Authority: Bombay High Court, Civil Appellate Jurisdiction (Coram: Hon’ble Justices Manish Pitale and Shreeram V. Shirsat)

Order Date: 21 September 2026

Case Overview

  • Parties: Petitioners – Thane Bharat Sahakari Bank Ltd (secured creditor) and its authorized officer; Respondents – State of Maharashtra (Nos. 1‑5), Pradnya Niketan Education Society (Respondent No. 7, trust running a school on the subject property), Vikram Gaikwad (Respondent No. 8, auction purchaser), Vidya Vardhini Developers Pvt. Ltd (Respondent No. 6, borrower), and other statutory respondents.
  • Nature of Petition: Writ petition seeking directions for the bank to take physical possession of the secured immovable property (Exhibit “A”) under SARFAESI Act, 2002.
  • Settlement Development: During pendency, parties reached an amicable settlement. The bank agreed to sell the secured asset to Respondent No. 7 for Rs 9.75 crore, amount deposited in the bank’s “No Lien Account (Interest Free)”. Respondent No. 8 had earlier deposited Rs 9.57 crore, which will be refunded on 22 Sept 2026.
  • Borrower Consent: Respondent No. 6 (Vidya Vardhini Developers) has already consented to the sale and holds no objection; its loan account will be closed and a No‑Dues Certificate issued.
  • Pending Litigations: Six pending suits/applications (two Special Civil Suits, a case before Deputy Registrar of Societies, a securitisation application, a Civil Revision, and a Section 41‑D public‑trust application) will be withdrawn by the parties.

Minutes of Order Highlights

1. Sale of the subject property to Respondent No. 7 confirmed for Rs 9.75 crore; amount held in “No Lien Account”.

2. Respondent No. 7 becomes perpetual custodian and thereafter sole owner of the property.

3. Bank to adjust the entire sale proceeds against its claim on Respondent No. 6 under SARFAESI notice dated 15‑06‑2022.

4. Sale Certificate to be issued and registered within two working days; Respondent No. 7 to bear stamp duty, registration fees, and incidental expenses.

5. Bank to close the loan account of Respondent No. 6, discharge borrower, guarantors, and mortgagors, and issue a Loan Settlement Letter.

6. Refund of Rs 9.57 crore to Respondent No. 8 on 22‑09‑2026; thereafter Respondent No. 8 waives all rights, claims, and future litigation concerning the property.

7. Respondent No. 8 gives unconditional consent to the sale and agrees to execute any further documents required for effecting the transfer.

8. Respondent No. 7 will withdraw the Section 41‑D proceeding against Mr Venkatrao Gaikwad after the Sale Certificate is issued, possession is confirmed, and Respondent No. 8 fulfills its obligations.

9. All six pending suits listed in the table will be withdrawn by the parties.

10. Any breach of the undertakings will entitle the aggrieved party to seek appropriate directions and enforcement from the Court.

Property Description (Exhibit “A”)

  • 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 Court records the Minutes of Order, declares the settlement binding, orders issuance of the Sale Certificate, directs refund to Respondent No. 8, mandates closure of the borrower’s loan account and issuance of a No‑Dues Certificate within 15 days, and orders withdrawal of all pending litigations. The writ petition and any pending applications are disposed of.

Topics: Legal Settlement, Secured Asset Sale, Banking Litigation