Punjab-Haryana High Court
Smfg India Home Finance Company Ltd vs Chief Judicial Magistrate Bathinda And ... on 17 November, 2025
CWP-34181-2025
2025 -1-
IN THE HIGH COURT OF PUNJAB AND HARYANA
AT CHANDIGARH
CWP-34181-2025
2025
Date of decision : 17.11.2025
.2025
SMFG India Home Finance Company Ltd.
.......Petitioner
Versus
Chief Judicial Magistrate, Bathinda and others
.......Respondents
CORAM: HON'BLE MR. JUSTICE SHEEL NAGU, CHIEF JUSTICE
HON'BLE MR. JUSTICE SANJIV BERRY
Present: Mr. Vikas Bali, Advocate,
for the petitioner.
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SHEEL NAGU, CHIEF JUSTICE ( Oral )
1. The petitioner - financial institution is before this Court invoking writ as well as supervisory jurisdiction under Article 226/227 of the Constitution of India, being aggrieved by in in-action action on the part of Chief Judicial Magistrate, Bathinda (respondent No No.1) .1) to decide the application (Annexure P-4) P 4) submitted by the petitioner u/s 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (in short, 'SARFAESI Act'), which is pending since 11.07.2025.
2. Itt is stated in the application (Annexure P P-4)
4) that respondents No.2 and 3 availed housing loan facility of Rs. 18,00,000/- from the petitioner, and upon default in repayment, the account was classified as Non Non-Performing Performing Asset (NPA) on 07.03.2025, 0 whereafter demand notice dated 17.03.2025 .2025 (Annexure P-2) P 2) u/s 13 (2) of the SARFAESI Act was duly served upon the respondents - borrowers, calling upon them to discharge their liability within a 1 of 4 ::: Downloaded on - 19-11-2025 23:46:09 ::: CWP-34181-2025 2025 -2- period of sixty days. The respondents - borrowers failed to co comply mply with the said demand notice and accordingly, the petitioner - secured creditor proceeded to take recourse to measures u/s 13 (4) of the SARFAESI Act by issuing possession notice dated 09.06.2025 0 .2025 (Annexure P P-3)
3) and whereafter filed application under Section Section 14 of the SARFAESI Act on 11.07.2025.
3. The Apex Court in R.D. Jain & Co. Vs. Capital First Limited and others, (2023) 1 SCC 675, while explaining the width and ambit of jurisdiction u/s 14 of SARFAESI Act held thus :
"23. However, for taking physi physical possession of the secured assets in terms of Section 14 (1) of the SARFAESI Act, the secured creditor is obliged to approach the CMM/DM by way of a written application requesting for taking possession of the secured assets and documents relating thereto thereto and for being forwarded to it (secured creditor) for further action. The statutory obligation enjoined upon the CMM/DM is to immediately move into action after receipt of a written application under Section 14 (1) of the SARFAESI Act from the secured cre creditor for that purpose. As soon as such an application is received, the CMM/DM is expected to pass an order after verification of compliance of all formalities by the secured creditor referred to in the proviso in Section 14 (1) of the SARFAESI Act and after after being satisfied in that regard, to take possession of the secured assets and documents relating thereto and to forward the same to the secured creditor at the earliest opportunity.
24. As mandated by Section 14 of the SARFAESI Act, the CMM/DM has to actt within the stipulated time time-limit and pass a suitable order for the purpose of taking possession of the secured assets within a period of 30 days from the date of application which can be extended for such further 2 of 4 ::: Downloaded on - 19-11-2025 23:46:09 ::: CWP-34181-2025 2025 -3- period but not exceeding in the aggregate aggregate, sixty days. Thus, the powers exercised by the CMM/DM is a ministerial act. He cannot brook delay. Time is of the essence. This is the spirit of the special enactment.
25. As observed and held by this Court in NKGSB Coop. Bank (NKGSB Coop. Bank Ltd. v. Subir Chakravarty, (2022) 10 SCC : (2023) 1 SCC (Cri) 157, the step taken by the CMM/DM while taking possession of the secured assets and documents relating thereto is a ministerial step. It could be taken by the CMM/DM himself/herself or through any officer subordinate to him/her, including the Advocate Commissioner who is considered as an officer of his/her court. Section 14 does not oblige the CMM/DM to go personally and take possession of the secured assets and documents relating thereto. Thus, we reiterate that the step to be taken by the CMM/DM under Section 14 of the SARFAESI Act, is a ministerial step. While disposing of the application under Section 14 of the SARFAESI Act, no element of quasi- judicial function function or application of mind would require. The Magistrate has to adjudicate and decide the correctness of the information given in the application and nothing more. Therefore, Section 14 does not involve an adjudicatory process qua points raised by the borr borrower against the secured creditor taking possession of secured assets.
assets."
3.1 Needless to say that the guidelines laid down by Coordinate Bench in Bank of Maharashtra Vs. District Magistrate, Hisar and others, (CWP-7018 7018-2022, 2022, decided on 28.05.2024) be adhe adhered red to by the concerned authorities.
4. This Court, in view of Chief Judicial Magistrate, Bathinda (respondent No.1) having failed to discharge statutory obligation u/s 14 (1) 3 of 4 ::: Downloaded on - 19-11-2025 23:46:09 ::: CWP-34181-2025 2025 -4- proviso of the SARFAESI Act within stipulated time of sixty days, is compelled to issue writ of mandamus.
5. Accordingly, the present petition is disposed of with a direction to respondent No.1 to consider and dispose dispose of the application u/s 14 of the SARFAESI Act (Annexure P-4), P expeditiously, preferably on the date already fixed, which hich is stated to be 24.11.2025, .2025, or at best, within a period of thirty (30) days thereafter.
thereafter
6. We hasten to add that this order shall however be subject to any restraint/interim/final order which may have been passed by any judicial forum, in favour of the borrowers.
( SHEEL NAGU )
CHIEF JUSTICE
( SANJIV BERRY )
November 17, 2025 JUDGE
narotam
Whether speaking/reasoned Yes/No
Whether reportable Yes/No
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