Dismissed¶44

Usha W/O. Kushalchandra Jain v. Jana Swall Finance Bank Limited

Karnataka HC21 Jan 2025WP/100273/2025

Case brief

AI extract

What is this about?

SARFAESI Act Section 14 possession notice challenged by writ; Karnataka High Court, Dharwad Bench; Justice M.Nagaprasanna; WP No.100273 of 2025 (GM-RES); Jana Swall Finance Bank Limited, Hubballi/Dharwad; successive writ petitions (100913/2023, 100914/2023, 105872/2024) dismissed without payment; auction of 20.01.2025 stayed conditionally on deposits of Rs.20 lakhs plus Rs.20 lakhs; dues stated as Rs.1.10 crore; petition rejected for litigative persistence without payment; liberty reserved to pursue statutory remedies; Articles 226 & 227 Constitution of India.

What did the court decide?

No relief granted; liberty reserved to the petitioner to avail such remedy as available in law. ¶44

Usha W/O. Kushalchandra Jain Vs Jana Swall Finance… — Banking and Recovery | Karnataka HC (2025)

What the court decided

AI extract

Outcome

No relief granted; liberty reserved to the petitioner to avail such remedy as available in law.

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Issue for consideration

Whether the writ petition against the Section 14 SARFAESI possession notice and the impending auction should receive the Court's indulgence, given the petitioners' history of repeatedly approaching the Court without making any payment.

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Court's answer

A perusal of the records shows the petitioner wants to play with the law without making any payment at every point in time; therefore, showing indulgence to the petitioner would be putting a premium on his litigative persistence without payment.

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Ratio / Principle

The petition is devoid of merit and stands rejected, with liberty reserved to the petitioner to avail such remedy as is available in law.

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Detailed headnote1 paragraphs

Writ Petition (GM-RES) No.100273 of 2025, High Court of Karnataka, Dharwad Bench (Justice M.Nagaprasanna), decided 21.01.2025: Petitioners challenged a notice dated 13.01.2025 issued by Respondent No.1 (Jana Swall Finance Bank Limited) seeking possession in terms of an order under Section 14 of the SARFAESI Act, and an auction scheduled for 20.01.2025. The borrowers had earlier approached the Court in W.P.Nos.100913 and 100914 of 2023 (the former dismissed for availability of alternative remedy; the latter with the observation that not a penny had been paid pursuant to the interim order) and in W.P.No.105872 of 2024, where an interim order directing payment of Rs.20,00,000/- went uncomplied with and the petition was dismissed on 25.11.2024. In the present petition, the interim order dated 16.01.2025 stayed the auction subject to deposits of Rs.20 lakhs and a further Rs.20 lakhs. Holding that the petitioner wanted to play with the law without making any payment, and that indulgence would put a premium on litigative persistence without payment, the Court rejected the petition as devoid of merit, reserving liberty to avail such remedy as available in law.

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NC: 2025:KHC-D:1036 WP No. 100273 of 2025

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IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH

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DATED THIS THE 21^ST DAY OF JANUARY, 2025

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BEFORE

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THE HON'BLE MR. JUSTICE M.NAGAPRASANNA

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WRIT PETITION NO. 100273 OF 2025 (GM-RES)

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BETWEEN:

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USHA W/O. KUSHALCHANDRA JAIN AGE. 35 YEARS, OCC. HOUSEWIFE,

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SHRI KURHSALCHANDRA S/O. BABULAL JAIN AGE 55 YEARS, OCC: BUSIENSS,

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BOTH ARE R/O. H. NO.216, KOLI PETH, MARATHA GALLI, HUBBALLI, DIST. DHARWAD

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… PETITIONERS

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(BY SRI. SADIQ N GOODWALA, ADVOCATE)

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AND:

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Digitally signed by VISHAL NINGAPPA PATTIHAL Location: High Court of Karnataka

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JANA SWALL FINANCE BANK LIMITED BY ITS AUTHORIZED OFFICER MR.RAGHAVENDRA G GROUND, MEZZANIRE, 1^ST FLOOR, UNKAL VILLAGE, VIDYANAGAR, HUBBALLI, DIST. DHARWAD-580021

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THE TAHSILDAR, HUBBALLI TOWN, HUBBALLI, DIST: DHARWAD.

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BENDIGERI TOWN POLICE STATION, BY POLICE INSPECTOR, DIST: DHARWAD

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THE ADDITIONAL DIRECTOR LAND RECORDS, HUBBALLI TOWN HUBBALLI, DIST: DHARWAD

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NC: 2025:KHC-D:1036 WP No. 100273 of 2025

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THE REVENUE INSPECTOR HUBBALLI TOWN HUBBALLI, DIST: DHARWAD

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…RESPONDENTS

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(BY SMT. GAYATRI S.R., ADVOCATE FOR C/R1; SRI. SHARAD V.MAGADUM, AGA FOR R2 TO R5)

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 & 227 OF THE CONSTITUTION OF INDIA, PRAYING TO ISSUE A WRIT IN A NATURE OF CETIORARI QUASHING THE IMPUGNED ORDER DATED. 13.01.2025 ISSUED BY RESPONDENT NO.1 IN NO. RRC/ SARAFEASI/ CR/ 208/ 2024-25 VIDE ANNEXURE-B AND IN NO. RRC/ SARAFEASI/ CR/ 209/ 2024-25 VIDE ANNEXURE-C & ETC.,

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THIS PETITION, COMING ON FORORDERS, THIS DAY, THE COURT MADE THE FOLLOWING:

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ORAL ORDER

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(PER: THE HON'BLE MR. JUSTICE M.NAGAPRASANNA)

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The petitioner is before this Court calling in question the notice dated 13.01.2025 seeking to take possession of the property in terms of an order passed for the concerned Court under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short “the SARFAESI Act).

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The petitioner is knocked for the first time before

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this Court. At every stage of an order under Section 14, the petitioner is at the doors of this Court, first in Writ Petition No.100913 of 2023, which comes to be dismissed on the

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3 - NC: 2025:KHC-D:1036 WP No. 100273 of 2025

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score of availability of alternative remedy and another petition filed on the same day in Writ Petition No.100914 of 2023, the observations of this Court is that, pursuant to the interim order not a penny is paid to the Bank. The steps are taken by the bank yet again to take possession of the property. The petitioner is again before this Court in Writ Petition No.105872 of 2024, this Court passed an interim order directing payment of Rs,20,00,000/- within four weeks. Learned counsel for the respondent No.1 - Smt. Gayatri S.R. submits that not a penny has been paid as was done earlier by this borrower. Non compliance with the interim order, this Court dismissed the petition by its order dated 25^th November 2024. The petitioner is again at the doors of this Court. This Court on 16.01.2025 had passed the following order:

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“Learned AGA is directed to accept notice for respondent Nos.2 to 5.

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The petitioners are before this Court calling in question an auction that is stated to be taken on 20.01.2025. The amount according to the petitioners in due is Rs.1.10 crore and would submit that if

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4 - NC: 2025:KHC-D:1036 WP No. 100273 of 2025

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reasonable time is granted the amount would be cleared.

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In the light of the said submission, there shall be an interim order of stay of the auction stated to be held on 20.01.2025 subject to the condition that the petitioners would deposit Rs.20 lakhs in the next four weeks and another Rs.20 lakhs in the next four weeks.

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It is made clear that in the event the petitioners would not comply the first condition, not only the interim order would get vacated, but the petitioner would run at the risk of writ petition itself getting dismissed.

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There shall be interim order of stay subject to the aforesaid condition only if possession is not taken as on today.

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List the matter on 21.01.2025 in the fresh matters list.”

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Learned counsel for the respondent No.1 - Smt. Gayatri S.R. had vehemently oppose the grant of an interim order seeking time to place all the records before the Court which are now placed. A perusal at the records clearly indicate that the petitioner is wanting to play with

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5 - NC: 2025:KHC-D:1036 WP No. 100273 of 2025

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the law without making any payment in every point in time. Therefore, showing indulgence to the petitioner would be putting a premium on his litigative persistence without payment. Therefore the petition is devoid of merit, stands rejected, reserving liberty to the petitioner to avail such

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remedy as available in law.

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Sd/(M.NAGAPRASANNA)

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JUDGE

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VNP / CT: ASC List No.: 1 Sl No.: 29

Usha W/O. Kushalchandra Jain v. Jana Swall Finance Bank Limited

Case brief

What is this about?

What did the court decide?

Usha W/O. Kushalchandra Jain v. Jana Swall Finance Bank Limited

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

Issues for consideration

Statutes considered

Procedural history

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