Smt. Leelavathamma Alias Leelavathy Nagaraj Vs the… — Banking and Recovery | Karnataka HC (2025)

Smt. Leelavathamma Alias Leelavathy Nagaraj Vs the… — Banking and Recovery | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Further coercive proceedings kept in abeyance for three weeks to enable the petitioner to approach the DRT; DRT directed to take into account the time spent by the petitioner before this Court.

Issue for consideration

Whether the writ petition challenging the bank's possession notice dated 17/03/2022 should be entertained, or whether the petitioners should be relegated to the alternate remedy of approaching the DRT under Section 17 of the SARFAESI Act.

Court's answer

In view of the deposit of Rs.40,00,000/- pursuant to the interim order dated 22.04.2022, the petitioner can be granted a short accommodation to avail of the alternate remedy and to approach the DRT in accordance with an appropriate application.

Ratio / Principle

Further coercive proceedings shall be kept in abeyance for a period of three weeks to enable the petitioner to approach the DRT.

Key takeaways

Time spent by the petitioner before this Court shall be taken into account by the DRT while considering the application if any, to be filed by the petitioner.ratio¶30

Detailed headnote1 paragraphs

Writ Petition (GM-RES) under Article 226 of the Constitution of India — challenge by two petitioners to a possession notice dated 17/03/2022 bearing No.REF NCB/AO/703/2021-22 (Annexure-C) issued by The National Co-operative Bank Limited in respect of the schedule property. Learned counsel for the petitioners submitted that the petitioners have an efficacious remedy of approaching the DRT under Section 17 of the SARFAESI Act, and that the petitioner had complied with the interim order dated 22.04.2022 by depositing Rs.40,00,000/- against a demand of Rs.3,11,68,417/-. Holding that the petitioner could be granted a short accommodation to avail of the alternate remedy, the Court directed that further coercive proceedings be kept in abeyance for three weeks to enable the petitioner to approach the DRT, and that the time spent before the High Court be taken into account by the DRT while considering any application filed by the petitioner. Writ petition disposed of (Anu Sivaraman, J.).

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NC: 2025:KHC:31707 WP No. 7378 of 2022

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 14^TH DAY OF AUGUST, 2025

BEFORE

THE HON'BLE MRS. JUSTICE ANU SIVARAMAN

WRIT PETITION NO. 7378 OF 2022 (GM-RES)

BETWEEN:

SMT. LEELAVATHAMMA ALIAS LEELAVATHY NAGARAJ W/O SRI T. NAGARAJ AGED 60 YEARS R/A SY. NO.38, RAJ ESTATE KEERANAGERE, HAROHALLY VILLAGE, KANAKAPURA TALUK RAMANAGAR DISTRICT-562 112.

Digitally signed by SHARADAVANI B Location: High Court of Karnataka

ANITHA N RAJ D/O SRI T NAGARAJ AGED 48 YEARS, RESIDING AT SY.NO.38 RAJ ESTATE, KEERANAGERE, HAROHALLY VILLAGE, KANAKAPURA TALUK, RAMANAGAR DISTRICT-562112

…PETITIONERS

(BY SMT. SANDHYA U PRABHU.,ADVOCATE)

AND:

THE NATIONAL CO-OPERATIVE BANK LIMITED REPRESENTED BY ITS AUTHORIZED OFFICER, ADMIN OFFICE, NO.73/1, GANDHIBAZAR MAIN ROAD, BANGALORE-560004 (BY SRI. P ANAND.,ADVOCATE)

…RESPONDENT

2 - NC: 2025:KHC:31707 WP No. 7378 of 2022

HC-KAR

THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE POSSESSION NOTICE ISSUED BY RESPONDENT BANK DATED 17/03/2022 PRODUCED AT ANNEXURE-C BEARING NO.REF NCB/AO/703/2021-22 IN RESPECT OF SCHEDULE PROPERTY., ETC.

THIS PETITION, COMING ON FOR ORDERS, THIS DAY, JUDGMENT WAS DELIVERED THEREIN AS UNDER:

CORAM: HON'BLE MRS. JUSTICE ANU SIVARAMAN

ORAL JUDGMENT

Learned counsel for the petitioner submits that the petitioner has an efficacious remedy of approaching the DRT under Section 17 of the SARFAESI Act.

It is submitted that the petitioner has complied the order dated 22.04.2022 by depositing an amount of Rs.40,00,000/- as directed by this Court. It is further submitted that the amount in demand was Rs.3,11,68,417/-.

Having considered the contentions advanced by learned counsel for the petitioner and in view of the fact that an amount of Rs.40,00,000/- has already been

3 - NC: 2025:KHC:31707 WP No. 7378 of 2022

HC-KAR

deposited, I am of the opinion, that the petitioner can be granted a short accommodation to avail of the alternate remedy and to approach the DRT in accordance with an appropriate application..

Accordingly it is hereby directed that further coercive proceedings shall be kept in abeyance for a period of three weeks to enable the petitioner to approach the DRT. Time spent by the petitioner before this Court, shall be taken into account by the DRT while considering the application if any, to be filed by the petitioner.

With the above observation, the writ petition stands

disposed of.

Sd/(ANU SIVARAMAN) JUDGE

NG List No.: 1 Sl No.: 12