Dismissed

Sri Chandershekar Reddy v. State Bank of India

Karnataka HC15 Sept 2026WP/18350/2022

Case brief

AI extract

What is this about?

This court dismissed a writ petition filed by a defaulter seeking regularization of a loan account. The petitioner had failed to comply with an interim order directing partial payment. The court held that the banker has an unfettered right under the SARFAESI Act to enforce security and no indulgence is warranted given the petitioner's conduct.

What did the court decide?

The writ petition praying for regularization of the loan account was dismissed.

Sri Chandershekar Reddy Vs State Bank of India — Banking and Recovery | Karnataka HC (2026)

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HC-KAR NC: 2026:KHC:50106 WP No. 18350 of 2022

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CNR: KAHC010418222022

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

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DATED THIS THE 15^TH DAY OF SEPTEMBER, 2026

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BEFORE

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THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO. 18350 OF 2022 (GM-DRT)

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BETWEEN:

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SRI CHANDERSHEKAR REDDY S/O J KESHAVA REDDY AGE 50 YEARS RESIDING AT JANGAMARAPPANAHALLI VILLAGE KETHANA HALLI POST, CHIKKABALLAPURA TALUK AND DISTRICT - 562101

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…PETITIONER

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(BY SRI. N. SURESHA, ADVOCATE)

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AND:

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Digitally signed by AL BHAGYA Location: HIGH COURT OF KARNATAKA

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STATE BANK OF INDIA CHIKKABALLAPURA BRANCH RVV COMPLEX, B B ROAD CHIKKABALLAPURA DISTRICT - 562101 REP BY ITS AUTHORIZED OFFICER

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…RESPONDENT

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(BY SRI. M. JABIULLA, ADVOCATE FOR C/R)

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THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO DIRECT THE RESPONDENT BANK TO REGULARIZE THE LOAN ACCOUNT AS PER ANNEXURE-C; AND ETC.

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THIS PETITION, COMING ON FOR PRELIMINARY HEARING 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

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Digitally Signed By: SACHIN SHANKAR MAGADUM Verified

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HC-KAR

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NC: 2026:KHC:50106 WP No. 18350 of 2022

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CNR: KAHC010418222022

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CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM

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ORAL ORDER

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The captioned petition is filed by the defaulter seeking a writ in the nature of mandamus directing respondent No.2 to regularize the loan account as per Annexure-"C".

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This Court vide order dated 20.9.2022 granted interim order directing the petitioner to deposit a sum of Rs.7,50,000/- under three instalments. Records reveal that petitioner who had the benefit of the interim order failed to comply the interim order and the application was filed on 14.08.2023 to extend the interim order which was granted conditionally subject to deposit and extension was sought on the ground that petitioner was not in a position to deposit the amount as indicated in the conditional interim order granted by this Court.

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This petition is kept pending since 2022. Directions are sought against the Bank to regularize the

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Digitally Signed By: SACHIN SHANKAR MAGADUM Verified

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HC-KAR

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NC: 2026:KHC:50106 WP No. 18350 of 2022

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CNR: KAHC010418222022

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loan account. This Court is of the view that such directions cannot be issued. Petitioner has turned out to be a defaulter. The secured creditor has a unfettered right to proceed against the secured property under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short "SARFAESI Act").

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Writ petition is devoid of merits, more particularly, in the backdrop of the conduct of the petitioner in not complying the interim order granted by this Court. No indulgence is warranted.

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The writ petition is dismissed.

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Digitally Signed By: SACHIN SHANKAR MAGADUM Verified

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(SACHIN SHANKAR MAGADUM) JUDGE

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ALB List No.: 1 Sl No.: 30

Sri Chandershekar Reddy v. State Bank of India

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Sri Chandershekar Reddy v. State Bank of India

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