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In the High Court of Karnataka at Bengaluru

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In the High Court of Karnataka at Bengaluru 1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 18TH DAY OF DECEMBER, 2015 BEFORE THE HON’BLE MR. JUSTICE ANAND BYRAREDDY WRIT PETITION No.1763 OF 2015 (GM-KSFC) BETWEEN: M/s. Axis Bank Limited, Having its branch office at No.203, I Floor, Mythri Arcade, Kantharajurs Road, Saraswathipuram, Mysore 570 009, Represented by its Authorised Signatory, Ms. Benazir Afashan. …PETITIONER (By Shri Jai M Patil and Smt. Sreedevi K.M., Advocates) AND: 1. M/s. Karnataka State Financial Corporation, having its Branch Office at #13 and 13/1, 8th Cross, Kamakshi Hosptial Road, Saraswathipuram, Mysore 570 009, Represented by its Managing Director. 2 2. M/s. Premier Properties, Having its office at No.2270/1, “Chittaranjan Mahal”, Vinobha Road, Jayalakshmipuram, Mysore 570 012. Represented by its Proprietor, Sri. M.B.Naga Kumar, Son of Sri. Basavarajaiah. 3. M/s. Mysore Premier Investment Company Limited, No.2270/1, “Chittaranjan Mahal”, Vinobha Road, Jayalakshmipuram, Mysore 570 012. Represented by its Director, Sri. M.B.Nagaraj. 4. Mr. R.C.Jagadeesh, Aged about 56 years, Residing at No.202, Sankalp Gardenia, Goukulam Main Road, V.V.Mohalla, Mysore 570 002. 5. Mr. Raghunath RNS Singh, Aged about 40 years and Mrs. Aishwarya Singh, Aged about 31 years, Both are residing at No.21, 1st Stage, Gayathripuram, Mysore. 6. Mrs. Astrid Sharon Heri, Aged about 43 years, 3 Residing at No.13, 1st Floor, Norris Road, Richmond Town, Bangalore 560 025. 7. Mr. Subramanian .H, Aged about 43 years, Residing at GF-2 No.74, Sporti Home, 1 st Cross, 9th Main, K.G.Colony, GM Palya, Bangalore 560 075. 8. Mr. Krishnaraja, Aged about 35 years, Residing at No.201, “Sankalp Prakruthi”, 2nd Main, Paramahamsa Road, Yadavagiri, Mysore 570 020. 9. Mr. Bhaskar Chicknanjundappa, Son of Chicknanjundappa, Aged about 48 years, Residing at Yahvi, Kottara Cross Road, 1st Cross, Bijay-Kapikad, Mangalore 575 004. 10. Mrs. Aruna A Padmanabhan, Aged about 47 years, Residing at No.9, 2 nd Block, Kumara Park West, Bangalore 560 020. 11. Mr. Yogesh Agarwal, Aged about 36 years, Residing at No.57, 4 HMT Layout, Behind RT Nagar Police Station, RT Nagar, Bangalore 560 032. 12. Mr. Rajesh Phadke, Aged about 45 years, Residing at No.9, “Sukhada”, 4 th Cross, Muneshwaranagar, Opposite Railway Layout, Hullala Road, Bangalore 560 056. 13. Mr. Prakash Chinnappa Choundira, Aged about 53 years, and Mrs. Thanu Prakash Choundira, Aged about 42 years, Represented by GPA Holder, Mr. Aiyanna, Both residing at No.14, 4th Cross, Amarjyothi Nagar, Nagarbhavi Road, Bangalore 560 040. 14. Mr. Shriram Phadke, Aged about 47 years, Represented by his GPA Holder Mr. Rajesh Phadke, Aged about 37 years, Both residing at No.9, “Sukhada”, 4 th Cross, Muneshwaranagar, Opposite Railway Layout, Hullala Road, Bangalore 560 056. 5 15. Mr. Sudhir Shenoy, Son of Late Manur Raghuveer Shenoy, Aged about 49 years, Residing at No.2A, Puttanna Road, Basavanagudi , Bangalore. 16. Mr. Ganesh S.P., Aged about 52 years, Represented by his GPA Holder, Mr. Ravindran S.P., Aged about 60 years, Both residing at No.549, 3rd Block, 11 th Cross, BEL Layout, Vidyaranyapura, Bangalore 560 097. 17. Mr. K.N.Gupta, Son of Sri. Late V. Kuppaiah Shetty, Aged about 73 years, and Mr. N.G.Venkatesh, Son of Sri. K.N.Guptha, Aged about 45 years, Residing at No.2720, Harsha Road, Mysore 570 001. [cause title amended Vide court order dated 18.12.2015] …RESPONDENTS (By Shri Gururaj Joshi, Advocate for Respondent No.1) ***** This Writ Petition filed under Articles 226 and 227 of the Constitution of India praying to quash the public E-auction notice dated 15.12.2014 advertised by the first respondent 6 corporation represented by its Assistant General Manager in “The Hindu” daily news paper on 17.12.2014 Annexure-J of the writ petition and to restrain the R-1 Corporation from selling the schedule properties in order to recover their dues. This Writ Petition coming on for orders, this day, the court made the following: O R D E R The petitioner is directed to implead 14 apartment owners who are said to have borrowed loans from the petitioner to purchase the said apartment. The entire apartment building is now being brought to sale by the KSFC which has a first charge on the land and building. It transpires that the developer had not revealed that there was a first charge created in favour of the KSFC. There was a tripartite agreement between the present petitioner, the prospective apartment owners and the developer. However, there was no registered charge created insofar as the transaction was concerned. However, it later transpires that he has created a charge and borrowed a loan from the KSFC creating a charge 7 on the land and his interest on the building. It is in the wake of these transactions that the KSFC has now foreclosed the mortgage and seeks to bring the property to sale. The petitioner is interested in fourteen apartments out of a total of 57 apartments. It is made clear that the KSFC is at liberty to go ahead with the sale process. However, it shall exclude from sale, the 14 apartments which are the subject matter of the loan provided by the petitioner herein and the corresponding interest in loan relating to those apartments. The respondent shall accordingly place the bidder of the auction notice as to 14 apartments and the corresponding interest in land be excluded insofar as the sale is concerned. With that observation, the petition stands disposed of. Sd/- JUDGE KS .
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