Atma Ram Bishnoi v. AU Small Finance Bank

Judgment

2. The Superintendent Of Police, Bundi, Rajasthan District Magistrate And District Collector, District- Bundi, Rajasthan

Mathura Lal S/o Shri Nandkishore Kumawat, Resident Of 92, Kumawato Ka Mohalla, Village - Mangli Kala, Tehsil- Hindoli, District- Bundi.

4. Nirmala Bai W/o. Shri Mathura Lal Kumawat, Resident Of 92, Kumawato Ka Mohalla, Village - Mangli Kala, Tehsil - Hindoli, District - Bundi. ----Respondents For Petitioner(s) : Mr. Ram Naresh Vijay Mr. Priyank Sanwariya Ms. Shruti Sharma For Respondent(s) : JUSTICE ANOOP KUMAR DHAND Order 29/08/2025

1. The instant writ petition has been filed by the petitioner with the following prayer:- (a) Issue an appropriate writ order or directions to the respondent No. 1 and 2 to restore the physical possession of the secured assets in favour of the petitioner bank immediately without any further delay in light of the judgment passed by the Hon’ble Rajasthan High Court in the matter of titled “Atma Ram Bishnoi Vs. AU Small Finance Bank”. (b) Issue appropriate directions to the respondent No. 1 to register appropriate [2025:RJ-JP:34762] (2 of 4) [CW-12527/2025] criminal case/proceedings against the respondent Nos. 3 and 4 in the aforesaid facts and circumstances in response to the Complaint submitted by the petitioner bank on 30.05.2025. (c) Any other order or direction as this Hon’ble High Court may deem fair and proper be also passed in favour of the petitioner Bank.

2. By way of filing this writ petition, the petitioner is seeking direction against the respondents to restore the physical possession of the secured assets.

3. Counsel for the petitioner-Bank submits that when the respondent No. 3 and 4 failed to repay the loan, the proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, ‘the SARFAESI Act, 2002’) were initiated by the petitioner-Bank and finally the orders have been passed in the application filed under Section 14 of the SARFAESI Act, 2002 against the respondent- borrowers by the District Magistrate, Bundi on 28.09.2022. Thereafter the possession of the property was taken from the respondent-borrowers vide possession notice dated 29.10.2022. Counsel submits that when the respondent-borrowers have forcefully taken over the possession of the property, a complaint was lodged by the petitioner-Bank with the Police Station, Hindoli, District Bundi on 30.05.2025 with request for restoration of the possession of the subject land from the respondent-borrowers. Counsel submits that inspite of passing of considerable time, till date, no heed has been paid by the concerned Police Station. Counsel submits that under the similar circumstances, the Co- ordinate Bench of this Court at Principal Seat, Jodhpur in the case of Atma Ram Bishnoi and Anr. Vs. District Collector and Ors [2025:RJ-JP:34762] (3 of 4) [CW-12527/2025] in S.B. Civil Writ Petition No. 8983/2022 has issued a direction to the State of Rajasthan where forceful possession has been taken by the borrowers after taking the possession of the mortgaged property from them. Hence under these circumstances, interference of this Court is warranted.

4. Heard and considered the submissions made at Bar and perused the material available on record.

5. Considering the arguments put forth by counsel for the petitioner-Bank and looking to the fact that after passing of the order dated 28.09.2022 by the District Magistrate under Section 14 of the SARFAESI Act, the possession of the secured property was taken from the respondent-borrowers on 29.10.2022. Thereafter they have taken the forceful possession of the said property from the petitioner-Bank for which a complaint has been filed by the petitioner-Bank with the concerned Police Station in the month of May, 2025 but inspite of passing of considerable time, till date, no action has been taken. 6 The similar situation came before this Court in the case of Atma Ram Bisnoi (Supra) wherein the Co-ordinate Bench of this Court, at Principal Seat, Jodhpur has passed the following order:- “This Court is surprised that on one hand, a person had taken loan and when the same was not repaid, the possession of the mortgaged property was taken over by the petitioner bank as per law but by sheer muscle power, the petitioner bank has been dislodged and possession of the mortgaged property has been forcibly taken over by the respondent No.1 and despite having represented to the law enforcing officer, nothing has been done to uphold majesty of law till date. The situation is alarming and the State functionaries are warned that if they do not act in such a situation, it will create [2025:RJ-JP:34762] (4 of 4) [CW-12527/2025] lawlessness in the State of Rajasthan which will be viewed very seriously by this Court. Therefore, this court is of the view that stern action should be taken against the respondent No.1 for restoring possession of the mortgaged property immediately to the petitioner. In view of the discussion made above, the writ petition merits acceptance and therefore, the same is allowed. The respondent No.2 District Collector, Sri Ganganagar and respondent No.4- Superintendent of Police, Sri Ganganagar are directed to act immediately for restoring possession of the mortgaged property to the bank in accordance with law.

7. Keeping in view the preponderance as laid down by this Court at Principal Seat, Jodhpur in the case of Atma Ram (Supra), the present writ petition stands disposed of with direction to the District Collector, Bundi as well as the concerned Police Station to take all possible steps to restore the possession of the mortgaged property to the Bank in accordance with law.

8. Needless to observe that the entire exercise would be carried out by the respondent-authorities within a period of six weeks from the date of receipt of the certified copy of this order.

9. Stay application and all pending application(s), if any, also stand disposed of. Ashu/57 (ANOOP KUMAR DHAND),J