Bharat Singh Vs the State of Jharkhand, through Its… — Banking and Recovery | Jharkhand HC (2025)

Bharat Singh Vs the State of Jharkhand, through Its… — Banking and Recovery | Jharkhand HC (2025)

What the court decided

AI extract

Outcome

Liberty to the petitioner to prefer an application under Section 17(1) of the SARFAESI Act, 2002 before the Debts Recovery Tribunal, Ranchi against the notice dated 21.12.2024; no interim restraint granted and no observation on merits.

Issue for consideration

Whether respondents Nos. 2 to 4 should be restrained from dealing with the provisions of the SARFAESI Act, 2002 and from exercising powers under Section 13(12) read with Rule 3 of the Security Interest (Enforcement) Rules, 2002, till disposal of Original Suit No. 11/2024, in respect of the symbolic possession notice dated 21.12.2024 affixed on the petitioner's building. +1 more

Ratio / Principle

Since a notice under Section 13(4) of the SARFAESI Act, 2002 read with Rule 8 of the Rules, 2002 had already been issued against the petitioner on 21.12.2024, the petitioner has an efficacious remedy of preferring an application under Section 17(1) of the SARFAESI Act, 2002 before the Debts Recovery Tribunal, Ranchi against that notice.

Key takeaways

Without commenting on the merits of the case, the petitioner was given liberty to take the statutory recourse available to him against the notice dated 21.12.2024, and the writ petition was disposed of on that basis.ratio¶15

Detailed headnote1 paragraphs

Writ petition (W.P.(C) No. 422 of 2025, High Court of Jharkhand, Rajesh Shankar, J., decided 18.03.2025) sought directions restraining respondents Nos. 2 to 4 from acting under the SARFAESI Act, 2002 and under Section 13(12) read with Rule 3 of the Security Interest (Enforcement) Rules, 2002, alleging that a symbolic possession notice under Rule 8(1) dated 21.12.2024 had been secretly affixed on the petitioner's four-storied building (Khata No. 45, Plot No. 6722, Mouza-Chas, District-Bokaro), pending disposal of Original Suit No. 11/2024 filed by the borrowers (respondents Nos. 5 and 6) before the Civil Judge (Sr. Div.)-I, Bokaro. Noting that a notice under Section 13(4) of the SARFAESI Act, 2002 read with Rule 8 of the Rules, 2002 had already been issued against the petitioner on 21.12.2024 and stood objected to, the Court held that the petitioner has an efficacious remedy of an application under Section 17(1) of the SARFAESI Act, 2002 before the Debts Recovery Tribunal, Ranchi. Without commenting on merits, the writ petition was disposed of with liberty to take that statutory recourse against the notice dated 21.12.2024.

IN THE HIGH COURT OF JHARKHAND AT RANCHI

W.P.(C) No. 422 of 2025

Bharat Singh ….. Petitioner Versus

The State of Jharkhand, through its Chief Secretary, Ranchi

The Deputy Commissioner, Bokaro

The Chief Regional Manager, Indian Overseas Bank, Ranchi

The Branch Manager, Indian Overseas Bank, B.S. City Branch, Chas, Bokaro 5. Anu Kumari

Balmiki Kumar Singh ….. Respondents

----- CORAM HON’BLE MR. JUSTICE RAJESH SHANKAR

----For the Petitioner: Mr. Rama Kant Tiwari For the State: Ms. Rishi Bharti, A.C to A.A.G-III

05/18.03.2025 The present writ petition has been filed for issuance of direction upon the

respondents, particularly the respondent Nos. 2 to 4, restraining them from dealing with the provisions of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [hereinafter referred to as ‘the SARFAESI Act, 2002’] as well as from exercising the powers conferred under Section 13(12) read with Rule 3 of the Security Interest (Enforcement) Rules, 2002 [hereinafter referred to as ‘the Rules, 2002’] as the symbolic possession notice under Rule 8(1) of the Rules, 2002 dated 21.12.2024 has been secretly affixed by the respondent No.4 on the petitioner’s four-storied building constructed over the land appertaining to Khata No. 45, Plot No. 6722, Mouza-Chas, Thana No. 30, District-Bokaro, measuring an area of 9 Decimals, till disposal of Original Suit No. 11/2024 filed by the respondent Nos. 5 & 6 (borrowers) against the petitioner and the respondent Nos. 3 & 4 in the Court of the Civil Judge (Sr. Div.)-I, Bokaro.

Having heard learned counsel for the petitioner as well as the respondent-State and considering the fact that a notice under Section 13(4) of the SARFAESI Act, 2002 read with Rule 8 of the Rules, 2002 has already been issued against the petitioner on 21.12.2024, which according to the petitioner

has been objected by him, this Court is of the view that he has got efficacious remedy of preferring an application in this regard under Section 17(1) of the SARFAESI Act, 2002 before the Debts Recovery Tribunal, Ranchi. Hence, without commenting on the merit of the case, the petitioner is given liberty to take the aforesaid statutory recourse against the notice dated 21.12.2024.

The present writ petition is accordingly disposed of with the aforesaid liberty.

(RAJESH SHANKAR, J)

Satish/-