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2025 Supreme(Online)(Kar) 15240
KARNATAKA HIGH COURT
S SUNIL DUTT YADAV, J
N. SOMASHEKHARA REDDY – Appellant
Versus
THE CHIEF MANAGER THE AUTHORIZED OFFICER UNION BANK OF INDIA – Respondent
WRIT PETITION NO. 6673 OF 2023
For the Appellants/Petitioners: SRI. DILIP KUMAR L, SRI. SANGAMESH R B
For the Respondents: SRI. P L VIJAY KUMAR
A petitioner has remedies under the SARFAESI Act, and an auction notice cannot proceed in light of existing orders.
Headnote:The writ petition challenges the sale notice under the SARFAESI Act citing sections relevant to remedies under this legislation. Key facts include the issuance of a sale notice on 06.03.2023 and the Bank's contention regarding a One Time Settlement. The Court finds the substantive remedy available under Section 17 of the SARFAESI Act. The issues relate to the authority of the Bank to proceed with auction notice and the nature of remedies available to the petitioner. The court reasoned that fresh auction notices must be issued, noting the interim order's impact on proceedings. The petition is disposed of without requiring full adjudication, allowing the Bank to act in compliance with the SARFAESI Act.
| Table of Content |
|---|
| 1. challenge to sale notice under sarfaesi act. (Para 1) |
| 2. discussion on bank's authority and procedures. (Para 2) |
| 3. substantive remedies under sarfaesi act; court findings. (Para 3) |
| 4. final ruling allows bank to act per the law. (Para 4) |
ORAL ORDER
Petitioner has called in question the impugned sale notice dated 06.03.2023 issued under the provisions of the SARFAESI Act .
2. Learned counsel for respondent - Bank submits that in light of the interim order passed, the auction could not be proceeded with. Even otherwise, it is submitted that if the Bank intends to proceed, fresh auction notice will have to be issued. It is further submitted that One Time Settlement proposal has not fructified.
3. In light of the submission made by the respondent - Bank, petition is disposed off as not calling for adjudication while noticing that the substantive remedy for the petitioner even otherwise, is under Section 17 of the SARFAESI Act . Needless to state the Bank is at liberty to proceed afresh in terms of Section 13 of the SARFAESI Act .
4. Accordingly, petition is disposed off. All contentions of the parties are kept open.
