PNB Housing Finance Limited vs State Of Maharashtra… — Banking and Recovery | Bombay HC (2026)

PNB Housing Finance Limited vs State Of Maharashtra… — Banking and Recovery | Bombay HC (2026)

What the court decided

AI extract

Outcome

Directions issued to Respondent No. 3 Tahsildar, Ambarnath (Thane) to issue notice and take physical possession of the secured asset on 30th March 2026, with Respondent No. 4 Senior Police Inspector, Shivajinagar Police Station providing police assistance including lady constables and using proportionate, reasonable and necessary force against trespassers including third parties; personal appearance before the Court ordered upon non-compliance; matter listed for compliance on 2nd April 2026.

Issue for consideration

Whether the Court should issue specific directions to Respondent No. 3 (Tahsildar) and Respondent No. 4 (Police) to take/secure physical possession of the SARFAESI secured asset, given that borrowers re-trespassed after possession was taken pursuant to the Competent Magistrate's Section 14 order.

Court's answer

Unless specific directions are issued to Respondent No. 3 Tahsildar and Respondent No. 4 Police Inspector, such flagrant violations of the rule of law would continue and orders passed in favour of secured creditors under the provisions of the SARFAESI Act would stand frustrated.

Ratio / Principle

The Court observed that in a number of such cases secured creditors are constrained to approach it because the concerned Tahsildars have found difficulty executing the Competent Magistrate's order and, where executed, borrowers or third parties at their behest encroach upon the secured asset, particularly flats in cooperative housing societies.

Key takeaways

The Court directed Respondent No. 3 - Tahsildar, Ambarnath (Thane) to issue notice for taking physical possession of the secured asset and to take physical possession of it on 30th March 2026.ratio¶¶26
Respondent No. 4 - Senior Police Inspector, Shivajinagar Police Station, Ambarnath was directed to provide proper police assistance, including lady constables, for execution of the Court's direction.ratio¶¶26
The police force was authorised/directed to use proportionate, reasonable and necessary force for taking physical possession of the secured asset from the trespassers, who may even be third parties.

Detailed headnote1 paragraphs

Bombay High Court (Civil Appellate Jurisdiction), Coram: Manish Pitale & Shreeram V. Shirsat, JJ.; Writ Petition No. 3815 of 2025, order dated 17 March 2026 — PNB Housing Finance Limited (secured creditor) obtained an order dated 10.01.2024 from the Competent Magistrate (Respondent No. 2) under Section 14 SARFAESI Act for physical possession of its secured flat in a cooperative housing society at Ambarnath (Thane); possession was taken on 27.09.2024, but the borrowers (or third parties at their behest) trespassed back into the asset between December 2024 and January 2025. Holding that absent specific directions such flagrant violations would continue and SARFAESI orders would stand frustrated — noting the recurring pattern of Tahsildars finding it difficult to execute Magistrates' orders and of re-encroachment on executed assets — the Court directed the Tahsildar, Ambarnath to issue notice and take physical possession on 30.03.2026, with the Senior Police Inspector, Shivajinagar Police Station, Ambarnath providing police assistance including lady constables and using proportionate, reasonable and necessary force against trespassers, even third parties. Non-compliance would require both officers to remain personally present in Court on the next listing. Compliance listed for 02.04.2026.

12-WP-3815-2025.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY

CIVIL APPELLATE JURISDICTION

WRIT PETITION NO. 3815 OF 2025

PNB Housing Finance Limited .. Petitioner V/s.

The State of Maharashtra through the .. Respondent office of Govt. Pleader

Adv. Smit Shah, a/w Adv. Heena Lambate, for the Petitioner.

Digitally signed by VARSHA VARSHA DEEPAK DEEPAK GAIKWAD GAIKWAD Date: 2026.03.18 15:32:12 +0530

Mr. N. C. Walimbe, Addl. GP, a/w Ms. P. M. J. Deshpande, AGP for Respondent/State.

CORAM : MANISH PITALE & SHREERAM V. SHIRSAT, JJ. DATE : 17TH MARCH 2026.

PC:

The learned counsel for the petitioner submits that in terms of earlier

order passed by this Court, the petition has been amended by correcting the address of Respondent No. 4 and the amended copy has been e-filed.

For the convenience of this Court, amended physical copies were also tendered.

The petitioner is a secured creditor. The Respondent No. 2- Competent Magistrate passed an order dated 10^th January 2024, under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI Act) for taking physical possession of the secured asset, being a flat in a cooperative housing society at

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12-WP-3815-2025.doc

Ambarnath (Thane).

In pursuance thereof, physical possession of the secured asset was taken on 27/09/2024.

But, according to the petitioner, thereafter the borrowers trespassed into the secured asset between December 2024 and January 2025. Photographs have been placed on record to show that the secured asset has been trespassed by the borrowers or a third party at the behest of the borrowers.

We are of the opinion that unless appropriate orders are passed issuing specific directions to the Respondent No. 3 Tahsildar and Respondent No. 4 Police Inspector of the concerned police station, such flagrant violations of the rule of law would continue and orders passed in favor of secured creditors like the petitioner under the provisions of the SARFAESI Act would stand frustrated. We have observed that in a number of such cases, secured creditors are constrained to approach this Court for seeking appropriate directions as the concerned Tahsildars have found difficulty to execute the order passed by the Competent Magistrate and where such orders have been executed, the borrowers or third parties at the behest of borrowers have been encroaching upon the secured asset, particularly when the secured asset is a flat in cooperative housing society.

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12-WP-3815-2025.doc

In view of the above, we direct the Respondent No. 3 - Tahsildar, Ambarnath (Thane) to issue notice for taking physical possession of the secured on 30^th March 2026. The Respondent No. 3 Tahsildar shall take physical possession of the secured asset on the said date, for which purpose the Respondent No. 4- Senior Police Inspector of Shivajinagar Police Station, Ambarnath shall provide proper police assistance including lady constables for the execution of the said direction of this Court. The police force shall use proportionate, reasonable and necessary force for taking physical possession of the secured asset from the trespassers which may even be third parties.

It is made clear that if the aforesaid direction given by this Court is not complied with, the Respondent No. 3 Tahsildar, Ambarnath and Respondent No. 4 Senior Police Inspector, Shivajinagar Police Station, Ambarnath shall remain personally present in this Court on the next date of listing.

List on 2^nd April 2026, for compliance.

(SHREERAM V. SHIRSAT, J.)

(MANISH PITALE, J.)

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