Sri M v Manjunath Vs Karnataka Bank Limited

KARNATAKA BANK LIMITED, ASSET RECOVERY MANAGEMENT BRANCH, KARNATAKA BANK BUILDING, 1ST FLOOR, WARD NO.29, MARALURU EXTENSION, SADASHIVANAGAR, TUMKUR - 572 105, REPRESENTED BY ITS CHIEF MANAGER.

¶15

M/S. VARSHA AGRI BUSINESS CENTER FOR DEVELOPMENT LTD., A COMPANY REGISTERED UNDER THE COMPANIES ACT REGISTERED OFFICE AT NO. 2238, MRUTHYUNJAYA COMPOUND, V.P. EXTENSION MAIN ROAD,

¶16

2 - NC: 2025:KHC:19352 WP No. 16235 of 2025

¶17

HC-KAR

¶18

CHITRADURGA - 577 501, REPRESENTED BY ITS DIRECTOR.

¶19

SRI. S.V. RAJU S/O. SRI. S.C. VEERABHADRAPPA, AGE MAJOR, R/AT. NO.12-1, 5TH BLOCK, MRUTHYUNJAYA COMPOUND, V.P. EXTENSION MAIN ROAD, CHITRADURGA - 577 501.

¶20

SRI. MARCHAD CHANNA MALLIKARJUNA GOUD, S/O. SRI. BASAVA GOUD MARCHAD, AGE MAJOR, R/AT. FLAT NO.301, MARCHAD REINO APARTMENT, GANDHI NAGAR, 2ND CROSS, BALLARI - 583 101.

¶21

SMT. PALLAVI RAJU W/O. SRI. S.V. RAJU, AGE MAJOR, R/AT. MRUTHYUNJAYA COMPOUND, 5TH BLOCK, V.P. EXTENSION MAIN ROAD, CHITRADURGA - 577 501.

¶22

SMT. S.V. ARUNA W/O. SRI. MANJUNATH, AGE MAJOR, R/AT. PLOT NO.41, NEW VIJAYANAGAR COLONY, CANTONMENT, NEAR RADIO PARK, BALLARI - 583 104.

¶23

SRI. S.C. KIRAN, S/O. SRI. S.C. CHANDRASHEKAR, AGED ABOUT 37 YEARS,

¶24

3 - NC: 2025:KHC:19352 WP No. 16235 of 2025

¶25

HC-KAR

¶26

R/AT. NO.12/1, V.P. EXTENSION MAIN ROAD, CHITRADURGA - 577 501.

¶27

SRI. S.C. VEERABHADRAPPA S/O. SRI. CHENNAVEERAPPA, AGE MAJOR, R/AT. NO.432, KSHETRA, VASUNDHARA KRISHT, BOMMAGONDANAKERE (B.G. KERE), MOLAKALMURU TALUK, CHITRADURGA - 577 529.

¶28

SRI. MARCHAD RAJASHEKAR GOUD S/O. SRI. M.S. BASAVANA GOUD, AGE MAJOR, R/AT. NO.88 AND 89, SANGANAKALLU ROAD, HARIPRIYANAGARA, BALLARI - 583 101.

¶29

SRI. SHANKARAPPA

¶30

S/O. SRI. RAMAPPA, AGE MAJOR, R/AT NO.43, KATTAMMANAVAR STREET, GOLLANAGANAHALLI, BALLARI - 583 117.

¶31

SMT. MARCHAD NARASAMMA W/O. SRI. M.S. BASAVANA GOUD, AGE MAJOR, R/AT. NO.88 AND 89, SANGANAKALLU ROAD, HARIPRIYANAGARA, BALLARI - 583 101.

¶32

4 -

¶33

NC: 2025:KHC:19352 WP No. 16235 of 2025

¶34

HC-KAR

¶35

M/S. SANDEEP MINERALS PRIVATE LIMITED A COMPANY REGISTERED UNDER THE COMPANIES ACT, REGISTERED OFFICE AT NO.3, 1ST FLOOR, AMBEDKAR COMPLEX, DOUBLE ROAD, BALLARI - 583 101, REPRESENTED BY ITS DIRECTOR.

¶36

…RESPONDENTS

¶37

(BY SRI. NITHIN CHANDRAN M, ADVOCATE FOR C/R1)

¶38

THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO-QUASHING THE IMPUGNED SALE NOTICE DATED 23.04.2025, ISSUED AGAINST THE SCHEDULE PROPERTY OF THE PETITIONER, AS SHOW AND MENTIONED IN THE ITEM NO.3 BY THE 1ST RESPONDENT BANK I.E., KARNATAKA BANK LIMITED, AS PER ANNEXURE- B AND ETC.,

¶39

THIS PETITION, COMING ON FOR PRELIMINARY

¶40

HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

¶41

CORAM: HON'BLE MR JUSTICE S SUNIL DUTT YADAV

¶42

ORAL ORDER

¶43

The petitioner has sought for setting aside of the impugned Sale Notice dated 23.04.2025 issued with respect to the scheduled property shown as Item No.3. Various other reliefs have also been prayed for.

¶44

5 - NC: 2025:KHC:19352 WP No. 16235 of 2025

¶45

HC-KAR

¶46

Petitioner submits that he is a guarantor and insofar

¶47

as such item of property he is ready to pay the reserve price.

¶48

It is further submitted that, in light of his intention to discharge the liability insofar as the auction item No.3 in the auction notice, the Court may issue appropriate direction to the Bank as the Bank is unwilling to settle the matter with respect to the guarantor’s claim is concerned.

¶49

Learned counsel for the respondent - Bank submits once auction notice is issued under Section 13(8) of the SARFAESI Act, the question of any interference does not arise. Even otherwise it is submitted that the statutory remedy as regards proceedings under Section 13 are maintainable by way of proceedings under Section 17 of the SARFAESI Act. Accordingly, it is submitted that the petition be rejected.

¶50

Insofar as the question regarding right of redemption, petitioner has also relied on the order passed

¶51

6 - NC: 2025:KHC:19352 WP No. 16235 of 2025

¶52

HC-KAR

¶53

by the Apex Court in 2024, 6 SCC 579 in the case of

¶54

PHR Invent Educational Society vs. UCO Bank and

¶55

others as also the order of the Apex Court in S.Karthik

¶56

and others vs. N.Subash Chand Jain and others

¶57

passed in Civil Appeal No.5920-5923/2021.

¶58

It is also noticed that the petition has been filed before the date of auction that is listed tomorrow. Taking note of the alternative remedy available under the statute,

¶59

it would be appropriate to relegate the petitioner to avail of the alternative remedy under the statutory scheme.

¶60

All contentions has raised and noticed above regarding right of redemption are kept open. Accordingly, petition is disposed off.

¶61

Learned counsel for the petitioner makes his submission that without prejudice to the legal contentions raised and noticed, he may be permitted to participate in the auction proceedings. Needless to state the petitioner without prejudice to the contentions raised as regards

¶62