Bombay High Court
Icici Bank Limited Through Its Attorney ... vs State Of Maharashtra (Eow) And Ors. on 15 December, 2025
Author: Bharati Dangre
Bench: Bharati Dangre
HEMANT
CHANDERSEN
2025:BHC-AS:56419-DB
SHIV
H.C. SHIV 17 APEAL263.2023.doc
Digitally signed by
HEMANT
CHANDERSEN SHIV
Date: 2025.12.20
10:25:20 +0300 IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CRIMINAL APPELLATE JURISDICTION
CRIMINAL APPEAL NO. 263 OF 2023
WITH
INTERIM APPLICATION NO. 912 OF 2023
IN
CRIMINAL APPEAL NO. 263 OF 2023
ICICI Bank Limited .... Appellant
V/s.
The State of Maharashtra (EOW) and Ors. .... Respondents
WITH
CRIMINAL APPEAL NO. 86 OF 2022
Seema Sharma .... Appellant
V/s.
The State of Maharashtra and Ors. .... Respondents
WITH
CRIMINAL APPEAL NO. 221 OF 2024
Punjab National Bank .... Appellant
V/s.
The Senior Inspector of Police and Ors. .... Respondents
Mr. Ashok Mundargi, Sr. Advocate a/w. Mr. Santosh Bhide and
Miss Kritika Joshi i/b. M/s. Bhide and Associates for the Appellant -
ICICI Bank and for the Applicant in IA/912/2023.
Mr. Vijay Bhanushali for the Appellant in APEAL/86/2022 and for
Respondent No.4 in APEAL/263/2023 and for Respondent No.3 in
APEAL/221/2024.
Ms. Payal Upadhyay and Mr. Anant Upadhyay i/b. ANP Chambers
for the Appellant in 221/2024 and for the Respondent - PNB Bank
in APEAL/263/2023.
Ms. Leena Patil, Special PP for the Respondent - State.
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H.C. SHIV 17 APEAL263.2023.doc
Ms. Sangeeta Shinde, APP for the Respondent - State.
Mr. Arvind Lakhawat a/w. Adv. Nimeet Sharma, Ms. Jalpa Shah i/b.
MZM Legal LLP for the Respondent No.5 - NSEL.
CORAM : BHARATI DANGRE &
SHYAM C. CHANDAK, JJ.
DATED : 15th DECEMBER, 2025 P.C. :-
1) On an Application being filed by the ICICI Bank in MPID Special Case No.1/2014, the impugned Order dated 10/01/2023 was passed, which is the subject matter of the Appeal.
The Bank, pleaded its case that the accused had availed housing loan for purchasing a residential property, which was sanctioned along with a top-up loan but since there was a default in making the payment, the symbolic possession of the secured asset was taken by availing the remedy available under The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (" SARFAESI Act "). The Bank invoked Section 13(2) and issued notice to the borrowers in the year 2018 recalling the entire loan and the amount recalled was to the tune of Rs.9,51,30,440/- as on 22/02/2018 along with the interest and other charges. Symbolic possession of the mortgaged property was taken on 28/05/2018 and the Bank specifically pleaded that it was so published in the newspaper in accordance with law. 2/5 ::: Uploaded on - 20/12/2025 ::: Downloaded on - 26/12/2025 21:20:11 :::
H.C. SHIV 17 APEAL263.2023.doc An Application under Section 14 was also filed before the District Magistrate, Chandigarh, who passed an Order allowing the Application and permitting the Bank to take physical possession of the mortgaged property.
2) However, when the possession of the property was attempted to be taken, it was revealed that the property was already attached by the State of Maharashtra, as M/s. White Water Foods Pvt. Ltd., being a borrower Company of N.S.E.L and steps were taken under Section 3 of the MPID Act pursuant to an offence being registered and which also invoked various provisions of the Penal Code. It is in these circumstances, pleading that the provisions of SARFAESI Act override the provisions of any other law (whether State or Central) inconsistent therewith, permission was sought from the Court to auction the mortgaged property in accordance with the provisions of law so that the amount received can be appropriated for satisfying the dues towards the loan, from the borrower of the Bank.
3) This Application came to be rejected by the impugned Order and with the Special MPID Court specifically referring to the provisions of SARFAESI and MPID Act and recording that the attachment under MPID Act was prior to the date when SARFAESI Act became applicable and with a specific observation that as far as a legal question is concerned, there is no conflict between the Central and the State enactment as the prior assent of 3/5 ::: Uploaded on - 20/12/2025 ::: Downloaded on - 26/12/2025 21:20:11 ::: H.C. SHIV 17 APEAL263.2023.doc the President was obtained and therefore, the State Act would prevail. It is in the light of these observations, the attachment under the Notification dated 13/01/2016 under the MPID Act was made absolute by rejecting the Application filed by the Bank.
4) The learned Senior Counsel Mr. Mundargi appearing for the Appellant in APEAL/263/2023 which raises a challenge to the impugned Order dated 10/01/2023 fairly concede that the legal position as regards the supremacy between the two legislations is now put to rest by the decision of the Apex Court in National Spot Exchange Ltd. v/s. Union of India and others1. He would however submit that there are other objections of the Bank but considering the fact that the Application of the Bank was limited to its right to be exercised under SARFAESI Act over the rights of the State Government on attaching the property under the MPID Act, which is a State legislation, we find that other grounds not being raised in the Application, and hence the Court focused only upon the aspect that was raised in the Application filed by the Bank, we do not find that the other grounds received any consideration from the Court.
Needless to state that if the Bank intent to raise an objection on any other count, it will have to approach the MPID Court, which shall adjudicate upon the said objections and it is only thereafter this Court would be entitle to entertain an Appeal under Section 11 of the MPID Act.
1 2025 SC OnLine SC 1137 4/5 ::: Uploaded on - 20/12/2025 ::: Downloaded on - 26/12/2025 21:20:11 ::: H.C. SHIV 17 APEAL263.2023.doc 5) In the wake of the aforesaid, the Criminal Appeal No.263 of
2023 being without merit and substance, is dismissed.
In view of dismissal of the Appeal, Interim Application No.912 of 2023 does not survive and stands disposed of.
6) List the Criminal Appeal Nos.86/2022 and 221/2024 on 15 th January, 2026.
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