Patna High Court dismisses borrower's writ against Canara Bank SARFAESI action

The Patna High Court on 29 October 2026 dismissed a borrower's writ petition against Canara Bank's recovery action under the SARFAESI Act. The court held that a borrower who has an effective remedy under that Act should use it, and did not rule on the merits of the dispute. The bank told the court the borrower's dues stood at Rs 66.01 lakh as on 31 January 2024.

What Happened

The petitioner, a businesswoman from Lakhisarai district, had mortgaged her property to take loans from Canara Bank. She told the court her business suffered losses after a fire destroyed her godown in 2020. She challenged the bank's demand notice of 11 April 2023 under Section 13(2) of the SARFAESI Act, the law under which a bank can take over and sell property pledged for a loan, and a sale notice of 30 October 2023. She argued the notices were not properly served, said she was willing to repay and disputed the bank's calculation.

According to the judgment, the bank said she had availed credit facilities of Rs 68.10 lakh, the accounts were classified as non-performing on 10 April 2023, and a possession notice followed on 27 July 2023. The bank said the notices were duly served.

During the case, the court had stayed her dispossession in December 2024 on condition that she deposit Rs 15 lakh, which she paid late. A Division Bench later directed on 13 October 2025 that an interim order in her favour would not take effect until the petition was decided.

Relying on several Supreme Court rulings, the court held that a High Court ordinarily should not entertain a writ petition under Article 226 of the Constitution where an effective statutory remedy is available. It dismissed the petition and left the borrower free to use the statutory remedy.

What It Means

For borrowers facing a bank's possession or sale notice under the SARFAESI Act, the ruling is a reminder that the High Court will ordinarily send them to the remedy the Act itself provides rather than hear a writ petition. The court expressed no opinion on whether the bank's notices or dues were correct. Borrowers with a complaint about a bank's service can also approach the RBI at https://cms.rbi.org.in.

Source: High Court judgment