Locus Standi of Auction Purchasers to Enforce Section 14 Possession Orders Under SARFAESI Act
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Case: M/S. JASRAJ RESTAURANTS PVT LTD AND ORS v. THE STATE OF MAHARASHTRA THRU SECRETARY AND ORS
Court: Bombay High Court
Date: 28-07-2026
Law: Banking Regulation Act, Constitution of India, Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, Transfer of Property Act.
Highlights of the Judgment:
- Examination of the locus standi of auction purchasers to maintain a writ petition for enforcing Section 14 orders under the SARFAESI Act.
- Interpretation of the term "secured creditor" and the extent of "limited transfer" of rights following the issuance of a sale certificate.
- Analysis of the mandatory duty of State authorities to implement directions issued by a competent Magistrate for physical possession.
- Application of the principle of the rule of law in ensuring the finality of statutory proceedings under debt recovery laws.
- Judicial reliance on the Supreme Court's clarification regarding the right of redemption under the amended Section 13(8).
- Discussion on the plenary jurisdiction of High Courts under Article 226 to prevent a travesty of justice in commercial exigencies.