Patna High Court
Syed Aquil Abbas @ Syed Aquil Abbas Naqvi (Attorney Holder)versusThe State of Bihar
- Decided
- Disposal
- DISPOSED
Holding
Section 34 of the SARFAESI Act precludes the grant of an injunction, and the appeal is dismissed, directing the parties to approach the DRT.
Summary
The appellants, siblings of private respondents, sought a stay of the Axis Bank's attempt to take possession of a jointly owned family house mortgaged under the SARFAESI Act. They argued that an earlier ad-interim injunction restraining alienation of the property was being violated. The Single Judge had disposed of the writ petition at the admission stage with the consent of both parties, directing the appellants to approach the Debt Recovery Tribunal (DRT) under Section 17 of the SARFAESI Act. On appeal, the High Court noted that the order was consented to and that Section 34 of the SARFAESI Act bars any court from granting injunctions against actions taken under the Act. Consequently, the Court declined to grant the stay and directed the appellants to seek relief before the DRT within thirty days. The Letters Patent Appeal and the stay application were therefore dismissed.
Issues considered
- The applicability of Section 34 of the SARFAESI Act prohibiting injunctions against actions under the Act
- Whether the appellants can obtain a stay of possession despite a prior consent order and existing injunction
- Whether the appellants should approach the Debt Recovery Tribunal under Section 17 for relief
Legislation cited
Subjects
- injunction
- SARFAESI Act
- Debt Recovery Tribunal
- stay of possession
- family property dispute
- mortgage
- consent order
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Letters Patent Appeal No.559 of 2026
In
Civil Writ Jurisdiction Case No.8228 of 2026
======================================================
1. Syed Aquil Abbas @ Syed Aquil Abbas Naqvi (Attorney Holder), Son of
Late Syed Gulam Abbas Naquvi, Resident of Mohalla- Nauzer Katra, P.S.
Khajekala, Patna City, Patna, Pin-800008.
2. Sanobar Hussain Reshty, Wife of Taqi Reshty, Resident of 5, Cunnings
Avenue, Pemulouy, NSW 2145 Australia.
3. Farah Hussain Bardai @ Farah Bardai, Wife of Anwar Bardai, Resident of
118, Maple Street, Needham, MA 02492 United State of America.
... ... Appellant/s
Versus
1. The State of Bihar through the Collector-cum-District Magistrate, Patna.
2. The Sub-Divisional Officer, Patna Sadar, Patna.
3. The Axis Bank Ltd., Having its registered office at Trishul, 3rd Floor,
Opposite- Samartheshwar Temple, near Law Garden, Ellis Bridge,
Ahmedabad- 380006 through its Chairman -cum- Managing Director.
4. The Stressed Assets Recovery Cell, East, Axis Bank Ltd. through the
Authorized Officer, 1, Shakespeare Sarani, 3rd Floor, A.C. Market Building,
Kolkata- 700079.
5. The Branch Manager In-charge, Axis Bank Ltd., SME Bank Ltd., SME
Branch, Kamini Palace, Patna- 800013.
6. Zakir Hussain, Son of Late Wazir Hussain Khan, Resident of 68, South
Gandhi Nagar, Boring Road, Patna-800001.
7. Fatema Hussain, Wife of Zakir Hussain, Resident of 68, South Gandhi
Nagar, Boring Road, Patna-800001.
8. Nastaran Hasan, Wife of Dr. Kausar Hasan, Resident of E-4/1, Maymar
Drive, Rashid Minhas Road, Gulshan -e-Iqbal, Block - 10, Karachi,
Pakistan.
... ... Respondent/s
======================================================
Appearance :
For the Appellant/s : Mr. Pratyush Anand, Advocate
Ms. Anu Priyadarshni, Advocate
For the State : Mr. Somesh Kumar Singh, AAG-13
======================================================
CORAM: HONOURABLE THE CHIEF JUSTICE
and
HONOURABLE JUSTICE SMT. SONI SHRIVASTAVA
ORAL JUDGMENT
(Per: HONOURABLE THE CHIEF JUSTICE)
Date : 02-07-2026
Patna High Court L.P.A No.559 of 2026 dt.02-07-2026
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It is pointed out by learned counsel for the
appellants that there is no error in the stamp reporting
regarding Defect No. 73, as Respondent No. 7 was a party
in the Writ Petition before the learned Single Bench, hence
no defect arises.
2. The instant Letters Patent Appeals assails the
order dated 17.06.2026 in C.W.J.C. No. 8228 of 2026,
whereby the learned Single Judge disposed of the Writ
Petition at the stage of admission with the consent of both
learned counsel. The dispute between the appellants and
the private respondents (siblings), pivots around the joint
family property situated at Patna and a Flat in New Delhi,
originally purchased by the father of the appellants and the
private respondents. In this context, a Title Suit No. 284 of
2010 is pending before the Civil Court, wherein the
appellants have sought 60% share of the properties. By
filing the Writ Petition (supra), the appellants herein sought
the setting aside of the order dated 04.04.2026, issued by
the Sub-Divisional Officer, Patna, under the “SARFAESI Act”,
2002, from taking possession of the joint family properties,
mortgaged to the Axis Bank by the Private Respondent Nos.
6 and 7 against the loan availed by them. In Misc. Appeal
No. 641 of 2017 arising out of the Partition Suit, a bench of
this High Court had issued an ad-interim injunction on
09.10.2018, restraining the Private Respondents from
alienating or changing the nature of, or creating
Patna High Court L.P.A No.559 of 2026 dt.02-07-2026
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encumbrances over the joint property.
3. On the prayer of the learned counsel for the
appellants, the application for stay being I.A. No. 01 of 2026
is taken up for hearing.
4. The prayer of the appellants in the Stay Petition
is to allow the Interlocutory Application and restrain the
respondents from taking any coercive steps against the
dwelling house of the appellants pursuant to notice, dated
04.04.2026, under the Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act,
2002 (hereinafter referred to as “SARFAESI Act”), which was
wrongly mortgaged by the private respondents.
5. Appellant No. 1 in the Letters Patent Appeal is
the Power of Attorney holder for Appellant Nos. 2 and 3.
6. Learned counsel for the appellants submits
that, the appellants are affected by the acts of their
brothers and Title Partition Suit No. 284 of 2016 is pending
before the Sub-Judge- VIII, Patna. That, despite an ad
interim injunction on 09.10.2018 issued by this High Court,
restraining the respondents from alienating the property in
question to anyone and confirming the injunction on
15.07.2019, the private respondents have mutated the
property amongst themselves and mortgaged the property
with the AXIS Bank (Respondent Nos. 3, 4 and 5). That in
such circumstances, the AXIS Bank (Respondent Nos. 3, 4
and 5) is now seeking to take possession of the ancestral
Patna High Court L.P.A No.559 of 2026 dt.02-07-2026
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house of the appellants. Learned counsel for the appellants
submits that in view of the above facts, injunction be
granted by this Court against the AXIS Bank from taking
possession of the dwelling house or from taking any other
coercive measures.
7. None appears for the AXIS Bank. We have given
due consideration to the submissions advanced by learned
counsel for the appellants and learned counsel for State
respondents who submits that he has no specific
arguments to put forth as it is a private dispute.
8. We have also perused all averments,
documents on record and the impugned order of the
learned Single Judge, dated 17.06.2026, which inter alia
provides that the Writ Petition being CWJC No. 8228 of 2026
is disposed of at the stage of admission “with the consent
of both the counsels”. It was also recorded that, having
regard to the fact that the petitioner has an alternative and
efficacious remedy of approaching the DRT, Patna, under
Section 17 of the SARFAESI Act, the Court did not entertain
the Writ Petition, which was disposed of granting liberty to
the petitioner to approach the DRT, Patna, if so advised.
9. It is relevant to consider that the impugned
order was passed with the consent of learned counsel for
both the parties and hence at this juncture, the appellants
cannot cry foul after giving consent. Besides, we are also
inclined to take into consideration Section 34 of the
Patna High Court L.P.A No.559 of 2026 dt.02-07-2026
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SARFAESI Act, which provides inter alia that no injunction
shall be granted by any Court or other authority in respect
of any action taken or to be taken in pursuance of any
power conferred by or under this Act or under the Recovery
of Debts Due to Banks and Financial Institutions Act, 1993
(51 of 1993). We have taken note of the fact, as correctly
recorded by the learned Single Judge in the impugned order
that, Section 17 provides respite, also to a third party, to
appear before the DRT and put forth their grievances for
redressal.
10. In such circumstances, we are not inclined to
grant the prayers put forth before this Court today. The
appellants may approach the DRT within thirty days from
the date of uploading of Judgment.
11. The Stay Petition, being I.A. No. 01 of 2026,
stands disposed of accordingly as also the instant Letters
Patent Appeal No. 559 of 2026.
(Meenakshi Madan Rai, CJ)
(Soni Shrivastava, J)
P.K.P./-
AFR/NAFR
CAV DATE
Uploading Date 08.07.2026
Transmission Date
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