Patna High Court
ICICI Bank Ltd.versusThe State of Bihar
- Decided
- Disposal
- DISPOSED
- Bench
- A ABHISHEK REDDY
Holding
The District Magistrate must act on the bank’s Section 14 application as a ministerial duty, and the Court directed compliance within eight weeks.
Summary
ICICI Bank filed a civil writ petition seeking a direction to the District Magistrate of Darbhanga 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 the application. Relying on the Supreme Court’s decision in Balkrishna Rama Tarle v. Phonix ARC (2023) SCC 662, the High Court noted that the duty of the magistrate under Section 14 is ministerial and must be performed promptly without adjudicating the borrower’s objections. The Court therefore ordered the District Magistrate to consider the bank’s request within eight weeks. The writ petition was disposed of with the said direction.
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 High Court can issue a direction compelling the magistrate to take such action.
Legislation cited
Subjects
- SARFAESI Act
- Section 14
- secured creditor
- possession of secured assets
- district magistrate
- ministerial duty
- civil writ jurisdiction
- banking
- debt recovery
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.4028 of 2026
======================================================
ICICI Bank Ltd. having its Registered office at ICICI Bank Tower, Near
Chakli Circle, Old Padra Road, Vadodara-390007 and Zonal Office at 2nd and
3rd Floor, Gulab Palace, Near Panchmukhi Hanuman Mandir, East Boring
Canal Road, Patna-800001 represented through its Relationship Manager and
authorized representative Mr. Ashish Kumar, S/o-Devendra Prasad, having
Office at 3rd Floor, Gulab Palace, Near Panchmukhi Hanuman Mandir, East
Boring Canal Road, Patna-800001.
... ... Petitioner/s
Versus
1. The State of Bihar through Principal Secretary, General Administration,
Government of Bihar, New Secretariat, Baily Road, Patna-800014.
2. The District Magistrate, Darbhanga.
3. The In-Charge Officer, District Certificate Section, Darbhanga.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr.Manindra Kishore Singh, Adv.
For the Respondent/s : Mr.Standing Counsel (1)
Md. Harun Quareshi, AC to SC 1
======================================================
CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
ORAL ORDER
2 15-04-2026 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, Darbhanga, 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, Darbhanga, to consider the request made by the
Patna High Court CWJC No.4028 of 2026(2) dt.15-04-2026
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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
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
Patna High Court CWJC No.4028 of 2026(2) dt.15-04-2026
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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
the law laid down by the Hon’ble Supreme Court in the above
mentioned case, this Court deems it expedient to dispose of the
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present CWJC by directing the Respondent No. 2, i.e., the
District Magistrate,Darbhanga, 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, Darbhanga, 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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