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2024 Supreme(Online)(KAR) 8639
IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 1ST DAY OF FEBRUARY, 2024 BEFORE THE HON'BLE MR JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 25222 OF 2023 (GM-RES)
C/W WRIT PETITION NO. 26973 OF 2023 (GM-RES)
IN W.P.No.25222/2023:
BETWEEN:
SUDHA S W/O THIMMEGOWDA AGED ABOUT 42 YEARS R/O NO.814, 4TH MAIN BEHIND ANJANEYA TEMPLE GANGONDANA HALLI BANGALORE-560 039 … PETITIONER (BY SRI. SYED AMEER, ADVOCATE)
AND:
Digitally signed by PADMAVATHI B K THE BANGALORE CITY CO OPERATIVE BANK Location: H IGH SITUATED AT NO.3, PAMPAMAHAKAVI ROAD COURT OF CHAMARAJAPET KARNATAKA BANGALORE-560018 REP. BY ITS AUTHORIZED SIGNATORY MR. APPAJAIAH … RESPONDENT (BY SRI. K.V. LOKESH, ADVOCATE)
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE PROCEEDING INITIATED AGAINST THE PETITIONER BY THE RESPONDENT BANK AFTER CAUSING STATUTORY NOTICES DTD 20.08.2022 VIDE ANNEXURES-B AND C AS THE SAID NOTICES ARE WAVED IN EYE OF LAW; QUASH THE ENTIRE PROCEEDINGS IN THE PENDING CASE FILED BY THE RESPONDENT BANK BEFORE THE HONBLE 8TH ADDL CHIEF METROPOLITAN MAGISTRATE COURT, BANGALORE IN CRL.MIS.5727/2023 AT ANNEXURE-K INVOKING THE PROVISIONS OF THE SECTION 14 OF THE SECURITIZATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT 202 AND PASS ORDERS DIRECTING THE RESPONDENT BANK TO GRANT AT LEAST 2 YEARS TIME TO REPAY THE BALANCE AMOUNT OF LOAN AMOUNT PAYABLE BY THE PETITIONER AS THE NOTICES ISSUED DTD 20.08.2023 ARE ILLEGAL, ARBITRARY AND CONTRARY TO SECTION 13(2) OF SARFAESI ACT 2002 AND ETC.
IN W.P.No.26973/2023:
BETWEEN:
SUDHA S W/O THIMMEGOWDA AGED ABOUT 42 YEARS R/O NO.814, 4TH MAIN BEHIND ANJANEYA TEMPLE GANGONDANA HALLI BANGALORE-560 039 … PETITIONER (BY SRI. SYED AMEER, ADVOCATE)
AND:
THE BANGALORE CITY CO OPERATIVE BANK SITUATED AT NO.3, PAMPAMAHAKAVI ROAD CHAMARAJAPET BANGALORE-560018 REP. BY ITS AUTHORIZED SIGNATORY MR. APPAJAIAH … RESPONDENT (BY SRI. K.V. LOKESH, ADVOCATE)
THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED PUBLIC SALE NOTICE OF IMMOVABLE PROPERTY, DATED OF SALE 05/01/2024 IN BANK NO.BCCB/AO/SARFAESI/60/23 AT ANNEXURE F AS THE SAME IS WITH OUT AUTHORITY OF LAW AND IN TOTAL CONTRAVENTION OF THE PRINCIPLES OF NATURAL JUSTICE BESIDE AND PASS SUITABLE ORDER KEEPING IN MIND THE PETITIONER IS READY TO REDEEMED THE PROPERTY AND ETC.
THESE PETITIONS, COMING ON FOR PRELIMINARY HEARING, THIS DAY, THE COURT MADE THE FOLLOWING:
ORDER
The petitioner in W.P.No.25222/2023 is before this Court seeking the following prayer:
“ (i) ISSUE A WRIT OF CERTORARI QUASHING:
a) The proceeding initiated against the Petitioner by the Respondent Bank after causing statutory notices dated 20.08.2022 (vide Annexures B & C) as the said notices are waved in eye of law.
b) Quash the entire proceedings in the pending case filed by the Respondent Bank before the Hon’ble 8th Addl Chief Metropolitan Magistrate Court, Bangalore in Crl.Mis 5727/2023 at Annexure K invoking the provisions of the section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 and pass orders directing the Respondent Bank to grant at least 2 years time to repay the balance amount of loan amount payable by the petitioner as the notices issued dated 20.08.2023 are illegal, arbitrary and contrary to section 13(2) of SARFAESI ACT 2002.
(ii) Issue a Writ of Mandamus or any other appropriate Writ, or order or direction, directing the Respondent Bank to withdraw all the proceedings initiated against the petitioner with a further direction to get the petition filed in Crl.Mis.5727/2023 filed before the Hon’ble 8th Addl Chief Metropolitan Magistrate Court, Bangalore voluntarily at Annexure k. (iii) PASS SUCH other appropriate order or orders as deem fit and proper by this Hon’ble Court in the facts and circumstances of the case, to meet the ends of justice;”
2. Heard the learned counsel Sri.Syed Ameer, appearing for the petitioner and the learned counsel Sri.K.V.Lokesh, appearing for the respondent.
3. The petitioner is the borrower, borrowed finance from the respondent - Bank, does not make any payment. The loan becomes sticky. The Bank initiates proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'SARFAESI Act') and issues a demand notice and possession notice, which is appended to the petition. This Court, on
28.11.2023 had passed the following order:
" The petitioner is before this Court seeking the following prayers:
"WHEREFORE, the petitioner most respectfully prays that this Hon'ble Court be pleased to call for the relevant records from the Respondent Bank and grant the following relief;
(i) ISSUE A WRIT OF CERTORARI QUASHING:
a) The proceeding initiated against the Petitioner by the Respondent Bank after causing statutory notices dated 20.08.2022 (vide Annexures B & C) as the said notices are waved in eye of law.
b) Quash the entire proceedings in the pending case filed by the Respondent Bank before the Hon'ble 8th Addl Chief Metropolitan Magistrate Court, Bangalore in Crl.Mis 5727/2023, at Annexure-K invoking the provisions of the section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 and pass orders directing the Respondent Bank to grant at least 2 years time to repay the balance amount of loan amount payable by the petitioner as the notices issued dated 20.08.2023 are illegal, arbitrary and contrary to section 13(2) of SARFAESI ACT 2002, (ii) Issue a Writ of Mandamus or any other appropriate Writ, or order or direction, directing the Respondent Bank to withdraw all the proceedings initiated against the petitioner with a further direction to get the petition filed in Crl.Mis.5727/2023 filed before the Hon'ble 8 Addl Chief Metropolitan Magistrate Court, Bangalore voluntarily at Annexure-K.
(iii) PASS SUCH other appropriate order or orders as deem fit and proper by this Hon'ble Court in the facts and circumstances of the case, to meet the ends of justice;"
Learned counsel appearing for the petitioner submits that it is covered by a judgment rendered by the Apex Court in the case of VISHAL N. KALSARIA V. BANK OF INDIA AND OTHERS reported in Criminal Appeal No.52/2016 (Arising out of SLP (Crl.)
No.8060/2015).
The said judgment would not be applicable to the facts of the case, prima facie.
Therefore, there shall be an interi
