IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Date of decision : 17.11.2025 SMFG India Home Finance Company Ltd.

…….Petitioner Versus Chief Judicial Magistrate, Ludhiana 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-action on the part of Chief Judicial Magistrate, Ludhiana (respondent No.1) to decide the application (Annexure 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 29.07.2025.

2. It is stated in the application (Annexure P-4) that respondents No.2 and 3 availed housing loan facility of Rs. 15,39,480/- from the petitioner, and upon default in repayment, the account was classified as Non-Performing Asset (NPA) on 07.03.2025, whereafter demand notice dated 17.03.2025 (Annexure 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 period of sixty days. The respondents – borrowers failed to comply 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 27.06.2025 (Annexure P-3) and whereafter filed application under Section 14 of the SARFAESI Act on 29.07.2025.

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 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 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 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 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 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 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 un