Punjab & Haryana High Court on Delay in Deciding Application under Section 14 of the SARFAESI Act, 2002.

The Punjab & Haryana High Court directed the District Magistrate, Gurugram, to expeditiously decide a long-pending application filed under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). The Court held that the District Magistrate’s role under Section 14 is purely ministerial, and delay beyond the statutory limit of 60 days violates the mandate of law. Accordingly, a writ of mandamus was issued directing disposal of the application within four weeks.

1. The petitioner, ICICI Home Finance Company Limited, had extended a housing loan of ₹32,76,831/- to the borrowers. Upon default, the loan account was classified as a Non-Performing Asset (NPA).
2. A demand notice under Section 13(2) of the SARFAESI Act was issued on 17.05.2024, but the borrowers failed to comply. Consequently, the petitioner took measures under Section 13(4) and filed an application under Section 14 before the District Magistrate, Gurugram, on 08.07.2025, seeking assistance in taking possession of the secured asset.
3. Despite the statutory requirement to act within 60 days, the application remained undecided, prompting the petitioner to approach the High Court under Articles 226 and 227 of the Constitution of India.

1. The Court relied on the Supreme Court decision in R.D. Jain & Co. v. Capital First Ltd., (2023) 1 SCC 675, which clarified that the function of the District Magistrate under Section 14 is ministerial, not adjudicatory.
2. The CMM/DM must act immediately upon receiving the application and ensure that possession of the secured asset is taken within 30 days, extendable up to 60 days in total.
3. The District Magistrate cannot delay action or examine the merits of the borrower’s objections; the function is limited to verifying statutory compliance.
4. The Court noted that the failure to act within the statutory timeline warranted judicial intervention.

1. The Court issued a writ of mandamus directing the District Magistrate, Gurugram, to consider and dispose of the petitioner’s application dated 08.07.2025 under Section 14 of the SARFAESI Act within four weeks from receipt of the order.
2. The order would be subject to any interim or final orders passed by competent judicial forums in favour of the borrowers or guarantors.

1. Section 14, Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 – Assistance by Chief Metropolitan Magistrate or District Magistrate for taking possession of secured assets.
2. Article 226 & 227, Constitution of India – High Court’s writ and supervisory jurisdiction.

Citation: 2025:P&H:XXXXX (official citation awaited)

Case: ICICI Home Finance Company Limited v. Additional Deputy Commissioner-cum-District Magistrate, Gurugram & Ors.

Court: High Court of Punjab & Haryana at Chandigarh

Coram: Hon’ble Mr. Justice Sheel Nagu, Chief Justice & Hon’ble Mr. Justice Sanjiv Berry

Date of Decision: 27 October 2025

Writ Petition (CWP) No.: 31447 of 2025