Firoz Patel S/O Nawab Patel vs The State Of Madhya Pradesh

NEUTRAL CITATION NO. 2026:MPHC-IND:24566
1 WP-35754-2026
IN THE HIGH COURT OF MADHYA PRADESH
AT INDORE

BEFORE
HON'BLE SHRI JUSTICE SANDEEP N. BHATT
nd
ON THE 2 OF SEPTEMBER, 2026
WRIT PETITION No. 35754 of 2026
FIROZ PATEL S/O NAWAB PATEL AND OTHERS
Versus
THE STATE OF MADHYA PRADESH AND OTHERS
Appearance:
Shri Lokesh Mehta - Advocate for the petitioners.
Mrs. Pranjali Yajurvedi - Government Advocate for the
respondent/State.
ORDER
The present petition under Article 226 of the Constitution of India has
been filed praying for the following reliefs:
"7.1 Issue a Writ, order, or direction in the nature of Certiorari to quash
the impugned order dated 07.08.2026 passed by the Chief Judicial
Magistrate, Indore, in Case No. 0 0- 2742/2026 (Annexure P/2) and

क
the consequential notice/order dated 18.08.2026 issued by the
Respondent No.2, Tehsildar, Tehsil Kanadia (Annexure P/3);
7.2 Issue a Writ, order, or direction in the nature of Mandamus
commanding the Respondents, their agents, servants, and employees
not to dispossess the Petitioners from the subject property, i.e., the
northern part of Plot Number 338A admeasuring 1500 sq. ft., situated
at Manavata Nagar, Bicholi Hapsi, Indore (MP.), in pursuance of the
impugned orders;
7.3 Issue a Writ, order, or direction in the nature of Prohibition
restraining the Respondents from taking any coercive action against the
Petitioners or the subject property based on the impugned orders;
7.4 Award the costs of this petition in favour of the Petitioners and
7.5 Pass any other order or direction as this Hon'ble Court may deem
fit and proper in the interest of justice and equity."
2. In view of the fact that the provision of the SARFAESI Act, 2002 is
a self-contained code having a mechanism to challenge the action by any of
Signature Not Verified
Signed by: JYOTI
CHOURASIA
Signing time: 02-09-2026
17:12:05

NEUTRAL CITATION NO. 2026:MPHC-IND:24566
2 WP-35754-2026
the aggrieved person. Before the DRT, the measures are taken pursuant to

Section 34 of Section 14 of the Act, 2002.
3. Section 17 of the SARFAESI Act, 2002 is provided as under:
7. Section 17 of SARFAESI Act reads as under:
"17. [Application against measures to recover secured debts.]
[Substituted 'Right to appeal' by Act No. 44 of 2016.]
(1)Any person (including borrower), aggrieved by any of the measures
referred to in sub-section (4) of section 13 taken by the secured creditor
or his authorised officer under this Chapter, [may make an application
alongwith such fee, as may be prescribed,] [Substituted by the
Enforcement of Security Interest and Recovery of Debts Laws
(Amendment) Act, 2004 (30 of 2004), Section 10, for "may prefer an
appeal" (w.r.e.f. 21.6.2002).] to the Debts Recovery Tribunal having
jurisdiction in the matter within forty-five days from the date on which
such measures had been taken:
[Provided that different fees may be prescribed for making the
application by the borrower and the person other than the borrower.]
[Inserted by the Enforcement of Security Interest and Recovery of
Debts Laws (Amendment) Act, 2004 (30 of 2004), Section 10 (w.r.e.f.
21.6.2002).]
[Explanation. For the removal of doubts, it is hereby declared that the
communication of the reasons to the borrower by the secured creditor
for not having accepted his representation or objection or the likely
action of the secured creditor at the stage of communication of reasons
to the borrower shall not entitle the person (including borrower) to
make an application to the Debts Recovery Tribunal under this sub-
section.] [Inserted by the Enforcement of Security Interest and
Recovery of Debts Laws (Amendment) Act, 2004 (30 of 2004),
Section 10 (w.r.e.f. 11.11.2004).]
(1A)[An application under sub-section (1) shall be filed before the
Debts Recovery Tribunal within the local limits of whose jurisdiction-
(a)the cause of action, wholly or in part, arises;
(b)where the secured asset is located; or
(c)the branch or any other office of a bank or financial institution is
maintaining an account in which debt claimed is outstanding for the
time being.]
(2) [The Debts Recovery Tribunal shall consider whether any of the
measures referred to in sub-section (4) of section 13 taken by the
secured creditor for enforcement of security are in accordance with the
provisions of this Act and the rules made thereunder.] [ Sub-sections
(2) and (3) substituted by the Enforcement of Security Interest and
Recovery of Debts Laws (Amendment) Act, 2004 (30 of 2004),
Section 10, (w.e.f. 11-11-2004)]
(3) [If, the Debts Recovery Tribunal, after examining the facts and
circumstances of the case and evidence produced by the parties, comes
to the conclusion that any of the measures referred to in sub-section (4)
of section 13, taken by the secured creditor are not in accordance with
Signature Not Verified
Signed by: JYOTI
CHOURASIA
Signing time: 02-09-2026
17:12:05

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the provisions of this Act and the rules made thereunder, and require
restoration of the management or restoration of possession, of the
secured assets to the borrower or other aggrieved person, it may, by
order,-
(a)declare the recourse to any one or more measures referred to in sub-
section (4) of section 13 taken by the secured creditor as invalid; and
(b)restore the possession of secured assets or management of secured
assets to the borrower or such other aggrieved person, who has made
an application under sub-section (1), as the case may be; and
(c)pass such other direction as it may consider appropriate and
necessary in relation to any of the recourse taken by the secured
creditor under sub-section (4) of section 13.]
(4) If, the Debts Recovery Tribunal declares the recourse taken by a
secured creditor under sub-section (4) of section 13, is in accordance
with the provisions of this Act and the rules made thereunder, then,
notwithstanding anything contained in any other law for the time being
in force, the secured creditor shall be entitled to take recourse to one or
more of the measures specified under sub-section (4) of section 13 to
recover his secured debt.
(4A)[ Where-
(i)any person, in an application under sub-section (1), claims any
tenancy or leasehold rights upon the secured asset, the Debt Recovery
Tribunal, after examining the facts of the case and evidence produced
by the parties in relation to such claims shall, for the purposes of
enforcement of security interest, have the jurisdiction to examine
whether lease or tenancy,-
(a)has expired or stood determined; or
(b)is contrary to section 65A of the Transfer of Property Act, 1882; or
(c)is contrary to terms of mortgage; or
(d)is created after the issuance of notice of default and demand by the
Bank under sub-section (2) of section 13 of the Act; and
(ii)the Debt Recovery Tribunal is satisfied that tenancy right or
leasehold rights claimed in secured asset falls under the sub-clause (a)
or sub-clause (b) or sub-clause (c) or sub-clause (d) of clause (i), then
notwithstanding anything to the contrary contained in any other law for
the time being in force, the Debt Recovery Tribunal may pass such
order as it deems fit in accordance with the provisions of this Act.]
(5)Any application made under sub-section (1) shall be dealt with by
the Debts Recovery Tribunal as expeditiously as possible and disposed
of within sixty days from the date of such application:Provided that the
Debts Recovery Tribunal may, from time to time, extend the said
period for reasons to be recorded in writing, so, however, that the total
period of pendency of the application with the Debts Recovery
Tribunal, shall not exceed four months from the date of making of such
application made under sub-section (1).
(6) If the application is not disposed of by the Debts Recovery Tribunal
within the period of four months as specified in sub-section (5), any
party to the application may make an application, in such form as may
be prescribed, to the Appellate Tribunal for directing the Debts
Recovery Tribunal for expeditious disposal of the application pending
before the Debts Recovery Tribunal and the Appellate Tribunal may,

Signature Not Verified
Signed by: JYOTI
CHOURASIA
Signing time: 02-09-2026
17:12:05

NEUTRAL CITATION NO. 2026:MPHC-IND:24566
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on such application, make an order for expeditious disposal of the
pending application by the Debts Recovery Tribunal.
(7) Save as otherwise provided in this Act, the Debts Recovery
Tribunal shall, as far as may be, dispose of the application in
accordance with the provisions of the Recovery of Debts Due to Banks
and Financial Institutions Act, 1993 (51 of 1993) and the rules made
thereunder."

4. In view of this, the petitioners are having an alternative efficacious
remedy. It transpires that the petitioners purchased the property during the
existence of loan, which is outstanding to prepare to the bank by the
borrower and therefore, on that count also, the claim of the petitioners that
they are bona fide purchasers is required to be considered. He is not required
to be taken into consideration as a person who is purchasing the property has
to be vigilant and after verifying the necessary title deed and by procuring
original documents of the title, he has to enter into such transaction. In the
present case, as it is insisted by counsel for the petitioners to consider the
contention, this Court is prima facie of the opinion that such contention
regarding bona fide purchasers is also having no merit. In addition to that, on
the ground of an alternative efficacious remedy, the petition is not required
to be entertained. Accordingly, the petition is dismissed.
(SANDEEP N. BHATT)
JUDGE
jyoti

Signature Not Verified
Signed by: JYOTI
CHOURASIA
Signing time: 02-09-2026
17:12:05