Karnataka High Court
WP/14120/2026 of S MURALI KRISHNAN Vs HDB FINANCIAL SERVICES on 16 July 2026
CNR: KAHC010310542026 NC: 2026:KHC:36447-DB WP No. 14120 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 16TH DAY OF JULY, 2026 PRESENT THE HON'BLE MR. JUSTICE D K SINGH AND THE HON'BLE MR. JUSTICE T.M.NADAF WRIT PETITION NO. 14120 OF 2026 (GM-DRT) BETWEEN: S. MURALI
HC-KAR
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 16TH DAY OF JULY, 2026
PRESENT
THE HON'BLE MR. JUSTICE D K SINGH
AND
THE HON'BLE MR. JUSTICE T.M.NADAF
WRIT PETITION NO. 14120 OF 2026 (GM-DRT)
BETWEEN:
S. MURALI KRISHNAN
SON OF R. SAMINATHAN
AGED ABOUT 38 YEARS
RESIDING AT FLAT NO.303
3RD FLOOR VAIKUNTAM
RESIDENCY 1ST CROSS
4TH BLOCK, HBR LAYOUT
BENGALURU - 560 043
…PETITIONER
(BY SRI. ABHINAV RAMANAND ADVOCATE A/W
SRI. MADHUSUDHANA REDDY, ADVOCATE FOR
SRI. KRISHNA KEERTHAN, ADVOCATE)
AND:
1.
HDB FINANCIAL SERVICES
LIMITED REPRESENTED BY
ITS AUTHORISED OFFICER
UKS HEIGHTS, M20,
1ST FLOOR, JEEVAN BHIMA
NAGAR MAIN ROAD
BENGALURU - 560 075
2.
M/S. PARADISE SUITES
NO. 58/59, KATHA NO.38,
Digitally
signed by
VASANTHA
KUMARY B K
Location:
HIGH
COURT OF
KARNATAKA
HC-KAR
SRINIVASAM 3RD CROSS,
3RD MAIN, RAMAIAH LAYOUT
KAMMANAHALLI BENGALURU-560084
3.
K.V. RAMANI
WIFE OF VIVEKANANDA SWAMY
AGE NOT KNOWN PETITIONER TO
PNR SERENITY CHAITRA S-104,
3RD FLOOR, 3RD 'B' MAIN ROAD,
RAMAIAH LAYOUT,
KACHARAKANAHALLI, HBR LAYOUT,
BENGALURU - 560 043
4.
VIVEKANANDA SWAMY K
PNR SERENITY CHAITRA S-104,
3RD FLOOR, 3RD 'B' MAIN ROAD,
RAMAIAH LAYOUT
KACHARAKANAHALLI,
HBR LAYOUT, BENGALURU - 560 043.
…RESPONDENTS
(BY SRI. NARESH KAUSHIK SR. ADVOCATE FOR
SRI. B.C. AVINASH, ADVOCATE FOR R1)
THIS WRIT PETITION IS FILED UNDER ARTICLES 226
AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO A)
ISSUE A WRIT IN THE NATURE OF CERTIORARI OR ANY OTHER
APPROPRIATE WRIT. ORDER OR DIRECTION, QUASHING AND
SETTING ASIDE THE ORDER DATED 15/04/2026 PASSED BY
THE DEBTS RECOVERY APPELLATE TRIBUNAL AT CHENNAI IN
R.A.(S.A.) NO. 30/2026 (ANNEXURE - A), PURSUANT TO THE
FINAL ORDER DATED 24/06/2025 PASSED BY THE DEBTS
RECOVERY TRIBUNAL-I, BENGALURU IN S.A. NO. 510/2024
(ANNEXURE - D) AND ETC.,
HC-KAR
THIS WRIT PETITION, COMING ON FOR ORDERS, THIS
DAY, ORDER WAS MADE THEREIN AS UNDER:
CORAM:
HON'BLE MR. JUSTICE D K SINGH
and
HON'BLE MR. JUSTICE T.M.NADAF
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ORAL ORDER
(PER: HON'BLE MR. JUSTICE D K SINGH)
The present petition has been filed by the petitioner claiming to be the tenant in the premises bearing Flat No.303, III floor, Vaikuntam Residency, I Cross, 4th Block, HBR layout Bangalore - 560 043 (hereinafter referred to as 'the schedule property'). The said property was a secured asset mortgaged in respect of the loan advanced by respondent No.1 to respondent No.4 - Mr. Vivekananda Swamy K.
2. Admittedly the initial loan amount was of Rs.20,00,000/- which was to be paid in 131 equal monthly installments. It appears that the borrower paid only seven installments and thereafter, defaulted in making payment as per the agreement of loan i.e., in 131 equal monthly installments of Rs.28,120/- each. As on July 2026 in altogether 65 montly installments had fallen due.
HC-KAR
3. As the loan account had turned into an NPA, the respondent No.1 has initiated proceedings under the SARFAESI Act, 2002. Respondent No.1 also obtained the order under Section 14 of the SARFAESI Act and Crl.Misc.No.50247/2023 for taking possession of the schedule property. The said order came to be challenged by the petitioner by filing S.A.No.510/2024. The Debts Recovery Tribunal-I vide order dated 24.06.2025 had dismissed the said Securitization Application. Against the dismissal of the said Securitization Application the petitioner had filed RA (S.A.) No.30/2026 before the DRAT, Chennai. The DRAT has dismissed the stay application that means respondent No.1 could dispossess the petitioner. The petitioner has deposited Rs.7,92,086/- for maintaining the appeal.
4. The said order passed by the DRAT is under challenge before us.
5. Heard Mr. Abhinav Ramanand, learned counsel for the petitioner and Mr. Naresh Kaushik, learned Senior Counsel assisted by Sri. B.C. Avinash, learned counsel appearing for respondent No.1.
HC-KAR
6. Despite the efforts having been made by the petitioner, he has not been able to reach out to the owner of the flat i.e., respondent Nos.2 to 4. There is neither any authorization in favour of the petitioner by the borrowers and owners of the schedule property in question.
7. Sri. Naresh Koushik, learned Senior Counsel appearing for respondent No.1 submits that respondent No.1 cannot have any dealing with the petitioner to close the loan account and their offer for closing the bank account by making outstanding payment cannot be accepted. He has placed reliance on Section 17(4)(a) of the SARFAESI Act and also placed reliance on a few judgments in support of his submission.
8. Sri Abhinav Ramanand, learned counsel for the petitioner submits that petitioner will participate in the auction proceedings, however, in the meantime, his possession may be protected. To this request of the petitioner, Mr. Naresh Koushik learned Senior Counsel does not have much objection.
9. Considering the aforesaid submissions and facts of the case, we dispose of this writ petition with following:-
HC-KAR
ORDER
a. The petitioner may withdraw his appeal pending before the DRAT. Consequent, upon the withdrawal of the appeal, he would be entitled to take refund of his Rs.7,92,086/- deposited by him as a condition precedent for maintaining the appeal. b. The petitioner may participate in the auction proceedings to be conducted by respondent No.1, under the SARFAESI Act to recover its outstanding dues in respect of the loan advanced to respondent Nos.2 to 4.
c. Till the auction is concluded, the petitioner shall not be dispossessed from the schedule property in question. d. However, if the petitioner is not successful in the auction proceedings, he will vacate the schedule property forthwith and hand over peaceful and vacant possession to respondent No.1. e. The Bank Draft of Rs.15,00,000/- handed over to the respondent No.1 in pursuance to the interim order dated 30.04.2026 has been returned to the petitioner.
HC-KAR
f. In view of withdrawing of the appeal and disposal of the present writ petition, respondent No.1 is at liberty to proceed to recover its dues in accordance with law subject to the order passed.
9. With the above observation, the instant writ petition stands disposed of.
10. Pending interlocutory applications, if any, also stand disposed of. Sd/- (D K SINGH) JUDGE
Sd/- (T.M.NADAF) JUDGE
NG CT:VS List No.: 1 Sl No.: 23