Hitech Pole Vs Indian Bank — Banking and Recovery | Madras HC (2026)

Hitech Pole Vs Indian Bank — Banking and Recovery | Madras HC (2026)

What the court decided

AI extract

Outcome

Writ petition dismissed; however, an interim stay of all further proceedings was granted till the petitioner approaches the appropriate authority; connected miscellaneous petitions closed; no costs.

Issue for consideration

Whether the writ petition invoking the extraordinary jurisdiction of the Court to quash the respondent bank's letters dated 03.10.2025 and 17.11.2025 (demand notices served before any SARAFAESI proceedings had been initiated) is premature and maintainable.

Court's answer

The two letters forming the subject matter of the writ petition are notices warning the petitioner that proceedings would be initiated under the SARAFAESI Act if payment was not made within the time limit; such proceedings were yet to be initiated, and by filing this writ petition the petitioner was attempting to forestall the bank from exercising its statutory rights.

Ratio / Principle

The writ petition, which seeks to invoke the extraordinary jurisdiction of the Court at a stage when no enforcement proceedings have commenced, is premature and not maintainable; once proceedings are initiated, the petitioner will have his remedy before the appropriate authority.

Key takeaways

Notwithstanding dismissal, because the petitioner had already paid a considerable amount, the Court directed an interim stay of all further proceedings until the petitioner approaches the appropriate authority, closed the connected miscellaneous petitions and ordered no costs.ratio¶36

Detailed headnote1 paragraphs

MADRAS HIGH COURT (P.T. Asha J.) — Writ petition (Section 226, Constitution of India; Certiorarified Mandamus) by M/s. Hitech Pole seeking quashing of Indian Bank, Mettupalayam Branch letters dated 03.10.2025 and 17.11.2025, closure of its loan account, release of property documents and a No Due certificate, DISMISSED as PREMATURE and NOT MAINTAINABLE: the letters were mere notices that proceedings under the SARAFAESI Act would follow on failure to pay within time, and no such proceedings had yet been initiated — the petitioner was attempting to forestall the bank's statutory rights, and its remedy lies before the appropriate authority once proceedings commence. Court nonetheless noted the petitioner had paid Rs.76,00,000/- plus Rs.1,50,000/- interest (in installments, falling short, and out of step with the OTS) and, on that account, ORDERED AN INTERIM STAY of all further proceedings till the petitioner approaches the appropriate authority; connected W.M.P.Nos. 4674 & 4675 of 2026 closed; no costs. (09.02.2026)

W.P.No.4189 of 2026

IN THE HIGH COURT OF JUDICATURE AT MADRAS

Dated : 09.02.2026

CORAM

THE HONOURABLE Ms. JUSTICE P.T. ASHA

W.P.No. 4189 of 2026 & W.M.P.Nos. 4674 & 4675 of 2026

M/s. Hitech Pole Rep. by its Proprietrix R. Bhavani A - 19, Rural Industrial Estate Kattukuppam, Bahoor Commune, Puducherry - 605 402

...Petitioner

Vs.

Indian Bank Rep. by its Manager Mettupalayam Branch No. 15, 80 feet Main Road Ganapathi Nagar, Marine Oulgaret Mettupalayam, Puducherry - 605 010 ...Respondents

Prayer: Writ Petition is filed under Section 226 of the Constitution of

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W.P.No.4189 of 2026

India for issue of Writ of Certiorarified Mandamus, calling for the records relating to the letter dated 03.10.2025 and consequential letter

dated 17.11.2025 sent by the respondent and quash the same and further direct the respondent to close the loan account of the petitioner and release the property documents and issue No Due certificate within

a stipulated period.

For Petitioner : Mr. S.Parthasarathy For Respondent : Mr. M.A.Abdul Wahab

O R D E R

This writ petition is filed for the following relief:

“To call for the records relating to the letter dated

03.10.2025 and consequential letter dated 17.11.2025 sent

by the respondent and quash the same and further direct the respondent to close the loan account of the petitioner and release the property documents and issue No Due certificate within a stipulated period.”

At the outset, the two letters which are the subject matter of

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W.P.No.4189 of 2026

this writ petition are notices issued to the petitioner informing them that if the payment is not made within the time limit, proceedings would be initiated under the SARAFAESI Act. The proceedings are yet to be initiated and the petitioner by filing this writ petition is attempting to forestall the bank from exercising statutory rights available to them.

Further, the petitioner is seeking to invoke the extraordinary jurisdiction of this Court. As and when the proceedings are initiated, the petitioner has his remedy before the appropriate authority. The present writ petition is premature and not maintainable.

4 . However, it appears that the petitioner has paid a sum of Rs.76,00,000/- + Rs.1,50,000/- towards interest. No doubt the said sum

was not paid in full but was paid in installments. The respondent has now claimed entire outstanding as the petitioner is not keeping up with the OTS.

Accordingly, this writ petition is dismissed. However,

considering the fact that the petitioner has paid considerable amount, 3/6

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W.P.No.4189 of 2026

there shall be an order of interim stay of all further proceedings till the petitioner approach the appropriate authority. Consequently, the

connected miscellaneous petitions are closed. No costs.

09.02.2026

kan

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W.P.No.4189 of 2026

To

The Manager Indian Bank Mettupalayam Branch No. 15, 80 feet Main Road Ganapathi Nagar, Marine Oulgaret Mettupalayam, Puducherry - 605 010

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P.T. ASHA, J

kan

W.P.No.4189 of 2026

09.02.2026

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