Nursaba Tahidul Hassan Azad and Ors. vs Union of India… — Banking and Recovery | Bombay HC (2025)

Nursaba Tahidul Hassan Azad and Ors. vs Union of India… — Banking and Recovery | Bombay HC (2025)

What the court decided

AI extract

Outcome

Interim orders only: respondents directed not to dispossess petitioners/occupiers from the “Laxmi Park” property at Ulhasnagar till the next date; notices issued to respondents returnable on 24th July 2025; petitioners (not objected to possession of the two other secured Ulhasnagar flats) to submit a payment schedule by the next date. Final disposal awaited; petitions not finally decided.

Issue for consideration

Whether the petitioners were ever served or communicated any notice under Section 13 (2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2022 before the possession/auction proceedings (petitioners assert non-service; not adjudicated in this order). +1 more

Ratio / Principle

In view of the pending OTS offer and because U.P.S.C. classes are conducted from the premises with examinations due soon, the Court directed the respondents not to dispossess the petitioners and/or occupiers from the “Laxmi Park” property situated at Ulhasnagar till the next date (matter returnable on 24th July 2025).

Key takeaways

Notice was ordered to be issued to the respondents, returnable on 24th July 2025.ratio¶26
Passing observation: the petitioners remain free to approach the statutory forum under the SARFAESI Act (“No doubt, the petitioners can approach the forum under the SARFAESI Act.”), while counsel indicated continued willingness to settle via OTS.obiter¶18

Detailed headnote1 paragraphs

Bombay High Court (Civil Appellate Jurisdiction), M.S. Karnik & N.R. Borkar JJ., interim order dated 1st July 2025 in three clubbed writ petitions (W.P. Nos. 8798, 8802 and 8803 of 2025) concerning enforcement by the respondent-bank under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2022 over secured assets at Ulhasnagar, District Thane. Petitioners contended that no notice under Section 13 (2) SARFAESI was ever served or communicated; they learnt only on 16th June 2025 of a notice affixed on the property intimating physical possession with police aid on 2nd July 2025 and public auction on 4th July 2025; their One-Time Settlement request had been refused and the outstanding was stated as Rs.90 Lakhs. Counsel offered OTS and, on instructions, did not object to possession of two flats (Radha Krishna Apartment Flat No. 202; Abhishek Residency Room No. 659). Observing that U.P.S.C. classes were conducted from the “Laxmi Park” premises (City Survey No. 24504) with examinations due, the Court directed the respondents not to dispossess the petitioners/occupiers from Laxmi Park till the next date, issued notices returnable on 24th July 2025, and recorded the petitioner's undertaking to submit a payment schedule by the next date. Observation made that the petitioners may resort to the SARFAESI forum.

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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DSS

904-907-908.doc

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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904-907-908.doc

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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Procedural history

How this case reached the court

AI extract

Order under challenge
Possession notice affixed on the subject property (coming to petitioners' knowledge on 16th June 2025) intimating that physical possession would be taken on 2nd July 2025 with police aid, followed by public auction sale scheduled on 4th July 2025, in SARFAESI enforcement proceedings; petitioners contend no notice under Section 13 (2) was ever served or communicated to them.¶17
16th June 2025 (date notice came to petitioners' knowledge / was affixed)
Prior proceeding
Learned counsel asserted that the petitioners were never served nor communicated any notice under Section 13 (2) of the SARFAESI Act.¶13
Prior proceeding
Scheduled enforcement steps intimated on the affixed notice: physical possession on 2nd July 2025 with police aid, followed by public auction sale on 4th July 2025.¶17
Prior proceeding
Petitioners had approached the bank for One-Time Settlement, which was refused.¶17
Prior proceeding
Counsel submitted that petitioners are willing to offer OTS to the respondent-bank and, on instructions, will not object to authorities taking possession of two specified Ulhasnagar flats (secured assets); outstanding stated as Rs.90 Lakhs.¶18
Prior proceeding
First secured asset offered for possession: Radha Krishna Apartment, Flat No. 202, 2nd Floor, Block No.A104, Room No.207, No.22854 Div. G, Ulhasnagar Camp-4, District-Thane.¶19
Prior proceeding
Second secured asset offered for possession: Abhishek Residency, Block No.A-330, Room No.659, CTS No.22837, Ulhasnagar-421004, Dist.Thane.¶20
Prior proceeding
Third property, “Laxmi Park” (Block No.1833, Block No.C-917, City Survey No. 24504, Ulhasnagar-5, Dist.-Thane), sought to be protected pending OTS.¶21
Prior proceeding
Ground for interim protection of “Laxmi Park”: U.P.S.C. classes are conducted from the premises and examinations are due soon.¶21
Prior proceeding
Present petitioner Mohd. Mozahiddin Azada stated that a payment schedule enabling payment of the outstanding would be submitted by the next date.¶27