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Allahabad High Court

CHOLAMANDALAM INVESTMENT AND FAINANCE COMPANY LIMITEDversusSTATE OF U.P. AND 5 OTHERS

Decided

Holding

The court ordered the Additional District Magistrate to dispose of the pending SARFAESI Act case in line with the directions issued in Hinduja Housing Finance Ltd. v. State of U.P.

Summary

Cholamandalam Investment & Finance Co. Ltd filed a writ petition under Article 226 seeking a mandamus directing the Additional District Magistrate (Finance & Revenue), District Jhansi to dispose of a pending SARFAESI Act case (Case No. 5107/2025) as per the Supreme Court's earlier decision in Hinduja Housing Finance Ltd. v. State of U.P. The State's standing counsel raised no objection. The Allahabad High Court, noting the earlier judgment, disposed of the petition and directed the concerned authority to decide the pending case in conformity with the directions given in Hinduja Housing Finance Ltd. The court emphasized strict adherence to those directions.

Issues considered

  • Whether the Additional District Magistrate should be compelled by mandamus to dispose of the pending SARFAESI Act case in accordance with the earlier Hinduja Housing Finance Ltd. judgment.
  • Whether a writ of mandamus under Article 226 is the appropriate remedy to enforce compliance with the earlier decision.

Legislation cited

Subjects

  • Article 226
  • mandamus
  • SARFAESI Act
  • Section 14
  • secured creditor
  • judicial precedent
  • high court direction

Judgment

                                           HIGH COURT OF JUDICATURE AT ALLAHABAD
                                                          WRIT - C No. - 35874 of 2026


                                  Cholamandalam Investment And Fainance
                                  Company Limited                                             .....Petitioner(s)
                                                                    Versus

                                  State Of U.P. And 5 Others
                                                                                           .....Respondent(s)

                                  Counsel for Petitioner(s)           :   Chandan Sharma, Riya Shukla
                                  Counsel for Respondent(s)           :   C.S.C.

                                  Court No. - 5
                                                    HON'BLE PRAKASH PADIA, J.
                                                    HON'BLE INDRAJEET SHUKLA, J.

                                  1. Heard Sri Chandan Sharma, 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,
                                  petitioner has prayed for a writ of mandamus to command the respondent
                                  No.-3, namely, Additional District Magistrate (Finance & Revenue),
                                  District Jhansi to dispose of the pending Case No. 5107/2025
                                  (Computerized Case No. D-202506370005107) [Cholamandalam
                                  Investment & Finance Company Limited Vs. Mr. Nitin Chauhan and
                                  others] of the secured creditor under Section 14 of SARFAESI Act, 2002
                                  in the light of the law laid down by this Court in the case of M/s Hinduja
                                  Housing Finance Ltd. v. State of U.P. and 3 others (Writ - C No.- 42608
                                  of 2025) decided on 12th January, 2026.
                                  3. Learned Standing Counsel does not have any objection in the event
                                  petition stands disposed of in terms of the order passed in the case of M/s
                                  Hinduja Housing Finance Ltd. (supra).
                                  4. In view of the above, we dispose of this petition with a direction to the
                                  prescribed authority under Section 14 of SARFAESI Act, 2002 to dispose
                                  of the pending case of the petitioner in the light of directions issued by
                                  this Court in the case of M/s Hinduja Housing Finance Ltd. (supra).
                                  5. It is expected that the said authority shall be strictly adhering to the
                                  directions of this Court in the said case in this matter as well.


                                                                  (Indrajeet Shukla,J.) (Prakash Padia,J.)
                                  September 9, 2026/saqlain



Digitally signed by :-
SYED MOHAMMAD SAQLAIN HAIDER
High Court of Judicature at Allahabad


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