CWP-21313-2025 IN THE HIGH COURT OF PUNJAB AND HARYANA Authum Investment & Infrastructure Ltd. Additional CORAM: HON'BLE MR. JUSTICE SHEEL NAGU, CHIEF JUSTICE HON'BLE MR. JUSTICE SANJIV BERRY Present: SHEEL NAGU, CHIEF JUSTICE 1. aggrieved by non passed by Additional District Magistrate, Ludhiana (respondent No.1) under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Inte 2. and others, (2023) 1 SCC 675, under Section 14 of SARFAESI Act, held thus : “ secured assets in terms of 2025 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Authum Investment & Infrastructure Ltd. Versus Additional District Magistrate, Ludhiana and others CORAM: HON'BLE MR. JUSTICE SHEEL NAGU, CHIEF JUSTICE HON'BLE MR. JUSTICE SANJIV BERRY Mr. Vipul Dharmani, Advocate, for the petitioner. Mr. Vipin Pal Yadav, Addl. Advocate General, Punjab. **** SHEEL NAGU, CHIEF JUSTICE ( Oral ) The present petition has been filed by the petitioner Bank, aggrieved by non-execution of the order dated 11.11.2020 (Annexure P passed by Additional District Magistrate, Ludhiana (respondent No.1) under 4 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, ‘SARFAESI Act’). The Apex Court in R.D. Jain & Co. Vs. Capital First Limited and others, (2023) 1 SCC 675, while explaining the wi under Section 14 of SARFAESI Act, held thus : “23. However, for taking physical possession of the secured assets in terms of Section 14 (1) -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-21313-2025 Date of decision : 28.07.2025 …….Petitioner and others ...….Respondents CORAM: HON'BLE MR. JUSTICE SHEEL NAGU, CHIEF JUSTICE HON'BLE MR. JUSTICE SANJIV BERRY , Advocate, Mr. Vipin Pal Yadav, Addl. Advocate General, Punjab. ( Oral ) The present petition has been filed by the petitioner Bank, execution of the order dated 11.11.2020 (Annexure P passed by Additional District Magistrate, Ludhiana (respondent No.1) under 4 of the Securitisation and Reconstruction of Financial Assets and rest Act, 2002 (for short, ‘SARFAESI Act’). R.D. Jain & Co. Vs. Capital First Limited while explaining the width of jurisdiction under Section 14 of SARFAESI Act, held thus : However, for taking physical possession of the Section 14 (1) of the SARFAESI 2025 .2025 …….Petitioner ...….Respondents The present petition has been filed by the petitioner Bank, execution of the order dated 11.11.2020 (Annexure P-3) passed by Additional District Magistrate, Ludhiana (respondent No.1) under 4 of the Securitisation and Reconstruction of Financial Assets and R.D. Jain & Co. Vs. Capital First Limited dth of jurisdiction NAROTAM DASS 2025.07.31 15:08 I attest to the accuracy and authenticity of this order/judgment CWP-21313-2025 Act, the secured creditor is obliged to approach the CMM/DM by way of a written taking possession of the secured assets and documents relating thereto and for being forwarded to it (secured creditor) for further action. The statutory obligation enjoined upon the CMM/DM is to action aft (1) purpose. CMM/DM is expected to pass an compliance of all formalities referred to in the proviso in Section 14 (1) SARFAESI Act and 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 t earliest opportunity. 24. the CMM/DM pass a suitable order for the purpose of taking possession the secured assets within a period of 30 days from the dat of application which can be extended for such further period but not exceeding in the aggregate, sixty days. Thus, the powers exercised by the CMM/DM cannot brook delay. Time is of the essence. This is the spirit of the special e 25. Coop. Bank (NKGSB Coop. Bank Ltd. v. Subir Chakravarty, (2022) 10 SCC : (2023) 1 SCC (Cri) 157 step taken by the CMM/DM while taking possession of the secured assets and documents relating the ministerial step. It could be taken by the CMM/DM himself/herself or through any officer subordinate to him/her, including the considered as an officer of his/her 2025 Act, the secured creditor is obliged to approach the CMM/DM by way of a written taking possession of the secured assets and documents relating thereto and for being forwarded to it (secured creditor) for further action. The statutory obligation enjoined upon the CMM/DM is to action after receipt of a written application (1) of the SARFAESI Act from the secured creditor for that purpose. As soon as such an application is received, the CMM/DM is expected to pass an compliance of all formalities referred to in the proviso in Section 14 (1) SARFAESI Act and 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 t earliest opportunity. 24. As mandated by Section 14 the CMM/DM has to act within the stipulated time pass a suitable order for the purpose of taking possession the secured assets within a period of 30 days from the dat of application which can be extended for such further period but not exceeding in the aggregate, sixty days. Thus, the powers exercised by the CMM/DM 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 Coop. Bank (NKGSB Coop. Bank Ltd. v. Subir Chakravarty, (2022) 10 SCC : (2023) 1 SCC (Cri) 157 step taken by the CMM/DM while taking possession of the secured assets and documents relating the ministerial step. It could be taken by the CMM/DM himself/herself or through any officer subordinate to him/her, including the Advocate considered as an officer of his/her -2- 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 and for being forwarded to it (secured creditor) for further action. The statutory obligation enjoined upon the CMM/DM is to immediately move into er receipt of a written application under Section 14 of the SARFAESI Act from the secured creditor for that As soon as such an application is received, the CMM/DM is expected to pass an order after verification of by the secured creditor referred to in the proviso in Section 14 (1) of the SARFAESI Act and 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 Section 14 of the SARFAESI Act, has to act within the stipulated 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 period but not exceeding in the 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 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 dvocate Commissioner who is considered as an officer of his/her court. Section 14 does not NAROTAM DASS 2025.07.31 15:08 I attest to the accuracy and authenticity of this order/judgment CWP-21313-2025 oblige the CMM/DM to go per of the secured assets and documents relating thereto. Thus, we reiterate that the step to be taken by the CMM/DM under Section 14 While disposing of the application under SARFAESI Act, 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 points raised by the borrower against the secured creditor taking possession of secured assets. 3. their statutory duty of assisting and handing over physical possession of the secured asset to the petitioner Bank, provided there is no legal impediment of any judicial forum under SARFA 3.1 exchequer and banking and financial system, and, thus, prompt enforcement under the SARFAESI Act is paramount for liquidity in the system. 4. execute the order dated 11.11.2020 (Annexure P the SARFAESI Act by handing over physical possession of the secured asset to the petitioner Bank as expeditiously as possible, preferably, within a perio of 30 days. The petitioner Bank, thereafter, can proceed to adopt all possible legitimate means to liquidate the secured asset to recover the due amount. 5. days from the date of execution o 2025 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 SARFAESI Act, no element of quasi 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 borrower against the secured creditor taking possession of secured assets. It is surprising that respondents No.1 to 3 have failed to discharge their statutory duty of assisting and handing over physical possession of the secured asset to the petitioner Bank, provided there is no legal impediment of any judicial forum under SARFAESI Act. Non Performing Assets (NPA) are a huge burden on the public exchequer and banking and financial system, and, thus, prompt enforcement under the SARFAESI Act is paramount for liquidity in the system. In view of above, this Court directs execute the order dated 11.11.2020 (Annexure P the SARFAESI Act by handing over physical possession of the secured asset to the petitioner Bank as expeditiously as possible, preferably, within a perio of 30 days. The petitioner Bank, thereafter, can proceed to adopt all possible legitimate means to liquidate the secured asset to recover the due amount. Compliance report be filed by respondents No. 1 to 3 within 15 days from the date of execution of the order dated 11.11.2020 failing which -3- sonally 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 of the SARFAESI Act, is a ministerial step. While disposing of the application under Section 14 of the no element of quasi-judicial 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, lve an adjudicatory process qua points raised by the borrower against the secured creditor taking possession of secured assets.” It is surprising that respondents No.1 to 3 have failed to discharge their statutory duty of assisting and handing over physical possession of the secured asset to the petitioner Bank, provided there is no legal impediment of Non Performing Assets (NPA) are a huge burden on the public exchequer and banking and financial system, and, thus, prompt enforcement under the SARFAESI Act is paramount for liquidity in the system. In view of above, this Court directs respondents No. 1 to 3 to execute the order dated 11.11.2020 (Annexure P-3) passed under Section 14 of the SARFAESI Act by handing over physical possession of the secured asset to the petitioner Bank as expeditiously as possible, preferably, within a perio of 30 days. The petitioner Bank, thereafter, can proceed to adopt all possible legitimate means to liquidate the secured asset to recover the due amount. Compliance report be filed by respondents No. 1 to 3 within 15 f the order dated 11.11.2020 failing which It is surprising that respondents No.1 to 3 have failed to discharge their statutory duty of assisting and handing over physical possession of the secured asset to the petitioner Bank, provided there is no legal impediment of Non Performing Assets (NPA) are a huge burden on the public exchequer and banking and financial system, and, thus, prompt enforcement respondents No. 1 to 3 to 3) passed under Section 14 of the SARFAESI Act by handing over physical possession of the secured asset to the petitioner Bank as expeditiously as possible, preferably, within a period of 30 days. The petitioner Bank, thereafter, can proceed to adopt all possible Compliance report be filed by respondents No. 1 to 3 within 15 f the order dated 11.11.2020 failing which NAROTAM DASS 2025.07.31 15:08 I attest to the accuracy and authenticity of this order/judgment CWP-21313-2025 Registry is directed to list this case before appropriate Bench for ensuring compliance. 6. July 28, 2025 narotam Whether speaking/reasoned Whether reportable 2025 Registry is directed to list this case before appropriate Bench for ensuring compliance. The petition stands disposed of in the terms aforesaid. July 28, 2025 Whether speaking/reasoned Whether reportable -4- Registry is directed to list this case before appropriate Bench for ensuring The petition stands disposed of in the terms aforesaid. ( SHEEL NAGU ) CHIEF JUSTICE ( SANJIV BERRY ) JUDGE Yes/No Yes/No Registry is directed to list this case before appropriate Bench for ensuring NAROTAM DASS 2025.07.31 15:08 I attest to the accuracy and authenticity of this order/judgment