Held that proceedings under the SARFAESI Act cannot remain indefinitely in abeyance. The Court clarified that if the petitioner fails to discharge the full amount despite interim indulgence, the Bank may proceed afresh under the Act.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
HC-KAR NC: 2026:KHC:49998 WP No. 19239 of 2022
CNR: KAHC010439262022
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 15TH DAY OF SEPTEMBER, 2026
BEFORE
THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO. 19239 OF 2022 (GM-DRT)
BETWEEN:
…PETITIONER
(BY SRI. SHARATHKUMAR SHETTY, ADVOCATE)
AND:
Digitally signed by AL BHAGYA Location: HIGH COURT OF KARNATAKA
SHAKTINAGAR, DAVANAGERE-577005.
Digitally Signed By: SACHIN SHANKAR MAGADUM Verified
HC-KAR
NC: 2026:KHC:49998 WP No. 19239 of 2022
CNR: KAHC010439262022
…RESPONDENTS
(BY SRI. K.V. LOKESH, ADVOCATE FOR C/R1)
THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE IMPUGNED POSSESSION NOTICE DATED 06.08.2022 ISSUED BY THE RESPONDENT AS PER ANNX-A; AND ETC.
THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM
ORAL ORDER
T he captioned writ petition is filed assailing the possession notice dated 06.08.2022 issued by the respondent-Bank under the provisions of the Securitisation
and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, “the SARFAESI Act, 2002”).
2. Though this Court, having regard to the facts and
circumstances of the case, was pleased to grant limited
Digitally Signed By: SACHIN SHANKAR MAGADUM Verified
HC-KAR
NC: 2026:KHC:49998 WP No. 19239 of 2022
CNR: KAHC010439262022
indulgence by passing an interim order dated 30.09.2022,
the records reveal that the petitioner was directed to deposit 30% of the amount due. Pursuant thereto, the petitioner deposited 30% of the amount and the respondent-Bank filed I.A.No.2/2023 seeking permission to withdraw the amount so deposited.
petitioner. Even the learned counsel appearing for the respondent-Bank is absent.
under the provisions of the SARFAESI Act, 2002 cannot be
Digitally Signed By: SACHIN SHANKAR MAGADUM Verified
HC-KAR
NC: 2026:KHC:49998 WP No. 19239 of 2022
CNR: KAHC010439262022
permitted to remain in abeyance indefinitely on account of
an interim order. The indulgence granted by this Court was only limited in nature and was intended to afford an opportunity to the petitioner to avail the same. If the petitioner has failed to capitalise on such indulgence and has not discharged the entire amount legally due and payable to the respondent-Bank, the respondent-Bank is at liberty to proceed afresh in accordance with law and take such measures as are permissible under the SARFAESI Act, 2002.
With the aforesaid observations, the writ petition
stands disposed of .
Digitally Signed By: SACHIN SHANKAR MAGADUM Verified
(SACHIN SHANKAR MAGADUM) JUDGE
NBM
List No.: 1 Sl No.: 5
2 issues framed by the court
Whether the SARFAESI Act recovery proceedings should be permitted to remain in abeyance indefinitely due to an interim order.
Whether the bank is at liberty to proceed under the SARFAESI Act if the petitioner fails to discharge the full amount.
3 provisions across 2 enactments
MR. PRABHU S. HADAGALI
THE BHARAT CO OPERATIVE BANK LIMITED
SMT. RASHMI R
SMT VARALAKSHMI MADAIAH
SACHIN SHANKAR MAGADUM
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
