M Jyothi Vs Authorized Officer — Writ and Judicial Review | Karnataka HC (2026)

M Jyothi Vs Authorized Officer — Writ and Judicial Review | Karnataka HC (2026)

What the court decided

AI extract

Outcome

No substantive relief; petition dismissed as infructuous. Liberty reserved to the petitioner to challenge the sale certificate dated 31.01.2025. The respondents' submission that the surplus amount has already been deposited in the petitioner's account was placed on record.

Issue for consideration

Whether the sale notice and e-auction notice issued by the respondent Bank in the names of deceased borrowers, i.e., action initiated against dead persons, is null and void, and whether the Bank should receive the outstanding loan from the petitioner and release the mortgaged property with a no dues certificate.

Court's answer

Since none of the bidders participated in the auction scheduled under the impugned sale notice dated 09.12.2024 and the E-auction notice dated 14.11.2024, nothing survives for consideration in this writ petition.

Ratio / Principle

The writ petition is dismissed as having rendered infructuous.

Key takeaways

Liberty is reserved to the petitioner to challenge the sale certificate dated 31.01.2025, if so desired.obiter¶11

Detailed headnote1 paragraphs

Writ petition under Articles 226 and 227 of the Constitution of India by the daughter/gifter-successor of deceased borrowers, challenging a sale notice dated 09.12.2024 (Annexure-C) and an e-auction sale notice dated 14.11.2024 (Annexure-D) issued by the Authorized Officer, Canara Bank in the names of borrowers who were not alive, and seeking declaration that action against dead persons is null and void together with a mandamus to receive the outstanding loan and release the mortgaged property. The Bank contended that no bidders participated in the auction under the impugned notices, which therefore did not materialise, and that a subsequent auction under a sale notice dated 10.01.2025 resulted in a sale certificate dated 31.01.2025 in favour of a third party. Held: nothing survives for consideration; the writ petition is dismissed as rendered infructuous, with liberty reserved to the petitioner to challenge the sale certificate dated 31.01.2025; the Bank's statement that the surplus amount stands deposited in the petitioner's account was recorded.

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NC: 2026:KHC:9777 WP No. 5855 of 2025

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 17^TH DAY OF FEBRUARY, 2026

BEFORE

THE HON'BLE MR. JUSTICE ASHOK S.KINAGI

WRIT PETITION NO. 5855 OF 2025 (GM-DRT)

BETWEEN:

Digitally signed by KIRAN KUMAR R Location: HIGH COURT OF KARNATAKA

M JYOTHI D/O MURTHY, AGED ABOUT 41 YEARS, R/AT IST FLOOR, NO.182, SHASHY NILAYA, 1^ST MAIN, 2^ND CROSS, BANASHANKARI, MARALURU, TUMKURU-572102

…PETITIONER

(BY SRI. HANUMANTHARAYAPPA K., ADVOCATE)

AND:

AUTHORIZED OFFICER CANARA BANK,

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NC: 2026:KHC:9777 WP No. 5855 of 2025

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SRI SIDDARTHA INSTITUTE OF TECHNOLOGY, BRANCH, KUNIGAL ROAD, TUMKURU-572105

…RESPONDENT

(BY SRI. VINAY BHAT., ADVOCATE)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASH THE SALE NOTICE No.TMKLGL/59/2024 DTD. 09.04.2024 AT ANNEXURE-C AND E-AUCTION NOTICE No.NIL DATED 14.11.2024 ANNX-D PASSED BY THE RESPONDENT BANK AND DECLARE THAT THE ACTION INITIATED BY A RESPONDENT AGAINST DEAD PERSONS (BORROWERS) ARE NULL AND VOID. ISSUE A WRIT OF MANDAMUS TO THE RESPONDENT TO RECEIVE THE OUTSTANDING LOAN AMOUNT FROM THE PETITIONER AND TO ISSUE THE NO DUE LETTER BY RELEASING THE PROPERTY FROM THE MORTGAGE BY ALLOWING THIS WRIT PETITION AND PASS SUCH OTHER ORDER AS THIS HON’BLE COURT DEEMS FIT IN THE INTEREST OF JUSTICE AND EQUITY.

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

CORAM: HON'BLE MR. JUSTICE ASHOK S.KINAGI

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ORAL ORDER

The petitioner has filed this writ petition challenging the sale notice dated 09.12.2024 vide Annexure-C and the e-auction sale notice dated 14.11.2024 vide Annexure-D passed by the respondent and to declare that the action initiated by the respondent against the dead person is null and void, and also sought a mandamus to the respondent to receive the outstanding loan amount from the petitioner, and to issue No Due Certificate by releasing the property from the mortgage.

Brief facts, leading rise to filing of this writ petition are as follows:

The petitioner's mother gifted a residential property to the petitioner under a registered gift deed dated 17.09.2022. The petitioner's mother passed away on 16.01.2023 and the petitioner's brother by name Arun Kumar passed away on 04.08.2024.

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The respondent Bank issued a sale notice on 14.11.2024. As on the date of issuing the notice dated 14.11.2024, the borrowers’ were not alive. The said notice was issued in the name of dead persons. It is also contended that the respondent-Bank has issued an e-auction notice to the borrowers fixing the date of auction on 26.12.2024. The petitioner is aggrieved by the inaction on the part of the respondent-Bank in issuing a sale notice to the dead person, and auction of the properties to be held against the dead persons. Hence, this petition.

Heard the arguments of the learned counsel for the petitioner and the learned counsel for the respondent.

Learned counsel for the petitioner submits that the impugned sale notice was issued against dead persons. The said sale notice is void and nullity in the

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eye of law. Hence, on these grounds, he prays to allow the writ petition.

Per contra , learned counsel for the respondent Bank submits that pursuant to the impugned auction notice, none of the bidders have participated in the auction proceedings. Hence, he also submits that thereafter, again the respondent Bank has issued a sale notice on 10.02.2025. The impugned notice did not materialise.

Pursuant to the sale notice dated 10.01.2025, an auction was held, and the Bank has issued a sale certificate in the name of Mangala w/o. Raghavendra M.V., and a copy of the sale certificate dated 31.01.2025 is produced with.

In view of non-participation of the bidders in the auction scheduled to be held under the sale notice dated 09.12.2024 and the E-auction notice dated

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14.11.2024, nothing survives for consideration in this

writ petition.

Accordingly, writ petition is dismissed as having rendered infructuous .

Liberty is reserved to the petitioner to challenge the sale certificate dated 31.01.2025, if so desired.

The respondents submits that the surplus amount has been already deposited in the account of the petitioner. Submission is placed on record.

Pending applications, if any, shall stand disposed of.

Sd/(ASHOK S.KINAGI) JUDGE

RK CT:KHV

List No.: 1 Sl No.: 44