Chaitanya Bahuuddeshiya Shikshan Prasarak Mandal v. Auxilo Finserve Pvt. Ltd. 2026 INSC 408

Case name and neutral citation:Chaitanya Bahuuddeshiya Shikshan Prasarak Mandal & Ors. v. Auxilo Finserve Pvt. Ltd. & Ors., 2026 INSC 408

Coram:Justice Dipankar Datta and Justice Satish Chandra Sharma

Judgment date:22 April 2026 (New Delhi)

Statutes / laws referred:The judgment primarily refers to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), in particular Section 13 and Section 13(2). It also notes that the underlying High Court proceedings were a writ petition under Article 226 of the Constitution of India.

Three‑sentence brief summary

The petitioners, who ran Chaitanya Public School & Junior College, had taken financial assistance from Auxilo Finserve but repeatedly defaulted and failed to honour multiple undertakings and court directions in proceedings under the SARFAESI Act. After recording persistent non‑compliance, obstruction in handing over possession of the secured asset, and disregard for orders of both the Bombay High Court and the Supreme Court, the Court directed that the school be closed permanently from the forenoon of 1 May 2026, ordered issuance of transfer certificates to all students, and authorised police assistance for the secured creditor to obtain vacant possession and auction the property based on a fresh government valuation. The special leave petition was dismissed, the appointment of the Administrator was recalled, contempt was not formally drawn up but the management was warned of strict action for future obstruction, and costs of Rs. 1 lakh were imposed on the petitioners.