Bombay High Court
JANA SMALL FINANCE BANK LIMITED AUTHORISED OFFICER NIKHIL KHATALversusUNION TERRITORY ADMINISTRATION OF DADRA AND NAGAR HAVELI AND ORS
- Decided
- Disposal
- Disposed Off
Holding
The guideline in paragraph 23(a) of L&T Finance Ltd. v. State of Maharashtra applies to the Union Territory, obligating the District Magistrate to dispose of the Section 14 application within four weeks.
Summary
Jana Small Finance Bank, a secured creditor, filed an application under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 on 27 January 2025, which remained pending before the District Magistrate, Daman. The bank sought a writ directing the magistrate to decide the application within a stipulated period, invoking guidelines from the Bombay High Court’s decision in L&T Finance Ltd. v. State of Maharashtra (2023) that such applications must be disposed of within 30 days. The Court held that the guideline applies equally to the Union Territory of Dadra and Nagar Haveli & Daman & Diu, over which it has jurisdiction. Accordingly, the petition was disposed by directing the District Magistrate to dispose of the pending application within four weeks, and any other pending applications were also deemed disposed.
Issues considered
- Whether the procedural timeline prescribed in L&T Finance Ltd. v. State of Maharashtra for disposal of Section 14 applications under the Securitisation Act applies to the District Magistrate in the Union Territory of Dadra and Nagar Haveli & Daman & Diu.
- Whether a writ petition can compel a District Magistrate to decide a pending application within a specified period.
Legislation cited
Subjects
- Secured creditor
- Section 14
- Securitisation Act
- District Magistrate
- Procedural timeline
- Union Territory jurisdiction
- Writ petition
Judgment
4_WP_16400_25.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO. 16400 OF 2025
Jana Small Finance Bank Limited,
Through Authorized Officer Nikhil Khatal … Petitioner
vs.
Union Territory Administration of Dadra and
Nagar Haveli & Daman & Diu & others … Respondents
Mr. Vinay Mishrilal Choudhary (through V.C.) for petitioner – bank.
Mr. Harsh Dedhia for respondents.
CORAM : MANISH PITALE &
SHREERAM V. SHIRSAT, JJ
DATE : 20th AUGUST, 2026
P.C. :
. By this petition, the petitioner – bank (secured creditor) is
seeking direction to the District Magistrate, Daman, for deciding
Application No.3 of 2025 filed by the petitioner under Section 14 of
the Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002 (Securitisation Act). It is
brought to our notice that the application was filed on 27.01.2025
and it is still pending consideration.
2. In the light of the object of enactment of the Securitisation Act,
in the case of L & T Finance Limited vs. State of Maharashtra and
others, 2023 SCC OnLine Bom 931, a Division Bench of this Court
issued certain guidelines for consideration and disposal of such
applications and execution of orders passed therein.
3. In paragraph No.23(a) of the said judgement, it was directed
that such applications filed by the secured creditors under Section 14
Digitally signed
by PRIYA
PRIYA KAMBLI 1/2
KAMBLI Date:
2026.08.20
15:03:33 +0530
4_WP_16400_25.doc
of the Securitisation Act, should be disposed of by the concerned
Magistrates in the State of Maharashtra not later than 30 days of
filing of such applications.
4. We are of the opinion that although in this case, the Magistrate
is located in Daman i.e. Union Territory of Dadra and Nagar Haveli &
Daman & Diu, the aforesaid judgement having been passed by a
Division Bench of this Court, which has jurisdiction over the said
union territory, the guideline issued in paragraph No.23(a) of the
said judgement, must apply with equal force to the facts and
circumstances of the present case.
5. In view of the above, the writ petition is disposed of by
directing the District Magistrate, Daman, to dispose of pending
Application No.3 of 2025 filed by the petitioner – bank at the earliest
and in any case, within a period of four weeks from today.
6. Pending applications, if any, also stand disposed of.
(SHREERAM V. SHIRSAT, J.) (MANISH PITALE, J.)
Priya Kambli
2/2
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