M/S. Avion Network Vs the National Co-Operative… — Writ and Judicial Review | Karnataka HC (2025)

M/S. Avion Network Vs the National Co-Operative… — Writ and Judicial Review | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Writ petition disposed of on settlement terms: petitioners directed to pay Rs.3.75 crores to respondent No.2 on or before 15.03.2026; if the amount is cleared, respondent No.2 to release the original property documents in favour of the petitioners. The prayer to quash the seizure notice was not adjudicated on merits.

Issue for consideration

Whether the seizure notice dated 1.3.2018 (Annex-A), issued for seizure of the primary collateral moveable assets and furniture in Schedule A property and for taking possession of the petitioners' properties allegedly without due process of law, should be quashed.

Ratio / Principle

On the joint submission of both sides that respondent No.2 accepted the petitioners' proposal to pay Rs.3.75 crores as one-time settlement, the writ petition is disposed of with a direction to the petitioners to pay Rs.3.75 crores to respondent No.2 on or before 15.03.2026.

Key takeaways

Conditional direction: in case the settlement amount is cleared, respondent No.2 shall release the original property documents in favour of the petitioners.ratio¶32

Detailed headnote1 paragraphs

High Court of Karnataka at Bengaluru, 02.12.2025 (Hon'ble Mrs. Justice M G Uma) — WP No. 13695 of 2018 (CS-RES); NC: 2025:KHC:50247. M/s. Avion Network and two others v. The National Co-operative Bank Ltd. (R1) and Cosmos Co-operative Bank Ltd. (R2, amended per order dated 31.07.2025). Writ petition under Articles 226 and 227 of the Constitution praying to quash a seizure notice dated 1.3.2018 (Annex-A) for seizure of the primary collateral moveable assets and furniture in Schedule A property and taking possession of the petitioners' properties without due process of law. At the hearing, learned counsel for the petitioners and respondents submitted in unison that the petitioners had proposed to pay Rs.3.75 crores as one-time settlement to respondent No.2 within 15.03.2026 and that respondent No.2 had accepted the proposal. The writ petition was disposed of, directing the petitioners to pay Rs.3.75 crores to respondent No.2 on or before 15.03.2026, and, in case the amount is cleared, directing respondent No.2 to release the original property documents in favour of the petitioners. No ruling was made on the legality of the seizure notice.

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NC: 2025:KHC:50247 WP No. 13695 of 2018

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 2^ND DAY OF DECEMBER, 2025

BEFORE

THE HON'BLE MRS. JUSTICE M G UMA

WRIT PETITION NO. 13695 OF 2018 (CS-RES)

BETWEEN:

M/S. AVION NETWORK NO. 174/40, LUCKY PARADISE JAYANAGAR BANGALORE 560011. REP BY ITS AUTHORISED PARTNER MR. NAGENDRA C N AGED ABOUT 41 YEARS

SRI. NAGENDRA C N S/O. SRI. NATARAJU AGED ABOUT 40 YEARS R/AT NO. 98, 1^ST CROSS 11^TH MAIN, 3^RD PHASE GIRINAGAR BENGALURU-560086

Digitally signed by PRASHANTH N V Location: High Court of Karnataka

SMT. NALINA S MURTHY W/O. SRI. A SREENIVASA MURTHY AGED ABOUT 52 YEARS R/.AT 406, 5^TH CROSS, 8^TH MAIN BDA, AVALAHALLI LAYOUT BSK 3^RD STAGE. BENGALURU - 560 085

&PETITIONERS

(BY SRI: AJAY .N., ADVOCATE FOR SRI: G.A. MITHUN, ADVOCATE)

AND:

THE NATIONAL CO-OPERATIVE BANK LIMITED NO. 73/1, GANDHIBAZAR MAIN ROAD BENGALURU - 560 004.

2 - NC: 2025:KHC:50247 WP No. 13695 of 2018

HC-KAR

REPRESENTED BY ITS ASSISTANT GENERAL MANAGER

COSMOS CO-OPERATIVE BANK LTD. 3^RD MAIN ROAD, MOUNT JOY EXTENSION HANUMANTHNAGAR BANASHANKARI 1^ST STAGE BENGALURU - 560 019, REP. BY ITS CHAIRMAN. AMENDED AS PER ORDER DATED 31.07.2025

&RESPONDENTS

(BY SRI: CHANDRASHEKHAR C CHANASPUR, ADVOCATE FOR R2 SMT. SHOBHA K.R., ADVOCATE FOR R1 (ABSENT))

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF CONSTITUTION OF INDIA PRAYING TO QUASH THE SEIZURE NOTICE DATED 1.3.2018 FOR SEIZURE OF THE PRIMARY COLLATERAL THE MOVEABLE ASSETS, FURNITURE IN SCHEDULE A PROPERTY AND FURTHER TAKING POSSESSION OF THE PROPERTIES WITHOUT DUE PROCESS OF LAW OF THE PETITIONER VIDE ANNEXA. AND ETC.,

THIS WRIT PETITION, COMING ON FOR HEARING - INTERLOCUTORY APPLN, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MRS. JUSTICE M G UMA

ORAL ORDER

Learned counsel for the petitioners and respondents

submit in unison that the petitioner gave a proposal to the respondent No.2 that they are ready to pay Rs.3.75 crores as one time settlement within 15.03.2026 and that the said proposal is accepted by respondent No.2. Hence they pray that the writ petition may be disposed off.

The submissions are placed on record.

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NC: 2025:KHC:50247 WP No. 13695 of 2018

HC-KAR

The writ petition is disposed off, directing the petitioners to pay Rs.3.75 crores to respondent No.2 on or before 15.03.2026. In case the amount is cleared, respondent No.2 shall release the original property documents in favour of the petitioners.

Sd/(M G UMA) JUDGE

*bgn/CT:VS List No.: 1 Sl No.: 4