The Rajasthan High Court quashed an order of the Chief Judicial Magistrate, Alwar, which had directed a secured creditor to deposit the expenses for police assistance while taking possession of a secured asset under Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act).
The petitioner had approached the High Court challenging the Magistrate’s order dated 12 August 2024, which mandated the deposit of police assistance expenses before taking possession of the secured asset belonging to the borrowers. The grievance of the petitioner was that the police authorities, by a letter dated 27 February 2025, demanded a sum of ₹6,34,383 towards police assistance, even though the recoverable loan amount was only ₹9,90,000.
The counsel for the petitioner contended that no provision under Section 14 of the SARFAESI Act authorizes a Magistrate to direct the secured creditor to bear such expenses for police aid. In support, reliance was placed on the Division Bench judgment of the Allahabad High Court in PNB Housing Finance Ltd. v. State of U.P. & Ors. and the decision of the Rajasthan High Court in Valeed Ahmed & Anr. v. Commissioner of Police, Jodhpur & Ors.
After hearing both sides, the Rajasthan High Court observed that Section 14 of the SARFAESI Act does not contain any provision empowering the Magistrate to impose a condition requiring the secured creditor to deposit police assistance expenses. The Court, therefore, set aside the said direction issued by the Chief Judicial Magistrate, Alwar.
The Court further directed the petitioner to move an execution application before the concerned police authorities for implementation of the possession order, and instructed the police to comply with the same expeditiously.
With these directions, the writ petition was disposed of along with all pending applications.
Case Title: Tyger Home Finance Private Limited vs. State Of Rajasthan & Ors.
Case No.: S.B. Civil Writ Petition No. 14449/2025
Coram: Justice Ashutosh Kumar
Advocate for Petitioner: Adv. Kartikeya Sharma, Puneet Chahar, Mukul Choudhary
Advocate for Respondent: Adv. Shubham Sharma, Somitra Chaturvedi
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