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VIVEK RUSIA, GAJENDRA SINGH
AU Small Finance Bank Ltd. – Appellant
Versus
State of M. P. – Respondent
ORDER
Per: Justice Vivek Rusia
1. The petitioner has filed the present petition under Article 226 of the Constitution of India seeking direction to the respondents to comply with the order dated 17.7.2023 and restore the physical possession of the mortgaged property.
2. The petitioner, being a finance company extended loan to M/s Shivansh Enterprises. In default of payment of the EMI, a notice under section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (in short 'the SARFAESI Act') was issued on 27.4.2022 for recovery of outstanding amount of Rs.87,87,869/- with interest and other charges. In order to secure the loan, the borrower mortgaged the property situated at Municipal No.52, Ward No.39 (old) Brahmano Ka Vas Ratlam, Tehsil & District - Ratlam in the name of Shri Madhusudan Trivedi.
3. When the aforesaid outstanding amount was not cleared, the petitioner approached the District Magistrate / Collector under section 14 of the SARFAESI Act in order to secure the possession of the aforesaid secured assets. Vide order dated 17.7.2023, the Additional Collector directed the Tehsildar, Ratlam to take necessary steps for h
A secured creditor loses its rights under the SARFAESI Act upon the auction of mortgaged property, precluding further claims for possession under the same Act.
The secured creditor's right to repossess property under the SARFAESI Act prevails against third-party trespassers post-judicial possession.
A secured creditor retains rights over a property until actual possession is transferred, despite a sale certificate being issued to an auction buyer, as affirmed by the court.
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