Nafr High Court
Case Details
1 / 5 2025:CGHC:35366 NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR WPC No. 3879 of 2025 Yes Bank Limited A Company Incorporated and registered Under The Companies Act 1956 And A Banking Company Within The Meaning Of Section 5(C) Under The Banking Regulation Act 1949 And Banking Companies (Acquisition And Transfer Of Undertaking) Act, 1970 Having Its Registred Office At Yes Bank House Off Western Express Highway, Santracruz East, Mumbai 400055 (Maharashtra) And Branch Office At A Yes Bank Limited, 4th Floor, Pujari Chambers, Near Pachpedi Naka, Raipur,
Legal Reasoning
Bank. This Court in the similar set of facts and circumstance in the matter bearing no. W.P.(C) No. 3124/2024 parties as 'Bank of Baroda Vs. The State of Chhattisgarh & Ors' vide order dated 26.06.2024 was pleased to dispose of the said writ petition without issuing notice to other private respondents, directing the Tahsildar to conclude the proceedings arising out of order passed under section 14 of the Act, 2002, at the earliest preferably within two months from the date of receipt of the order in accordance with law. 3. Learned State counsel opposes the submission made by learned counsel for the petitioner. 4. I have heard learned counsel for the parties and perused the record with utmost circumspection. 5. Considering facts of the case, submissions of counsel for the respective
Arguments
Chhattisgarh, Through Its Authorized Officer Shri K Ravi Kumar, S/o Shri K Jagga Rao, Aged About 46 Years Occupation Senior Manager, Retail Collections, Yes Bank Limited. ... Petitioner versus 1 - The District Magistrate Durg, District Durg C.G. 2 - The Tehsildar, Durg, District Durg C.G. 3 - Sunil Sahu S/o Dumanlal Sahu R/o 45 Urla Ward No. 56 Mohan Nagar Near Water Tank Tah. Dist. Durg. 4 - Dumanlal Sahu S/o Gunaram Sahu R/o 45 Urla Ward No. 56 Mohan Nagar Near Water Tank Tah. Dist. Durg. ... Respondents For Petitioner For State : : Mr. Rahul Rai, Advocate Mr. Satish Gupta, GA ASHUTOSH MISHRA Digitally signed by ASHUTOSH MISHRA Date: 2025.07.26 14:54:00 +0530 2 / 5 (Hon’ble Shri Justice Arvind Kumar Verma) Order on Board 23/07/2025 1. This writ petition has been filed by the petitioner on the following relief(s) : 10.1 That, this Hon’ble Court may kindly be pleased to call records with respect to the instant writ petition. 10.2 That, this Hon’ble Court may kindly be pleased to Declare that the action and conduct of the Tehsildar, Durg, in failing to comply with the lawful possession order dated 07.10.2024 and engaging unauthorized agents, is arbitrary, mala fide, and violative of the SARFAESI Act; 10.3 That, this Hon’ble Court may kindly be pleased to Issue a direction to the respondent No. 2 to immediately execute the order dated 07.10.2024 and hand over possession of the property to the Petitioner. 10.4 That, this Hon’ble Court may kindly be pleased to Direct the concern authority to initiate disciplinary action against Respondent No.2 for non-compliance of judicial order. 10.5 Any other relief, which may deem fit in the interest of justice. 2. Learned counsel for the petitioner contended that the learned District Magistrate vide order dated 07.10.2024 has allowed the application under 3 / 5 Section 14 filed by the Petitioner Bank and thereby ordered to grant the possession of the secured assets to the Petitioner Bank but till date the Petitioner Bank has not been given the possession of the secured assets. The learned District Magistrate while allowing the application of the petitioner, directed the private respondent to hand over the vacant possession of the assets within period of 1 month, failing which the Petitioner Bank will be provided with the assistance of the Police for securing possession of the assets but till date no assistance has been provided to the Petitioner Bank to secure the possession of the secured assets. Despite of the clear and unambiguous direction passed by the Respondent No.01, the concerned Tahsildar and Sub Divisional Magistrate has neither issued the possession warrant or taken any step to comply with the order dated 07.10.2024 and has also failed to forward the said order for necessary execution. The physical possession of the secured assets/propriety is required to be taken by the secured creditor/petitioner since the said secured assets is to be sold by the petitioner under the provision of SARFAESI Act 2002 for realization of outstanding dues of the petitioner. He further submits that the money involved in instant case constitutes public money, and its realization is essential in the larger public interest and for maintaining the financial discipline of lending institutions. The SARFAESI Act, 2002, is a legislation intended to empower secured creditors with expeditious enforcement measures, including the non-judicial recovery of secured assets under Section 13(4), and assistance from the District Magistrate under Section 14. But in the instant case despite of order dated 07.10.2024, the Respondent Authorities have failed to provide the possession of the secured assets till 4 / 5 date. The powers under Section 14 of the SARFAESI Act, 2002 are specifically designed to ensure timely delivery of possession to the secured creditor once due compliance under the Act has been shown. However, in the present case despite of the order dated 07.10.2024 passed by the District Magistrate under Section 14 of the SARFAESI Act on 07.10.2024, till date possession of the secured asset has not been handed over to the Petitioner
Decision
parties and relief sought in the writ petition, i.e., only for execution of order dated 07.10.2024 passed by respondent No.1 under Section 14 of the SARFAESI Act in case No.(90/B-121/2023-2024) 202404100100008. This Court is of the considered opinion that this writ petition stands disposed of without issuance of notice to other private respondents directing to respondent No.2 to conclude the proceeding arising out of order dated 5 / 5 07.10.2024 at the earliest preferably within a period of ‘60 days’ from the date of receipt of copy of this order, in accordance with rules, regulations and law. 6. Accordingly, the instant petition stands disposed of. SD/- (Arvind Kumar Verma) JUDGE ashu