No writ petitions against NBFCs under Article 226; relief must be sought in DRT.

JUDGMENT

Dated this the 2^nd day of March, 2026 The petitioner herein is a widow and a co-applicant to a housing loan availed by her son from the respondents for an amount of Rs.24,96,897/-. On account of default in repayment of the loan, the Bank initiated proceedings against them under the provisions of the SARFAESI Act . Consequent thereto, notice under Section 13 (2) dated 12.04.2025 has been issued. Later, notice under Section 13 (4) has also been issued.

2. The respondent has approached the Chief Judicial Magistrate Court under Section 14 of the Act seeking assistance to take possession of the secured asset by dispossessing the petitioner. Pursuant thereto, an Advocate Commissioner was appointed in Crl.M.P No.13893 of 2025 by the Chief Judicial Magistrate Court Thrissur, who issued notice dated 20.01.2026 informing that steps would be taken to obtain possession of the secured asset and hand over the same to the respondent.

3. The respondents are Non Banking Financial Company (NBFC).

The relief sought is to direct the respondents to permit the petitioner to clear the overdue amount in twelve installments. The Hon’ble Apex Court in Sobha v. Muthoot Bank ( 2025(2) KHC 229 ) and in Cholamandalam Investment and Finance Company Limited v. Navayug India Facility Management Private Limited [2026 SCC Online 2181] has held that no writ petition is maintainable against any NBFC under Article 226 of the Constitution of India. Therefore, the petitioner has to approach the DRT for ventilating his grievance.

With the liberty to approach the DRT, the writ petition is disposed of.

Sd/-