The Jodhpur bench of the Rajasthan High Court expressed surprise and concern over the inaction of authorities in a case involving the forcible takeover of a mortgaged property. The court has directed the District Collector and the Superintendent of Police in Sri Ganganagar to take immediate and stern action against a loan defaulter who unlawfully seized his mortgaged property, which had been taken over by AU Small Finance Bank under the SARFAESI Act.
Justice Vinit Kumar Mathur emphasized that despite the bank’s repeated attempts to involve the authorities, no action had been taken. He warned that failure to act would lead to lawlessness, a situation that the court would view very seriously. The defaulter, according to the court, had used “muscle power” to regain possession of the property by force, and no action had been taken by the authorities to stop this unlawful act.
The court stated, “The situation is alarming, and the State functionaries are warned that if they do not act in such a situation, it will create lawlessness in the State of Rajasthan, which will be viewed very seriously by this Court.” It further added, “Stern action should be taken against the respondent to restore possession of the mortgaged property immediately to the petitioner bank.”
The case stemmed from a loan that had not been repaid, leading to the property being declared a Non-Performing Asset (NPA) under the SARFAESI Act. The bank, following legal procedures, took possession of the mortgaged property. However, the loan defaulter forcibly broke the locks and took back control of the property. Despite the bank’s efforts to seek help from local authorities, no action was taken, prompting the bank to file the petition in court.
The court expressed disbelief that the authorities had not acted to uphold the law, stressing the obligation of state officials to restore the rule of law. The court pointed out, “If the petitioner is not allowed to take possession of the mortgaged property, it will amount to a clear defiance of the rule of law.”
As a result, the court directed the District Collector and Superintendent of Police in Sri Ganganagar to take immediate steps to restore the bank’s possession of the property. The authorities were given a four-week deadline to act upon the order from the date of receipt of the certified copy.
This ruling highlights the importance of enforcing legal procedures to prevent the use of force in property disputes and the responsibility of state authorities to ensure that the law is upheld.
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