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

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

What the court decided

AI extract

Outcome

Interim restraint till the next date: respondents not to dispossess the petitioners and/or occupiers from the “Laxmi Park” property, Ulhasnagar; notice issued to respondents returnable on 24th July 2025; petition still pending.

Issue for consideration

Whether the petitioners were ever served with or communicated any notice under Section 13(2) of the SARFAESI Act, as asserted by their counsel. +1 more

Ratio / Principle

The Court was inclined to direct the respondents not to dispossess the petitioners and/or occupiers from the “Laxmi Park” property situated at Ulhasnagar till the next date.

Key takeaways

Notice was ordered to be issued to the respondents, returnable on 24th July 2025.ratio¶5

Detailed headnote1 paragraphs

SARFAESI enforcement – interim protection. Borrower-petitioners in W.P. Nos. 8798, 8802 and 8803 of 2025 (Bombay High Court, M.S. Karnik & N.R. Borkar, JJ., 1 July 2025) contended they were never served notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2022 (“SARFAESI Act”) and learnt only on 16th June 2025, from a notice affixed on the subject property, that physical possession would be taken on 2nd July 2025 with police aid followed by public auction on 4th July 2025; their One-Time Settlement proposal to the bank had been refused, the outstanding being stated as Rs.90 Lakhs. Counsel, on instructions, stated no objection to the authorities taking possession of two specified Ulhasnagar flats (Radha Krishna Apartment, Flat No. 202; Abhishek Residency). Since U.P.S.C. classes were being conducted at the “Laxmi Park” premises and examinations were due soon, the Court was inclined to direct 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, the petitioner Mohd. Mozahiddin Azada, present in Court, saying that a payment schedule would be submitted by the next date within which the outstanding could be paid.

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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