Malik Asafak & Anr. v. Union Of India Thru. Secy. Ministry Of Finance

Sri Paavan Awasthi, learned counsel for the Union of India has placed before us the notification dated 17.06.2025 (which is taken on record) by which such housing financial companies registered under sub-section (5) of Section 29A of the National Housing Bank Act, 1987, having assets worth rupees one hundred crore and above, have been specified as financial institutions for the purposes of SARFAESI Act, 2002. He has also placed before us a list of such financial institutions having assets worth Rs. 100 crore and above as on 31.03.2024 which includes opposite party no. 3 at Srl No. 26, which is also taken on record. The contention of the petitioners' counsel was that the SARFAESI Act, 2002 does not apply to opposite party no. 3 and in fact the Act which applies is the National Housing Bank Act, 1987. However, on being pointed out that there is a notification dated 17.06.2021, the next argument of petitioners' counsel is that inspite of the said notification, it is the procedure prescribed under the National Housing Bank Act, 1987, which is a special Act, which will apply and not the SARFAESI Act, 2002. Once by the notification dated 17.06.2021, the SARFAESI Act, 2002 has been made applicable and the said notification is not under challenge before us, then we are unable to consider the relief prayed for especially as the opposite party no. 3 is a private financial company. Writ petition is dismissed only for this reason without prejudice to the rights of the petitioners to pursue other remedies as may be prescribed under law. Order Date :- 21.1.2025 Nitesh NITESH KUMAR TEWARY High Court of Judicature at Allahabad, Lucknow Bench