Mohd. Mozahiddin Azada vs Union of India through… — Banking and Recovery | Bombay HC (2025)

Mohd. Mozahiddin Azada vs Union of India through… — Banking and Recovery | Bombay HC (2025)

What the court decided

AI extract

Outcome

Interim direction restraining the respondents from dispossessing the petitioners and/or occupiers from the 'Laxmi Park' property at Ulhasnagar till the next date; notice issued to the respondents returnable on 24th July 2025. Recorded: counsel for petitioners stated no objection to authorities taking possession of the two other secured assets (Flat No. 202, Radha Krishna Apartment, Room No. 207, Block No. A104, and Abhishek Residency, Block No. A-330, Room No. 659); outstanding stated at Rs. 90 lakhs with a fresh OTS offer; petitioner Mohd. Mozahiddin Azada to submit a payment schedule by the next date.

Issue for consideration

Whether the petitioners were ever served or communicated with the notice under Section 13(2) of the SARFAESI Act, given their contention that they learnt of the recovery proceedings only when a possession notice was affixed on the property. +1 more

Court's answer

Observation that the petitioners can approach the forum under the SARFAESI Act; the matter was nonetheless entertained on the strength of counsel's statement that the petitioners are willing to offer OTS to the respondent-bank.

Ratio / Principle

The Court directed the respondents not to dispossess the petitioners and/or occupiers from the 'Laxmi Park' property at Ulhasnagar till the next date, in view of the UPSC classes being conducted there, the forthcoming examinations, and the petitioners' offer to pay outstanding dues via OTS.

Key takeaways

Notice was issued to the respondents, returnable on 24th July 2025; the petitioner present in Court stated that the payment schedule would be submitted by the next date.ratio¶5

Detailed headnote1 paragraphs

Bombay High Court (M.S. Karnik & N.R. Borkar, JJ.), interim order in three connected writ petitions (Nos. 8798, 8802 and 8803 of 2025) concerning SARFAESI enforcement against secured assets at Ulhasnagar, District Thane. Petitioners contended they were never served with the Section 13(2) demand notice and learnt of the recovery steps only on 16th June 2025, when a notice affixed on the property indicated physical possession on 2nd July 2025 with police aid and public auction on 4th July 2025. Outstanding dues were stated at Rs. 90 lakhs; an earlier OTS request to the bank had been refused and a fresh OTS offer was made. Counsel for the petitioners, on instructions, stated no objection to the authorities taking possession of Flat No. 202, Radha Krishna Apartment (Room No. 207, Block No. A104) and Abhishek Residency (Block No. A-330, Room No. 659). Since U.P.S.C. classes are conducted from the 'Laxmi Park' premises (City Survey No. 24504, Ulhasnagar-5) and examinations are due soon, and an OTS offer was on record, the Court directed the respondents not to dispossess the petitioners and/or occupiers from the 'Laxmi Park' property till the next date; notice was issued returnable on 24th July 2025, with the petitioner present stating that a payment schedule would be submitted by the next date.

Digitally signed by DINESH DINESH SADANAND SADANAND SHERLA SHERLA Date: 2025.07.01 19:37:30 +0530

904-907-908.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 8798 OF 2025

Mohd. Mozahiddin Azada and Anr … Petitioners V/s. Union of India and ors. … Respondents WITH WRIT PETITION NO. 8802 OF 2025

Nursaba Tahidul Hasssan AzadA and Ors … Petitioners V/s. Union of India and ors. … Respondents WITH WRIT PETITION NO. 8803 OF 2025

Mohd. Mozahiddin Azada and Ors. … Petitioners V/s. Union of India and ors. … Respondents

Mr. Advait Dalvi for the Petitioners.

Mr. D.P. Singh for Respondent No.1/UOI.

Mr. N.C. Walimbe, Addl. GP. a/w. Ms Reena A. Salunkhe, AGP for the Respondent/State .

CORAM : M.S. KARNIK & N.R. BORKAR, J.J. DATE : 1^st JULY, 2025.

P.C.

Heard learned counsel for the petitioners.

According to the learned counsel for the petitioners, the petitioners were never served nor communicated with any notice under Section 13 (2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of

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Security Interest Act, 2022 (“SARFAESI Act” for short) and that the same came to their knowledge only on 16^th June 2025 when a notice was affixed on the subject property informing that physical possession shall be taken on 2^nd July 2025 with police aid followed by public auction for sale schedule on 4^th July 2025. The petitioners have approached the bank for OneTime Settlement (“OTS” for short), which has been refused.

No doubt, the petitioners can approach the forum under the SARFAESI Act. However, learned counsel for the petitioners submitted that the petitioners are willing to offer OTS to the respondent - bank. The outstanding as of today is Rs.90 Lakhs. Learned counsel for the petitioners, on instructions, submitted that they will not object to the authorities for taking possession of the following properties situated at Ulhasnagar, the secured assets.

Radha Krishna Apartment bearing Flat No. 202, 2^nd Floor, Block No.A104, Room No.207, bearing No.22854 Div. G, Ulhasnagar Camp-4, District-Thane.

Abhishek Residency situated/constructed on Block No.A-330, Room No.659, bearing CTS No.22837, Ulhasnagar-421004, Dist.Thane”

However, sofar as the property at “Laxmi Park” situated/constructed at Block No.1833, Block No.C-917, City Survey No. 24504, Ulhasnagar-5, Dist.-Thane is concerned, as U.P.S.C. classes are being conducted from the premises and examinations are due soon and as the petitioners are willing

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to offer OTS for paying the outstanding dues, we are inclined to direct the respondents not to dispossess the petitioners and/or occupiers from “Laxmi Park” property situated at Ulhasnagar till the next date.

Issue notice to the respondents, returnable on 24^th July 2025.

The petitioner – Mohd. Mozahiddin Azada, who is present in the Court, says that the payment schedule will be submitted by the next date within which time the outstanding can be paid.

(N.R. BORKAR, J.) (M.S. KARNIK, J.)

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