REGALIAA BUILDTECH AND SERVICES PRIVATE LIMITED vs LIC HOUSING FINANCE LIMITED
- Court
- Karnataka High Court
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HC-KAR
NC: 2026:KHC:55028
WP No. 14839 of 2022
CNR: KAHC010332332022
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
TH
DATED THIS THE 5 DAY OF OCTOBER, 2026
BEFORE
THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM
WRIT PETITION NO. 14839 OF 2022 (GM-DRT)
BETWEEN:
1. REGALIAA BUILDTECH AND
SERVICES PRIVATE LIMITED
A COMPANY INCORPORATED UNDER
THE COMPANIES ACT 1956 AND
EXISTING COMPANY GOVERNED BY
THE COMPANIES ACT 2012
AND HAVING ITS REGISTERED OFFICE
AT 301, SHALAKA, 3RD FLOOR,
PLOT NO.32 JUHU ROAD,
NEAR SANTACRUZ POLICE STATION
SANTA CRUZ WEST, MUMBAI-400054.
ALSO HAVING ITS BENGALURU OFFICE
AT MSR REGALIAA ELEMENTS MALL
SITUATED AT NAGAVARA, THANNISANDRA
MAIN ROAD, BANGALORE-560045
KARNATAKA
REPRESENTED BY ONE OF ITS DIRECTOR
MR ANUP SHYAM KARNANI
AND ALSO BY AUTHORISED SIGNATORIES
M R UDAY NARESH AND MR AMAR NARAYANA
…PETITIONER
(BY SRI. ROHAN KOTHARI, ADVOCATE)
AND:
1. LIC HOUSING FINANCE LIMITED
A COMPANY INCORPORATED UNDER
Digitally Signed By:
SACHIN SHANKAR MAGADUM
Verified
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HC-KAR
NC: 2026:KHC:55028
WP No. 14839 of 2022
CNR: KAHC010332332022
THE COMPANIES ACT 1956 AND
HAVING ITS REGISTERED OFFICE AT
BOMBAY LIFE BLDG, 2ND FLOOR,
45/47,VEER NARIMAN ROAD
MUMBAI-400001
ALSO HAVING ITS BENGALURU OFFICE AT
NO.15/1, 2ND FLOOR, HAYES CENTRE,
HAYES ROAD, BENGALURU-560025
…RESPONDENT
(BY SRI. SHIVABASAVA GHANTE, ADVOCATE)
THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF
THE CONSTITUTION OF INDIA, PRAYING TO DIRECT THE
RESPONDENT TO ACCEPT AND CONSIDER THE IMPROVISED
ONE-TIME RESTRUCTURING PLAN OF THE PETITIONER
ANNEXED HEREWITH AS ANNEXURE-O WITHOUT ANY FURTHER
DELAY; 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
The captioned writ petition is filed seeking for the
following relief;
“A. That this Hon’ble Court be pleased to issue a
Writ of Mandamus and/or Writ in the nature of
Mandamus, and/or any other appropriate writ, order or
direction, directing the Respondent to accept and
consider the improvised One-Time Restructuring Plan of
the Petitioner Annexed herewith as Annexure-O without
any further delay;
Digitally Signed By:
SACHIN SHANKAR MAGADUM
Verified
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HC-KAR
NC: 2026:KHC:55028
WP No. 14839 of 2022
CNR: KAHC010332332022
B. That this Hon'ble Court be pleased to issue a
Writ of Mandamus and/or Writ in the nature of
Mandamus, and/or Writ of Certiorari and/or any other
appropriate writ, order or direction, directing the
Respondent refrain from taking any action or measures
in accordance with the demand notice purportedly issued
under section 13(2) of the SARFAESI Act as Annexed as
Annexure-M dated 17.05.2022.
C. To issue a Writ or Order of the appropriate
nature to set aside Respondent's notice dated
17/05/2022 issued under Section 13(2) of the SARFAESI
Act as Annexed as Annexure-M dated 17.05.2022.
D. Issue a Writ of Mandamus/and or any other
Writ directing the Respondent not to take any
coercive/adverse steps on the basis of the SARFAESI
notice dated 17/05/2022 issued under section 13(2) of
the SARFAESI Act as Annexed as Annexure-M dated
17.05.2022.
E. To direct the Respondents to provide the
Petitioner the detailed account statement as there is
ambiguity in the notices issued purportedly under
SARFAESI.
F. Pass such other direction or order as this
Hon'ble Court deems fit in the facts and circumstances of
the case, in the interest of justice and equity.”
Digitally Signed By:
SACHIN SHANKAR MAGADUM
Verified
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HC-KAR
NC: 2026:KHC:55028
WP No. 14839 of 2022
CNR: KAHC010332332022
2. The petitioner, a defaulting borrower, has invoked
the writ jurisdiction of this Court seeking a writ in the
nature of mandamus directing the respondent-
Bank/Secured Creditor to consider and accept the
improvised One-Time Restructuring Plan submitted by the
petitioner, produced at Annexure-O. The petitioner has
also sought a consequential direction restraining the
respondent-Bank from initiating or continuing coercive
measures under Section 13(2) of the Securitisation and
Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002 (for short, ‘the SARFAESI Act’).
3. Heard the learned counsel appearing for the
petitioner and perused the material on record.
4. This Court, vide order dated 24.08.2022, had
directed the respondent-Bank not to freeze the petitioner’s
account pending consideration of the present petition. The
matter has thereafter remained pending for nearly four
years. There can be no impediment for a borrower
Digitally Signed By:
SACHIN SHANKAR MAGADUM
Verified
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HC-KAR
NC: 2026:KHC:55028
WP No. 14839 of 2022
CNR: KAHC010332332022
approaching the Secured Creditor and seeking
consideration of a proposal for restructuring of its
outstanding dues. However, merely because a borrower
submits a restructuring proposal, the same cannot confer
a right upon the borrower to seek an indefinite restraint
against the Secured Creditor from taking lawful measures
for recovery of its dues, particularly when the loan account
has admittedly been classified as a Non-Performing Asset
(NPA).
5. The further prayer sought by the petitioner for
restraining the respondent-Bank from taking measures
under Section 13(2) of the SARFAESI Act also cannot be
granted merely on the premise that the petitioner had
submitted a proposal for restructuring. As is evident from
Annexure-O, the restructuring proposal was submitted in
the backdrop of the COVID-19 pandemic, wherein the
petitioner sought to explain the financial difficulties faced
by the Company on account of the severe disruption
Digitally Signed By:
SACHIN SHANKAR MAGADUM
Verified
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HC-KAR
NC: 2026:KHC:55028
WP No. 14839 of 2022
CNR: KAHC010332332022
caused to the mall industry, including prolonged closure of
malls, cessation of rental income and renegotiation of
agreements. However, the said proposal was admittedly
made several years ago.
6. The petitioner-Company has admittedly resumed
its operations. The restructuring proposal, which was
submitted way back in 2019, has not been followed by any
subsequent material placed before this Court indicating the
present status of the proposal, the steps taken by the
petitioner pursuant thereto, or any subsequent
negotiations or arrangement arrived at with the
respondent-Bank. The petitioner has also not placed
before this Court any material indicating that the
respondent-Bank has accepted the restructuring proposal
or that any concluded arrangement presently subsists
between the parties.
7. A mere request for restructuring of the loan
cannot, by itself, operate as an embargo against the
Digitally Signed By:
SACHIN SHANKAR MAGADUM
Verified
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HC-KAR
NC: 2026:KHC:55028
WP No. 14839 of 2022
CNR: KAHC010332332022
Secured Creditor from exercising the statutory remedies
available under the SARFAESI Act. The borrower cannot,
under the guise of seeking consideration of a restructuring
proposal, seek to keep the statutory measures available to
the Secured Creditor for recovery of its dues in a state of
suspension indefinitely. The relief sought in the present
petition, in substance, seeks continuation of such restraint
without there being any corresponding material
demonstrating a subsisting restructuring arrangement or
any enforceable right in favour of the petitioner.
8. It is also relevant to note that the interim
protection granted by this Court on 24.08.2022, whereby
the respondent-Bank was directed not to freeze the
petitioner’s account, has continued to operate for nearly
four years. Thus, the petitioner has enjoyed protection at
the hands of this Court for a considerable length of time.
During this period, the petitioner ought to have
meaningfully negotiated with the respondent-Bank and
Digitally Signed By:
SACHIN SHANKAR MAGADUM
Verified
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HC-KAR
NC: 2026:KHC:55028
WP No. 14839 of 2022
CNR: KAHC010332332022
pursued the restructuring proposal, if so advised. No
satisfactory explanation is forthcoming as to the steps
taken by the petitioner during this period or the reasons
for seeking continuation of the interim protection.
9. More importantly, the petitioner has not placed
before this Court any updated material regarding the
present status of the loan account or as to whether the
respondent-Bank has, subsequent to the filing of the
petition, initiated or completed any measures for recovery
of its dues. In the absence of such material, this Court
cannot continue the interim protection merely on the basis
of a restructuring proposal which was submitted several
years ago.
10. The extraordinary jurisdiction of this Court
cannot be invoked to indefinitely interdict the statutory
remedies available to a Secured Creditor, particularly
when the borrower has committed default and the loan
account has been classified as an NPA. The petitioner
Digitally Signed By:
SACHIN SHANKAR MAGADUM
Verified
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HC-KAR
NC: 2026:KHC:55028
WP No. 14839 of 2022
CNR: KAHC010332332022
cannot claim a vested or enforceable right to restructuring
merely by submitting a proposal to the respondent-Bank.
The decision whether to accept such a proposal, subject to
applicable statutory and regulatory framework, essentially
lies within the domain of the Secured Creditor.
11. In that view of the matter, no further indulgence
is warranted. The petitioner has already enjoyed the
benefit of the interim protection for nearly four years and
has failed to demonstrate any subsisting right warranting
continuation of such protection or issuance of a mandamus
against the respondent-Bank.
dismissed
Accordingly, the writ petition is .
The interim order dated 24.08.2022 shall stand
vacated. It is, however, made clear that dismissal of this
petition will not preclude the petitioner from independently
approaching the respondent-Bank with any fresh proposal
for restructuring or settlement of its outstanding dues,
Digitally Signed By:
SACHIN SHANKAR MAGADUM
Verified
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HC-KAR
NC: 2026:KHC:55028
WP No. 14839 of 2022
CNR: KAHC010332332022
if permissible in law, and it shall be for the respondent-
Bank to consider the same in accordance with the
applicable statutory and regulatory framework.
Digitally Signed By:
SACHIN SHANKAR MAGADUM
Verified
(SACHIN SHANKAR MAGADUM)
JUDGE
NBM
List No.: 1 Sl No.: 6