Court emphasizes police obligation under law to assist banks in repossessing properties from trespassers.
In a significant ruling, the Rajasthan High Court has directed police authorities to restore possession of a mortgaged property to Roha Housing Finance Pvt. Ltd. The court's decision comes in response to a writ petition filed by the finance company, which alleged that the property had been forcibly re-occupied by borrowers who defaulted on their loan.
The judgment was passed by Justice Sanjeet Purohit, emphasizing the legal obligations of police authorities under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The Act empowers banks to take possession of properties when borrowers fail to repay their loans.
The case revolves around a property located in Village Malit Kheda, District Bhilwara, Rajasthan. Roha Housing Finance had initially taken possession of the property with police assistance on January 28, 2026, due to non-payment by borrowers, who were declared as Non-Performing Assets (NPA). However, the borrowers allegedly re-entered the property forcibly, prompting the finance company to seek police intervention for restoring possession.
The court noted that the inaction by police authorities, despite requests from Roha Housing Finance, amounted to a defiance of law. It directed the Superintendent of Police, Bhilwara, and the Station House Officer (SHO) of Kotdi to take immediate action to restore possession to the petitioner bank.
Justice Purohit underscored the importance of upholding the rule of law, stating that failure to act would undermine legal provisions designed to assist financial institutions in recovering their dues. The court instructed the police to resolve the matter within fifteen days of receiving the order.
The directive serves as a reminder of the judiciary's role in ensuring that statutory mechanisms are enforced effectively, providing banks with the necessary support to reclaim properties that are legally theirs. The case also highlights the challenges faced by financial institutions in dealing with non-compliance by borrowers and the critical role of law enforcement in such disputes.
Bottom line:-
Police authorities are obligated to take appropriate action to restore possession of mortgaged property to the petitioner-bank, in accordance with law, especially when the bank has already taken possession earlier with police aid and trespassers have subsequently re-entered the property.
Statutory provision(s): Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, Article 226 of the Constitution of India.
Roha Housing Finance Pvt. Ltd. v. State Of Rajasthan, (Rajasthan) : Law Finder Doc id # 2930267
