SRIRAM K vs STATE BANK OF INDIA
- Court
- Karnataka High Court
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HC-KAR
NC: 2026:KHC:59159
WP No. 26494 of 2026
CNR: KAHC010588202026
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
TH
DATED THIS THE 17 DAY OF OCTOBER, 2026
BEFORE
THE HON'BLE MR. JUSTICE C.M. POONACHA
WRIT PETITION NO. 26494 OF 2026 (GM-DRT)
BETWEEN:
1. SRIRAM K
S/O LATE V N KRISHNAMURTHY
AGED ABOUT 57 YEARS
RESIDING AT NO.7/A, A BLOCK
VASU LAYOUT, DATTAGALLI
MYSURU 570 022
…PETITIONER
(BY SRI. SRIRANGA S , SENIOR ADVOCATE FOR
MS. SUMANA NAGANAND.,ADVOCATE)
AND:
1. STATE BANK OF INDIA
A BODY CORPORATE ESTABLISHED
UNDER THE STATE BANK ACT, 1955
HAVING BRANCH OFFICE AT
JAYALAKSHMIPURAM, 3RD BLOCK
MYSURU 570 012
REPRESENTED BY ITS CHIEF MANAGER
2. STATE BANK OF INDIA
STRESSED ASSET MANAGEMENT
BRANCH 4209
BENGALURU 560 001
REPRESENTED BY ITS
AUTHORISED OFFICER
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WP No. 26494 of 2026
CNR: KAHC010588202026
3. M/S. AABRAM INDUSTRIAL SERVICES
HAVING OFFICE AT
'AABRAM HOUSE', 24-86/2/4,
ANAND BAGH, ROAD, MALKAJGRI,
HYDERABAD - 500 047
REPRESENTED BY ITS DIRECTOR
4. RESERVE BANK OF INDIA
10/3/8, NRUPATHUNGA ROAD
BENGALURU -560001
REPRESENTED BY ITS GOVERNOR
5. DISTRICT COLLECTOR AND
DISTRICT MAGISTRATE
MYSURU DISTRICT
DEPUTY COMMISSIONER OFFICE,
GIRIBHOVIPALYA
SIDDARTHANAGAR,
MYSURU 570 011
6. UNION OF INDIA
MINISTRY OF FINANCE
KARTAVYA BHAWAN - I,
NEW DELHI 110 001
REPRESENTED BY SECRETARY
…RESPONDENTS
(BY SRI. FRANCIS XAVIER .,ADVOCATE FOR C/R2
MS. NAYANA TARA B G, ADVOCATE FOR R6)
THIS WP IS FILED UNDER ARTICLE 226 OF THE
CONSTITUTION OF INDIA PRAYING TO DECLARE THAT
SECTION 14 OF THE SECURITIZATION AND RECONSTRUCTION
OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY
INTEREST ACT, 2002 IS UNCONSTITUTIONAL AND IS
VIOLATIVE OF ARTICLES 14 AND 300A OF THE CONSTITUTION
OF INDIA.
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HC-KAR
NC: 2026:KHC:59159
WP No. 26494 of 2026
CNR: KAHC010588202026
THIS PETITION, COMING ON FOR PRELIMINARY
HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE C.M. POONACHA
ORAL ORDER
The present writ petition is filed seeking for the following
reliefs:
a. Declare that Section 14 of the Securitization and
Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002 is unconstitutional and is
violative of Articles 14 and 300A of the Constitution of
India;
b. Or in the alternate read down Section 14 of the
Securitization and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002 to hold that
audi alterum partum is an intrinsic part of Section 14 of
the Act and hence Petitioner is entitled to be heard before
an order under Section 14 of the Act is passed;
c. Issue a writ of certiorari or any other writ, order, or
direction quashing the order dated 17.08.2023 bearing
no. MAG (3) Misc /82/2023 passed by Respondent No.5
(Annexure 'L');
d. Issue a writ of certiorari or any other writ, order, or
direction quashing the communication dated 23.06.2026
issued by Respondent No.1 bearing NO SAMB/CLO-
2/MVR/TP1126 (Annexure 'K');
e. Declare that Respondent Nos.1 and 2 cannot proceed
with any action under the SARFAESI Act, 2002 in view of
pendecy of proceedings in OS No.207/2024; Annexure-G
f. Declare that Respondent No.1's action in initiating
SARFAESI proceedings against M/s. Tapovan Projects and
Petitioner is arbitrary and without jurisdiction;
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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NC: 2026:KHC:59159
WP No. 26494 of 2026
CNR: KAHC010588202026
g. Declare that the action of Respondent No.1 in declaring
M/s. Tapovan Projects account as a Non-Performing Asset
is in violation of RBI's prudential norms of income
recognition, asset classification and provisioning-
pertaining to advances" dated 01.07.2014;
h. Issue a writ of certiorari or any other writ, order, or
direction quashing the demand notice dated 02.03.2023
(Annexure 'C') and possession notice dated 24.05.2023
issued by Respondent No.1 (Annexure 'D');
i. Pass any such other or further orders as this Hon'ble
Court deems fit, just, and appropriate in the facts and
circumstances of the present case, in the interests of
justice."
2. At the outset, a submission is made on behalf of the
learned Senior Counsel for the petitioner that the petitioner
would not press prayers (a) and (b), which are made to declare
Section 14 of the Securitization and Reconstruction of Financial
1
Assets and Enforcement of Security Interest Act, 2002 as
unconstitutional and violative of Article 14 and 300A of the
Constitution of India as well as the alternative prayer made to
read down Section 14 of the SARFAESI Act to hold that the
principle of audi alterum partum is an intrinsic part of Section
14 of the SARFAESI Act.
1
Hereinafter referred to as 'SARFAESI Act'
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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HC-KAR
NC: 2026:KHC:59159
WP No. 26494 of 2026
CNR: KAHC010588202026
3. At this juncture, it is pertinent to note that since the
validity of Section 14 of the SARFAESI Act was assailed written
submissions as also memo of citations, has been filed on behalf
of respondent No.6 - Union of India for the purpose of
contending that the validity of Section 14 of the SARFAESI Act
has been upheld by the Hon'ble Supreme Court and various
High Courts.
4. Having regard to the same, the reliefs sought for in
the present writ petition has been limited by the petitioner to
the remaining prayers made in the writ petition, which are for
the purpose of assailing the action taken by respondent Nos.1
2
and 2 - State Bank of India in initiating measures under
Section 14 of the SARFAESI Act.
5. The primary contention put forth on behalf of the
petitioner is that the order dated 17.08.2023 (Annexure-L to
the writ Petition) passed under Section 14 of the SARFAESI Act
is a non est one since respondent No.1 in the said proceedings
was dead as on date of the order. It is further contended that
respondent No.2 in the said proceedings is a non-existent
2
Hereinafter referred to as 'Bank'
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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WP No. 26494 of 2026
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person and hence, the measures initiated by the Bank under
Section 14 of the SARFAESI Act are erroneous and are required
to be interfered with. In this context, reliance is placed on
behalf of the petitioner on the Division Bench judgments of the
Andhra Pradesh High Court in the case of Mangalagiri Textile
Mills Private Limited, Rep.by its Chairman, Dr.Goli
Nagasaina Rao & Anr., v. State Bank of India, Rep.by its
3
Authorized Officer & Anr., and Sri.Chandramala
4
Enterprises Pvt. vs. Punjab National Bank .
6. Per contra , learned counsel for respondent Nos.1
and 2 – Bank vehemently assailing the present writ petition
contends that the petitioner has availed various credit facilities
from the Bank in the year 2018 and having defaulted in
payment of the same, a notice under Section 13(2) of the
SARFAESI Act was issued on 02.03.2023 (Annexure-C to the
writ petition) seeking to recover a sum of Rs.30,24,73,001/-.
That the said notice issued under Section 13(2) of the
SARFAESI Act was assailed by the petitioner in WP
No.24339/2023 before this Court and the same was
3
2022 SCC OnLine AP 525
4
2022 SCC OnLine AP 2132
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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HC-KAR
NC: 2026:KHC:59159
WP No. 26494 of 2026
CNR: KAHC010588202026
subsequently withdrawn on 19.12.2025. That the notice under
Section 13(4) of the SARFAESI Act was issued on 24.05.2023
(Annexure-D to the writ petition) and symbolic possession of
the properties was taken, consequent to which the order dated
17.08.2023 was passed under Section 14 of the SARFAESI Act.
It is hence contended that the order dated 17.08.2023, which is
impugned in the present writ petition, is an offshoot of the
measures taken under Sections 13(2) and 13(4) of the
SARFAESI Act. Hence, it is contended that the writ petition is
not maintainable since the petitioner has an adequate remedy
under the provisions of the SARFAESI Act.
7. Further it is contended that a suit for partition (OS
No.207/2024) on the file of VI Additional Senior Civil Judge &
JMFC, Mysuru, is pending consideration with regard to various
properties between the family members of the petitioner. That
various writ petitions as well as proceedings before the Debts
5
Recovery Tribunal have been initiated and the petitioner not
having succeeded in the same, the present writ petition is filed
5
Hereinafter referred to as 'DRT'
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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HC-KAR
NC: 2026:KHC:59159
WP No. 26494 of 2026
CNR: KAHC010588202026
with the sole and oblique motive of delaying the recovery of
legitimate dues payable to the Bank.
8. It is contended that consequent to the measures
initiated by the Bank, one property has been taken possession
of and sold in an auction conducted on 11.12.2025 and the
amounts that were realised in the said sale being insufficient to
satisfy the amounts due and payable by the petitioner to the
Bank, the possession of the another property has also been
taken on 24.08.2026, for the auction of which a sale notice
dated 25.08.2026 has been issued fixing the date of auction as
18.09.2026. However, for want of bidders, the said property
could not be auctioned on the date that was fixed.
9. It is further contended that although periodically
6
proposals for One Time Settlement are being submitted by the
petitioner, the same not having been accompanied with upfront
payments, the said OTS proposals are not being favourably
considered by the Bank. It is further contended that
proceedings before the Tribunal are pending in SA No.860/2026
6
Hereinafter referred to as 'OTS'
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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CNR: KAHC010588202026
and hence the question of entertaining the present writ petition
does not arise.
10. Reliance is placed by the learned counsel for the
Bank on various judgments of the Supreme Court as well as
various High Courts.
11. Having regard to the matter in controversy, the
aspect that has to be considered is, " whether the measures
initiated by the Bank under Section 14 of the SARFAESI Act are
required to be interdicted by this Court in the present writ
petition?"
12. In this context, it is relevant to note that the
primary contention put forth on behalf of the petitioner is that
the order passed under Section 14 of the SARFAESI Act having
been issued against a dead person and a non-existent person,
the relief sought for in the present writ petition is to be
granted. In this context, it is pertinent to note that the Bank
has already issued the notice under Section 13(4) of the Act
vide notice dated 24.05.2023 (Annexure-D to the writ petition).
Various properties are mentioned in the said notice. Admittedly,
the auction of one of the properties has already been
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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HC-KAR
NC: 2026:KHC:59159
WP No. 26494 of 2026
CNR: KAHC010588202026
completed. The petitioner has already initiated SA
No.860/2026, which is pending before the Tribunal. It is
pertinent to notice the reliefs sought for in SA No.860/2026,
which are as under:
V. RELIEFS SOUGHT FOR: In view of the above facts and
circumstances, this Hon'ble Tribunal may be pleased to
order the following reliefs:
(i) Quash the sale notice dated 21.11.2025 holding the
auction on 11.12.2025 (Annexure 'N');
(ii) Declare that the auction of schedule property held on
11.12.2025 is null and bad in law;
(iii) Declare that any sale certificate issued by
Respondents pursuant to auction dated 11.12.2025 is
illegal, null and void;
(iv) Declare that Respondent No.1's action in initiating
SARFAESI proceedings against Appellant is arbitrary and
without jurisdiction;
(v) Declare that the action of Respondent No.1 in
declaring Appellant's account as a Non-Performing Asset
is in violation of RBI's prudential norms of income
recognition, asset classification and provisioning-
pertaining to advances" dated 01.07.2014;
(vi) Declare that the action of Respondent No.1 in
declaring Appellant's account as a Non-Performing Asset
is in violation of RBI Notification dated 29.05.2015
"Framework for Revival and Rehabilitation of Micro,
Small and Medium Enterprises;
(vii) To grant costs of the proceedings;
(viii) To pass such other order/orders as this Hon'ble
Tribunal may deem fit to grant under the circumstances
of the case, in the interest of justice and equity."
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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HC-KAR
NC: 2026:KHC:59159
WP No. 26494 of 2026
CNR: KAHC010588202026
13. It is pertinent to note that the impugned order
dated 17.08.2023 (Annexure-L to the writ petition) is one
passed under Section 14 of the SARFAESI Act. The same is
pursuant to the measures initiated by the Bank under the
provisions of the SARFAESI Act.
14. The learned counsel for the respondent – Bank is
justified in contending that the measures taken under Section
13(4) of the SARFAESI Act not having been assailed by the
petitioner in the present writ petition, the question of granting
the relief sought assailing the order dated 17.08.2023, which is
one under Section 14 of the SARFAESI Act does not arise.
15. It is further pertinent to note that the petitioner has
already availed his remedies before the Tribunal with regard to
a portion of the measures that have been initiated under the
SARFAESI Act. In view of the same, the question of interdicting
any of the measures initiated by the Bank under the provisions
of the SARFEASI Act in the present writ petition by favourably
considering the prayers sought for in the present writ petition
does not arise.
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
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16. Accordingly, the present writ petition stands
dismissed.
17. Pending IAs., if any, stand disposed of.
Digitally Signed by CHEPPUDIRA
MONNAPPA POONACHA
(C.M. POONACHA)
JUDGE
ND
List No.: 1 Sl No.: 2