Allahabad High Court
RAM SHANKAR GUPTAversusU.O.I. MINISTRY OF FINANCE DEPTT. OF FINANCIAL SERVICES THRU. ITS SECY. AND 2 OTHERS
- Decided
- Disposal
- Disposed off/Decided on merits
Holding
The writ petition was disposed without granting a stay, with the court directing the Debt Recovery Tribunal to decide the attachment application expeditiously under Section 17 of the SARFAESI Act.
Summary
The petitioner, Ram Shankar Gupta, obtained several unsecured credit facilities from the respondent bank in 2015 and subsequently defaulted, leading the bank to declare the account a Non‑Performing Asset and invoke the SARFAESI Act to recover the dues by taking possession of the secured assets. The petitioner filed an application for attachment before the Debt Recovery Tribunal, Lucknow, and also moved this High Court seeking a stay of possession pending the tribunal’s decision. The court observed that possession of the assets had already been taken, rendering the principal relief sought in the writ petition ineffective. Consequently, the court declined to stay the possession and instead directed the Debt Recovery Tribunal to decide the attachment application expeditiously, preferably within three months of the order. The petitioner was instructed to cooperate with the tribunal proceedings and avoid unnecessary adjournments.
Issues considered
- Whether the High Court can stay the bank’s possession of secured assets under the SARFAESI Act pending adjudication by the Debt Recovery Tribunal.
- Whether the writ petition remains maintainable after the bank has already taken possession of the assets.
Legislation cited
- Limitation Act — s. 5
- Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 — s. 13(2), 13(4), 14, 17
Subjects
- SARFAESI Act
- Non‑Performing Asset
- Bank possession
- Writ petition
- Debt Recovery Tribunal
- Stay of execution
- Limitation Act
- Secured assets
Judgment
HIGH COURT OF JUDICATURE AT ALLAHABAD
LUCKNOW
WRIT - C No. - 12826 of 2025
Ram Shankar Gupta
.....Petitioner(s)
Versus
U.O.I. Ministry Of Finance Deptt. Of Financial
Services Thru. Its Secy. And 2 Others .....Respondent(s)
Counsel for Petitioner(s) : Gaurav Gupta, Jyoti Rajpoot
Counsel for Respondent(s) : A.S.G.I.
Court No. - 5
HON'BLE ALOK MATHUR, J.
HON'BLE SUBHASH VIDYARTHI, J.
1. Heard Ms. Jyoti Rajpoot, learned counsel for the petitioner. Despite
notice no one has appeared either for the Union of India or on behalf of
respondent-Bank.
2. It has been submitted by learned counsel for the petitioner that
petitioner has availed credit facility for an amount of Rs. 20,00,000/- in
the nature of CC Limit and Rs.2,00,000/- (un-secured MSME) and
Rs.4,00,000/- (un-secured GECL) and Rs.2,40,000/- (un-secured GECL)
from the respondent Bank in the year 2015.
3. It seems that petitioner was not able to re-pay the aforesaid amount and
accordingly, said account was declared "Non Performing Asset" (NPA)
and the respondent-Bank has proceeded to recover the outstanding
amount from the petitioner under the provisions of Securitisation and
Reconstruction of Financial Assets and Enforcement of Security Interest
Act, 2002 (hereinafter referred to as "the SARFAESI Act, 2002").
4. Notice under Section 13(2) and 13(4) of the SARFAESI Act, 2002
have also been served and in order to take possession of the secured
assets, an order under Section 14 of the SARFAESI Act, 2002 was also
passed. The petitioner has also preferred SA before the Debt Recovery
Tribunal, Lucknow alongwith an application for condonation of delay
under Section 5 of the Limitation Act on 16.01.2024.
WRIC No. 12826 of 2025
2
5. In the present writ petition petitioner has sought direction to the
respondent-Bank not to proceed for actual possession till disposal of the
interim relief application which is pending before the Debt Recovery
Tribunal, Lucknow in SA No. 180 of 2024 - M/s Awadh Agency Vs.
Canara Bank, under Section 17 of the SARFAESI Act, 2002.
6. At the very outset, learned counsel for the petitioner submits that
during course of filing of present writ petition the possession of the
secured assets has already been taken by the authorities and to that extent
the main relief sought by the petitioner has become infructuous.
7. After arguing the matter up to some length, learned counsel for the
petitioner submits that grievance of petitioner shall be substantially
redressed in case the Debt Recovery Tribunal, Lucknow is directed to
decide the SA No. 180 of 2024, under Section 17 of the SARFAESI Act,
2002, expeditiously.
8. Considering the innocuous prayer made by learned counsel for the
petitioner, the present writ petition is disposed of with direction to the
Debt Recovery Tribunal, Lucknow to decide SA No. 180 of 2024, under
Section 17 of the SARFAESI Act, 2002, expeditiously, preferably within
three months from the date of production of certified copy of this order, in
accordance with law.
9. The petitioner undertakes to cooperate in the proceedings before the
Debt Recovery Tribunal, Lucknow and shall not take any unnecessary
adjournment.
(Subhash Vidyarthi,J.) (Alok Mathur,J.)
January 3, 2026
A. Verma
Digitally signed by :-
ANURAG VERMA
High Court of Judicature at Allahabad,
Lucknow Bench
Checking your session…