Patna High Court
Jana Small Finance Bank LimitedversusThe State of Bihar
- Decided
- Disposal
- DISPOSED
- Bench
- A ABHISHEK REDDY
Holding
The Court held that under Section 14 of the SARFAESI Act the District Magistrate must act as a ministerial authority and is directed to consider the bank’s request within eight weeks.
Summary
Jana Small Finance Bank filed a civil writ petition seeking a direction to the District Magistrate, Gaya, to act on its application under Section 14 of the SARFAESI Act for possession of secured assets. The bank alleged that the magistrate had not taken any action despite the requisition. 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. The Court held that the magistrate’s role is purely ministerial and must act without delay upon receipt of a compliant application. Accordingly, the Court directed the District Magistrate 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 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 writ petition seeking a direction to the magistrate is maintainable.
Legislation cited
Subjects
- SARFAESI Act
- Section 14
- secured creditor
- district magistrate
- ministerial duty
- possession of secured assets
- civil writ jurisdiction
- banking enforcement
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.1822 of 2026
======================================================
Jana Small Finance Bank Limited through its Authorized representative,
namely Ashutosh Gautam, Male, Aged about 36 years, Son of Ram Vinod
Singh, Resident of 03, Nirala Nagar Colony, Dinapur-cum-Khagaul, Police
Station- Digha, District- Patna.
... ... Petitioner/s
Versus
1. The State of Bihar through Chief Secretary, Government of Bihar, Patna.
2. The Divisional Commissioner, Magadh Division, Gaya.
3. The District Magistrate, Gaya Ji (Gaya).
4. The Certificate Officer, Gaya Ji (Gaya).
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr. Dharam Deepak Vishwash, Advocate.
Mr. Adil Abbas, Advocate.
Mr. Saurav Suman, Advocate.
For the Respondent/s : Mr. Government Pleader (07)
======================================================
CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
ORAL ORDER
2 27-02-2026 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 Ji (Gaya) 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
Patna High Court CWJC No.1822 of 2026(2) dt.27-02-2026
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Magistrate, Gaya Ji (Gaya) 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 Judgment 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.1822 of 2026(2) dt.27-02-2026
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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
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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 District Magistrate, Gaya Ji
(Gaya) (Respondent No. 3) to act on the request made by the
Petitioner-Bank. The present writ petition is accordingly
disposed of directing the District Magistrate, Gaya Ji (Gaya)
(Respondent No. 3) 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)
shakir/-
U
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