Patna High Court
Canara Bank, Hilsa BranchversusThe State of Bihar
- Decided
- Disposal
- DISPOSED
- Bench
- A ABHISHEK REDDY
Holding
The Court held that the District Magistrate must promptly act on the Bank’s Section 14 application and directed him to do so within eight weeks.
Summary
Canara Bank filed a civil writ petition under Section 14 of the SARFAESI Act seeking a direction to the District Magistrate of Nalanda to act on its requisition for possession of secured assets, which the magistrate had not yet done. The Bank relied on a Supreme Court judgment clarifying that the magistrate’s role under Section 14 is purely ministerial and must be performed promptly. The Patna High Court, after hearing counsel for both sides, disposed of the petition at the admission stage, directing the District Magistrate to consider the Bank’s request within eight weeks. The Court reiterated that the magistrate must not delay and should forward the assets and documents to the secured creditor once formalities are satisfied. Consequently, the writ petition was disposed with the specific direction to the magistrate.
Issues considered
- Whether the District Magistrate is statutorily obligated to act on a secured creditor’s application under Section 14 of the SARFAESI Act.
- Whether the magistrate’s function under Section 14 is ministerial or adjudicatory.
- Whether the High Court can issue a direction compelling the magistrate to act within a specified time.
Legislation cited
Subjects
- SARFAESI Act
- Section 14
- secured creditor
- possession of secured assets
- District Magistrate
- ministerial duty
- civil writ jurisdiction
- High Court direction
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.12291 of 2025
======================================================
Canara Bank, Hilsa Branch District- Nalanda through Sri Sanjeev Ranjan,
male, aged about 44 years, S/o Sri Anirudh Prasad Singh, R/o Mohalla-
Anand Gram, P.S- Morabadi, District- Ranchi (Jharkhand), Authorized
Officer presently posted as The Chief Manager, ARM Branch, Luv Kush
Tower, Exhibition Road, Patna.
... ... Petitioner/s
Versus
1. The State of Bihar through the Principal Secretary, Department of Finance,
Government of Bihar, Patna.
2. The District Magistrate, Nalanda.
3. Awadhesh Rawat, S/o Rajendra Rawat, R/o Ward No.-13, Kishnapur,
Daroga Kuan Road, P.S.- Hilsa, District- Nalanda.
4. Rajendra Rawat, S/o Late Sohrai Rawat R/o Ward No.-13, Kishnapur,
Daroga Kuan Road, P.S.- Hilsa, District- Nalanda.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr. Siddharth Harsh, Adv.
For the Respondent/s : Mr. Government Pleader (26)
======================================================
CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
ORAL ORDER
4 08-01-2026 Without going into the merits or demerits of the
case, the present writ petition is disposed of at the stage of
admission with the consent of both the counsels.
2. Learned counsel appearing on behalf of the
petitioner submits that the petitioner-Bank has sent a requisition
to the District Magistrate, Nalanda under Section 14 of the
SARFAESI Act. However, the authority till date has not taken
any action on the same. Learned counsel submits that it will
suffice for the present if a direction is given to the District
Magistrate, Nalanda to consider the request made by the Bank
Patna High Court CWJC No.12291 of 2025(4) dt.08-01-2026
2/4
under Section 14 of the SARFAESI Act and take a suitable
action as per the provisions of the SARFAESI Act. Learned
counsel has relied on a Judgement of the Hon’ble Supreme
Court in the case of Balkrishna Rama Tarle Dead through legal
representatives and Anr. Versus Phonix ARC Private Limited
and Ors. reported in (2023) 1 Supreme Court Cases 662,
whereby the Hon’ble Supreme Court has held as under:-
“15. On a fair reading of Section 14
of the SARFAESI Act, it appears that for taking
possession of the secured assets in terms of
Section 14(1) of the SARFAESI Act, the secured
creditor is obliged to approach the District
Magistrate/Chief Metropolitan Magistrate 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.
16. 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
Patna High Court CWJC No.12291 of 2025(4) dt.08-01-2026
3/4
secured assets and documents relating thereto
and to forward the same to the secured creditor
at the earliest opportunity. As observed and held
by this Court in NKGSB Coop. Bank Ltd. v.
Subir Chakravarty [NKGSB Coop. Bank Ltd. v.
Subir Chakravarty, (2022) 10 SCC 286 : (2023)
1 SCC (Cri) 157] , the aforesaid act is a
ministerial act. It cannot brook delay. Time is of
the essence and this is the spirit of the special
enactment.
18. Thus, the powers exercisable by
CMM/DM under Section 14 of the SARFAESI
Act are ministerial steps and Section 14 does
not involve any adjudicatory process qua points
raised by the borrowers against the secured
creditor taking possession of the secured assets.
In that view of the matter once all the
requirements under Section 14 of the SARFAESI
Act are complied with/satisfied by the secured
creditor, it is the duty cast upon the CMM/DM
to assist the secured creditor in obtaining the
possession as well as the documents related to
the secured assets even with the help of any
officer subordinate to him and/or with the help
of an advocate appointed as Advocate
Commissioner. At that stage, the CMM/DM is
not required to adjudicate the dispute between
the borrower and the secured creditor and/or
between any other third party and the secured
creditor with respect to the secured assets and
the aggrieved party to be relegated to raise
objections in the proceedings under Section 17
Patna High Court CWJC No.12291 of 2025(4) dt.08-01-2026
4/4
of the SARFAESI Act, before the Debts Recovery
Tribunal.
3. Having regard to the above made submissions and
the law laid down by the Hon’ble Supreme Court in the above
mentioned case, this Court deems it expedient to dispose of the
present CWJC by directing the Respondent No. 2, i.e., the
District Magistrate, Nalanda to act on the request made by the
petitioner-Bank. The present writ petition is accordingly
disposed of directing the Respondent No. 2, i.e., the District
Magistrate, Nalanda to consider the request made by the Bank
as expeditiously as possible preferably within a period of 8
weeks from the date of receipt of the copy of this order.
4. With the above directions, the present writ petition
stands disposed of.
(A. Abhishek Reddy , J)
Gauravkr/-
U
Checking your session…