Patna High Court
Kumari Kanchan BalaversusThe State of Bihar
- Decided
- Disposal
- DISPOSED
- Bench
- A ABHISHEK REDDY
Holding
The District Magistrate must promptly act on the secured creditor’s Section 14 application and take possession of the secured asset, as this is a ministerial duty under the SARFAESI Act.
Summary
Kumari Kanchan Bala, an auction purchaser, obtained a sale certificate for a property on 15‑Nov‑2025 but has not received physical possession. Punjab National Bank, the secured creditor, filed an application under Section 14 of the SARFAESI Act with the District Magistrate of Sasaram seeking possession of the secured asset, but the magistrate has not acted. The petitioner filed a writ petition requesting the court to direct the District Magistrate to comply with the bank’s application so that possession can be handed over to the petitioner. The High Court, relying on Supreme Court precedent (Balkrishna Rama Tarle v. Phonix ARC Private Limited, 2023 SCC 662) and the NKGSB Co‑op Bank case, held that the magistrate’s duty under Section 14 is ministerial and must be performed promptly. Accordingly, the court ordered the District Magistrate to take possession of the property and forward it to the bank within six weeks, enabling the bank to deliver possession to the petitioner, and disposed of the writ petition.
Issues considered
- Whether the District Magistrate is statutorily obligated to act promptly on a secured creditor’s application under Section 14 of the SARFAESI Act for possession of secured assets.
- Whether a writ court can direct the District Magistrate to expedite the possession process.
Legislation cited
Subjects
- auction purchase
- sale certificate
- possession
- SARFAESI Act
- Section 14
- District Magistrate
- secured creditor
- ministerial duty
- writ petition
Judgment
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.6658 of 2026
======================================================
Kumari Kanchan Bala, wife of Ashok Kumar, Resident of village- Kenar
Khurd, P.S-Chenari, Sikrour, District- Rohtas, Bihar Presently residing at
ward no. 28, Company Sarai, Near Bal Vikas Vidalaya P.S- Sasaram Town,
District- Rohtas.
... ... Petitioner/s
Versus
1. The State of Bihar through the District Magistrate, Sasaram, Rohtas.
2. The Assistant General Manager, Punjab National Bank, Circle Office- Patna,
2nd Floor, Chanakya Tower, R-Block, Chauraha, Patna 800001.
3. The Branch Manager, Asset Recovery Management Branch, Aurangabad,
Bihar.
4. The Authorized Officer, Asset Recovery Management Branch, Aurangabad,
Bihar.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : Mr. Ashish, Advocate.
For the Respondent/s : Mr. Sunil Kr. Mandal, SC 3 with
Mr. Neelam Kumari, AC to Sc 3.
For the PNB : Mr. Mritunjay Kumar, Advocate.
Ms. Shilpi Singh, Advocate.
======================================================
CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
ORAL ORDER
2 30-04-2026 Learned counsel appearing on behalf of the petitioner
submits that the petitioner is an auction-purchaser of the subject
property and she has also been issued the sale certificate.
Learned counsel submits that though the sale certificate was
issued on 15.11.2025, the physical possession of the subject
property has not been handed over till now.
2. Learned counsel appearing on behalf of the
Patna High Court CWJC No.6658 of 2026(2) dt.30-04-2026
2/5
Respondent-Punjab National Bank, on instructions, submits that
the necessary requisition has already been made to the District
Magistrate, Sasaram, Rohtas vide letter dated 745/2025 dated
14.11.2025 under Section 14 of the SARFAESI Act. However,
the District Magistrate, Sasaram, Rohtas is yet to take over the
physical possession of the subject property. Learned counsel,
therefore, prays this Hon’ble Court to direct the District
Magistrate to act on the application made by the Respondent-
Bank so as to enable them to hand over the physical possession
of the subject property to the petitioner.
3. Having regard to the above made submissions,
without going into the merits or demerits of the case, the present
writ petition is disposed of directing the District Magistrate,
Sasaram, Rohtas i.e. Respondent No. 1 herein to act on the letter
No. 745/2025 dated 14.11.2025 issued by the Respondent-
Punjab National Bank at the earliest. The authority shall duly
take into consideration the 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:-
Patna High Court CWJC No.6658 of 2026(2) dt.30-04-2026
3/5
“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 SARPAESI 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 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
Patna High Court CWJC No.6658 of 2026(2) dt.30-04-2026
4/5
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.”
and take necessary steps for taking over the physical
possession of the subject property and intimate the same to the
Respondent-Bank so as to enable them to hand over the physical
possession of the subject property to the petitioner herein. The
authority shall endeavour to complete the process as
expeditiously as possible preferably within a period of 6 weeks
from the date of the receipt of the copy of this order.
Patna High Court CWJC No.6658 of 2026(2) dt.30-04-2026
5/5
4. With the above directions, the present writ petition
stands disposed of.
(A. Abhishek Reddy, J)
shakir/-
U
Checking your session…