Mr.B.M. Chandrashekar Vs Canara Bank — Writ and Judicial Review | Karnataka HC (2025)

Mr.B.M. Chandrashekar Vs Canara Bank — Writ and Judicial Review | Karnataka HC (2025)

What the court decided

AI extract

Outcome

Two weeks' time to the petitioner to approach the Debt Recovery Tribunal (DRT); the interim order dated 28.03.2025 continued only for two weeks, to stand automatically vacated if the petitioner does not approach the DRT within that period.

Issue for consideration

Whether the interim order dated 28.03.2025 restraining the respondent-Bank from confirming the auction sale should continue notwithstanding the petitioner's failure to pay the ordered installments. +1 more

Court's answer

The Court found an apparent breach of the interim order dated 28.03.2025 (no payment having been made pursuant to it), which by its own terms would automatically stand vacated upon such breach.

Ratio / Principle

Two weeks' time was granted to the petitioner to approach the Debt Recovery Tribunal; the interim order was continued only for that period of two weeks, and would stand automatically vacated if the petitioner did not approach the DRT within that time.

Key takeaways

In view of the aforesaid directions, the writ petition stands disposed.ratio¶¶43

Detailed headnote1 paragraphs

Writ petition under Articles 226 and 227 of the Constitution of India by B.M. Chandrashekar seeking quashing of the order dated 07.03.2025 passed in Criminal Misc No. 75/2025 by the Prl. Senior Civil Judge and CJM, Mangaluru (Annexure-A), arising from a recovery/auction-confirmation dispute with Canara Bank, Kotekar Branch. By interim order dated 28.03.2025 the coordinate bench had recorded total dues of Rs.35,90,000/-, directed payment of Rs.6,18,000/- by 30.04.2025 and a further 20% of the dues by 31.05.2025, permitted the auction to proceed but restrained confirmation of the auction sale, with automatic vacation of the interim order on default. At the resumed hearing on 03.06.2025 the Bank reported that not a rupee had been paid pursuant to the interim order; the Court found the breach apparent. Two weeks' time was granted to the petitioner to approach the Debt Recovery Tribunal (DRT); the interim order was continued only for those two weeks and would stand automatically vacated if the DRT was not approached within that period. Petition disposed.

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NC: 2025:KHC:18673 WP No. 9555 of 2025

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 3^RD DAY OF JUNE, 2025

BEFORE

THE HON'BLE MR JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 9555 OF 2025 (GM-RES)

BETWEEN:

MR. B.M. CHANDRASHEKAR, S/O LATE B.M. KANNAPPA, AGED ABOUT 54 YEARS, R/AT D. NO.3-42-1/2, KOTEKAR VILLAGE AND POST, ULLAL TALUK, D.K. DISTRICT, MANGALURU - 575 022.

…PETITIONER

(BY SRI. S. RAJASHEKAR, ADVOCATE)

AND:

CANARA BANK, Digitally signed KOTEKAR BRANCH, by NAGAVENI N.H. 66 MAIN ROAD, Location: High KOTEKAR, MANGALURU TALUK, Court of DAKSHINA KANNADA DIST. - 575 022, Karnataka REP. BY ITS AUTHORIZED OFFICER/MANAGER.

…RESPONDENT

(BY SRI. V. HARIDAS BHAT, ADVOCATE)

THIS WP IS FILED UNDER ARTICLES 226 ND 227 OF THE

CONSTITUTION OF INDIA PRAYING TO QUASH THE IMPUGNED ORDER DTD 07.03.2025 PASSED IN CRIMINAL MISC NO.

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NC: 2025:KHC:18673 WP No. 9555 of 2025

HC-KAR

75/2025 PASSED BY THE PRL. SENIOR CIVIL JUDGE AND CJM, MANGALURU VIDE ANNX-A AND ETC.,

THIS PETITION, COMING ON FOR ORDERS, THIS DAY,

ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR JUSTICE M.NAGAPRASANNA

ORAL ORDER

The coordinate bench on 28.03.2025 had passed the

following order:

"1. The submission of the Counsel for the petitioner is that due to financial stringency, the petitioner could not make payment of the due amounts. The total amount due as on today is Rs.35,90,000/-. The petitioner in order to establish his bonafides would make payment of a sum equivalent to 20% of the said amount, i.e., Rs.6,18,000/-within four weeks from today, that is on or before 30.04.2025 and another sum equivalent to 20% of the due amount within four weeks thereafter, that is by 31.05.2025.

In view of the said submission, though the auction shall can go on, respondent is restrained from confirming the auction sale.

In the event of default in making payment of the above installments, the interim order would stand automatically vacated and respondent-Bank would be at liberty to confirm the auction.

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NC: 2025:KHC:18673 WP No. 9555 of 2025

HC-KAR

Re-list on 3.06.2025.

Hand delivery ordered."

The learned counsel appearing for the respondent - Bank submits that not a rupee has been paid pursuant to the interim order.

The interim order had already indicated that it would automatically get vacated, if there is breach. The breach is apparent.

In the light of the non compliance of the interim order, the learned counsel appearing for the petitioner submits that he would approach Debt Recovery Tribunal ('the DRT' for short), if two weeks time is granted.

Therefore, two weeks time is granted to the petitioner to approach the DRT. In the light of the subsistence of the interim order, I deem it appropriate to continue the same for a period of two weeks. In the event, the petitioner would not approach the DRT in two weeks, the interim order would stand automatically vacated.

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NC: 2025:KHC:18673 WP No. 9555 of 2025

HC-KAR

With the aforesaid observations, the petition stands

disposed.

Ordered accordingly.

Sd/(M.NAGAPRASANNA)

JUDGE

JY List No.: 3 Sl No.: 45 CT: BHK