Au Small Finance Bank Ltd. vs State of Maharashtra and Ors. — Contempt of Court | Bombay HC (2025)

Au Small Finance Bank Ltd. vs State of Maharashtra and Ors. — Contempt of Court | Bombay HC (2025)

What the court decided

AI extract

Outcome

Respondent Nos. 7 and 8 (Borrowers) restrained from entering onto / taking forcible possession of the subject property; caution that further trespass may lead the Court to initiate proceeding under the Contempt of Courts Act. (The Writ Petition itself was already disposed of on 19.12.2025.)

Issue for consideration

Whether restraining directions should be issued against Respondent Nos. 7 and 8 (Borrowers), who were stated to have trespassed on the subject property after physical possession was restored to the Petitioner in compliance with the Order dated 19 December 2025.

Court's answer

The Court recorded that the Order dated 19th December, 2025 has been complied with, Respondent Nos. 7 and 8 having handed over physical possession of the subject property to the Petitioner.

Ratio / Principle

Henceforth, Respondent Nos. 7 and 8 – the Borrowers – are restrained from entering onto / taking forcible possession of the subject property.

Key takeaways

In the event the Borrowers again trespass onto the subject property, the Court stated it will be considered to initiate proceeding under the Contempt of Courts Act.obiter¶3

Detailed headnote1 paragraphs

Bombay High Court (Civil Appellate Jurisdiction), Writ Petition No. 4522 of 2025 (with Interim Application (St.) No. 39499 of 2025) — AU Small Finance Bank Ltd. v. State of Maharashtra & Ors., order dated 22 December 2025, Coram: R.I. Chagla and Farhan P. Dubash, JJ. Compliance order: the Court recorded that its Order dated 19 December 2025 stood complied with, Respondent Nos. 7 and 8 (Borrowers) having handed over physical possession of the secured assets / subject property to the Petitioner Bank. On the Petitioner's submission that Respondent Nos. 7 and 8 had trespassed on the subject property, the Court directed that henceforth the Borrowers stand restrained from entering onto / taking forcible possession of the subject property, and made clear that in the event of further trespass the Court will be considered to initiate proceeding under the Contempt of Courts Act. The Writ Petition itself had already been disposed of on 19 December 2025; the present order was passed in compliance of the orders passed therein.

3-WP 4522.2025.doc Au Small Finance Bank Ltd. Vs. State of Maha. & Ors.,

IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION

WRIT PETITION NO. 4522 OF 2025

AU Small Finance Bank Ltd. …Petitioner

Versus

State of Maharashtra & Ors., …Respondents

WITH

INTERIM APPLICATION (ST.) NO.39499 OF 2025

IN

WRIT PETITION NO.4522 OF 2025

Mr. Prafull Chipte i/b Medha Rane for the Petitioner.

Ms. Rupali Shinde, AGP for Respondent Nos.1 to 5 – State.

Mr. Sachet S. Patil i/b Kamran S. Shaikh for Respondent Nos. 7 and 8.

CORAM : R.I. CHAGLA AND FARHAN P. DUBASH, JJ.

DATE : 22 DECEMBER, 2025

ORDER :

The learned Counsel appearing for the Petitioner states

that the Order dated 19th December, 2025 has been complied with by

KAVITA SUSHIL JADHAV

Digitally signed by KAVITA SUSHIL JADHAV Date: 2025.12.23 13:49:16 +0530

Respondent Nos. 7 and 8 handing over physical possession of the secured assets / subject property on 20th December, 2025.

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Order dated 22 December, 2025Page 1 of 2

3-WP 4522.2025.doc Au Small Finance Bank Ltd. Vs. State of Maha. & Ors.,

The learned Counsel for the Petitioner states that in view

of Respondent Nos. 7 and 8 having trespassed on the subject property, directions be issued restraining the Borrowers from entering onto the subject property.

We have considered the submissions. We note that the

said Order dated 19th December, 2025 has been complied with by Respondent Nos. 7 and 8 handing over physical possession of the subject property to the Petitioner. Henceforth, Respondent Nos. 7 and 8 – Borrowers are restrained from entering onto / taking forcible possession of the subject property. It is made clear that in that event the Borrowers again trespass onto the subject property, this Court will be considered to initiate proceeding under Contempt of Courts Act.

It is pertinent to note that the Writ Petition has already

been disposed of on 19th December, 2025 and that this order is passed in compliance of the orders passed in the Writ Petition.

[FARHAN P. DUBASH, J.]

[R.I. CHAGLA, J.]

3-WP 4522.2025.doc

Kavita S.J.

Page 2 of 2

Order dated 22 December, 2025