Allahabad High Court
A.U. SMALL FINANCE BANK LTD.versusSTATE OF UP AND 5 OTHERS
- Decided
Holding
The Court recalled the order dated 3 April 2026 and directed the petitioner to seek execution of the Section 14 order, thereby allowing the review.
Summary
A.U. Small Finance Bank Ltd. filed a review petition challenging the High Court's order dated 3 April 2026, which had directed the prescribed authority merely to dispose of a Section 14 application under the SARFAESI Act, 2002. The bank argued that the Section 14 application had already been disposed and the real issue was the execution of the order dated 11 March 2025 granting possession of secured assets. The State respondents did not contest this view. The Court reviewed and recalled its earlier order, restoring the original writ petition, and directed the bank to file an application before the competent authority within two weeks to seek execution of the Section 14 order, which must be complied with within four weeks in accordance with the Supreme Court decision in C. Bright v. District Collector. The direction is subject to no legal impediment and compliance with Section 26D of the SARFAESI Act. The review was allowed and specific procedural steps were mandated for execution of the possession order.
Issues considered
- Whether the order directing the prescribed authority to dispose of the Section 14 application is appropriate when the application has already been disposed.
- Whether the court can direct the petitioner to seek execution of a Section 14 order under the SARFAESI Act, 2002.
- Compliance with the Supreme Court judgment in C. Bright v. District Collector regarding execution of SARFAESI orders.
- Applicability of Section 26D of the SARFAESI Act in the execution process.
Legislation cited
- SARFAESI Act, 2002 — s. 14, 26D
Subjects
- SARFAESI Act
- Section 14
- review petition
- execution of order
- Supreme Court precedent
- possession of secured assets
- Section 26D
Judgment
HIGH COURT OF JUDICATURE AT ALLAHABAD
CIVIL MISC REVIEW APPLICATION No. - 72 of 2026
A.U. Small Finance Bank Ltd.
.....Applicant(s)
Versus
State Of Up And 5 Others
.....Opposite
Party(s)
Counsel for Applicant(s) : Anuj Kumar Singh
Counsel for Opposite Party(s) : C.S.C.
Court No. - 1
HON'BLE AJIT KUMAR, J.
HON'BLE INDRAJEET SHUKLA, J.
1. Heard Sri Anuj Kumar Singh, learned counsel appearing for the applicant-
petitioner and Sri Anuj Pratap Singh, learned Additional Chief Standing
Counsel appearing for the State respondents.
2. By means of this review petition, petitioner has sought review of our order
dated 3rd April, 2026 on the ground that petitioner had approached this
Court for appropriate direction to the prescribed authority to execute the
order already passed under Section 14 of the SARFAESI Act, 2002 whereas
the order got transcribed to the effect that the prescribed authority is directed
to dispose of the Section 14 application. It is contended that Section 14
application since has already stood disposed of, the only question remained
execution thereof and therefore the matter could have been disposed of in the
light of the judgment of the Supreme Court in the case of C. Bright v. The
District Collector & others, AIR 2020 SC 5747
3. Learned Additional Chief Standing Counsel does not dispute the same.
4. In view of the above, the order dated 3rd April, 2026 passed by us
disposing of the writ petition is hereby reviewed and hence recalled.
5. The writ petition thus stands restored to its original number.
6. Now since the petitioner wants that the order passed by the prescribed
authority dated 11th March, 2025 under Section 14 of the SARFAESI Act,
2002 be acted upon so that the actual possession of the secured assets is
handed over to the petitioner, we are disposing of this petition with a
CMRA No. 72 of 2026
2
direction to the petitioner to file an application before the competent
authority within a period of two weeks from today and in the event if such
application is filed as directed herein above, the competent authority shall
ensure that the order passed under Section 14 of SARFAESI Act, 2002 dated
11.03.2025 gets executed in accordance with law and in the light of the
judgment of Supreme Court in the case of C. Bright (supra) within a further
period of four weeks, if otherwise, there is no legal impediment and there is
a compliance of Section 26D of SARFAESI Act, 2002.
May 5, 2026
Pratima
(Indrajeet Shukla,J.) (Ajit Kumar,J.)
Digitally signed by :-
PRATIMA AGRAHARI
High Court of Judicature at Allahabad
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