Authority: High Court of Judicature at Bombay
Order Date: 29 September 2026
Case Overview
- Parties: Janata Co-operative Bank Limited (Petitioner – secured creditor) vs. Noorshan Begum w/d/o Mohd Ismail, Mohd Yaseen & others (Applicants) and State authorities (Tahsildar & Taluka Magistrate, Malegaon).
- Nature: Interim application filed by applicants seeking deferment of a court‑directed physical possession of a secured asset under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (Securitisation Act).
- Background: On 22 September 2026, the Court ordered physical possession of the secured asset to be taken on 30 September 2026, directing police assistance for implementation. The order was based on the petitioner’s disclosure of facts and referenced the requirement that magistrate orders under Section 14 of the Securitisation Act be executed within four weeks, as affirmed in L & T Finance Limited vs. State of Maharashtra (2023) SCC OnLine Bom 931.
- Applicants’ Contentions: They claimed they could present a reasonable one‑time settlement offer to the bank and argued that the order should be stayed. They had not obtained any interim order from the Debt Recovery Tribunal (DRT) for pending securitisation applications.
- Bank’s Position: The bank stated outstanding dues of approximately Rs 6 crore and indicated that the applicants’ offer did not justify postponing the possession or the bank’s further steps, including possible auction of the secured asset.
Final Outcome
- The Court found no merit in the applicants’ contentions and dismissed the interim application.
- The directions dated 22 September 2026 were reiterated, mandating the State authorities to ensure physical possession on 30 September 2026 with police assistance.
- The DRT was instructed to continue considering the pending securitisation applications on their merits.
Topics: Securitisation, Banking Regulation