'Muscle Power' Can't Override Law: Rajasthan High Court Orders Police To Restore Bank's Possession On Property Forcibly Taken By Borrowers
The Rajasthan High Court has directed the police officials to take all possible endeavours to restore the possession of a mortgaged property forcibly taken over by loan defaulters from the bank, which had lawful authority over it in terms of the SARFAESI Act.
The bench of Justice Anoop Kumar Dhand noted that respondent-borrowers had used "muscle power" to take over the property and an FIR was also registered against them in this regard. However, even after passing of considerable time, no steps were taken by the police.
For context, the Court was hearing a petition filed by the Indusind Bank, alleging that the respondents had borrowed some money which was not repaid. Consequently, their accounts were declared NPAs, and proceedings under Section 14 of the SARFAESI Act was initiated against them.
In this regard, the Police Superintendent was directed to take possession of the mortgaged land which was taken. However, the respondents forcibly took possession of the property. An FIR was registered against them, however, as contended, no effective steps were taken by the police even after passing of almost one year. Hence, the present petition was filed.
After hearing the contentions, the Court made a reference to a coordinate bench decision in Atma Ram Bishnoi & Another Vs. District Collector & Others that dealt with identical factual situation and while taking serious note of the matter, ordered the concerned police officials to restore the possession of the property.
In this background, the Court directed the concerned police authorities to undertake all possible measures to restore the possession of the mortgaged property to the bank, within a period of 6 weeks.
Title: Indusind Bank Limited v State of Rajasthan & Ors.
Citation: 2026 LiveLaw (Raj) 386