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NC: 2026:KHC:16897 WP No. 8071 of 2026

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 25^TH DAY OF MARCH, 2026

BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI

WRIT PETITION NO. 8071 OF 2026 (GM-DRT)

BETWEEN:

M/S SALFRA ENTERPRISES NO.B-1-85, 3RD FLOOR,

SFS COLONY, YELAHANKA NEW TOWN, BENGALURU-560 004, REPRESENTED BY ITS

PROPRIETOR, ARFA KAUSAR, W/O SALMAN,

AGED ABOUT 28 YEARS …PETITIONER

(BY SRI. RAJU S., ADVOCATE)

AND:

BANK OF MAHARASHTRA CITY MARKET, NO.13,

PAXAL TOWER, K.R.ROAD FORT, Digitally signed by BENGALURU - 560 002, SUVARNA T Location: REPRESENTED BY ITS

HIGH COURT OF AUTHORISED OFFICER KARNATAKA

…RESPONDENT (BY SMT. DIVYA PURANDAR, ADVOCATE)

THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED POSSESSION NOTICE DATED 24.02.2025 BEARING NO. AW12/SARFAESI/POSSESSION NOTICE/ 2024-25 ISSUED BY THE RESPONDENT BANK AS PER ANNEXURE-A AND IMPUGNED ORDER DATED 27.02.2026 PASSED IN SA NO. 145/2025 BY THE HONBLE DEBT RECOVERY TRIBUNAL AS PER ANNEXURE-E.

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NC: 2026:KHC:16897 WP No. 8071 of 2026

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

CORAM: HON'BLE SMT. JUSTICE LALITHA KANNEGANTI

ORAL ORDER

The present writ petition is filed seeking the following

prayer:

“Wherefore, the petitioner most humbly prays that this Hon’ble Court be pleased to:

i) Issue a writ of certiorari or any other writ, order or direction, quashing the impugned Possession Notice dated 24.02.2025 bearing No.AW12/SARFAESI/Possession Notice/2024- 25 issued by the Respondent-Bank as per Annexure-A and impugned order dated 27.02.2026 passed in S.A.No.145/2025 by the Hon’ble Debt Recovery Tribunal as per

Annexure-E;

ii) Grant such other order(s) as this Hon’ble Court may deem fit in the facts and circumstances of the case, in the interest of

justice and equity.”

2. The facts of the case are that the petitioner has

approached the Bank for a loan facility of packing Credit Limit of Rs.1,10,00,000/- and post Shipment Credit Limit of Rs.1,40,00,000/- for the agricultural sector. As the petitioner was irregular in paying the loan amount, the account is

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classified as NPA on 11.12.2024. Thereafter, the proceedings under the SARFAESI Act were initiated by the Bank and Possession Notice was issued on 24.02.2025. Then the petitioner has filed SA No.14/2025 before the DRT. An interim order was granted on 03.03.2025 subject to the petitioner paying 25% of the outstanding amount within two months in two instalments, totally amounting to Rs.47,66,414/-. The petitioner has paid the said amount to the respondent-Bank as ordered by the DRT. It is stated that sum of Rs.90,58,445.15 is due towards packing credit and sum of Rs.48,69,865/- is due towards the post shipment credit as on today. It is stated that the petitioner is ready and willing to repay the entire loan amount provided a reasonable time is given to the petitioner as the overseas customers are delaying payments to be made to the petitioner against the goods exported to them. It is stated that due to adverse market condition in the overseas business, the overseas customers are delaying the payments to the petitioner which in turn affects the repayment of the loans by the petitioner. It is stated that in spite of bringing all these facts to the notice of the DRT, has failed to consider the same and has passed an order dated 27.02.2026 upholding the

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possession notice issued by the Bank on technical grounds. It is the contention that none of the grounds raised by the petitioner were considered by the DRT. Hence, the petitioner is before

this Court.

3. Though normally this Court is not entertaining writ

petitions that are filed against the order passed by the DRT or any steps initiated by the Bank as the party has an effective alternative remedy before the DRT or before the DRAT. However, in cases where the