Allahabad High Court
M/S MUSKAN TRADING CORPORATION AND 2 OTHERSversusCANARA BANK AND ANOTHER
- Decided
- Bench
- ROHIT RANJAN AGARWAL
Holding
The High Court directed the DRT to decide the pending applications within specified timeframes and disposed of the writ petition.
Summary
The petitioners, Muskan Trading Corporation and others, approached the Allahabad High Court under Article 227 seeking a direction to the Debts Recovery Tribunal (DRT), Lucknow, to hear and decide pending applications for interim relief, urgency, and amendment filed in Securitisation Application No. 916 of 2024, and to restrain the respondent bank from disturbing their possession of a secured asset. The petition arose from default on a loan from Canara Bank, leading to SARFAESI proceedings and the filing of the securitisation application. The Court found no merit in further hearing the writ petition and, at the admission stage, ordered the DRT to decide the interim relief application within one month and the amendment application within two months of the order. The Court also directed that the petition stand disposed with the said directions. Consequently, the writ petition was disposed, and the DRT was instructed to act expeditiously.
Issues considered
- Whether the High Court can direct the Debts Recovery Tribunal to hear and decide pending applications under the SARFAESI Act.
- Whether a stay on the bank's actions disturbing possession of the secured asset is warranted pending adjudication of the applications.
Legislation cited
Subjects
- SARFAESI
- Debt Recovery Tribunal
- Article 227
- Interim relief
- Possession
- Secured asset
- Writ petition
Judgment
HIGH COURT OF JUDICATURE AT ALLAHABAD
MATTERS UNDER ARTICLE 227 No. - 13390 of 2026
M/S Muskan Trading Corporation And 2 Others
.....Petitioner(s)
Versus
Canara Bank And Another
.....Respondent(s)
Counsel for Petitioner(s) : Himadari Batra, Radhika Bansal
Counsel for Respondent(s) : Krishna Mohan Asthana
Court No. - 9
HON'BLE ROHIT RANJAN AGARWAL, J.
1. Heard learned Senior Counsel for the petitioners and Sri K.M. Asthana,
learned counsel appearing for respondent-Bank.
2. This writ petition has been filed with the following prayers:-
"i. issue an appropriate order or direction, directing the Debts Recovery
Tribunal, Lucknow to take up, hear and decide, by a reasoned and
speaking order and within such time frame as this Hon'ble Court may be
pleased to fix, the Application for Interim Relief, the Application for
Urgency and the Amendment Application, all dated 24.07.2026, filed by
the Petitioners in Securitisation Application No. 916 of 2024, and
thereafter to hear and decide the said Securitisation Application itself
expeditiously and within such time frame as this Hon'ble Court may be
pleased to fix;
(ii) issue an appropriate order or direction to further direct the Debts
Recovery Tribunal, Lucknow that until the said applications and the said
Securitisation Application are so heard and decided, the possession of the
Petitioners over the secured asset, being the front portion of Khasra No.
688 M, admeasuring 1265 square metres, situated at Village Basantpur
Senthli, Pargana Jalalabad, Tehsil Modinagar, District Ghaziabad, shall
not be disturbed or altered by the Respondents, their officers, agents and
assigns, whether in purported execution of the order dated 02.07.2019 or
of the notice dated 10.07.2026 or otherwise howsoever, and that no third
party rights or interest shall be created therein;"
A227 No. 13390 of 2026
2
3. It is contended that petitioner is a borrower, who had taken loan from
respondent no.2-Canara Bank. As default has committed in re-payment of
loan, proceedings under Securitisation and Reconstruction of Financial
Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act,
2002) were initiated against the petitioner which had led to filing S.A.
No.916 of 2024 challenging the entire proceedings initiated by the Bank.
In the said proceedings, an application for grant of interim relief as well
as amendment application have also been filed which are pending
consideration.
4. As no useful purpose would be served in keeping the matter pending or
calling for counter affidavit, the writ petition is being disposed of, at the
admission stage, with a direction upon Debts Recovery Tribunal, Lucknow
to decide the application for interim relief filed in S.A. No.916 of 2024, in
accordance with law, within a period of one month from the date of
production of certified copy of this order.Thereafter, the Tribunal shall also
decide the amendment application within a period of next two months.
5. With the aforesaid direction, present writ petition stands disposed of.
(Rohit Ranjan Agarwal,J.)
September 24, 2026
SK Goswami
Digitally signed by :-
SHIVAKANT GOSWAMI
High Court of Judicature at Allahabad
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