Bombay High Court
Ugro Capital Ltd Formerly known as Chokhani Securities LimitedversusChief Metropolitan Magistrate, Esplande Mumbai
- Decided
- Disposal
- Disposed Off
Holding
The Court held that the magistrate must dispose of the pending Section 14 applications within four weeks, as the earlier 30‑day deadline had been breached.
Summary
Ugro Capital Ltd., a secured creditor, filed two writ petitions seeking a limited direction to the Chief Metropolitan Magistrate, Mumbai, to dispose of its applications filed under Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 on 6 May 2026 and 20 February 2026. The petitioner alleged that the magistrate had failed to comply with a prior High Court direction, in L&T Finance Ltd. v. State of Maharashtra (2023 SCC OnLine Bom. 931), which required disposal of such applications within 30 days of filing. The Court examined the breach of that deadline and found the magistrate in violation of the earlier directive. Consequently, the Court ordered the magistrate to dispose of the pending applications within four weeks of the order. The writ petitions were thereafter disposed, and any other pending applications were also deemed disposed.
Issues considered
- Did the Chief Metropolitan Magistrate, Mumbai, violate the High Court’s earlier direction to dispose of Section 14 applications within 30 days?
- Can the High Court issue a fresh direction requiring disposal of the pending applications within a specified period?
Legislation cited
Subjects
- Securitization Act
- Section 14
- writ petition
- magistrate disposal
- secured creditor
- delay
- court direction
Judgment
9&10WP8577&9_26.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO.8577 OF 2026
AND
WRIT PETITION NO.8579 OF 2026
Ugro Capital Ltd. formerly known as Chokhani
Securities Limited … Petitioner
Vs.
Chief Metropolitan Magistrate, Esplanade Mumbai … Respondent
Mr. Meet Purohit a/w. Mr. Pravin Kankal i/b. Trulegal Solutions for Petitioner.
None for Respondent.
CORAM : MANISH PITALE &
SHREERAM V. SHIRSAT, JJ.
DATE : JULY 17, 2026
P.C. :
. These two petitions have been filed by the petitioner (secured
creditor) seeking a limited direction to the Chief Metropolitan
Magistrate, Mumbai for disposing of applications filed under Section 14
of the Securitization and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002 (for short ‘Securitization
Act’). In Writ Petition No.8577 of 2026, the application under Section
14 of the Securitization Act was filed on 06.05.2026, while in Writ
Petition No.8579 of 2026, such an application was filed on 20.02.2026.
MINAL Digitally signed by
MINAL SANDIP
2. In the case of L & T Finance Limited Vs. State of Maharashtra
SANDIP PARAB
Date: 2026.07.17
PARAB 18:05:47 +0530
and another, 2023 SCC OnLine Bom. 931, particularly in paragraph
23(a) thereof, a Division Bench of this High Court has directed that all
such applications filed under Section 14 of the Securitization Act shall
be disposed of by the Magistrates in the State of Maharashtra, not later
than 30 days of the dates of filing of the applications. Evidently, the said
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9&10WP8577&9_26.doc
direction has been violated in the facts of these cases.
3. In view of the above, the Chief Metropolitan Magistrate, Mumbai
is directed to dispose of the said pending applications of the petitioners
within four weeks from the date of this order.
4. Writ petitions are disposed of accordingly.
5. Pending applications, if any, also stand disposed of.
(SHREERAM V. SHIRSAT, J.) (MANISH PITALE, J.)
Minal Parab
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