Karnataka High Court
WP/28879/2026 of M/S SIDDHARTHA CORRUGATED CARTON BOX INDUSTIRES Vs UNION BANK OF INDIA on 28 September 2026
CNR: KAHC010635702026 NC: 2026:KHC:53669 WP No. 28879 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF SEPTEMBER, 2026 BEFORE THE HON'BLE MR. JUSTICE C.M. POONACHA WRIT PETITION NO. 28879 OF 2026 (GM-DRT) BETWEEN: 1. M/S SIDDHARTHA CORRUGATED CARTON BOX
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 28TH DAY OF SEPTEMBER, 2026
BEFORE
THE HON'BLE MR. JUSTICE C.M. POONACHA
WRIT PETITION NO. 28879 OF 2026 (GM-DRT)
BETWEEN:
1.
M/S SIDDHARTHA CORRUGATED
CARTON BOX INDUSTIRES
A PROPRIETARY FIRM / MICRO ENTERPRISE
REGISTERED UNDER THE MSMED ACT, 2006
REPRESENTED BY ITS PROPRIETOR,
SRI. SRUJITH KESHAVA M.C.,
S/O SRI. CHANNA KESHVAIAH,
AGED ABOUT YEARS,
HAVING ITS INDUSTRIAL PLACE OF
BUSINESS AT SHED NO. C-7,
KSSIDC INDUSTRIAL ESTATE,
PANDAVAPURA TALUK,
MANDYA DISTRICT - 571434.
RESIDING AT NO. 278/1,
NAVYASHREE NILAYA, CHANNEL ROAD,
NEAR VENKATESHWARA TEMPLE,
KAVERI NAGARA, MANDYA-571401.
…PETITIONER
(BY SRI. LAKSHMIKANTH K..,ADVOCATE)
AND:
1.
UNION BANK OF INDIA
PANDAVAPURA BRANCH,
BEHIND TALUK OFFICE,
BUDS SCHOOL COMPOUND, V.C. COLONY,
PANDAVAPURA - 571434,
HC-KAR
REPRESENTED BY ITS AUTHORIZED OFFICER /
CHIEF MANAGER.
2.
UNION OF INDIA
REPRESENTED BY THE SECRETARY,
MINISTRY OF MICRO, SMALL AND MEDIUM
ENTERPRISES (MSME), UDYOG BHAWAN,
NEW DELHI - 110 011.
…RESPONDENTS
(BY SRI. PRABHU RAO C B.,ADVOCATE FOR R1
SRI. KESHAV M DATAR, ADVOCATE FOR R2)
THIS WP IS FILED UNDER ARTICLES 226 & 227 OF THE
CONSTITUTION OF INDIA PRAYING TO QUASHING THE E- AUCTION SALE NOTICE DATED 24.08.2026 AT ANNX-D ISSUED
BY R1 BANK UNDER SECTION 13(4) OF THE SARFAESI ACT
2002 IN RESPECT OF SHED NO. C-7 KSSIDC INDUSTRIAL
ESTATE PANDAVAPURA.
THIS PETITION, COMING ON FOR PRELIMINARY HEARING
IN 'B' GROUP, THIS DAY, ORDER WAS MADE THEREIN AS
UNDER:
CORAM: HON'BLE MR. JUSTICE C.M. POONACHA
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ORAL ORDER
The present writ petition is filed seeking for the following reliefs: "a) Issue a Writ of Certiorari or any other appropriate writ, order, or direction, quashing the E-Auction Sale Notice dated 24.08.2026 at Annexure-D issued by Respondent No.1 Bank under Section 13(4) of the SARFAESI Act, 2002 in respect of Shed No.C-7, KSSIDC Industrial Estate, Pandavapura.
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b) Issue a writ of mandamus or any other appropriate writ or direction, commanding Respondent No.1 Bank to constitute a Stressed MSME Committee strictly in accordance with Notification S.O. 1432(E) dated 29.05.2015 at Annexure-E and RBI Guidelines, to evaluate the Petitioner's restructuring and rehabilitation proposal; and c) Pass any such other order or direction as this Hon'ble Court deems fit in the facts and circumstances of the case, in the interest of justice and equity."
2. The petitioner submits that it is entitled to protection under the provisions of the Micro, Small and Medium Enterprises Development (MSMED) Act, 20061 despite which the respondent - Bank has classified the credit facility as a Non- Performing Asset2 (NPA) and proceedings have been initiated under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 20023.
3. It is further submitted by the learned counsel for respondent - Bank that the credit facility was sanctioned on 20.04.2022 and disbursed on 29.04.2022 and
1 Hereinafter referred to as 'MSMED Act' 2 Hereinafter referred to as 'NPA' 3 Hereinafter referred to as 'SERFAESI Act'
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30.06.2022. It is further submitted that the petitioner is a chronic defaulter in the matter of repayment of dues and has defaulted the payment of Equated Monthly Installments4 right from the first installment. It is further submitted that the petitioner is not entitled for protection under the provisions of the MSMED Act.
4. In view of the fact that the respondent - Bank is contesting the petition that the petitioner is entitled for protection under the MSMED Act and having regard to the fact that the petitioner seeking to assail the remedies invoked by the petitioner by taking the appropriate provisions of the SARFAESI Act, the present petition is disposed of since an alternative efficacious remedy is available to the petitioner under the Provisions of SARFAESI Act.
5. This order will not preclude the petitioner from availing its remedies under the SARFAESI Act.
4 Hereinafter referred to as 'EMI'
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6. Pending IAs., also stand disposed of.
(C.M. POONACHA) JUDGE Vmb List No.: 1 Sl No.: 75