Authority: High Court of Judicature at Bombay

Order Date: 21 September 2026

Case Overview

  • Petitioners: Thane Bharat Sahakari Bank Limited (secured creditor) and an associate.
  • Respondents: State of Maharashtra (Nos. 1‑5), Vidya Vardhini Developers Pvt. Ltd. (Borrower, No. 6), Pradnya Niketan Education Society (Trust‑Society running a school, No. 7), and Mr. Vikram Gaikwad (Auction Purchaser, No. 8).
  • The writ petition sought directions for the bank to take physical possession of a secured immovable property (Exhibit “A”).
  • During pendency, parties reached an amicable settlement, rendering the role of the State authorities (Nos. 1‑5) redundant.
  • Minutes of Order were signed by the bank, Respondent 7 and Respondent 8, detailing the settlement terms, including discharge of the borrower’s liability.

Key Settlement Provisions (Minutes of Order)

1. Sale of the secured asset (Exhibit “A”) confirmed in favour of Respondent 7 for Rs 9.75 crore; amount deposited in the bank’s “No Lien Account (Interest Free)”.

2. Respondent 7 becomes the perpetual custodian/owner of the property.

3. The bank may adjust the entire sale proceeds against its claim on Respondent 6 under SARFAESI Act notice dated 15‑06‑2022.

4. The bank must issue and register a Sale Certificate in favour of Respondent 7 within 2 working days of the order; Respondent 7 will bear stamp duty, registration fees and incidental expenses.

5. The bank will close the loan account of Respondent 6; Respondent 6, its guarantors and mortgagors will be discharged, and a Loan Settlement Letter will be issued.

6. Respondent 8 had deposited Rs 9.57 crore in the “No Lien Account”; the bank will refund this amount on 22‑09‑2026 upon the order, after which Respondent 8 relinquishes all claims.

7. Respondent 8 irrevocably waives any present or future rights, claims, or demands arising from the Agreement for Sale dated 08‑04‑2025 and the subject property.

8. Respondent 8 gives unconditional consent to the sale and transfer of the property to Respondent 7 and undertakes not to contest the sale before any court or authority.

9. Respondent 8 will execute any further affidavits, declarations, or documents required to give effect to the Minutes of Order.

10. Upon the order, Respondent 7’s custodial role ceases and it becomes the outright owner.

11. Respondent 7 agrees to withdraw the proceeding under Section 41‑D of the Maharashtra Public Trusts Act, 1950, against Mr. Venkatrao Gaikwad (father of Respondent 8), after the Sale Certificate is issued, possession confirmed, and Respondent 8 fulfills his obligations.

12. A list of six pending litigations (special civil suits, securitization application, civil revision, and a 41‑D application) will be withdrawn by the parties after the order.

13. Respondent 6 has already consented to the sale; no further consent is required for registration of the Sale Certificate.

14. Any breach of the undertakings will allow the aggrieved party to seek enforcement from the Court.

15. The parties confirmed voluntary execution of the Minutes after independent legal advice.

Exhibit “A” – Description of Subject Property

  • Auditorium “Rangmanch” – approx. 4,500 sq ft.
  • Basement Parking – approx. 18,547.33 sq ft.
  • Top Terrace Canteen (above Fourth Floor) – approx. 9,983 sq ft.
  • Located on Survey No. 80, Hissa 1/2 & 2/2, Village Baner, Near Signet Corner, Taluka Haveli, District Pune 411045, within Pune Municipal Corporation limits.

Final Outcome

  • The High Court disposed of Writ Petition 6465 of 2025 and all pending applications.
  • The settlement is binding: property ownership transferred to Pradnya Niketan Education Society, loan of Vidya Vardhini Developers closed, and all pending suits withdrawn.
  • Refund to Mr. Vikram Gaikwad to be effected on 22 Sept 2026, after which he has no further rights.
  • The bank will adjust the Rs 9.75 crore proceeds against its claim, close the loan account, and issue a No‑Dues Certificate within 15 days of compliance.

Topics: Settlement, Secured Lending, Property Sale