Allahabad High Court
MOHD FARID KHANversusSTATE OF U.P. AND 2 OTHERS
- Decided
Holding
The Court granted a conditional stay, directing the petitioner to pay Rs.8 lakh by the stipulated date and the balance in installments, barring further SARFAESI action upon compliance.
Summary
The petitioner, Mohd Farid Khan, challenged a sale notice issued by a financial institution for recovery of a loan of Rs.28,97,633.05 under the SARFAESI Act. He offered to pay the full amount if granted a time‑extension. The bank agreed to accept an initial payment of Rs.8 lakh by 18 April 2026 and the balance in three bimonthly installments, subject to the petitioner furnishing a notarized undertaking. The High Court, with the consent of both parties, directed the petitioner to make the initial payment and provide the undertaking, after which the bank must issue a revised statement of account and refrain from proceeding under the SARFAESI Act. The Court further warned that failure to comply would terminate the protection and the bank could invoke Sections 13 and 14 of the SARFAESI Act, with no further writ petitions entertained. The petition was consequently disposed with these directions.
Issues considered
- Whether the petitioner is entitled to a stay of SARFAESI proceedings and a time‑extension for repayment of the loan.
Legislation cited
- SARFAESI Act, 2002 — s. 13, 14
Subjects
- SARFAESI Act
- loan recovery
- stay of execution
- installment payment
- writ petition
- bank‑borrower dispute
Judgment
HIGH COURT OF JUDICATURE AT ALLAHABAD
WRIT - C No. - 9682 of 2026
Mohd Farid Khan
.....Petitioner(s)
Versus
State Of U.P. And 2 Others
.....Respondent(s)
Counsel for Petitioner(s) : Danish, Rajiv Sisodia
Counsel for Respondent(s) : C.S.C., Krishna Mohan Asthana
Court No. - 1
HON'BLE AJIT KUMAR, J.
HON'BLE SWARUPAMA CHATURVEDI, J.
1. Heard Sri Rajeev Sisodia learned counsel for the petitioner and Sri K.M. Asthana,
learned counsel for the respondent bank.
2. Petitioner who has assailed the sale notice for recovery of Rs.28,97,633.05/- with
interest as on date passed by respondent no. 2, submits that he is ready to pay entire
amount provided he is given some time respite in terms of time for clearing the dues.
3. Upon a pointed query being made learned counsel appearing for the respondent
bank submits that as per the instructions received from Bank, it is ready to accept the
amount if the petitioner pays Rs. 8 lacs within 30 days i.e. by 18th April, 2026 and
further pays the remaining amount in three bimonthly installments.
4. Learned Standing Counsel appearing for the State respondents submits that if the
financial institution is agreed to the request made by the borrower then it is the
financial institution who is to only support and the State authority has nothing to do in
the matter.
5. In view of the above and with the consent of parties, namely, the petitioner and the
financial institution, respondent no. 2 through his counsel, we dispose of this petition
with the following directions:-
(i) Petitioner shall be depositing Rs. 8 lacs by 18th April, 2026 with the respondent no.
2 and shall furnish an undertaking on a notarized affidavit that he will be depositing
the above amount by 18th April, 2026 and further the entire remaining dues in three
bimonthly equal installments. The undertaking shall be furnished to the bank within
ten days from today.
ii) In the event, petitioner furnishes above undertaking and makes deposit as directed
herein above, the Bank-financial institution, namely, respondent no. 2 shall supply the
statement of account regarding dues to be paid by the petitioner in three bimonthly
WRIC No. 9682 of 2026
2
equal installments. The statement of account shall be provided within a week of
deposit of amount by adjusting the amount already deposited.
iii) After receiving the statement of account, the petitioner would be depositing the
entire remaining dues within three bimonthly installments begin with from 18th June,
2026.
6. In the event petitioner complies with the aforesaid directions by making deposit of
Rs. 8 lacs by 18th April, 2026 and furnishing an affidavit, no proceeding shall be
pursued by the respondent financial institution as per the undertaking given by its
counsel, under the SARFAESI Act, 2002.
7. However, we may clarify that in the event petitioner fails to make deposit of Rs. 8
lacs and fails to furnish an affidavit with respondent no. 2 and/or further fails to pay
back the dues as directed herein above, the protection granted under this order shall
cease to operate and respondent no. 2 shall be at liberty to pursue the remedies
available to it by taking measures under Section 13 read with Section 14 of the
SARFAESI Act, 2002 and no second writ petition would be entertained in any
circumstances, nor any modification application for modification of this order shall be
entertained.
March 18, 2026
Sanjeev
(Swarupama Chaturvedi,J.) (Ajit Kumar,J.)
Digitally signed by :-
SANJEEV RANJAN
High Court of Judicature at Allahabad
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