allowed by setting aside the proceedings initiated by the respondent Bank under the SARFAESI Act. 4. Learned counsel appearing for the respondent/Bank submits that, pursuant to the interim order, possession has already been re-delivered. It is further submitted that the amount of Rs. 15,00,000/- deposited by the petitioner is lying before this Court. It is submitted that, as on date, the outstanding amount is Rs. 1,32,00,000/-. Learned counsel further submits that, by virtue of the interim order dated 21.02.2022 passed by this Court, the respondent/Bank is not in a position to take steps. It is also submitted that the respondent/Bank had given a copy of the statement of accounts to the petitioner on 02.12.2021. Therefore, it is contended that the petitioner is not entitled for any relief from this Court. 5. Having heard learned counsels on either side, and perused the material on record. - 7 - HC-KAR NC: 2026:KHC:23794 WP No. 19453 of 2021 6. The petitioner has questioned the notices issued and the proceedings that are initiated by the Bank under SARFAESI Act by filing the writ petition in the year 2021. The SARFAESI proceedings were initiated in the year 2019. When a notice was issued under Section 13(2) of the Act, the petitioner has not given any reply and kept quiet. Thereafter, they have initiated further proceedings under Section 13(4) and an order under Section 14 was also passed. By virtue of an interim order that is passed in the year 2021, the proceedings have been stayed. It is the submission of the learned counsel for the petitioner that he is ready to pay the outstanding amount, provided the correct statement account is given to the petitioner. That cannot be a reason for this court to entertain this writ petition. If the petitioner wants the correct statement of accounts, when a notice is issued under Section 13(2), he would have replied to the same and the Bank is duty bound to give a reply under the Provisions of the SARFAESI Act. But, for the best reasons known to the petitioner, he has not replied to the same. Right from 2021 till 2026, the entire proceedings under SARFAESI Act are stayed. The submission that the Bank cannot initiate the proceedings under the SARFAESI Act also - 8 - HC-KAR NC: 2026:KHC:23794 WP No. 19453 of 2021 has no legs to stand as Bank has the authority to initiate the proceedings under the SARFAESI Act. The submission that if the correct statement is given petitioner will pay the entire amount, that is for the petitioner to approach the Bank and take appropriate steps. In that view of the matter, this Court do not find any reasons to interfere this writ petition. Hence, this Court is passing the following: ORDER i. Accordingly, the writ petition is disposed of, giving liberty to the petitioner to avail the appropriate remedy before the DRT within 30 days from the date of receipt of the copy of the order. ii. It is stated that the petitioner is ready to pay the outstanding amount. The petitioner shall approach the Bank by 29.04.2026 and the Bank shall furnish the statement of accounts. Upon receipt of the same, the petitioner is at liberty to pay the amount within 30 days from the date of receiving the statement. - 9 - HC-KAR NC: 2026:KHC:23794 WP No. 19453 of 2021 iii. The Registry shall release the demand draft deposited by the petitioner in favour of respondent No. 1 Bank. iv. Pending IAs., if any, shall stand closed. Sd/- (LALITHA KANNEGANTI) JUDGE SMC List No.: 1 Sl No.: 18