Disposed¶34

Mr. K.T. Venkatesh, v. M/S Edelweiss Asset Reconstruction Company Ltd.

Karnataka HC18 Mar 2025WP/7065/2025

Case brief

AI extract

What is this about?

Karnataka HC; WP No. 7065 of 2025 (GM-RES); Article 226; SARFAESI Act 2002 Section 14; Edelweiss Asset Reconstruction Company Ltd.; EARC Trust SC 451; loan account regularization; representation dated 21.02.2025; dues Rs.47,00,000/-; Rs.10,00,000/- paid per order dated 14.03.2025; undertaking to pay Rs.5,00,000/- by 25.03.2025; restoration/redelivery of possession; liberty to bank on breach; petition disposed 18.03.2025; M. Nagaprasanna J.

What did the court decide?

Restoration of possession of the property to the petitioners, conditional on payment of Rs.5,00,000/- on or before 25.03.2025; upon breach of the undertaking, the bank is at liberty to take action in accordance with law, the subject order being construed as one under Section 14 of the SARFAESI Act, 2002. ¶34

Mr. K.T. Venkatesh, Vs M/S Edelweiss Asset… — Banking and Recovery | Karnataka HC (2025)

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NC: 2025:KHC:11155 WP No. 7065 of 2025

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 18^TH DAY OF MARCH, 2025

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BEFORE

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THE HON'BLE MR JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 7065 OF 2025 (GM-RES)

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BETWEEN:

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MR. K.T. VENKATESH, S/O THIRUMALAPPA, AGED ABOUT 50 YEARS, RESIDING AT NO.123, BEHIND GOVERNMENT SCHOOL, KOGILU YELAHANKA, BANGALORE NORTH YELAHANKA, BANGALORE - 560 064.

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Digitally signed by NAGAVENI Location: High Court of Karnataka

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MRS. LAKSHMI M, W/O K.T. VENKATESH, AGED ABOUT 45 YEARS, RESIDING AT NO.123, BEHIND GOVERNMENT SCHOOL, KOGILU YELAHANKA, BANGALORE NORTH YELAHANKA, BANGLAORE - 560 064.

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…PETITIONERS

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(BY SMT. SANDHYA U. PRABHU, ADVOCATE)

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AND:

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M/S. EDELWEISS ASSET RECONSTRUCTION COMPANY LTD.,

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2 - NC: 2025:KHC:11155 WP No. 7065 of 2025

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REGISTERED UNDER COMPANY ACT HAVING ITS REGISTERED OFFICE AT EDELWISS HOUSE, 1ST FLOOR, OFF CST ROAD, KALLNA, MUMBAI - 400 098, ACTING IN ITS CAPACITY AS TRUSTEE OF EARC TRUST SC 451, REPRESENTED BY ITS AUTHORIZED OFFICER K. RADHAKRISHNAN NAIR.

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…RESPONDENT

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(BY SRI. VIJAY S, ADVOCATE)

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THIS W.P. IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT THE RESPONDENT TO RECONSIDER THE REPRESENTATION OF THE PETITIONERS ORDER DATED 21.02.2025 FOR REGULARIZING THE LOAN ACCOUNT PRODUCED AT ANNX-G AND ETC.,

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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 petitioners are before this Court seeking a direction to the respondent-bank to reconsider the representation of the petitioners for regularization of their loan. The amount in due

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3 - NC: 2025:KHC:11155 WP No. 7065 of 2025

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according to the respondent- Bank is Rs.47,00,000/- out of which Rs.10,00,000/- is paid pursuant to the order passed by this Court on 14.03.2025. The issue now is redelivery of possession of the property to the petitioners.

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Heard Smt. Sandhya U. Prabhu, learned counsel

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appearing for the petitioners and Shri Vijay S., learned counsel appearing for the respondent.

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The learned counsel appearing for the respondent - Bank submits that if some more amount is directed to be paid, it would reach the stage of regularisation of the account.

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The learned counsel appearing for the petitioners at this juncture would undertake that Rs.5,00,000/- would be paid in the next one week i.e., on or before 25.03.2025.

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The possession of the property shall be restored subject to the aforesaid condition. In the event, the petitioners would breach the undertaking now given to this Court of depositing of Rs.5/- more lakhs, the bank is at liberty to take action in accordance with law, for which purpose the subject order shall be construed to be an order under Section 14 of the

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NC: 2025:KHC:11155 WP No. 7065 of 2025

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Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.

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With the aforesaid observations, the petition stands disposed.

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Sd/(M.NAGAPRASANNA) JUDGE

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JY List No.: 1 Sl No.: 31 CT: BHK