High Court of Gujarat

PRAKASH BHAGCHAND VASWANIversusTHE CHIEF MANAGER AND AUTHORIZED OFFICER

Disposal: 56-DISPOSED AT ADMISSION STAGE
Bench: NIRAL R MEHTA

Holding

The court upheld the parties' settlement, disposed of the petition, and directed the petitioners to approach the DRT while restraining the respondent from acting on the property pending the DRT's decision.

Summary

The petitioners, members of the Vaswani family, entered into an agreement with the respondent (Chief Manager and authorized officer) to approach the Debt Recovery Tribunal (DRT) for relief concerning a disputed property by 20 March 2026, with the DRT to decide by 1 April 2026. In return, the respondent agreed not to take any further action on the property pending the DRT's decision. The petitioners also consented to withdraw pending applications before the Chief Judicial Magistrate. The High Court accepted the parties' settlement, ordered the petitioners to file fresh applications before the DRT within the stipulated time, directed the DRT to decide promptly, and restrained the respondent from any action on the property. All other rights and contentions of the parties remain open for independent determination.

Issues considered

Whether the court can endorse the parties' agreement to refer the dispute to the Debt Recovery Tribunal and stay further action by the respondent.
Whether the petition should be disposed with directions for fresh applications and a stay on the respondent's actions.

Subjects

Debt Recovery Tribunalproperty disputeinjunctionwithdrawal of applicationcivil proceduresettlement agreement

Judgment

       C/SCA/3981/2026                           ORDER DATED: 17/03/2026




             IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

               R/SPECIAL CIVIL APPLICATION NO. 3981 of 2026

==========================================================
                PRAKASH BHAGCHAND VASWANI & ORS.
                             Versus
         THE CHIEF MANAGER AND AUTHORIZED OFFICER & ANR.
==========================================================
Appearance:
MR SATYAM CHHAYA with MR PRATIK RAMESH DEVNANI(14184) for the
Petitioners
MS.RIYA P. NAVIN(14294) for the Petitioner(s) No. 1,2,3
MR MITUL SHELAT, Senior Advocate with MASOOM K SHAH(6516) for the
Respondent(s) No. 2
==========================================================

     CORAM:HONOURABLE MR. JUSTICE NIRAL R. MEHTA

                             Date : 17/03/2026

                              ORAL ORDER


1.      Heard learned advocate Mr.Satyam Chhaya with learned
advocate Mr.Pratik Devnani for the petitioners and learned
Senior Advocate Mr.Mitul Shelat with learned advocate
Mr.Masoom Shah for the respondent No.2.


2.      After hearing the matter to some extent, a broad
consensus is arrived at between the parties, wherein it is
agreed between the petitioners and the respondent No.2 that
if for any relief, the petitioners approach the Debt Recovery
Tribunal in a pending proceedings on or before 20.3.2026 and
thereafter, if a further direction is issued to the                    Debt
Recovery Tribunal to decide the said application within some
stipulated time, then, in that event, the respondent No.2 will
not precipitate any further action on the property which is in


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      C/SCA/3981/2026                           ORDER DATED: 17/03/2026




their possession.


3.     The arrangement agreed upon between the parties
appears to be reasonable and is hereby accepted.


4.     Learned advocate Mr.Satyam Chhaya, in all fairness,
also stated before this Court that the present petitioners,
namely, (i) Prakash Bhagchand Vaswani (ii) Vinod Bhulchand
Vaswani and (iii) Navin Lalchand Vaswani would now not
proceed with the application 0led before the learned Chief
Judicial Magistrate being CR.M.A. No.2421 of 2026 in CR.M.A
No.1318 of 2021 and shall not claim any prayers.


5.     Accordingly, the present petition is disposed of, with
following directions :


(1)    The petitioners shall approach the concerned                   Debt
Recovery Tribunal by way of fresh applications for the
necessary reliefs on or before 20.3.2026.


(2)    Considering the peculiar facts and circumstances, if any
such applications are 0led, the            Debt Recovery Tribunal,
Ahmedabad shall decide the same on or before 1.4.2026.


(3)    The respondent No.2 shall abide by the agreement with
regard to no action, till the decision on the said applications,
over the property in question and the property in question will
be maintained as it is.


6.     Needless to clarify that all the rights and contentions of

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         C/SCA/3981/2026                                                              ORDER DATED: 17/03/2026




 both the parties are hereby kept open and the same shall be
 decided independently.


            Direct service is permitted.



                                                                                          (NIRAL R. MEHTA,J)
 V.J. SATWARA



Original copy of this order has been signed by the Hon'ble Judge.
Digitally signed by: VIPUL JASWANTBHAI SATWARA(HC00170), PRINCIPAL PRIVATE SECRETARY, at High Court of Gujarat on 17/03/2026 17:33:23




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