IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28^TH DAY OF OCTOBER, 2025 PRESENT THE HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE AND THE HON'BLE MR. JUSTICE C.M. POONACHA WRIT APPEAL NO. 1753 OF 2025 (GM-DRT)

BETWEEN:

CHANDRADHARA RICE MILL NO 17-C, 1ST PHASE, KIADB, ANTHARASANAHALLI INDUSTRIAL AREA, NH-4, TUMKUR-572106, REPRESENTED BY ITS PROPREITOR MRS ANITHA R, W/O V B RAMESH, AGED ABOUT 40 YEARS, …APPELLANT (BY SRI. KIRAN KUMAR K, ADVOCATE)

Digitally AND:

sig ned by SUMATHY 1. UNION BANK OF INDIA KANNAN TUMKUR BRANCH, Location : AT KASTURI MANSION, High Court of BEHIND KRISHNA TALKIES, Karnataka M.G.ROAD, TUMKUR-572101 REPRESENTED BY ITS AUTHORISED OFFICER

2. RESERVE BANK OF INDIA, 10/3/8, OPP TO ST. MARTHA'S HOSPITAL, NRUPATHUNGA RD, OPP ST, NUNEGUNDLAPALLI, AMBEDKAR VEEDHI, BENGALURU, KARNATAKA 560001 BY GENERAL MANAGER …RESPONDENTS THIS WRIT APPEAL IS FILED U/S 4 OF THE KARNATAKA HIGH COURT ACT PRAYING TO CALL FOR RECORDS AND SET ASIDE THE JUDGEMENT PASSED BY THE LEARNED SINGLE JUDGE IN WP NO.24937/2025 DATED 24/09/2025 AND CONSEQUENTLY ALLOW THE WRIT PETITION.

THIS APPEAL, COMING ON FOR PRELIMINARY HEARING, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE and HON'BLE MR. JUSTICE C.M. POONACHA

ORAL JUDGMENT

(PER: HON'BLE MR. VIBHU BAKHRU, CHIEF JUSTICE)

The appellant has filed an appeal impugning an order dated

24.09.2025 passed by the learned Single Judge of this Court in W.P. No.24937/2025 [GM-DRT]. The appellant had filed the said writ petition impugning the proceedings initiated by respondent No.1- Union Bank of India [hereinafter referred to as 'the Bank' under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [hereinafter referred to as 'SARFAESI Act'].

2. It is the appellant's case that it is a Small Enterprise and is covered within the scope of the Micro Small and Medium Enterprises Development Act, 2006 [hereinafter referred to as 'MSMED Act']. The appellant admits that it has failed to discharge its repayment obligations to the Bank in respect of financial facility extended to it. Notwithstanding the fact that the appellant is in default, it states that no action under the SARFAESI Act could be initiated as the Bank is required to follow the guidelines stipulated in the notification dated 29.05.2015 issued by the Reserve Bank of India and permit measures for rehabilitating the appellant. It is contented that only if such measures fail that the Bank could take recourse to the SARFAESI Act for enforcement of its security interest.

3. The account of the appellant was declared as a Non Performing Asset [NPA] and the Bank had issued notice dated 29.04.2023 under Section 13(2) of the SARFAESI Act. The same was followed by a possession notice dated 06.09.2023 issued under Section 13(4) of the SARFAESI Act. The Bank had also filed an application before the concerned Court for taking over possession of the properties mortgaged to the Bank.

4. As noted above, the said proceedings were challenged by the appellant by filing the writ petition. Although the learned Single Judge has made certain observations in favour of the appellant, the writ petition was not entertained on the ground that some of the issues required a factual enquiry and therefore, the petitioner must necessarily avail its alternate remedies.

5. In view of the above, the only question that falls for consideration of this Court is 'whether the impugned order can be faulted on the ground that the appellant does not have any alternate remedy and it was apposite for the Court to entertain the petition?'

6. Learned counsel appearing for the appellant submits that it does not have any alternate remedy and cannot file a petition before the Debt Recovery Tribunal [hereinafter referred to 'DRT'] under Section 17 of the SARFAESI Act. He submits that the power of the DRT to entertain a petition under Section 17 of the SARFAESI Act is confined to only matters that arise o