Patna High Court
Axis Bank Ltd. Ltd.versusThe State of Bihar
- Decided
- Disposal
- ALLOWED
- Bench
- A ABHISHEK REDDY
Holding
The District Magistrate’s duty under Section 14 of the SARFAESI Act is ministerial and must be exercised without delay upon receipt of a compliant application.
Summary
Axis Bank filed a writ petition seeking a direction to the District Magistrate, Patna, to act on its requisition under Section 14 of the SARFAESI Act for possession of secured assets. The Bank alleged that although a memo was issued on 16‑06‑2025, no further action was taken. Relying on a Supreme Court judgment interpreting Section 14 as imposing a ministerial duty on the magistrate, the High Court examined whether the magistrate must promptly comply with the Bank's application. The Court held that the magistrate’s role is purely ministerial and must not be delayed, and that any objections by borrowers should be raised under Section 17 before the Debt Recovery Tribunal. Accordingly, the Court directed the District Magistrate and the Sub‑Divisional Officer to consider the Bank’s request within eight weeks and disposed of the writ petition.
Issues considered
- Whether the District Magistrate is obligated to act promptly on an application under Section 14 of the SARFAESI Act.
- Whether the power of the magistrate under Section 14 is ministerial or adjudicatory.
- Whether the Bank is entitled to a court direction for the magistrate to execute the possession order.
Legislation cited
Subjects
- SARFAESI Act
- Section 14
- possession of secured assets
- ministerial duty
- district magistrate
- banking
- secured creditor
- debt recovery tribunal
- writ petition
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.12984 of 2025
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Axis Bank Ltd. Ltd. having its branch Office at Sita Usha Square Complex,
Kankarbagh, P.S. Kankarbagh, Patna, through its Authorised Representative ,
Mr. Shubham Saurav, (Male), Aged about 30 years, S/o Surya Kumar, Birla
Colony, Rastriya Ganj, Phulwarisharif, P.S. - Phulwarisharif, Patna, Bihar.
... ... Petitioner/s
Versus
1. The State of Bihar through the Principal Secretary, General Administration
Department, Government of Bihar, Patna.
2. The District Magistrate, Patna.
3. The Sub Divisional Officer, Patna Sadar, Patna.
4. Sanjeev Kumar, S/o Late Keshwar Singh, R/o Flat No. 404, 4th Floor, Block
B, Manmohan Apartment, Vir Shivajee Path, North S K Puri, Boring Road,
Patna.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr.Dayanand Singh, Adv.
For the Respondent/s : Mr.Government Pleader (27)
======================================================
CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
ORAL ORDER
4 27-01-2026 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, Patna, under Section 14 of the
SARFAESI Act and thereafter the District Magistrate, Patna has
passed an order vide Memo No. 594 dated 16.06.2025
(Annexure P/1). However, the authority till date has not taken
any action on the same. Learned counsel submits that it will
Patna High Court CWJC No.12984 of 2025(4) dt.27-01-2026
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suffice for the present if a direction is given to the District
Magistrate, Patna, to consider the request made by the Bank
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 secured
Patna High Court CWJC No.12984 of 2025(4) dt.27-01-2026
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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 of
the SARFAESI Act, before the Debts Recovery
Tribunal.
3. Having regard to the above made submissions and
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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 Nos. 2 and 3, i.e.,
the District Magistrate, Patna and Sub-Divisional Officer, Patna
Sadar, Patna, respectively, to act on the request made by the
petitioner-Bank. The present writ petition is accordingly
disposed of directing the Respondent Nos. 2 and 3, i.e., the
District Magistrate, Patna and Sub-Divisional Officer, Patna
Sadar, Patna, respectively, to consider the request made by the
Bank in the light of order dated 16.06.2025 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)
Bhardwaj/-
U
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