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IN THE HIGH COURT OF JUDICATURE AT ALLAHABAD
AJIT KUMAR, SWARUPAMA CHATURVEDI
Rakesh Kumar – Appellant
Versus
Union of India – Respondent
JUDGMENT :
SWARUPAMA CHATURVEDI, J.
1. Heard Shri Jagannath Singh, learned counsel appearing for the petitioner and Ashish Kumar Mishra, learned counsel for the Union of India.
2. By means of this petition filed under Article 226 of the Constitution, petitioner is challenging the initiation and continuation of recovery proceedings against the petitioner and has prayed for quashing the demand notice dated 13.11.2025 and all consequential recovery proceedings initiated by the respondent no.3 under Chapter III of Act, 2002 regarding recovery of the loan.
3. The brief facts of the present case, as borne out from the pleadings on record, are that Petitioner No.1 had availed two separate loan facilities from Respondent No.4, namely Save Financial Services Private Limited, for the purposes of business expansion and meeting working capital requirements. The said facilities were sanctioned vide sanction letters dated 12.12.2018 and 21.12.2018 for amounts of Rs. 4,50,000/- and Rs. 8,80,000/- respectively. In order to secure the aforesaid credit facilities, the petitioner have created a security interest over an immovable property bearing Municipal No. 25/269, situated at Bodh Vihar, Chakkipat, C
The court affirmed that the respondent qualified as a financial institution under the SARFAESI Act, rendering the recovery proceedings lawful and the writ petition non-maintainable due to available s....
Financial institutions cannot initiate SARFAESI proceedings for loan amounts below Rs.20,00,000/- as per Central Government regulations.
The SARFAESI Act provisions, including the enforcement of security interest, the rights of the borrower, the appeal process, and the non-maintainability of writ petitions against private financial in....
Point of Law : Section 17 of SARFAESI Act reads application against measures to recover secured debts.
The main legal point established in the judgment is the consideration of the relevant provisions under the SARFAESI Act, the availability of expeditious and effective remedies, and the non-maintainab....
Writ petitions against private financial institutions under the SARFAESI Act are not maintainable; statutory remedies must be pursued instead.
SARFAESI Act is a complete code by itself, providing for expeditious recovery of dues arising out of loans granted by financial institutions.
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