Madhya Pradesh High Court
Swati Namdeo vs Can Fin Homes on 20 April, 2026
Author: Vivek Rusia
Bench: Vivek Rusia
NEUTRAL CITATION NO. 2026:MPHC-JBP:30464
1 WP-13758-2026
IN THE HIGH COURT OF MADHYA PRADESH
AT JABALPUR
BEFORE
HON'BLE SHRI JUSTICE VIVEK RUSIA
&
HON'BLE SHRI JUSTICE DEEPAK KHOT
ON THE 20th OF APRIL, 2026
WRIT PETITION No. 13758 of 2026
SWATI NAMDEO AND OTHERS
Versus
CAN FIN HOMES AND OTHERS
Appearance:
Shri Bhagwan Singh Thakur - Advocate for the petitioners.
Shri Vinay Tripathi - Advocate for the respondent No.1.
Shri Abhijeet Awasthi - Deputy Advocate General for the
respondent/State.
ORDER
Per: Justice Vivek Rusia The petitioners have applied for a housing loan from respondent no. 1/Bank to the extent of Rs.29,00,000/- (Twenty Nine Lakhs). That, against the loan transaction, the petitioners have agreed to mortgage their house admeasuring 750 sq. ft., situated at Mouja Tilimafi, Patwari Halka No.63, Khasra No.27/2/Ph, Tehsil and District Sagar (M.P.).
2. Due to some financial problem, the petitioners could not deposit the installment within stipulated time period. Therefore a demand notice dated 29.05.2024 was served to the petitioners. Thereafter notice of application under Section 14 of SARFAESI Act was issued and vide order Signature Not Verified Signed by: ASHISH KOSHTA Signing time: 20-04-2026 16:52:48 NEUTRAL CITATION NO. 2026:MPHC-JBP:30464 2 WP-13758-2026 dated 28.07.2025 (Annexure P-1) the application was decided and directed to hand over the vacant possession of the mortgaged property.
3. According to petitioners, as soon as certified copy received, the petitioners met to the officials of the respondent no.1 and submitted their proposal for settlement out of the Court. Thereafter, the petitioners were served with notice dated 31.03.2026 (Annexure P-2) for taking possession on 20.04.2026. Thereafter, the petitioners filed S.A No.372/2026 (Annexure P-
4). Since there in no Presiding Officer on charge till date. Hence, they are before this Court.
4. Shri Abhijeet Awasthi, Deputy Advocate General, appearing on behalf of respondents on advance notice, submits that a similar situation came up before this Court in the year 2021, also, when there was no Presiding Officer and various writ petitions were filed before this Court. In one of the writ petitions, W.P. No.25138/2021 (M/s Divyadeep Sugar and Industries Pvt. Ltd. and Others Vs. India Bank and Others), this Court vide order dated 23.11.2021 has issued certain directions to be followed by the borrower as well as by the Bank/Financial Institutions.
5. In our opinion, at present, the petitioners are in default of payment of regular EMIs, and the period for repayment of the entire loan amount has not yet ended. In case of default in payment of EMI, the borrowers cannot be expected to deposit the entire loan amount to the bank in one go, much before the completion of the total loan period. Had they have money for the purpose of which they took loan or financial assistance, they would not have taken the same from the bank public financial institutions, there is a period Signature Not Verified Signed by: ASHISH KOSHTA Signing time: 20-04-2026 16:52:48 NEUTRAL CITATION NO. 2026:MPHC-JBP:30464 3 WP-13758-2026 available to the petitioners for payment of loan, we deem it fit to protect the interests of borrowers like petitioners till the Debt Recovery Tribunal Jabalpur starts functioning after the appointment of the Presiding Officer.
6. We hereby dispose of the present writ petition with the following directions:-
(i) The petitioners shall file a Securitisation Appeal before the DRT, along with an application for interim relief within 15 days from today, if already not filed yet.
(ii) The DRT is directed to take up the S.A. No.372/2026 as soon as it becomes functional for consideration of interim relief and take a decision in accordance with law as expeditiously as possible.
(iv) Without prejudice to any of the rights of the parties, the petitioners are directed to deposit 20% of the amount, including the amount already deposited after the order passed by the ADM, due as on date with the respondent/bank within a period of 30 days from today, subject to further orders that may be passed by the Debts Recovery Tribunal, Jabalpur.
(v) After depositing the said amount, the respondent bank/financial institution shall reschedule the EMI, which shall be paid by the petitioner regularly during pendency S.A. or subject to any order passed by the Debt Recovery Tribunal.
(vi) Subject to the deposit of the 20% amount or till the prayer for interim relief in the said S.A. is decided by the Debt Recovery Tribunal, whichever is later, no coercive action be taken against the petitioners.
(vii) The petitioners are directed to communicate this order to the Signature Not Verified Signed by: ASHISH KOSHTA Signing time: 20-04-2026 16:52:48 NEUTRAL CITATION NO. 2026:MPHC-JBP:30464 4 WP-13758-2026 Registrar, DRT, Jabalpur, within seven working days from today.
(viii) If there is excessive delay at any stage of the proceedings, including in the appointment of the Presiding Officer of DRT, Jabalpur or no additional charge is given to any other Debt Recovery Tribunal, parties shall be free to approach this Court.
(ix) This Court has not expressed any opinion on the merits of the case.
7. The writ petition is disposed of with the aforesaid directions.
(VIVEK RUSIA) (DEEPAK KHOT)
JUDGE JUDGE
ak
Signature Not Verified
Signed by: ASHISH KOSHTA
Signing time: 20-04-2026
16:52:48