State's denial of mutation to property purchaser, despite possession, deemed arbitrary; existence of alternative remedy does not bar writ if legality is in question.

Pronounced on: 03.11.2025

The Petitioner has, inter alia prayed for quashing of the order dated 4.12.2024 and 7.01.2025; whereby the mutation application of the Petitioner has been rejected. The petitioner has further prayed for a direction upon the Respondent-State for granting mutation in its favour.

2. Mr. Parth Jalan, Ld. Counsel representing the Petitioner-Trust, submits that the land situated within village Mohanpur, Thana No. 224, Jamabandi No.11, P.S. Jasidih, District- Deoghar, Plot Nos.301, 309, 310/689, 63, 64, 65, 73, 75, 76, 77, 78, 79, 80, 87, 88, 193, 197, 204, 282, 308, 339, 340, 341, 352, 358, 359, 360, 361, 362, 363, 364, 365, 366, 367, 368, 369, 370, 375, 381, 408, 417, 453, 81/685, 81 and 74; admeasuring an area of 26 acres and 50 decimals, along with land, buildings, structure including all movable items, such as medical machines and equipment, hospital fixtures and furniture (hereinafter referred to as the ‘scheduled property’) originally belonged to M/s Paritran Medical College and Hospital.

3. M/s Paritran Medical College and Hospital Trust had taken a secured loan of ₹ 93,00,00,000/- (INR Ninety-Three Crores Only) from a consortium of Banks which was led by Punjab National Bank. This loan was declared a non-performing asset (N.P.A.) and ultimately an original application being O.A No. 154 of 2013 was filed by the creditor Bank against M/s Paritran Medical College and Hospital (hereinafter referred to as debtor) for recovery of a total sum of ₹ 1,41,39,09,761.56 (INR One Hundred and Forty-One Crore Thirty-Nine Lakhs Nine Thousand Seven Hundred and Sixty-One and Paise Fifty-Six Only) (i.e., principal amount along with the accrued interest).

The original application was allowed in favour of the Bank and recovery proceeding was initiated against the debtor and property referred to hereinabove was put to auction, which was ultimately purchased by the Petitioner herein. Sale certificate was also issued and possession of the schedule property was also handed over to the Petitioner by the authority.

However, the debtor assailed the auction sale by filing a writ petition being WP(C) 165 of 2024 before this Court which was dismissed vide order dated 13.02.2024, on the ground that the writ petition was not maintainable.

The order of the Ld. Single Judge was affirmed by the Division Bench of this Court in LPA No. 167 of 2024 vide order dated 8.8.2024. Even the Special Leave Petition being SLP(C) 49186 of 2024 filed by the debtor assailing the order of the LPA was also dismissed on 10.12.2024. Even, the appeal which was filed by M/s Paritran Medical Trust, being EDRT No. 87 of 2025, was also been dismissed vide order dated 30.6.2025.

4. It has been argued by the Ld. Counsel for the Petitioner-Trust that at the behest of M/s Paritran Medical College and Hospital Trust, its Security Guard initiated a proceeding under Section 146 of the Code of Criminal Procedure, 1973 and the Sub-Divisional Officer, Deoghar; was pleased to attach the property and appoint a receiver.

The aforesaid action of the Sub-Divisional Officer was assailed before this Court by filing a writ petition, being WP(Cr) 121 of 2024. The said writ application was allowed vide order dated 1.8.2024, wherein a co- ordinate Bench of this Court while allowing the writ petition observed that the peaceful possession of the property had been handed over to the Petitioner by adhering to all the procedures prescribed under law and the action of the Sub-Divisional Officer, Deoghar was without jurisdiction.

5. It has been further submitted by the Petitioner that the right, title, interest and possession of the Petitioner cannot