Vdb Property Ventures Private Limited Vs the Bank… — Writ and Judicial Review | Karnataka HC (2025)

Vdb Property Ventures Private Limited Vs the Bank… — Writ and Judicial Review | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Continuation of the subsisting interim order for two weeks from the date of the order so that the petitioner may approach the Debt Recovery Tribunal, with automatic vacation of the interim order if the DRT is not approached within that period.

Issue for consideration

Whether the e-auction sale of the Schedule Property at Rs.1,08,50,000/- (asserted by the petitioner's counsel to be property worth Rs.4 crores) should be undone by quashing the e-auction notice dated 27.02.2025 (Annx-A) and restraining respondent No.1 Bank from confirming the sale. +1 more

Ratio / Principle

The petition is disposed of; the subsisting interim order is continued for a period of two weeks from today to enable the petitioner to avail of the remedy of approaching the DRT.

Key takeaways

If the petitioner does not approach the DRT within two weeks from today, the interim order will stand automatically vacated.ratio¶49

Detailed headnote1 paragraphs

Writ petition under Articles 226 and 227 of the Constitution of India by VDB Property Ventures Private Limited challenging the e-auction notice dated 27.02.2025 (produced as Annx-A) in respect of the Schedule Property, with a consequential prayer that respondent No.1, the Bank of Baroda, be directed not to confirm the sale. By order dated 24.04.2025 the Court recorded the grievance that property worth Rs.4 crores had been 'sold for a song' for Rs.1,08,50,000/-, called for particulars of prior sales and the registered valuer's evaluation report, and continued the interim order subject to the petitioner paying Rs.1,08,50,000/- to the Bank within four weeks. At the hearing fixed for 03.06.2025 the Bank's counsel reported that not a rupee had been paid pursuant to the interim order, whereupon the petitioner's counsel elected to raise the challenge before the Debt Recovery Tribunal ('the DRT'). Disposing of the petition, the learned single Judge (Hon'ble Mr Justice M.Nagaprasanna) continued the interim order for two weeks to enable the petitioner to approach the DRT, and directed that in the event of failure to do so within that period, the interim order would stand automatically vacated.

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NC: 2025:KHC:18671 WP No. 11743 of 2025

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 3^RD DAY OF JUNE, 2025

BEFORE

THE HON'BLE MR JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 11743 OF 2025 (GM-RES)

BETWEEN:

Digitally signed by NAGAVENI Location: High Court of Karnataka

VDB PROPERTY VENTURES PRIVATE LIMITED, PROPERTY DEVELOPMENT COMPANY UNDER COMPANIES ACT 1956, OFFICE AT NO. 42, 3RD FLOOR, CASTLE STREET, ASHOKNAGAR, BENGALURU - 560 025, REPRESENTED BY ITS DIRECTOR MR. KOSHY VARGHESE S/O ABRAHAM VARGHESE, AGED ABOUT 62 YEARS, RESIDING AT NO. A-04, NUSA DUA, SY. NO. S 33/P, 34/P, 36/P, 37/P, R NARAYANAPURA ROAD, WHITEFIELD VILLAGE, K.R. PURAM HOBLI, BENGALURU - 560 066.

…PETITIONER

(BY SRI. DILIP KUMAR I.S, ADVOCATE)

AND:

THE BANK OF BARODA, REPRESENTED BY ITS AUTHORIZED OFFICER, BANKING COMPANY UNDER COMPANIES ACT ZONAL STRESSED ASSET RECOVERY BRANCH,

2 - NC: 2025:KHC:18671 WP No. 11743 of 2025

HC-KAR

7TH FLOOR, VIJAYA TOWERS, 41/2, M G ROAD,

BENGALURU - 560 001.

MR. T PRASAD, S/O NOT KNOWN, AGED MAJOR, RESIDING AT NO. 1599, 22 MAIN, 40TH CROSS, JAYANAGAR, 4TH T BLOCK, JAYANAGAR, BENGALURU - 560 041.

MRS. R RENUKA, W/O MR. T PRASAD, RESIDING AT NO. 1599, 22ND MAIN, 40TH CROSS, JAYANAGAR, 4TH T BLOCK, JAYANAGAR, BENGALURU - 560 041.

MR. JAGADISH K, S/O KRISHNAMURTHY, AGED MAJOR, RESIDING AT NO. 13, SAINORA NILAYA, JAYANTHI LAYOUT, NEAR KBC COLLEGE, KODIPALYA, KENGERI, BENGALURU - 560 060.

…RESPONDENTS

(BY SMT. NATASHA N. MURTHY, ADVOCATET FOR SRI. VIGNESH SHETTY, ADVOCATE FOR R1)

THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF

THE CONSTITUTION OF INDIA PRAYING TO QUASH THE E-

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NC: 2025:KHC:18671 WP No. 11743 of 2025

HC-KAR

AUCTION NOTICE DATED 27.02.2025 PRODUCED AS ANNX-A CONSEQUENTLY DIRECT THE R-1 BANK NOT TO CONFIRM THE SALE, IN RESPECT OF SCHEDULE PROPERTY AND ETC.,

THIS PETITION, COMING ON FOR ORDERS, THIS DAY,

ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR JUSTICE M.NAGAPRASANNA

ORAL ORDER

This Court on 24.04.2025 had passed the following order:

"Learned counsel appearing for petitioner submits that the property worth Rs.4 crores today, is sold for a song of Rs.1,08,50,000/-.

Therefore, the learned counsel for the 1st respondent shall placed on record as to whether this was the first sale notified of the property or the number of sales that have taken place prior to it and the evaluation report secured from the registered valuer prior to the subject sale.

The same shall be placed before the Court on the next date of hearing.

Learned counsel for the petitioner submits that he is ready and willing to pay the entire amount that is paid by the auction purchaser and also compensate the auction purchaser adequately. Interim order, subsisting, shall continue till the next date of hearing, subject to the condition that the petitioner would pay to the 1st

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NC: 2025:KHC:18671 WP No. 11743 of 2025

HC-KAR

respondent/Bank Rs.1,08,50,000/- in the next 4 weeks.

Issue emergent notice to respondents 2 to 4. List the matter on 03.06.2025."

The learned counsel appearing for the respondent -

Bank submits that not a rupee has been paid pursuant to the interim order.

At this juncture, the learned counsel appearing for

the petitioner submits that he would approach the Debt Recovery Tribunal ('the DRT' for short) on raising a challenge that is made before this Court.

In that light, I deem it appropriate to dispose the petition. In the light of the subsistence of the interim order, the same shall be continued for a period of two weeks from today and it is for the petitioner to avail of the remedy of approaching the DRT.

In the event, the petitioner would not approach the DRT, within two weeks from today, the interim order would stand automatically vacated.

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NC: 2025:KHC:18671 WP No. 11743 of 2025

HC-KAR

With the aforesaid observations, the petition stand

disposed.

Ordered accordingly.

Sd/(M.NAGAPRASANNA)

JUDGE

JY List No.: 3 Sl No.: 54 CT: BHK