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Bombay High Court
Shri. Sandeep Laxman Chavan And Ors. vs State Of Maharashtra, Thr. Ministry Of ... on 27 March, 2026
Author: Anil S. Kilor
Bench: Anil S. Kilor
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
NAGPUR BENCH, NAGPUR
WRIT PETITION NO.2553 OF 2026
[Shri Sandeep Laxman Chavan and others Vs. State of Maharashtra, through Ministry of
Finance, New Delhi, and another]
Office Notes, Office Memoranda of Coram,
appearances, Court's orders of directions Court's or Judge's order
and Registrar's orders.
Shri Shantanu M. Pande, Counsel for Petitioners.
Shri I.J. Damle, Assistant Government Pleader for Respondent No.1-State.
Shri M.Y. Wadotkar, Counsel for Respondent No.2.
CORAM : ANIL S. KILOR AND RAJ D. WAKODE, JJ.
DATE : 27th MARCH, 2026.
1. Heard Shri S.M. Pande, learned counsel for the petitioners;
Shri I.J. Damle, learned Assistant Government Pleader for the respondent
No.1-State; and Shri M.Y. Wadotkar, learned counsel for the respondent
No.2.
2. On 7th January, 2026, the interim order was passed by this Court in
Writ Petition No.135 of 2026, which is reproduced as under :
"1. Heard learned counsel for the petitioners.
2. The contention is that the Debt Recovery Tribunal (DRT) has
rejected the Interim Application No.1889 of 2025 filed by the
petitioners in S.A. No.65 of 2024 praying for stay yesterday i.e., on
6th January 2026 and now put up the matter on 5th February 2026
for further consideration.
3. Learned counsel for the petitioners submits that since his interim
application is rejected yesterday i.e., on 6th January 2026 only and
now he wants to challenge the aforesaid order in appeal before
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DRAT Mumbai for seeking protection. There is no Presiding Officer
at preset at DRAT Mumbai and the charge of DRAT Mumbai is with
DRAT Chennai. However, he has no time to rush to DRAT Chennai
for seeking interim relief as the letter dated 15th December 2025 at
Annexure-C issued by the authorized Officer, HDFC Bank stating that
there will be taking possession today at 12.00 noon.
4. In view of the above, issue notice to the respondents,
returnable on 21" January 2026.
5. In the meantime, the respondent- Bank is directed not to take
physical possession of the property as mentioned in the letter dated
15th December 2025 at Annexure-C for a period of two weeks.
6. In the meantime, the petitioners are permitted to avail the remedy
by following appeal before the learned DRAT Chennai.
7. The observations made by this Court in the present interim order
are considering the present situation and hence, DRAT Chennai is
requested not to get influenced by the present observations while
deciding the stay application."
3. In consequence of the aforesaid order, I.A. No.1889 of 2025 filed by
the petitioners in S.A. No.65 of 2024 was accordingly rejected by the
learned Debts Recovery Tribunal at Nagpur on 6th January, 2026.
4. In view of above and the protection granted by this Court, the
petitioners approached the learned Debts Recovery Appellate Tribunal,
Mumbai, sitting at Chennai, by filing Misc. Appeal No.48 of 2026. The
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petitioners in the said appeal had filed I.A. No.48 of 2026 seeking urgent
relief of restraining the respondent-Bank from taking physical possession
of the property mortgaged. The said I.A. was heard by the learned Debts
Recovery Appellate Tribunal and accordingly the impugned order was
passed on 24th March, 2026. In the aforesaid order, the learned Debts
Recovery Appellate Tribunal had observed that the petitioners shall make
the pre-deposit of 50% of ₹1,06,05,407/- to entertain the appeal, as
required under Section 18(1) of the Securitisation and Reconstruction of
Financial Assets and Eforcement of Security Interest Act, 2002 (for short,
'SARFAESI Act'). Accordingly, the learned Debts Recovery Appellate
Tribunal went on to pass the order with the following operative
directions :
"In the circumstances stated above, this Tribunal directs the
Petitioner/Appellant make the pre-deposit of 50% of ₹1,06,05,407/-
to entertain the Appeal as required under Section 18(1) of the
SARFAESI Act.
Admittedly, 50% of ₹1,06,05,407/- comes ₹53,02,703.50p (Rounded
off to ₹53,02,703/-).
Therefore, Petitioners/Appellants shall deposit ₹53,02,703/- in two
equal instalments, 1st instalment of ₹26,51,351.50p shall be paid on
or before 25.03.2026 by 11.00 AM and 2nd instalment
₹26,51,351.50p shall be paid on or before 15.04.2026.
If 1st instalment of ₹26,51,351.50p is deposited on or before
11.00 AM tomorrow i.e. 25.03.2026, the possession scheduled for
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tomorrow i.e. 25.03.2026 is to be deferred till the next date of
hearing.
If the Petitioners/Appellants fail to deposit the 1 st instalment, the
Respondent Bank is at liberty proceed further in accordance with
law.
It is made clear that on failure to deposit of either of the instalments,
the Appeal will stand rejected. On making such deposit by
Petitioners/Appellants, the Registrar, DRAT, Mumbai is to invest the
same in the Nationalized Bank, from time to time, till further orders
are passed.
List the case on 17.04.2026 for reporting compliance."
5. Thus, the petitioners were directed to deposit the aforesaid 50%
amount, i.e. ₹53,02,703/- (Rounded-off), in two equal instalments. The
first instalment of ₹26,51,351.50 was to be paid on or before
25th March, 2026 by 11.00 A.M. and the second instalment of
₹26,51,351.50 has to be paid on or before 15th April, 2026.
6. Shri Pande, learned counsel for the petitioners, submits that for the
reasons stated in the petition, the petitioners were not in a position to
deposit the first instalment on or before 25 th March, 2026, however, he
submits that the petitioners are ready to file an undertaking to deposit the
first instalment by 30th March, 2026 by 11.00 A.M., if this Courts grants
extension of time till 30th March, 2026.
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7. Shri Wadotkar, learned counsel for the respondent No.2-Bank, has
strongly opposed such request. While doing so, he has invited the
attention of this Court to the possession notice dated 7 th March, 2026
issued by the Authorized Officer of the respondent No.2-Bank, whereby it
was intimated that the physical possession of the secured assets as per the
order dated 4th May, 2024 passed by the learned Chief Judicial Magistrate,
Yavatmal, under Section 14 of the SARFAESI Act, 2002 shall be taken on
27th March, 2026, i.e. today.
8. In view of the fact that the petitioners are undertaking to comply
with the order dated 24th March, 2026 passed by the Debts Recovery
Appellate Tribunal, Mumbai, sitting at Chennai, however with a request to
grant time to deposit the first instalment till 30 th March, 2026 by
11.00 A.M., this Court in its considered opinion is inclined to grant such
time to the petitioners. The petitioners shall file an undertaking before
this Court that they will deposit the first instalment of Rs.26,51,351.50
before the Debts Recovery Appellate Tribunal, Mumbai till
30th March, 2026 by 11.00 A.M. The petitioners shall also undertake to
strictly comply with the schedule of the second instalment of equal
amount to be paid on or before 15 th April, 2026. Subject to such
compliance by the petitioners, the physical possession of the secured
assets, which is to be taken today, i.e. on 27th March, 2026, shall be
deferred till 30th March, 2026. If the petitioners fail to deposit the first
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instalment till 30th March, 2026 by 11.00 A.M., the respondent No.2-Bank
shall be at liberty to take physical possession of the secured assets on
30th March, 2026, as indicated in the notice dated 7 th March, 2026, and for
such purpose, no separate notice shall be required to be issued by the
respondent No.2-Bank to the petitioners. If the first instalment is
deposited on 30th March, 2026, the protection granted by this Court shall
continue to operate till 15th April, 2026 in order to enable the petitioners
to deposit the second instalment till the said date by 11.00 A.M. If the
petitioners deposit the second instalment of ₹26,51,351.50 by
11.00 A.M., the interim protection granted by this Court to the possession
of the petitioners shall continue till the returnable date. In case the
petitioners default in paying the second instalment, the respondent No.2-
Bank shall be at liberty to take physical possession of the secured assets of
the petitioners on 15th April, 2026, in pursuance of the notice
dated 7th March, 2026, which is at record page no.107 (Annexure-M-3).
9. At this stage, Shri Pande, learned counsel for the petitioners, has
invited the attention of this Court to the Demand Drafts dated
21st January, 2025 and 10th February, 2025, by which the petitioners had
deposited an amount of ₹15,00,000/- with the Registrar, Debts Recovery
Appellate Tribunal, Mumbai. Shri Pande submits that the amount, which
is already deposited with the Debts Recovery Appellate Tribunal, Mumbai,
shall be adjusted in the first instalment. We order accordingly to adjust
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such amount of ₹15,00,000/- in the first instalment, to be deposited by the
petitioners.
10. The petitioners to file an undertaking to the effect as recorded above
during the course of the day.
11. Issue notice before admission to the respondents, returnable on
17th April, 2026.
12. Shri I.J. Damle, learned Assistant Government Pleader, waives
service of notice for the respondent No.1-State; and Shri M.Y. Wadotkar,
learned counsel, waives service of notice for the respondent No.2-Bank.
13. The learned Assistant Government Pleader for the respondent No.1-
State and the learned counsel for the respondent No.2-Bank to
immediately communicate this order to the concerned Authorities.
14. Steno copy of this order be issued to the learned counsel for the
parties to act upon.
(RAJ D. WAKODE, J.) (ANIL S. KILOR, J.)
LANJEWAR
