Authority: Calcutta High Court, Division Bench (Justice Sandip Kumar De, J.)
Order Date: 28 October 2026
Case Overview
- Petitioners: Rita Bose Saha & Ors., represented by advocates Ivan Roy and Kaustav Banerjee.
- Respondents: Union of India & Ors., including Housing Finance Company (HFC) represented by counsel Sukanta Banerjee, Sukanta Manna, Susanta Dutta, Mukunda Lal Sarkar, Nilendra Narayan Roy.
- The dispute arose from eviction of the petitioners’ residential house executed by the Additional Chief Judicial Magistrate, Alipore South, under SARFAESI Act (Section 14) based on a loan of Rs 16,55,621.71.
- Petitioners argued that NBFCs/HFCs can enforce security interest only for debts of Rs 20 lakhs or more as per notifications dated 24 Feb 2020 (amended 12 Feb 2021) and 17 June 2021, rendering the magistrate’s order ultra vires.
- The Debt Recovery Tribunal could not rule before its vacation, prompting the writ petition.
Final Outcome
- The Court held that the notifications of 24 Feb 2020 read with 12 Feb 2021 apply to HFCs; therefore, HFC could not enforce SARFAESI provisions for a debt below Rs 20 lakhs.
- The eviction orders dated 9 June 2026 and 14 September 2026 are declared without jurisdiction and are set aside.
- Respondent HFCs are directed to restore possession of the residential house to the petitioners within 15 days from the date of this order.
- The respondents retain the right to recover the outstanding dues from the borrower in accordance with applicable law.
- No order as to costs; urgent certified copy to be furnished upon request.
Topics: SARFAESI Act Enforcement, Housing Finance Company Jurisdiction, NBFC Debt Threshold