Disposed

M/S. K. R. Beverages v. M/S. Canara Bank

Karnataka HC10 Jan 2024WP/4098/2023

Case brief

AI extract

What is this about?

Petitioners sought quashing of a SARFAESI Act Section 13(4) e-auction notice and consideration for one-time settlement of their loan with Canara Bank. The bank submitted that no sale took place and subsequent sales also found no buyers, rendering the petition infructuous; the Court disposed it accordingly.

What did the court decide?

Petition disposed as infructuous; earlier 15% deposit to be credited if fresh sale notice is issued; liberty reserved.

M/S. K. R. Beverages Vs M/S. Canara Bank — Banking and Recovery | Karnataka HC (2024)

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NC: 2024:KHC:1320 WP No. 4098 of 2023

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 10^TH DAY OF JANUARY, 2024

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BEFORE

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THE HON'BLE MR JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 4098 OF 2023 (GM-RES)

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BETWEEN:

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M/S. K.R. BEVERAGES, UNREGISTERED PARTNERSHIP FIRM, REPRESENTED BY ITS 2 B.K. MUNIYAPPA AND B.K. NATARAJA, SY NO. 75/1, RAYASANDRA, BUDIGERE ROAD, DEVANAHALLI, BANGALORE RURAL - 562 110.

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B.K. MUNIYAPPA, S/O SRI. KRISHNAPPA, AGED ABOUT 46 YEARS, R/A NO.30, BYCHAPURA VILLAGE, DEVANAHALLI TALUK, BENGALURU RURAL DISTRICT - 562 110.

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Digitally signed by PADMAVATHI B K Location: HIGH COURT OF KARNATAKA

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SRI. B.K. NATARAJA, S/O SRI. KRISHNAPPA, AGED ABOUT 40 YEARS, R/A NO. 30, BYCHAPURA VILLAGE, DEVANAHALLI TALUK, BENGALURU RURAL DISTRICT - 562 110.

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…PETITIONERS

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(BY SRI. SURESH S. LOKRE, SENIOR ADVOCATE FOR SRI. SHRAVAN S LOKRE, ADVOCATE)

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AND:

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M/S. CANARA BANK, DEVANAHALLI BRANCH, ( A GOVT. OF INDIA UNDERTAKING),

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NC: 2024:KHC:1320 WP No. 4098 of 2023

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REPRESENTED BY ITS AUTHORIZED OFFICER AKSHAYA BAHVAN, BB ROAD, DEVANAHALLI TALUK, BANGALORE RURAL DISTRICT - 562 110, REPRESENTED BY HIS MANAGER.

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…RESPONDENT

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(BY SRI. VINAY SWAMY C, ADVOCATE)

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THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO ALLOW THE ABOVE WRIT PETITION. QUASH THE ANNEXURE-A DATED 07.02.2023 ISSUED UNDER SECTION 13(4) OF THE SARFAESI ACT, 2002, FOR HOLDING E-AUCTION OF THE SCHEDULE LANDS BELONGING TO THE PETITIONER AND ETC.,

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THIS PETITION, COMING ON FOR ORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:

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ORDER

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The petitioners are before this Court, seeking the following prayers:

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(a) Allow the above Writ Petition;

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(b) Issue appropriate Writ of Certiorari to Quash the Annexure-A Ref:E-AUCTION/SALE NOTICE/DEVANAHALLI/044/2023/2/2 dated 07.02.2023 issued under Section 13(4) of the SARFAESI Act, 2002, for holding e-auction of the scheduled lands belonging to the petitioners';

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(c) Issue a writ of mandamus directing the Respondent Bank to consider the case of the petitioners for a One-Time Settlement Scheme of their loan amount.

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(d) Award the Cost of this writ petition and grant such other reliefs as this Hon'ble Court may deem fit, in the above case, in the interest of justice and equity.

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3 - NC: 2024:KHC:1320 WP No. 4098 of 2023

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Heard Sri. Suresh S. Lokre, learned Senior Counsel

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appearing for the petitioners and Sri. Vinay Swamy, learned counsel appearing for the respondent and have perused the material on record.

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Learned counsel appearing for the respondent / Bank submits that the date on which the sale slated to be held, did not take place and the notice has spent itself.

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In the light of the sale not taking place on the said date and the notice having spent itself, the petition is rendered infructuous.

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Learned counsel for the respondent / Bank submits that not only the impugned sale, even subsequent sales have spent itself, as no buyer has come forward to purchase the property.

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In the light of the said submission, the petition is rendered infructuous and is to be disposed of as having become infructuous.

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The learned Senior Counsel appearing for the petitioners would submit that 15% of the amount pursuant to the order passed by this Court is deposited to the Bank. The

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NC: 2024:KHC:1320 WP No. 4098 of 2023

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said deposit shall be treated as a deposit in the event a subsequent sale notice is issued by the Bank, if any.

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Reserving liberty to the petitioners to knock at the

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doors of the appropriate fora, the petition is disposed of as having become infructuous.

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Sd/JUDGE

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GJM List No.: 2 Sl No.: 18 CT: BHK

M/S. K. R. Beverages v. M/S. Canara Bank

Case brief

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What did the court decide?

M/S. K. R. Beverages v. M/S. Canara Bank

Case brief

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What did the court decide?

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