Patna High Court
HDFC Bank LimitedversusThe State Of Bihar through the Principal Secretary
- Decided
- Disposal
- DISPOSED
- Bench
- A ABHISHEK REDDY
Holding
The District Magistrate must act on the bank’s Section 14 application and is directed to do so within eight weeks.
Summary
HDFC Bank filed a writ petition seeking a direction to the District Magistrate of West Champaran to act on its requisition under Section 14 of the SARFAESI Act for possession of secured assets. The bank alleged that the magistrate had not taken any action despite receiving the application. Relying on the Supreme Court’s decision in Balkrishna Rama Tarle v. Phonix ARC (2023) which held that the magistrate’s duty under Section 14 is ministerial and must be performed promptly, the Patna High Court ordered the magistrate to consider the bank’s request within eight weeks. The court emphasized that the magistrate cannot delay and is not required to adjudicate disputes, which are to be raised before the Debt Recovery Tribunal under Section 17. Consequently, the writ petition was disposed of with the 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 court can issue a direction compelling the magistrate to take possession of the secured assets.
Legislation cited
Subjects
- SARFAESI Act
- Section 14
- possession of secured assets
- ministerial duty
- District Magistrate
- writ petition
- banking enforcement
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.16360 of 2025
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HDFC Bank Limited Having its Registered office at HDFC Bank House,
Senapati Bapat Marg, Lower Parel Est, Mumbai 400013 as well as Branch
Office at HDFC Bank Ltd., Bimla Sadan, Holding No. 801/432, Ward No. 37,
Exhibition Road, Patna, Bihar -800001 and represented through Manager and
authorized representative Mr. Pinaki Paul, male, aged about 42 years, S/O
P.K. Paul, R/O 10 Khetrahari Chatterjee road, Mallick Bagan, Panihati (W),
P.S.- Ghola, Dist- 24 N. Parganas, West Bengal- 700111.
... ... Petitioner/s
Versus
1. The State Of Bihar through the Principal Secretary General Administration,
Government of Bihar, New seceretariat, Bailey Road, Patna -800014
2. The District Magistrate, West Champaran
3. The In Charge Officer, District Certificate Section, West Champaran
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr. Dayanand Singh, Adv.
For the Respondent/s : Mr. Government Pleader 26
======================================================
CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
ORAL ORDER
2 20-01-2026 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, West Champaran 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, West Champaran to consider the request made by
Patna High Court CWJC No.16360 of 2025(2) dt.20-01-2026
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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
Patna High Court CWJC No.16360 of 2025(2) dt.20-01-2026
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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. 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
Patna High Court CWJC No.16360 of 2025(2) dt.20-01-2026
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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
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, West Champaran 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, West Champaran 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
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