Capri Global Housing Finance Ltd Vs State of Madhya Pradesh & Ors (Madhya Pradesh High Court)
Madhya Pradesh High Court held that re-entry into mortgaged property is illegal hence authorities are required to provide assistances and aid to the petitioner in dispossessing the borrower from the mortgaged property. Accordingly, writ allowed.
Facts- Petitioner is a financial institution as defined under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Petitioner company extended the loan facility to the borrower in lieu of property mortgaged by the borrower. Thereafter, since borrower failed to pay the loan amount, therefore, petitioner issued a notice u/s. 13(2) of the Securitization Act but borrower did not chose to repay the loan amount. Therefore, petitioner moved an application u/s. 14 of the Securitization Act for taking possession of the property from the borrower. That application was allowed on 04-09-2023.
Despite the order of District Magistrate, Guna, since possession of the property was not handed over to the petitioner, therefore, petitioner preferred writ petition No.2643/2024 before this Court and ultimately possession was handed over to the petitioner on 29-07-2024. However, borrower and his family members again re-entered into the possession of the mortgaged property and thereafter, not ready to vacate the mortgaged premises. Petitioner again approached the respondents authorities but they denied to help the petitioner on the pretext that the order of District Magistrate, Guna dated 04-09-2023 has already been executed and now they cannot re-execute the said order. Therefore, petitioner is before this Court.
