No Interim Stay From High Court If DRT Already Considered Relief Sought: Calcutta High Court

The Calcutta High Court on 28 August held that a petitioner who has already approached the Debts Recovery Tribunal (DRT) under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act cannot seek an interim stay from the High Court when the Tribunal has not granted such relief.

Justice Om Narayan Rai dismissed a writ petition filed by Jayasri Acharya seeking to restrain a bank from taking possession of a property in which she claimed to be a tenant. The Bench held:

“If the petitioner did not make any prayer for stay before the Tribunal, this Court cannot grant it now and if the petitioner's prayer was made and was not expressly granted, then also this writ petition cannot be entertained for the purpose of granting any interim stay which was impliedly refused by the Debts Recovery Tribunal.”

Acharya had already filed a SARFAESI Application before the DRT challenging the bank's action. The Tribunal heard the matter and reserved judgment on 23 July 2026. She then approached the High Court apprehending that she could be dispossessed while the matter remained pending.

The bank submitted that it had not taken possession of the property because a Civil Court order dated 12 August 2026 restrained forcible possession until 15 September 2026.

The Court also held that the writ petition was not maintainable against the action of a private bank, relying on the Supreme Court's decision in Federal Bank Ltd. v. Sagar Thomas. It observed that Acharya could have sought a stay before the DRT after filing the SARFAESI Application. It held:

“When the petitioner has already approached the relevant Debts Recovery Tribunal and has filed SARFAESI Application there it was open for the petitioner to pray for an order of stay before the Debts Recovery Tribunal itself.”

The Bench noted that the DRT's order dated 23 July 2026 showed that it had finally heard the matter and reserved judgment without granting any stay.

Accordingly, the High Court dismissed the writ petition without costs.

For Petitioner: Advocates Asis Bhattacharya, B. Mitra, Antara Chaudhary

For State: Advocates Anindya Basu, Partha Sarathi Basu