Tarak Nath Shaw and Another Vs the State of West… — Banking and Recovery | Calcutta HC (2025)

Tarak Nath Shaw and Another Vs the State of West… — Banking and Recovery | Calcutta HC (2025)

What the court decided

AI extract

Outcome

Liberty to the petitioner to approach the Debts Recovery Tribunal for necessary reliefs; the Tribunal directed to endeavour to decide any such application at the earliest, preferably prior to execution of the Section 14 order.

Issue for consideration

Whether the petitioner, who claims to be a pre-mortgage tenant, is entitled to be spared ouster pursuant to the bank's Section 14 SARFAESI Act possession order without due recourse to law. +1 more

Ratio / Principle

It is open to the petitioner to approach the Debts Recovery Tribunal for necessary reliefs in respect of its claimed tenancy.

Key takeaways

If the petitioner makes an application before the Tribunal, the Tribunal shall endeavour to decide it at the earliest, preferably prior to execution of the Section 14 order.ratio¶10
The writ petition stands disposed of without calling for affidavits, and the allegations made therein are deemed not to have been admitted by the respondents.ratio¶12

Detailed headnote1 paragraphs

High Court at Calcutta (Original Side), WPO No.510 of 2025, Justice Amrita Sinha, 25 July 2025: writ petition by Tarak Nath Shaw & Anr., claiming to be pre-mortgage tenants of premises against which the secured creditor bank had obtained a Section 14 SARFAESI Act possession order for non-payment of the loan amount, allegedly suppressing the tenancy. The landlord admitted the petitioner as a pre-mortgage tenant and the loan agreement produced before the Court mentioned the tenancy; the landlord's Section 17 application was pending before the Debts Recovery Tribunal, with an interlocutory application contemplated against the Magistrate's Section 14 order. The writ petition was disposed of without calling for affidavits, the allegations being deemed not admitted by the respondents: the petitioner was left free to approach the Tribunal, which was directed to endeavour to decide any such application at the earliest, preferably prior to execution of the Section 14 order. Names of advocates for the bank, erroneously recorded in the order dated 16th July 2025, were directed to be treated as deleted.

OD-5 ORDER SHEET

WPO No.510 of 2025 IN THE HIGH COURT AT CALCUTTA CONSTITUTIONAL WRIT JURISDICTION ORIGINAL SIDE

TARAK NATH SHAW & ANR.

VS

THE STATE OF WEST BENGAL & ORS.

BEFORE

THE HON’BLE JUSTICE AMRITA SINHA Date: 25^th July, 2025.

Appearance :

Mr. Sutanu Chakrabarti, Adv. Mr. Subhendu Sarkar, Adv. ...for Petitioners. Ms. Jhuma Chakraborty, Adv. ...for the State. Mr. Ajit Kumar Mishra, Adv. Mr. Suprovat Banerjee, Adv. Mr. Abhishek Dey, Adv. ...for Respondent no.6.

None appears on behalf of the bank.

Due to inadvertence the names of learned advocates for the bank have been recorded in the order dated 16^th July, 2025 although none appeared on behalf of the bank on that day. Let the names of the advocates appearing for the bank be treated as deleted from the order dated 16^th July, 2025.

The petitioner claims to be a tenant of a property in respect of which order has been passed under the provisions of the SARFAESI Act in favour of the bank for obtaining possession on account of non payment of the loan amount.

The sheet anchor of the petitioner’s submission is that the petitioner is a pre mortgage tenant. The bank obtained order under Section 14 of the SARFAESI Act completely suppressing the fact of tenancy.

2

Prayer has been made to set aside any step taken by the bank to oust the petitioner from the tenanted premises without taking due recourse of law.

The landlord admits the petitioner as pre mortgage tenant. The loan agreement has been produced before this Court wherein the fact of tenancy is mentioned.

Learned advocate representing the landlord submits that an application under Section 17 of the Act is pending consideration before the Debts Recovery Tribunal and an interlocutory application will be filed by the landlord before the Tribunal challenging the order passed by the Magistrate under Section 14 of the Act.

Section 17(4A) of the SARFAESI Act lays down the procedure for examining the issue of tenancy by the Debts Recovery Tribunal.

Upon hearing the submissions made on behalf of all the parties, it appears that, admittedly, an application under Section 17 of the SARFAESI Act at the instance of the landlord is sub-judice before the Tribunal. The petitioner claims to be a tenant under the said landlord. The petitioner claims to have documents to prove that he is a pre mortgage tenant.

It will be open for the petitioner to approach the Tribunal for necessary reliefs. In the event the petitioner makes an application, the Tribunal shall endeavour to decide the same at the earliest, preferably prior to the execution of the order under Section 14 of the SARFAESI Act.

The writ petition stands disposed of.

3

As the writ petition is disposed of without calling for any affidavit, the

allegations made therein are deemed not to have been admitted by the respondents.

Urgent photostat certified copy of this order be supplied to the parties, if applied for, upon compliance of all legal formalities.

(AMRITA SINHA, J.)

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