Rajasthan High Court - Jodhpur
M/S Benazeer Graphics vs Reserve Bank Of India on 26 September, 2025
HIGH COURT OF JUDICATURE FOR RAJASTHAN AT
JODHPUR
S.B. Civil Writ Petition No. 18216/2025
1. M/s Benazeer Graphics, Through Its Proprietor Mrs. Nafisa
Hafeez Wife Of Abdul Hafeez, Aged About 49 Years,
Having Its Address At Plot No. E-216, 2Nd Phase Road
No. 6, Opposite Aiims, Basani, Jodhpur (Raj.).
2. Mrs. Nafisa Hafeez W/o Abdul Hafeez, Aged About 49
Years, Resident Of Babloo Offset, Eidgah Compund, Jalori
Gate, Jodhpur (Raj.).
3. Abdul Hafeez S/o Abdul Gaffar, Aged About 53 Years,
Resident Of Babloo Offset, Eidgah Compund, Jalori Gate,
Jodhpur (Raj.).
----Petitioners
Versus
1. Reserve Bank Of India, Through Its Secretary, Central
Office 10Th Floor, Central Office Building Shahid Bhagat
Singh Marg, P.b. No. 10014, Mumbai - 400001.
2. The Branch Manager, Canara Bank, Branch Jalori Gate,
Jodhpur, Rajasthan.
----Respondents
For Petitioner(s) : Mr. Arpit Bhoot
For Respondent(s) :
HON'BLE MR. JUSTICE SUNIL BENIWAL
Order
Reserved on : 20/09/2025
Pronounced on : 26/09/2025
1. The petitioner has preferred the present writ petition
aggrieved against the notice dated 04.07.2025 (Annex.5) issued
under Section 13(2) of the Securitization & Reconstruction of
Financial Assets & Enforcement of Security Interest Act, 2002 ('the
SARFAESI Act, 2002').
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2. Learned counsel for the petitioner while questioning the said
notice submitted that in response to the same, a reply was
submitted by the petitioner through his counsel on 26.08.2025,
wherein it was contended that the authorities could not proceed
against the petitioner under the SARFAESI Act, 2002 as the
petitioner is a duly registered Micro, Small and Medium
Enterprises ('MSME') and is thus entitled to the statutory
protections available under the Framework for revival and
rehabilitation of stressed MSMEs notified by the Ministry of Micro,
Small and Medium Enterprises, Government of India through
Notification dated 29.05.2015 and further RBI Master Directions
on Lending to MSMEs dated 24.07.2017 as updated on
11.06.2024.
2.1 Learned counsel for the petitioner submitted that the
authorities are, in fact, required to keep the proceedings as
initiated by notice dated 04.07.2025 in abeyance and are required
to consider the claim of the petitioner as an MSME entrepreneur. It
is stated that the respondent authorities have passed the order on
01.09.2025, whereby the authorities, after considering the reply
to the said notice, came to the conclusion that the representation
under the reply is devoid of merit and the same was accordingly
rejected.
2.2 While elaborating the submissions aforesaid, reliance was
placed on the judgment of the Apex Court rendered in Writ
Petition (Civil) No. 684/2025 titled as Shri Shri Swami Samarth
construction & Finance Solution & Anr. Vs. The Board of Directors
of NKGSB Co-op. Bank Ltd. & Ors., decided on 28.07.2025,
learned counsel for the petitioner submitted that the Apex Court
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has observed that once the factum of a unit as an MSME being
registered is brought to the knowledge of the lending bank, the
authorities are required to consider the borrower under the MSME
Framework and the proceedings under the SARFAESI Act, 2002
are required to be kept in abeyance till his case is considered
under the MSMEs Framework and the guidelines made thereunder.
It is stated that in the present case despite bringing this fact to
the knowledge of the respondent - Bank by filing reply to the
impugned notice, the authorities have rejected the said contention
and have observed that the judgment as cited by learned counsel
for the petitioner is not applicable and therefore, the authorities
would proceed against him under the SARFAESI Act, 2002.
3. Heard learned counsel for the petitioner on stay application.
4. The main contention of learned counsel for the petitioner
questioning the impugned notice is based on the judgment passed
by the Apex Court in the case of Shri Shri Swami Samarth
Construction & Finance Solution (supra).
4.1 On perusal of the judgment aforesaid, it is noteworthy that if
an application is submitted by a registered MSME and claims
benefit of the Framework citing reasons supported by an affidavit,
the lending bank /secured creditor would then be mandatorily
bound to look into such claim keeping further action under the
SARFAESI Act, 2002 in abeyance and further if the claim is found
to be worthy of acceptance within the framework of the
Framework, to act in terms thereof for securing revival and
rehabilitation of the defaulting borrower. In the present case, the
petitioner has neither submitted an application before the lending
bank for considering his case in terms of the Framework nor any
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supporting documents so also the affidavit while highlighting
stress so also stating clearly that he has strong apprehension of
failure of its business or its inability or likely inability to pay debts
and before the accumulated losses of the enterprise equals to half
or more of its entire net worth.
5. Not only this, merely making assertion that petitioner Unit is
MSME would not be good enough and as a matter of fact that
application has to be verified by an affidavit of an authorized
person. In the present case, the petitioner has simply annexed
the certificate, which simply fortified the fact that the petitioner is
an MSME registered, but neither any application as required was
submitted nor any such supporting document was placed on
record so as to show his prima facie eligibility for considering their
case within the Framework in terms of the notification dated
29.05.2015 issued by the Government of India. That being so, the
respondent authorities prima facie appear to be justified in issuing
notice and initiating proceedings against the petitioner.
6. Accordingly, no case for grant of interim order is made out at
this stage.
7. The stay application is dismissed.
8. Issue notice to the respondents, returnable within a period of
three weeks.
(SUNIL BENIWAL),J
Rmathur/-
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