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Allahabad High Court

VARTHANA FINANCE PRIVATE LIMITEDversusSTATE OF U.P. AND 9 OTHERS

Decided

Holding

The Court held that the competent authority must ensure execution of the Section 14 order in accordance with the Supreme Court precedent, subject to compliance with Section 26D of the SARFAESI Act.

Summary

The petitioner, Varthana Finance Private Limited, filed a writ petition under Article 226 seeking a direction to the competent authority to execute a Section 14 order of the SARFAESI Act dated 22 July 2025 for possession of secured assets. The petitioner relied on the Supreme Court decision in C. Bright v. District Collector (2020) that the authority must appoint a nodal officer and police to enforce such orders. The respondents, the State of U.P. and others, contended that the authority is obligated to ensure compliance with the Section 14 order. The High Court directed the petitioner to file an application before the competent authority within two weeks and, if filed, ordered the authority to execute the Section 14 order in accordance with law and the Supreme Court precedent, provided there is no legal impediment and Section 26D of the SARFAESI Act is complied with. The petition was disposed with these directions.

Issues considered

  • Whether the competent authority is required to provide a nodal officer and police force for execution of a Section 14 order under the SARFAESI Act as per the Supreme Court judgment in C. Bright v. District Collector.
  • Whether the petitioner must approach the competent authority to obtain execution of the order dated 22.07.2025.

Legislation cited

Subjects

  • SARFAESI Act
  • Section 14
  • Section 26D
  • possession
  • secured creditor
  • Article 226
  • writ petition
  • execution of order
  • nodal officer
  • police force
  • Supreme Court precedent

Judgment

         HIGH COURT OF JUDICATURE AT ALLAHABAD
                         WRIT - C No. - 39736 of 2026

Varthana Finance Private Limited
                                                                .....Petitioner(s)
                                     Versus

State Of U.P. And 9 Others
                                                             .....Respondent(s)

Counsel for Petitioner(s)                     :   Ramesh Kumar Shukla
Counsel for Respondent(s)                     :   C.S.C.

Court No. - 5
                     HON'BLE PRAKASH PADIA, J.
                     HON'BLE VIVEK SARAN, J.

1. Heard Sri Ramesh Kumar Shukla, 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 direction to the competent authority under Section
14 of SARFAESI Act, 2002 to get order dated 22.07.2025 executed for
delivery of possession of the secured assets in favour of the secured creditor
Case No.390 of 2025.

3. It is contended by learned counsel for the petitioner that in the light of the
judgment of Supreme Court in the case of C. Bright v. The District Collector
& others, AIR 2020 SC 5747, it is the duty of the competent authority to
provide for a Nodal Officer, may be Sub Divisional Magistrate or any other
revenue authority and also necessary police force to get the order passed
under Section 14 executed in accordance with law.

4. Learned Standing Counsel submits that if the petitioner approaches the
authority, the authority shall ensure the compliance of the order passed under
Section 14 of SARFAESI Act, 2002.

5. In view of the above, we dispose of this petition with a 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 22.07.2025 gets
                                                                                          WRIC No. 39736 of 2026
                                                                   2


                                    executed in accordance with law and in the light of the judgment of Supreme
                                    Court in the case of C. Bright (supra), if otherwise, there is no legal
                                    impediment and there is a compliance of Section 26D of SARFAESI Act,
                                    2002.



                                                                        (Vivek Saran,J.) (Prakash Padia,J.)
                                    September 30, 2026
                                    Swati




Digitally signed by :-
SWATI PATHAK
High Court of Judicature at Allahabad


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