IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 26TH DAY OF FEBRUARY 2019 BEFORE THE HON’BLE MR. JUSTICE H. T. NARENDRA PRASAD W.P.Nos.41872-41873 OF 2015(GM-RES) BETWEEN:
1. G.Shankare Gowda, S/o.Mr.Gundappa, Aged 38 years, R/at No.1095/60, 71 ‘A’ Cross, 18th ‘B’ Main Road, V Block, Rajajinagar, Bengaluru – 560 010.
2. S.C.Vishwanatha Gowda, S/o.Mr.Channagangaiah, Aged 41 years, R/at No.1, Pushkar, Vinayaka Layout, Bengaluru – 560 040. … Petitioners (By Sri K.Sreedhar, Advocate) AND:
Karnataka Bank, Asset Recovery Management Branch, Bengaluru No.105, III Floor, Mohan Mansion, Kasturba Road, Bengaluru – 01, Represented by its Chief Manager and Authorized Officer. ... Respondent (By Sri K.V.Shyamprasad, Advocate) These writ petitions are filed under Articles 226 & 227 of the Constitution of India praying to quash the impugned notice dated 24.08.2015 vide Annexure-A as the same is illegal, arbitrary and unsustainable and to direct the respondent to consider the request of the petitioners for settlement of the dispute by paying reasonable rate of interest and without any additional charges within a time to be prescribed by this Court.
These writ petitions, coming on for orders, this day, the Court, made the following:
ORDER These writ petitions are directed against the notice dated 24.08.2015 vide Annexure-A issued under Section 13(4) of Securitization & Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) 2. At the time of admission, this Court had granted an interim order subject to the petitioner depositing a sum of Rs.10,00,000/- with the respondent within three weeks.
3. Learned counsel for the respondent submits that in terms of the interim order granted on 28.09.2015 the petitioners have not deposited any amount before the Bank. Further, he submits that in view of the law laid down by the Hon’ble Apex Court in the case of AGARWAL TROCOM PRIVATE LIMITED vs. PUNJAB NATIONAL BANK AND OTHERS reported in (2018) 1 SCC 626, the petitioners have an alternative and efficacious remedy under the SARFAESI Act.
4. In view of the above, these writ petitions are disposed of reserving liberty to the petitioners to approach the competent legal forum.
Sd/- JUDGE Cm/-