Allahabad High Court
AMIT KUMAR GUPTAversusUNION OF INDIA AND 2 OTHERS
- Decided
Holding
The High Court held that it cannot interfere under Article 226 in matters of debt liabilities governed by the SARFAESI Act and dismissed the petition.
Summary
The petitioner, Amit Kumar Gupta, filed a writ petition under Article 226 of the Constitution seeking a mandamus directing the respondent bank to allow him to deposit the balance loan amount in easy installments as fixed by the court. The respondents, including the Union of India, contended that the High Court lacks jurisdiction to interfere in the bank's debt recovery actions under the SARFAESI Act, relying on the Supreme Court’s decision in S. Shobha v. Muthoot Finance Ltd. (2025). The Court examined the relief sought and the precedent, noting that the Supreme Court had held High Courts should refrain from intervening in matters of debt liabilities and enforcement actions under the SARFAESI Act. Consequently, the Court declined to grant the writ relief. However, it directed the petitioner to approach the Debt Recovery Tribunal under Section 17 of the SARFAESI Act within four weeks, with a stay application, and stipulated timelines for disposal. The petition was thereafter consigned to the records.
Issues considered
- Whether a High Court can entertain a writ petition under Article 226 to direct a private bank to permit installment payment of a loan under the SARFAESI Act.
- Whether the Supreme Court’s decision in S. Shobha v. Muthoot Finance Ltd. precludes such interference.
Legislation cited
Subjects
- Article 226
- writ jurisdiction
- SARFAESI Act
- debt recovery
- installment payment
- private bank
- stay application
Judgment
HIGH COURT OF JUDICATURE AT ALLAHABAD
WRIT - C No. - 17523 of 2026
Amit Kumar Gupta
.....Petitioner(s)
Versus
Union Of India And 2 Others
.....Respondent(s)
Counsel for Petitioner(s) : Sushil Kumar Mishra
Counsel for Respondent(s) : A.S.G.I., Abhishek Ahuja
Court No. - 1
HON'BLE AJIT KUMAR, J.
HON'BLE INDRAJEET SHUKLA, J.
1. Heard Sri Sushil Kumar Mishra, learned counsel for the petitioner and
learned Standing Counsel for the State respondents.
2. By means of this petition filed under Article 226 of the Constitution,
petitioners have prayed for following relief:
"(i) Issue a writ, order or direction in the nature of mandamus
commanding the respondent No. 2 and 3 to permit the petitioner for
deposit the balance loan amount in easy installment as fix by this Hon'ble
Court within a stipulated period."
3. Per contra it is argued by learned Standing Counsel that the respondent
financial institution being a private Bank, this Court may not like to
interfere under Article 226 of the Constitution in the light of the
judgement in the case of S. Shobha vs. Muthoot Finance Ltd., 2025 SCC
OnLine SC 177.
4. We have heard learned counsel for the parties and have perused the
relief claimed in this petition and also the judgement in the case of S.
Shobha vs. Muthoot Finance Ltd. (supra) in which the Supreme Court
has held that the High Courts should refrain themselves from interfering
in matters of debt liabilities and the consequential action taken by such
financial institutions under the Securitisation and Reconstruction of
Financial Assets and Enforcement of Security Interest Act, 2002 (in short
the 'SARFAESI Act, 2002') by invoking extraordinary jurisdictional
WRIC No. 17523 of 2026
2
power under Article 226 of the Constitution.
5. In view of the above, we decline to grant indulgence in the matter.
However, we still provide that in the event petitioners apply before the
Debt Recovery Tribunal under Section 17 of SARFAESI Act, 2002
within a period of four weeks from today along with stay application and
if he does so, the said application shall be considered after putting the
bank to notice and dispose of the same within a further period of four
weeks thereafter and thereafter securitization application itself shall be
disposed of as expeditiously as possible preferably within a further period
of three months.
6. Subject to aforesaid liberty, petition stands consigned to records.
(Indrajeet Shukla,J.) (Ajit Kumar,J.)
May 5, 2026
IrfanUddin
Digitally signed by :-
IRFAN UDDIN SIDDIKI
High Court of Judicature at Allahabad
Checking your session…