IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 24^TH DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 24937 OF 2025 (GM-DRT)

BETWEEN:

CHANDRADHARA RICE MILL NO.17-C, 1^ST PHASE, KIADB, ANTHARASANAHALLI INDUSTRIAL AREA, NH-4, TUMKUR-572106 REPRESENTED BY ITS PROPRIETOR, MRS ANITHA R, W/O V B RAMESH, AGED ABOUT 40 YEARS.

…PETITIONER (BY SRI. C.M. NAGABHUSHAN, ADVOCATE FOR SRI. CHANDRASHEKAR L.,ADVOCATE)

AND:

Digitally 1. UNION BANK OF INDIA signed by TUMKUR BRANCH, VANAMALA AT KASTURI MANSION, N Location: BEHIND KRISHNA TALKIES, HIGH M G ROAD, TUMKUR-572101 COURT OF REPRESENTED BY ITS KARNATAKA AUTHORISED OFFICER.

2. RESERVE BANK OF INDIA

10/3/8, OPP TO ST MARTHAS HOSPITAL, NRUPATHUNGA ROAD, OPP ST. NUNEGUNDLAPALLI, AMBEDKAR VEEDHI, BENGALURU KARNATAKA-560001 BY GENERAL MANAGER.

…RESPONDENTS (BY SMT.DIVYA PURANDAR., ADVOCATE FOR C/R1)

THIS W.P. IS FILED UNDER ARTICLES 226 AND

227 OF THE CONSTITUTION OF INDIA PRAYING TO I) ISSUE A WRIT OF CERTIORARI QUASHING THE ENTIRE PROCEEDINGS INITIATED BY THE RESPONDENT NO 1, DATED 29/4/2023, VIDE NO OR/TMK/134/2022-23, AS PER ANNEXURE-A; II) ISSUE A WRIT OF CERTIORARI QUASHING THE POSSESSION NOTICE ISSUED BY THE RESPONDENT NO 1, UNDER SECTION 13 (2) OF SARFAESI ACT, DATED 6/9/2023, VIDE NO NIL, PRODUCED AT ANNEXURE-B; III) ISSUE WRIT OF CERTIORARI QUASHING THE ORDER DATED 18/1/2024, PASSED BY THE ADDL SENIOR CIVIL JUDGE AND CJM, TUMAKURU, IN CRL MIS NO 249/2023, PRODUCED HEREWITH AT ANNEXURE-C; IV) ISSUE A WRIT OF MANDAMUS DIRECTING THE RESPONDENT NO 1, TO CONSIDER THE REPRESENTATION OF THE PETITIONERS PRIOR TO INITIATION OF ACTION UNDER SARFAESI ACT, AS PER REPRESENTATION DATED 15/4/2024 AND REPRESENTATION DATED 16/7/2025, PRODUCED AT ANNEXURE-K AND ANNEXURE-L.

THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD

ORAL ORDER

The petitioner, who has availed financial assistance from the first respondent, is aggrieved by the initiation of the proceedings under the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [for short, 'the SARFAESI Act']. A brief statement of the proceedings by the first respondent under the SARFAESI Act can be thus:

[a] the notice is issued under Section 13[2] of the SARFAESI Act on 29.04.2023, and this is followed by a Possession Notice under Section

13[4] of the SARFAESI Act on 06.09.2023, [b] the first respondent has filed an application under Section 14 of the SARFAESI Act in Crl. Misc. No.249/2023 on the file of the Additional Senior Civil Judge and CJM, Tumakuru, and this application is allowed on 18.01.2024, [c] the petitioner has filed this petition on

12.08.2025, and during the pendency of this petition i.e., on 03.09.2025, the notice is issued for e-auction under the Security Interest [Enforcement] Rules, 2002, [d] in terms of this notice, the e-auction is scheduled to be held on 26.09.2025.

This Court must also as part of the afore details record that Sri T L Venkatesh [a third party] has filed a writ petition in W.P. No.22513/2024 asserting to be in possession of the subject property as a tenant under the petitioner and this Court has disposed of this petition observing that the petitioner must avail remedy under Section 17[4A] of the SARFAESI Act.

2. Sri C M Nagabhushan, the learned counsel for the petitioner, submits that this Court must intervene because the respondents cannot dispute that the petitioner is a 'MSME' and with a 'MSME', the secured creditor must follow the framework for revival and rehabilitation for 'MSME' as notified by the Central Government. The learned counsel relies upon the decision of the Apex Court in 'M/s. Pro Knits v. The Board Of Directors Of Canara Bank'1, and more specifically on the exposition as is in paragraph-13 which reads as under:

"In view of the above, it is absolutely clear that the Instructions for the Framework for Revival and Rehabi