Authority: Court (presiding Judge Partha Sarathi Chatterjee)
Order Date: 15 October 2026
Case Overview
- Parties: Supada Mandal (petitioner) vs Indian Overseas Bank (respondent) and others.
- Petitioner's Relief Sought: Direction for the respondent to return the secured asset after the auction sale, alleging the sale price was substantially lower than the property's market value.
- Background Facts:
- Petitioner obtained a credit facility of Rs 2,50,000 from Indian Overseas Bank.
- Default on repayment led to classification of the loan as a Non‑Performing Asset (NPA).
- Bank invoked the SARFAESI Act, issuing notices under Section 13(2) and Section 13(4), and subsequently took possession of the property under Section 14.
- The secured asset was auctioned; petitioner claims the property (near Barasat Railway Station) is worth > Rs 65,00,000 but was sold for Rs 10,00,000‑odd.
- Legal Contentions:
- Petitioner filed the writ without first approaching the SARFAESI Tribunal, which is the statutory alternative remedy.
- Respondent argued the writ is non‑maintainable for bypassing the prescribed remedy.
- Court's Observations:
- The sale of the secured asset is a statutory measure under sub‑section (4) of Section 13 of the SARFAESI Act; any grievance must be raised before the Tribunal.
- The petition is dismissed for not exhausting the alternative remedy.
- The Court cited Supreme Court precedent PHR Invent Educational Society v. UCO Bank & Ors. (2024 SCC 579) which discourages writ petitions aimed at interdicting recovery proceedings.
- No affidavits were filed by the respondents; therefore, the allegations in the petition are not deemed admitted.
Final Outcome
- The writ petition WPA 30158 of 2026 is dismissed.
- No order as to costs.
- The petitioner is free to approach the appropriate forum (e.g., SARFAESI Tribunal) for redressal of grievances.
- An urgent certified copy of the order may be obtained upon compliance with usual formalities.
Topics: SARFAESI Act, Banking Litigation