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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
                                             2/5




                      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
                                             3/5




         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
                                                          5/5




                      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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