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NC: 2026:KHC:21344 WP No. 20391 of 2025

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 17^TH DAY OF APRIL, 2026

BEFORE THE HON'BLE SMT. JUSTICE LALITHA KANNEGANTI

WRIT PETITION NO. 20391 OF 2025 (GM-DRT)

BETWEEN:

1. SRI. B M RAMACHANDRAIAH S/O. B.L.MALLAPPA,

AGED ABOUT 76 YEARS

2. SMT. SHARADAMMA @ SHIVAMMA, W/O. SRI. B.M. RAMACHANDRAIAH,

AGED ABOUT 74 YEARS

3. SMT. B.R.VISHWANATHA, S/O. SRI. B.M. RAMACHANDRAIAH,

AGED ABOUT 42 YEARS, ALL ARE RESIDING AT

M.G.ROAD, KOLLUR NEW BADAVANE, NEAR VENKATESHWARA KALYANA MANTAPA

SRINIVASAPURA TOWN, KOLAR DISTRICT-563 135.

Digitally signed by SUVARNA T …PETITIONERS Location: HIGH (BY SRI. ZULFIKIR KUMAR SHAFI, ADVOCATE)

COURT OF KARNATAKA AND:

THE CANARA BANK REPRESENTED BY ITS

CHIEF MANAGER HI-TECH AGRICULTURAL

FINANCE BRANCH SITUATED AT M BLOCK,

UNITY BUILDING, J.C. ROAD, BENGALURU-560 002

…RESPONDENT (BY SRI. VIGNESH SHETTY, ADVOCATE)

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NC: 2026:KHC:21344 WP No. 20391 of 2025

HC-KAR

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT OF CERTIORARI OR ANY OTHER WRIT OF ORDER TO QUASH THE LETTER DATED 24.02.2025 VIDE REFERENCE NO.2356/OTS/AF/SP/2024 UNDER ANNEXURE-J ISSUED BY THE RESPONDENT BANK, WITHDRAWING THE OTS SANCTION DATED 20.09.2024 ISSUED IN FAVOUR OF THE

PETITIONERS.

THIS PETITION, COMING ON FOR FINAL HEARING, 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, this Hon’ble Court be pleased to:

a) Issue a writ of certiorari or any other writ or order to quash the letter dated 24.02.2025 vide reference No.2356/OTS/AF/SP/2024 under Annexure-J issued by the Respondent Bank, withdrawing the OTS sanction dated 20.09.2024 issued in

favour of the petitioners.

b) Issue a writ or a direction in the nature of mandamus directing the respondent bank to revive the OTS letter dated 20.09.2024 vide reference No.2366/OTS/AF/SP/2024 under Annexure-G and grant reasonable time to pay the remaining amount of Rs.7,35,00,000/- (Rupees Seven Crore Thirty Five Lakhs Only) to

the respondent bank.

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NC: 2026:KHC:21344 WP No. 20391 of 2025

HC-KAR

c) Issue a writ or a direction, directing the respondents to release the commercial properties from the mortgage in favour of the petitioners as against the payment of Rs.5,40,00,000/- (Rupees Five Crore Forty Lakhs Only) already made under the OTS scheme and allow the petitioner to pay remaining amount of Rs.7,35,00,000/- (Rupees Seven Crore Thirty Five Lakhs Only) to the

respondent bank.

d) To pass any other suitable order as this Court deems fit and proper in the circumstances and in the interest of justice and

equity.”

2. Learned counsel appearing for the petitioners

submits that the petitioners, pursuant to the OTS letter dated 20.09.2024 have already paid an amount of Rs.5,40,00,000/-. As they could not mobilize the remaining amount, they could not pay the same. It is submitted by the learned counsel that as per the letter dated 20.09.2024, basing on the payments, the commercial properties which are mortgaged will be released and they have already paid an amount of Rs.5,40,00,000/-. If the said property is released, they would be in a position to sell the property and pay the entire outstanding amount. It is submitted that in the Lok-Adalath for negotiations, the Bank is

not coming forward. Hence they seek a direction to the Bank.

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NC: 2026:KHC:21344 WP No. 20391 of 2025

HC-KAR

3. Learned counsel appearing for the respondent/Bank

submits that when the petitioners have failed to honour the OTS letter dated 20.09.2024, as per that, they have to pay the entire amount by 20.12.2024. The Bank in fact has waited till 24.02.2025 and thereafter they have cancelled the proposal earlier given to the petitioner. It is submitted that the Bank has accommodated the petitioners and later cancelled the proposal. It is submitted that this Court may not pass an or