Disposed

Mohammed Tofeek v. Vastu Housing Finance Corporation Limited

DRT2 Jul 2026SA/559/2026

Case brief

AI extract

What is this about?

The DRAT disposed of a sale application filed by an auction purchaser who acquired property under the Securitization Act. The court held that any dispute regarding prior charges or sale price falls within pending arbitration. The applicant was directed to take no further action against them while securing their rights pending the arbitration award. Pending interim applications were also disposed o

What did the court decide?

No further action shall be taken against the applicant; applicant may sell, rent, or utilize the property subject to any arbitration award. Pending IAs disposed of.

Mohammed Tofeek versus Vastu Housing Finance Corporation Limited — Banking and Recovery | DRT (2026)

¶1

Court of the Presiding Officer Debts Recovery Tribunal, Jaipur

¶2

Item No. 38

¶3

Case No.SA/559/2026

¶4

MOHAMMED TOFEEK Vs VASTU HOUSING FINANCE CORPORATION LIMITED

¶5

Date: 02.07.2026.

¶6

Proceedings through hybrid mode Present:

¶7

Shri Kirti Kapoor, Counsel for the Applicant

¶8

Shri Sharad Joshi, Counsel for the Respondent Bank/FI

¶9

Shri Pramod Kumar, Counsel for the Respondent no. 2

¶10

The present SA has been filed by the auction purchaser who has purchased this property from respondent no. 2 under Securitization Act.

¶11

Counsel for the respondent no. 1 submits that they have got the prior charge over the property hence, the action taken by the respondent no. 2 has no value and that sale has to be set aside.

¶12

Counsel for respondent no. 2 submits that if there is dispute regarding charge on the property, Vastu Housing Finance Corporation Limited has already invoked Section 9 of the Securitization Act for arbitration, in view of the judgment of Hon’ble Supreme Court, if at any point of time, they succeed, proceedings will take place as per law.

¶13

In these circumstances, the rights of the respondent no. 1 are secured to the extent that if any arbitration is passed their favor, the India Shelter Home Finance Limited will be at liberty under law. In case Vastu Housing Finance Limited succeeds, law will take it on course.

¶14

There is another point raised that property is of Rs. 1.00 Crore, but sold for Rs. 40.00 Lac. That point may also be discussed in the arbitration, because that issue is also a dispute between the two financial institutions.

¶15

¶16

Court of the Presiding Officer Debts Recovery Tribunal, Jaipur

¶17

In view of this SA stands disposed of with the direction that no further action shall be taken against the present applicant, however, if they have taken loan from any other institution and defaulted, that securitization proceedings can continue.

¶18

Counsel for the applicant submits that they have not taken any loan from the property.

¶19

At this stage, counsel for the applicant submits that they have to deal with this property, they may also sell the property, if required. Rent the property or give on lease or take loan on the said property. Whatever they do, that will be subject to arbitration award, if any passed.

¶20

With these directions, SA stands disposed of, all pending IAs also stands disposed off, if any.

¶21

File be consigned to record as per rules. Copy of order be uploaded on website.

¶22

(Vimal Gupta) Presiding Officer Debts Recovery Tribunal, Jaipur

¶23

Mohammed Tofeek v. Vastu Housing Finance Corporation Limited

Case brief

What is this about?

What did the court decide?

Mohammed Tofeek v. Vastu Housing Finance Corporation Limited

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Cases cited

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Satya Narayan versus Central Bank of India

Pira Ram and Anr. versus Tata Capital Housing Finance Limited

Shyam Goswami versus Jana Small Finance Bank Ltd.

Rajasthan Gramin Bank versus Hadmana Ram Urf Hanuman

Ms Raj Bhandar versus Hdfc Bank

Vimal Daga versus Axis Bank