Writ jurisdiction under Article 226 is not maintainable for disputes arising from private contractual loan agreements or regulatory policy matters when efficacious alternative statutory remedies, such as the Debts Recovery Tribunal or RERA, are available.

Digitally signed by SHARADAVANI B Location: High Court of Karnataka

THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO A) ALLOW THE PRESENT PETITION. B) ISSUE AN APPROPRIATE WRIT, ORDER OR DIRECTION DIRECTING RESPONDENT BANK/FINANCIAL INSTITUTIONS TO CEASE AND DESIST FROM RECOVERING PRE-EMI AND EMI PAYMENTS FROM THE PETITIONERS AGAINST THE FUNDS DISBURSED BY THEM TO THE RESPONDENT DEVELOPER, UNTIL THE DATE OF POSSESSION AND ETC.

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

CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM

ORAL ORDER

The captioned petition is filed seeking the following reliefs:

a) Allow the present Petition.

b) Issue an appropriate writ, order or direction directing Respondent bank/financial institutions to cease and desist from recovering Pre-EMI and EMI payments from the Petitioners against the funds disbursed by them to the Respondent Developer, until the date of possession;

c) Direct the Respondent Bank/financial institutions to refund the Pre-EMIs and EMIs paid by the Petitioners to the Petitioners and recover the same from the Respondent Developer;

d) Direct the Respondent Bank/financial institutions and respondent no. 4 to correct the CIBIL score of the petitioners;

e) Direct the Respondent Bank/ financial institutions not to take any coercive action against the petitioners under SARFAESI Act, 2002 and NI Act, 1881 ;

f) Issue appropriate writ, direction or order directing the RBI & NHB to inquire or appoint a committee to inquire the connivance of Respondent Bank/financial institutions with Respondent Developer in relation to disbursement of Loan amount without verifying the construction or due diligence of the Respondent Developer;

g) Issue appropriate writ, direction or order directing the RBI & NHB to instruct all the banks/financial institution/ non-banking financial companies to restructure all loan accounts availed by the petitioners on its projects to protect the interest of home buyers;

h) Issue appropriate order or direction against Respondent bank for violating the rules and regulations laid down by the Respondent Nos. 1 and 2 as regulator for the banking sector;

i) Direct the Respondent 11 to dispose the complaints filed by the petitioners within 60 days as per the provisions of the RERA Act. True copies of the RERA complaints filed by the petitioner is annexed hereto and marked as ANNEXURE-E series.

j) Pass a restraining order against any person who was a Director or Managing Director of the Respondent Developer/Builder since the launching of the Project as well as the present Directors or Managing Director shall not leave the country without prior permission of this Hon'ble Court; and

k) Grant any further relief that this Hon'ble Court deems fit and proper in the circumstances of the case, including but not limited to, the award of costs and damages for the undue financial burden and hardship faced by the Petitioners.

Learned counsel appearing for the respondents has placed on record three judgments rendered by the Co-ordinate Bench of this Court in W.P.No.10325/2025, W.P.No.5459/2025 and W.P.No.23590/2025, out of which two pertain to the very same petitioner. It is contended that in the aforesaid writ petitions, identical prayers founded on the same set of allegations were sought and the Co-ordinate Bench, upon examination, declined to entertain the petitions in exercise of jurisdiction under Article 226 of the Constitution of India.

Having heard the learned counsels on both sides and on perusal of the prayers extracted supra, this Court is of the considered view that each of the reliefs sought by the petitioner falls within the domain of distinct statutory or adjudicatory fora and cannot be collectively or individually adjudicated in writ jurisdiction.

(a) The reliefs at clauses (b), (c) and (e), seeking directions to the respondent-Bank/financial institutions to cease recovery of Pre-