Authority: Om Narayan Rai, J.

Order Date: 01 September 2026

Case Overview

  • Petitioners: Bikash Kumar Dutta & Ors. (including petitioners nos. 2, 3 and 4) filed writ petition WPA 18602 of 2026 against respondents including M/s. Prajukta Construction & Ors. and the authorized officer of L & T Finance (respondent no. 3), alleging fraud under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act).
  • Petitioners claim that a development agreement allocated certain portions of the property to them, but the developers (respondents nos. 1 and 2) sold those portions and illegally conveyed them to third parties. They further allege that the secured creditor (L & T Finance) accepted title deeds and granted credit facilities based on a power of attorney that had been cancelled, and failed to exercise due diligence.
  • The petitioners contend that the secured creditor’s actions are ultra vires and that the matter should be intervened under Article 226 of the Constitution. They also note that one petitioner has already filed an application (SA 1150 of 2026) before Debts Recovery Tribunal No. II, Kolkata, which is pending.
  • Respondent no. 3 (L & T Finance) argues that it examined all documents, relied on registered conveyances and a registered power of attorney, and that the power of attorney could not be cancelled by an unregistered document. It also states that it has registered its mortgage with CERSAI.
  • Respondents nos. 5, 6, 7 and the secured creditor assert that the writ petition is not maintainable because an efficacious alternative remedy exists before the Debts Recovery Tribunal.

Final Outcome

  • The Court held that the fraud allegation is a factual dispute unsuitable for adjudication in a summary writ proceeding under Article 226, and cited Phoenix ARC Limited vs. Vishwa Bharati Vidya Mandir & Ors. (2022) 5 SCC 345 to conclude that the petition is not maintainable.
  • Consequently, the writ petition is dismissed. The Court directs the petitioner who has approached the Debts Recovery Tribunal to file an application for pre‑ponement of the interlocutory application filed with the SARFAESI application, and the Tribunal is directed to hear it preferably by 8 September 2026.
  • The order does not preclude other petitioners from approaching the Debts Recovery Tribunal. No costs are awarded. Certified copies of the order may be obtained upon request.

Topics: SARFAESI Act, Real Estate Fraud, Debts Recovery Tribunal