Disposed¶44

Smt. Gunasheela v. the Authorized Officer

Karnataka HC4 Apr 2025WP/6304/2025

Case brief

AI extract

What is this about?

SARFAESI Act Section 13(2) demand notice; Rule 8(1) Security Interest (Enforcement) Rules 2002 possession notice; Bengaluru District Central Co-operative Bank Limited; Authorized Officer; writ petition disposed with direction to regularise loan account within six weeks; no precipitative action against petitioner's property; representation to bank to tweak interest; interim order deposit Rs.4,59,213/-; outstanding Rs.10,74,955/-; Karnataka High Court GM-RES; borrower Gunasheela; Ramanagara; Article 226 Article 227.

What did the court decide?

Petition disposed: petitioner directed to regularise the account within six weeks and to represent to the bank to have the interest tweaked; no precipitative action to be taken against the petitioner's property till such time. ¶44

Smt. Gunasheela Vs the Authorized Officer — Banking and Recovery | Karnataka HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the demand notice dated 09/07/2024 under Section 13(2) of the SARFAESI Act (Annexure-A2) and the possession notice dated 06/02/2025 under Rule 8(1) of the Security Interest (Enforcement) Rules, 2002 (Annexure-B) issued by the respondent bank are liable to be quashed. +1 more

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Court's answer

The petition is disposed of with a direction to the petitioner to regularise the loan account within six weeks.

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Ratio / Principle

Till the account is regularised, no precipitative action shall be taken against the petitioner's property.

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Key takeaways

It is for the petitioner to represent to the bank and get the interest tweaked at the hands of the bank.ratio¶43

Detailed headnote1 paragraphs

High Court of Karnataka (M. Nagaprasanna J.), Writ Petition (GM-RES) No. 6304 of 2025, disposed on 04.04.2025. The petitioner sought certiorari to quash a demand notice dated 09/07/2024 under Section 13(2) of the SARFAESI Act (No.BDCCB/HO/LEGAL/1184/2024-25) and a possession notice dated 06/02/2025 under Rule 8(1) of the Security Interest (Enforcement) Rules, 2002 (No.BDCCB/HO/LEGAL/4023/2024-25) issued by the Authorized Officer, The Bengaluru District Central Co-operative Bank Limited, together with prohibition against taking possession of the schedule house without due process and mandamus to follow natural justice. By interim order dated 03.03.2025 the Court had noted a projected outstanding of Rs.10,74,955/- (principal Rs.4,59,213/-, interest Rs.5,23,012/-, compound interest Rs.92,730/-) against the impugned notice dated 16.03.2024, directed deposit of Rs.4,59,213/- and stayed further proceedings subject thereto. Upon the bank submitting that the interim order stood complied with, the Court disposed of the petition directing the petitioner to regularise the account within six weeks, to represent to the bank to get the interest tweaked, and directing that no precipitative action be taken against her property till such time.

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NC: 2025:KHC:14361 WP No. 6304 of 2025

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4^TH DAY OF APRIL, 2025

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BEFORE

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THE HON'BLE MR JUSTICE M.NAGAPRASANNA

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WRIT PETITION NO. 6304 OF 2025 (GM-RES)

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BETWEEN:

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SMT. GUNASHEELA W/O SHANKAR, AGED ABOUT 34 YEARS, R/AT MANGIPALYA VILLAGE, SANKIGHATTA POST, THIPPASANDRA HOBLI, RAMANAGARA DISTRICT - 562 131

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…PETITIONER

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(BY SRI. MANJULA DEVI M G., ADVOCATE)

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AND:

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Digitally signed by NAGAVENI Location: High Court of Karnataka

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THE AUTHORIZED OFFICER THE BENGALURU DISTRICT CENTRAL CO-OPERATIVE BANK LIMITED, OFFICE NO.2, G M C BANK CAMPUS, PAMPAMAHAKAVI ROAD, CHAMARAJAPET, BENGALURU-560018

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…RESPONDENT

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(BY SRI. K.V. LOKESH, ADV. FOR C/R)

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THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE ANNEXURE-A2 AND B ISSUED BY THE RESPONDENT DATED 09/07/2024 ISSUED UNDER SECTION 13 (2) OF SARFAESI ACT IN NO.BDCCB/HO/LEGAL /1184/2024-25 AND POSSESSION NOTICE UNDER RULE 8 (1) OF SECURITY INTEREST (ENFORCEMENT) RULES, 2002 DATED 06/02/2025 IN NO.BDCCB/HO/LEGAL/4023/2024-25 RESPECTIVELY AND ETC.

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NC: 2025:KHC:14361 WP No. 6304 of 2025

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THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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CORAM: HON'BLE MR JUSTICE M.NAGAPRASANNA

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ORAL ORDER

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The petitioner is before this Court seeking the following

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prayer:

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"(i) Issue Writ of Certiorari to quash the Annexure-A2 and Annexure - B issued by the respondent dated 09/07/2024 issued Under Section 13(2) of SARFAESI Act in No.BDCCB/HO/LEGAL/1184/202425 and Possession Notice under Rule 8(1) of Security Interest (Enforcement) rules, 2002 dated 06/02/2025 in No.BDCCB/HO/LEGAL/4023/2024-25 respectively.

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(ii) Issue Writ of Prohibition prohibiting the respondent bank not to take the possession of the schedule house without following the due process of law.

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(iii) Issue Writ of Mandamus directing the respondent bank, to follow the principles of the natural justice.

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(iv) Grant such other relief/s deems-fit in the circumstances of the above said case."

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This Court, grants an interim order on 03.03.2025,

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which reads as follows:

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"Heard the learned counsel appearing for the petitioner and the learned counsel, Sri. K.V. Lokesh, appearing for the respondent.

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3 - NC: 2025:KHC:14361 WP No. 6304 of 2025

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Sri. K.V. Lokesh, learned counsel is directed to accept notice for the respondent.

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Learned counsel appearing for the petitioner is directed to serve a copy of the petition papers upon the aforesaid learned counsel.

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The impugned notice dated 16.03.2024 indicates that the amount in due is Rs.4,59,213/-, interest is Rs.5,23,012/- and compound interest is Rs.92,730/- put together a whooping figure of Rs.10,74,955/- is projected for outstanding Rs.4,59,213/-. Be that as it may.

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Four weeks or on or before 31.03.2025, whichever is earlier, is granted to the petitioner to deposit Rs.4,59,213/-. Insofar as the interest is concerned, the petitioner is directed to approach the respondent – Bank and to sit with them and settle the issue.

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Therefore, there shall be an interim order of stay of all further proceedings pursuant to the impugned notice dated 16.03.2024, subject to the aforesaid condition. List the matter on 03.04.2025."

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The learned counsel appearing for the bank submits

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that the interim order has been complied with and would further submits that if the petitioner undertake to regularise the amount, the petition itself can be disposed.

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Learned counsel for the petitioner submits that if six weeks time is granted, the account would be regularised, but

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NC: 2025:KHC:14361 WP No. 6304 of 2025

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has a difficulty with the imposition of interest by the bank which is exorbitant, is the submission.

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Therefore, it is for the petitioner to represent and

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get the interest tweaked at the hands of the bank. However, I deem it appropriate to dispose the petition with the direction to the petitioner to regularise the account, within the next six weeks.

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