Indian Bank vs The State Of Madhya Pradesh

NEUTRAL CITATION NO. 2026:MPHC-GWL:26026
1 WP-34045-2026
IN THE HIGH COURT OF MADHYA PRADESH
AT GWALIOR

BEFORE
HON'BLE SHRI JUSTICE PAVAN KUMAR DWIVEDI
st
ON THE 31 OF AUGUST, 2026
WRIT PETITION No. 34045 of 2026
INDIAN BANK
Versus
THE STATE OF MADHYA PRADESH AND OTHERS
Appearance:
Shri Himanshu Gupta - Advocate for the petitioner.
Shri Dharmendra Nayak - Government Advocate for the State.
ORDER
This petition, under Article 226 of Constitution of India, has been filed
seeking the following reliefs :-
"In the light of aforesaid facts and circumstances and
grounds urged, the present petition bank most humbly
prays that the present writ petition may kindly be
allowed by directing the respondents to obtain the
physical possession of secured Assets comprising of
'immovable property' bearing Survey No.664 min-2,
Village Bara, Patwari Halka No.65, Gwalior Madhya
Pradesh, area admearsuring 22500 Sq. ft. having
boundaries, East: Property of others, West: Road,
North: Property of Raju Sapra, South: Property of
Madan Kakkad, owned by Smt. Somti Bai, within the
period of 30 days in exercise of the powers under
Section 14 of SARFAESI Act, 2002 to secure the ends
of justice."
2. It is submitted by counsel for petitioner that CJM, Gwalior by order
dated 20/8/2025 had directed for possession of the property under mortgage
under Section 14 of the SARFAESI Act, 2002. The matter went to Tahsildar,
Signature Not Verified
Signed by: RASHID KHAN
Signing time: 9/1/2026
10:36:24 AM

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Bahodpur, Gwalior for execution of the said order. The case is pending for

last more than five months and no action has been taken by the Tahsildar. It
was further submitted that in connected matters, this Court has already
directed the Tahsildar to conclude the proceedings within one month without
any further delay.
3. Counsel for the State was directed to obtain a report from Tahsildar
to show as to what steps were taken by Tahsildar.
4. It is submitted by counsel for State that Tahsildar had written one
order-sheet on 30.06.2026 and fixed the case for 07.07.2026 and no other
order-sheet was ever written by Tahsildar, Gwalior. However, notices were
issued to the borrowers to hand over the vacant possession. It is further
submitted by counsel for State that Tahsildar, Gwalior will positively
execute the order passed by CJM Gwalior in MJCR No.2713/2025 within
one month from today. It is further submitted that the case is duly covered by
order passed by this Court in AU Small Finance Bank Ltd. through its
Authorized Officer Gaurav Shrivastava Vs. State of M.P. & Others decided
on 11/11/2025 in W.P. No.38230/2025.
5. Heard, learned counsel for the parties.
6. The co-ordinate Bench of this Court had passed the following order
in the case of AU Small Finance Bank Ltd. (Supra) and the case in hand is
duly covered by the said order:-
"1. The present petition under Article 226 of the
Constitution of India is filed seeking following reliefs:-
"i) That, the respondents No.2 & 3 may be directed to get
Signature Not Verified
Signed by: RASHID KHAN
Signing time: 9/1/2026
10:36:24 AM

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the possession delivered to the petitioner by acting upon the order

annexure P/1 in a stipulated time limit.
ii) any other relief deemed fit and expedient in the facts of
the case may also be granted to the petitioner.
2. Facts of the case are that petitioner-AU Small Finance
Bank Ltd. has landed money/loan to the borrowers and they
committed default in paying the same, therefore, proceedings
under Securitization and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002 (For breveity
"SARFAESI Act") were initiated against them. However, as per
Sections 13 & 14 of the SARFAESI Act, possession of the
secured assets has not been handed over.
3. Learned counsel for the petitioner referred the order dated
27-02-2024 passed by the Coordinate Bench of this Court in a
bunch of writ petitions, in which Writ Petition No.2078 of 2023
(IIFL Home Finance Ltd. Vs. The State of M.P. and Others) was
the leading case and submits that similar controversy has been
dealt with in these bunch of petitions.
4. Learned counsel for the petitioner seeks parity and prays
that directions issued in those bunch of petitions shall be issued in
the present case also.
5. Learned counsel for the respondents/State fairly submits
that he has no objection if direction is given in the light of the
order passed in bunch of writ petitions as referred above and
Signature Not Verified
Signed by: RASHID KHAN
Signing time: 9/1/2026
10:36:24 AM

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suitable compliance of the order shall be ensured by the

respondents/authorities.
6. Heard.
7. In the case of IIFL Home Finance Ltd. (supra), certain
directions were given to the District Administration/Collector to
ensure compliance of provisions as contained in the SARFAESI
Act. Those directions for ready reference are reiterated as under:-
"1.(a) Petitioners, seeking completion of proceedings
and order to be passed under Section 14 of the
SARFAESI Act by the Collector, shall approach the
Collector with the order passed today to complete the
proceedings expeditiously and pass order under Section
14 of the SARFAESI Act as well as for timely
execution of the order.

1.(b) The Collector shall pass the order under Section
14 of the SARFAESI Act as early as possible preferably
within four weeks from the date of submission of
certified copy of this order. Thereafter, the Collector
shall ensure execution of the order in a time bound
programme as directed by the Divisional
Commissioner.

2.(a) Petitioners, seeking execution of the order passed
under Section 14 of the SARFAESI Act by the
respective Collector, shall approach the Collector with
the order passed today for timely execution of the order
passed under Section 14 of the SARFAESI Act.

2.(b) The concerned Collector shall adhere to a time
bound schedule for expeditious execution of the order
passed under Section 14 of the SARFAESI Act.

3. In all such cases, where DRT has passed interim
orders against proceedings initiate under Section 13(2)
and/ or 13(4) of the SARFAESI Act, the Collector shall
defer action under Section 14 of the SARFAESI Act till
Signature Not Verified
Signed by: RASHID KHAN
Signing time: 9/1/2026
10:36:24 AM

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such interim orders are modified or vacated facilitating
completion of proceedings under Section 14 of the
SARFAESI Act or the execution of orders passed under
Section 14 of the SARFAESI Act."

8. Considering the submissions advanced, this writ petition
is disposed of with a direction to the District
Administration/Collector to ensure compliance of the directions as
issued in the earlier bunch of writ petitions referred above and do
the needful as sought by the petitioner/ AU Small Finance Bank
Ltd. in accordance with law.
9. Looking to the fact that the order was passed by ADM,
Vidisha on 29/08/2023 and concerned Tehsildar had to comply the
said order without fail on an urgent note, but he failed to do so.
Therefore, he is directed to do the needful within one month to
avoid any adversity.
10. With the aforesaid, the writ petition stands disposed of."
7. However, it appears that the Tahsildar sat over the matter and did
not take any action for last more than five months.
8. Under these circumstances, this petition is allowed in the terms and
conditions of the order passed by co-ordinate Bench of this Court in the case
of AU Small Finance Bank Ltd. (Supra) and Tahsildar, Bahodapur, District
Gwalior is directed to execute the order positively within one month from the
date of production of certified copy of this order.
9. Tahsildar, Bahodapur, District Gwalior is also directed to deposit a
cost of Rs.15,000/- (Rupees fifteen thousand only) before the Principal
Signature Not Verified
Signed by: RASHID KHAN
Signing time: 9/1/2026
10:36:24 AM

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Registrar of this Court within one month from today, failing which Principal

Registrar shall not only initiate proceedings for recovery of cost, but shall
also register a case for contempt of Court.
(PAVAN KUMAR DWIVEDI)
JUDGE
Rashid

Signature Not Verified
Signed by: RASHID KHAN
Signing time: 9/1/2026
10:36:24 AM