IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH CWP-7214-2026 (O&M)

Date of decision : 11.03.2026 IIFL Home Finance Ltd. ...Petitioner Vs.

State of Haryana and others ...Respondents CORAM: HON’BLE MR. JUSTICE SUVIR SEHGAL HON’BLE MR. JUSTICE DEEPAK MANCHANDA Present: Mr. Vineet Sehgal, Advocate for the petitioner.

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DEEPAK MANCHANDA, J

1. This petition has been filed seeking a direction for enforcement/compliance of the order dated 23.06.2025 (Annexure P-3) passed by respondent No. 2, the District Magistrate, under Section 14 of the SARFAESI Act, 2002 (for short ‘the Act’) whereby physical possession of the secured assets was ordered to be handed over to the petitioner, but actual physical possession has not been delivered till date.

2. The facts emanating from the pleadings of this case are that the petitioner is a financial institution and a secured creditor under the SARFAESI Act, 2002. The borrower committed default in repayment of the secured debt, whereupon the petitioner initiated proceedings under the SARFAESI Act for enforcement of its security interest. For taking physical possession of the secured assets, the petitioner filed an application before respondent No.2 (District Magistrate) under Section 14 of the SARFAESI Act, 2002, seeking administrative assistance. Respondent No.2, after considering the application, passed an order dated 23.06.2025 directing that physical possession of the secured assets be taken and handed over to the petitioner. Regardless of the aforesaid order, the respondent Nos.3 to 6 failed to execute the same, and the petitioner has not been put in physical possession of the secured assets till date. Due to continued non-execution of the order dated 23.06.2025, the petitioner has been compelled to approach this Court by way of the present writ petition seeking appropriate directions.

3. Learned counsel for the petitioner submits that the inaction on the part of the respondents amounts to non-compliance of the statutory mandate under Section 14 of the Act, which requires expeditious assistance to the secured creditor.

4. Notice of motion restricts to respondents No.1 to 6.

5. At the asking of the Court, Mr. Anant Kataria, DAG, Haryana accepts notice on behalf of respondents No.1 to 6.

6. Heard.

7. A perusal of the pleadings shows that the petitioner, a financial institution/Bank, is aggrieved by the inaction of respondent Nos.3 to 6 in failing to provide assistance for taking over physical possession of the secured assets, inspite of the mandate of Section 14 of the SARFAESI Act, 2002 and the settled legal position governing such matters. It is the petitioner’s case that although the statutory mechanism under Section 14 of the Act has been invoked, the relief contemplated thereunder has not been effectively implemented in a time-bound manner. We believe that the grievance raised in the present writ petition is squarely covered by the directions issued by the Coordinate Bench of this Court in CWP-7018-2022, Bank of Maharashtra v.

District Magistrate, Hisar and others, decided on 28.05.2024, wherein guidelines were laid down for strict compliance in matters concerning delivery of physical possession under Section 14 of the Act. The relevant extract of the said judgment is reproduced hereunder.

“6. Learned counsel for the State assures that steps for proper imple- mentation of the SARFAESI Act in letter and spirit shall be taken and that all pending applications under Section 14 of SARFAESI Act will be decided by 30.07.2024 and all orders which stand passed under the said Section shall be implemented by said date. This indulgence, it is submitted, is being sought in view of ongoing General Elections with polling having concluded on 25.05.2024.

7. It is to be noticed that on earlier occasions, the matters pertaining to State of Haryana as well as Punjab had been taken up on the same dates and certain directions were passed in CWP-11499-2019 pertain- ing to the State of Punjab. Matters pertaining to the