O R D E R

1. Appellant has filed this Appeal challenging the order dated 08.11.2024 passed by Learned Presiding Officer, DRT-I, Karnataka at Bengaluru, in IA 1759/2024 in SA 404/2024.

2. Appellant filed SA 404/2024 on the file of DRT-I, Karnataka at Bengaluru, to quash and set aside the impugned Sale Notice dated 13.10.2022; set aside the Sale Certificate issued, if any, and for other reliefs.

2.1 Since the Securitization Application was filed with a delay of 638 days, the Appellant filed IA 1759/2024 seeking condoning of the delay in filing the Securitization Application. Learned Presiding Officer, DRT-I, Karnataka at Bengaluru, on going through the records, and after hearing the submissions of the Learned Counsel appearing for the parties, found that Appellant had not shown due diligence in filing the Securitization Application in time, and in the absence of valid explanation and when there is gross negligence and lack of bonafides on the part of the Appellant, refused to condone the delay of 638 days, and thus dismissed the Application filed for condoning the delay in filing the Securitization Application, and ultimately the Securitization Application was dismissed. Aggrieved against this order, the present Appeal is filed.

3. Learned Counsel for the Appellant submitted that the Appellant availed loan at Rs.1.90 Crores in the year 2015, for construction of house and another loan of Rs.1.23 Crores in the year 2016 for raising crops. Between 2015 and 2019, Appellant made payment of Rs.1,30,57,125/-. Due to Covid- 19 pandemic, Appellant was not able to pay the loan amount, and thus, occurred default. The first Respondent issued Sale Notice dated 13.10.2022 claiming a due amount of Rs.5,10,35,514.67p. The building together with land, was valued at Rs.6,50,71,000/- prior to sale. In the Sale Notice issued in 2022, the reserve price was fixed at Rs.2,63,69,000/-.

(i) The Appellant filed Writ Petition in WP 23433/2022 to challenge the Sale Notice before the Hon’ble High Court of Karnataka, wherein the Hon’ble High Court of Karnataka, passed a conditional order to pay a sum of Rs.1 Crore. As per this order, Appellant made payment of Rs.50,00,000/- but, could not pay the balance amount. Appellant also filed Writ Petition in WP 23736/2022 challenging the order passed under Section 14 of the SARFAESI Act. Against the dismissal order passed in the Writ Petition, Appellant filed Writ Appeal in WA 97/2023 and that was also dismissed. Then, Appellant filed WP 2520/2023 to consider the representation for OTS. Since conditional order passed in the Writ Petition was not complied fully, the Writ Petition was dismissed. Against that order, Appellant filed Writ Appeal in WA 977/2024 and the said Writ Appeal was also dismissed giving liberty to the Appellant to approach DRT. Thereafter, Appellant filed SA 404/2024 with an Application to condone the delay of 638 days in filing the Securitization Application.

(ii) Thereafter, Appellant filed WP 30382/2024 to quash and set aside the order dated 08.11.2024 in SA 404/2024. The Hon’ble High Court of Karnataka dismissed the Writ Petition reserving liberty to the Petitioner to approach DRAT. Thus, this Appeal is filed.

(iii) It is further submitted that Appellant made total payment of Rs.5.51 Crores as per the order of the Hon’ble High Court of Karnataka and the details of payment are given in page 5 of the Appeal. The property worth about Rs.6.50 Crores was sold for Rs.2,64,69,000/-.

(iv) Appellant was granted interim protection in WP No. 2520/2023 against confirmation of sale and also taking physical possession. Therefore, Auction Purchaser filed Writ Petition in WP 16273/2024 for extension of time to pay the balance sale consideration and that was allowed on 27.06.2024. The Review Petition in RP No.294/2024 was disposed directing the Respondent not to give effect the order sought to be reviewed for the period of three weeks from that date. Thereafter, Appellant filed SA 404/2024 and obtained interim order no