M/S Priya Veg Sit Extension, v. the Punjab National Bank
SARFAESI Act – Enforcement of security interest
Case brief
What is this about?
Karnataka High Court (B M Shyam Prasad, J., 11.09.2025) disposes of two connected writ petitions by borrowers (M/s Priya Veg Sit Extension, Tumkuru and family members) against Punjab National Bank's SARFAESI enforcement. Challenge to the Section 14 order dated 31.01.2024 (Crl. Misc. No. 242/2023, Prl. Senior Civil Judge and CJM, Tumakuru) and vacating notice dated 20/02/2024 fails because the petitioners did not comply with the conditional interim order requiring deposit of 20% of outstanding dues (only Rs. 8,00,000/- paid against dues exceeding Rs. 4 crores); liberty reserved to pursue the Section 17 SARFAESI Act remedy. The petition against the auction sale notice dated 05.08.2025 is rendered infructuous as the sale was not held as notified. Counsel's request for referral to Lok Adalat was not acceded to. Keywords: SARFAESI Act; Section 14 order; Section 17 remedy; authorized officer; vacating notice; sale notice; conditional interim order; default in deposit; Article 226/227; Tumakuru.