Patna High Court
ICICI Home Finance Company Ltd.versusThe State of Bihar
- Decided
- Disposal
- DISPOSED
- Bench
- A ABHISHEK REDDY
Holding
The District Magistrate must promptly act on a valid Section 14 application as a ministerial duty and cannot delay the possession of secured assets.
Summary
ICICI Home Finance Company Ltd. filed a civil writ petition seeking a direction to the District Magistrate of Gaya 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 a Supreme Court judgment (Balkrishna Rama Tarle v. Phonix ARC) which held that the magistrate’s role under Section 14 is ministerial and must be performed without delay, the Patna High Court ordered the magistrate to consider the bank’s request within eight weeks. The court also referenced the NKGSB Coop. Bank Ltd. v. Subir Chakravarty decision affirming the ministerial nature of the duty. Consequently, the writ petition was disposed with the direction to the magistrate, and no further merits were examined.
Issues considered
- Whether the District Magistrate is obligated to act on a Section 14 application under the SARFAESI Act without undue delay.
- Whether the magistrate’s function under Section 14 is ministerial or adjudicatory.
Legislation cited
Subjects
- SARFAESI Act
- Section 14
- possession of secured assets
- district magistrate
- ministerial duty
- civil writ petition
- secured creditor
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.17482 of 2025
======================================================
ICICI Home Finance Company Ltd. Having its Corporate Office at ICICI
Bank Tower, Bandra Kurla Complex, Mumbai- 400051, Maharashtra, and
Branch Office at 4th Floor, 401, Kanak Brajraj Complex, Dhakanpura, Kavi
Raman Path, Patna, Bihar- 800001. Through its Authorised Officer, Mr.
Pramod Kumar, Male, aged about 44 years, Son of Shri Shyam Bihari Ram, at
present posted as Territory Business Manager and Authorised Officer, Bihar
of ICICI Home Finance Company Ltd.
... ... Petitioner/s
Versus
1. The State of Bihar through the Principal Secretary, Finance Department,
Bihar, Patna.
2. The District Magistrate, Gaya at Gaya Ji.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr.Navendu Kumar, Adv.
For the Respondent/s : Mr.Standing Counsel (11)
======================================================
CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
ORAL ORDER
2 05-01-2026 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, Gaya at Gaya Ji 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, Gaya at Gaya Ji to consider the request made by the
Bank under Section 14 of the SARFAESI Act and take a suitable
Patna High Court CWJC No.17482 of 2025(2) dt.05-01-2026
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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
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
Patna High Court CWJC No.17482 of 2025(2) dt.05-01-2026
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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
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, Gaya at Gaya Ji to act on the request made
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by the petitioner-Bank. The present writ petition is accordingly
disposed of directing the Respondent No. 2, i.e., the District
Magistrate, Gaya at Gaya Ji 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)
Bhardwaj/-
U
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