Madhya Pradesh High Court
M/S Khushal Verma Contractor vs Canara Bank on 22 April, 2026
Author: Vivek Rusia
Bench: Vivek Rusia
NEUTRAL CITATION NO. 2026:MPHC-JBP:31349
1 WP-14623-2026
IN THE HIGH COURT OF MADHYA PRADESH
AT JABALPUR
BEFORE
HON'BLE SHRI JUSTICE VIVEK RUSIA
&
HON'BLE SHRI JUSTICE PRADEEP MITTAL
ON THE 22nd OF APRIL, 2026
WRIT PETITION No. 14623 of 2026
M/S KHUSHAL VERMA CONTRACTOR
Versus
CANARA BANK AND OTHERS
Appearance:
Shri Tarun Choudha and Shri Ayush Upadhyay - Advocates for
the petitioner.
Shri Abhijeet Awasthy - Dy. Advocate General for respondent.
Shri Adamya Bajpai - Advocate for respondent No.1.
ORDER
Per: Justice Vivek Rusia The petitioner has applied for a loan of Rs. 15,95,013/- from respondent No.1/bank. That, against the loan transaction, the petitioner has agreed to mortgage his land at Plot No.20 Nazul Block 23, measuring 598 sq. ft. situated at Ramkrishnaganj Ward No.18, Dr. Hasan Ali Marg, Khandwa, Tehsil Khandwa District Khandwa (M.P.). Hence, the respondent No.1 has initiated proceeding under the SARFAESI Act. As per the order dated 08.12.2025 passed in 0043/B-121/2025-26 by the court of District Magistrate Khandwa there is a threat of dispossession of the petitioner and thereafter an auction sale. Hence, petitioner is before this High Court.
Signature Not Verified Signed by: PRARTHANA SURYAVANSHI Signing time: 22-04-2026 16:28:55NEUTRAL CITATION NO. 2026:MPHC-JBP:31349 2 WP-14623-2026
2. Shri Abhijeet Awasthy - Dy. Advocate General appearing on behalf of respondent 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.
3. In our opinion, at present, the petitioner is 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 he money for the purpose of which he took loan or financial assistance, he would not has taken the same from the bank public financial institutions, there is a period available to the petitioner for payment of loan, we deem it fit to protect the interests of borrowers like petitioner till the Debt Recovery Tribunal Jabalpur starts functioning after the appointment of the Presiding Officer. We hereby dispose of the present writ petition with the following directions:-
(i) the petitioner shall file a Securitization 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 pending S.A. as soon as it becomes functional for consideration of interim relief and take a decision in Signature Not Verified Signed by: PRARTHANA SURYAVANSHI Signing time: 22-04-2026 16:28:55 NEUTRAL CITATION NO. 2026:MPHC-JBP:31349 3 WP-14623-2026 accordance with law as expeditiously as possible.
(iii) Without prejudice to any of the rights of the parties, the petitioner is directed to deposit 20% of the amount 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.
(iv) 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.
(v) 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 petitioner.
(vi) The petitioner is directed to communicate this order to the Registrar, DRT, Jabalpur, within seven working days from today.
(vii) 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.
(viii) This Court has not expressed any opinion on the merits of the case.
4. The writ petition is disposed of with the aforesaid directions (VIVEK RUSIA) (PRADEEP MITTAL) JUDGE JUDGE Signature Not Verified Signed by: PRARTHANA SURYAVANSHI Signing time: 22-04-2026 16:28:55 NEUTRAL CITATION NO. 2026:MPHC-JBP:31349 4 WP-14623-2026 Prar Signature Not Verified Signed by: PRARTHANA SURYAVANSHI Signing time: 22-04-2026 16:28:55