Family’s Challenge To Housing-Finance Firm’s Property Possession Dismissed; Karnataka HC Points To SARFAESI Remedies

The petitioners challenged the order dated 9 September 2025 made on the respondent’s application under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“SARFAESI Act”), and a possession notice dated 17 September 2025.

They also sought production of loan and payment records.

The petitioners asserted that they had borrowed ₹9,00,000 and repaid the amounts due; the possession notice recorded ₹8,75,360 as outstanding as of 7 November 2024, and the Court noted that no material showed that this sum had been paid.

Petitioners’ counsel submitted that possession had been taken.

The writ petition was filed on 13 July 2026, nearly ten months after the possession notice.

Section 14 of the SARFAESI Act provides for assistance in taking possession of secured assets.

Where the challenged order and possession notice arise from measures under the Act and adequate remedies are available under that statute, the High Court may decline to entertain a petition under Articles 226 and 227 of the Constitution.

The Court cited no precedent and did not specify the particular statutory remedy available to the petitioners.

The Court found that both the order and possession notice arose from measures initiated under the SARFAESI Act.

It also noted the delay in filing the petition and the absence of material supporting the petitioners’ claim that the recorded outstanding amount had been paid.

Given the available remedies under the Act, the Court declined to examine the merits of the challenge in writ proceedings.

The dismissal did not preclude the petitioners from pursuing any appropriate remedy permissible under law.