Case Note & Summary
The High Court of Judicature for Rajasthan, Bench at Jaipur, heard a group of writ petitions filed by financial institutions, namely Jana Small Finance Bank Limited and Motilal Oswal Home Finance Limited, against the State of Rajasthan, police authorities, and private borrowers. The petitions involved enforcement of security interest under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The financial institutions had provided loans to private respondents against mortgage of secured assets. Borrowers defaulted on repayment, leading the institutions to invoke Section 13 of the Act and initiate proceedings under Section 13(4). Subsequently, the institutions filed applications under Section 14 before the District Magistrate, Deeg, seeking possession of secured assets. The District Magistrate allowed the application on 16.09.2025, entitling the finance company to take physical possession of the secured asset and directing police assistance. The judgment excerpt ends after noting that with the aid of police authorities physical possession was being pursued. All writ petitions were heard together with consent of counsel due to almost identical facts, grievances, and causes of action.
Headnote
A) Banking Law - Securitisation and Enforcement of Security Interest - Enforcement of Security Interest and Police Assistance - Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, Sections 13, 13(4), 14 - Financial institutions registered under the Act invoked Section 13 and Section 13(4) after borrower default; District Magistrate allowed Section 14 application entitling physical possession and police assistance; multiple writ petitions were heard together due to identical facts and grievances (Paras 1-5).
Issue of Consideration
Enforcement of security interest under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, including police assistance under Section 14
Law Points
- Enforcement of security interest under SARFAESI Act
- 2002
- Section 13 invocation
- Section 13(4) proceedings
- Section 14 application for possession
- District Magistrate order entitling physical possession and police assistance
Case Details
2026 LawText (RAJ) (06) 21
S.B. Civil Writ Petition No. 10026/2026 and connected petitions
Akhilesh Pareek, Punit Mathur, Somitra Chaturvedi, Devakriti Vashistha, Sunita Meena, Bhuwnesh Sharma
Jana Small Finance Bank Limited; Motilal Oswal Home Finance Limited (in S.B. Civil Writ Petition No. 10027/2026)
State of Rajasthan through Secretary Department of Home, Jaipur; Superintendent of Police, Deeg; Station Housing Officer, P.S. Brijnagar, Deeg; Ballo S/o Mr. Jalli; Mr. Jalli S/o Mr. Jugal; Mrs. Keshan W/o Mr. Jalli; and other private respondents in connected petitions
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Nature of Litigation
Writ petitions by financial institutions against state authorities and borrowers relating to enforcement of security interest under SARFAESI Act, 2002
Remedy Sought
Not explicitly mentioned in available excerpt; context indicates enforcement of physical possession and police assistance under Section 14 orders
Filing Reason
Private respondents defaulted on loans secured by mortgaged assets; financial institution invoked SARFAESI provisions including Section 13 and Section 13(4)
Previous Decisions
District Magistrate, Deeg allowed application under Section 14 of SARFAESI Act, 2002 vide order dated 16.09.2025, entitling petitioner finance company to physical possession of secured asset and directing police assistance
Issues
Enforcement of security interest under SARFAESI Act, 2002, including police assistance under Section 14
Judgment Excerpts
Uncontroverted facts are that the petitioner is a financial institution duly registered under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
The application filed by the petitioner was allowed by the District Magistrate vide order dated 16.09.2025, whereby the petitioner Finance Company was held entitled for taking physical possession of the secured asset and even directions were given for granting police assistance to the petitioner company for taking possession of the secured asset.
Procedural History
Private respondents availed financial assistance by mortgaging secured assets; defaulted on repayment; petitioner financial institution invoked Section 13 of SARFAESI Act; after recall of loan, proceedings under Section 13(4) were undertaken; application under Section 14 filed before District Magistrate, Deeg; District Magistrate allowed application on 16.09.2025 with directions for police assistance; writ petitions filed and heard together due to identical facts; judgment excerpt ends during narration of possession proceedings.
Acts & Sections
- Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002: Section 13, Section 13(4), Section 14
