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Allahabad High Court

VARTHANA FINANCE PRIVATE LIMITEDversusSTATE OF U.P. AND 11 OTHERS

Decided

Holding

The court held that the competent authority must ensure execution of the Section 14 order, subject to compliance with Section 26D, and directed the petitioner to approach the authority within a stipulated time.

Summary

Varthana Finance Private Ltd 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 10‑11‑2025 for possession of secured assets. The petitioner relied on the Supreme Court decision in C. Bright v. District Collector (AIR 2020 SC 5747), arguing that the authority must appoint a nodal officer and police to enforce the order. The State respondents contended that the authority is already bound to ensure compliance of the Section 14 order. The High Court directed the petitioner to file an application before the competent authority within two weeks and ordered the authority to execute the Section 14 order within four weeks, provided there is no legal impediment and Section 26D of the SARFAESI Act is complied with. The petition was therefore disposed with these procedural directions.

Issues considered

  • Whether the competent authority is duty-bound to provide a nodal officer and police force for execution of a Section 14 order under the SARFAESI Act as per the Supreme Court’s ruling in C. Bright.
  • Whether the petitioner must approach the competent authority before the court can direct execution of the order.

Legislation cited

Subjects

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

Judgment

         HIGH COURT OF JUDICATURE AT ALLAHABAD
                         WRIT - C No. - 39808 of 2026

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

State Of U.P. And 11 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 10.11.2025 executed for
delivery of possession of the secured assets in favour of the secured creditor
Case No.1731 of 2024.

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 10.11.2025 gets
                                                                                           WRIC No. 39808 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) 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.



                                                                         (Vivek Saran,J.) (Prakash Padia,J.)
                                    October 1, 2026
                                    Swati




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

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