Bombay High Court
SMFG India Home Finance Co LtdversusCHIEF JUDICIAL MAGISTRATE AND ORS
- Decided
- Disposal
- Disposed Off
Holding
The Chief Judicial Magistrate, Alibag, must dispose of the pending Section 14 applications within four weeks of the High Court’s order.
Summary
SMFG India Home Finance Co. Ltd., a secured creditor, filed two applications under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 before the Chief Judicial Magistrate, Alibag, on 25 February 2025 and 20 June 2025. The magistrate proceeded to verification but failed to pass any orders, prompting the petitioner to seek a writ directing disposal. The Bombay High Court recalled its earlier decision in L&T Finance Ltd. v. State of Maharashtra, which mandated disposal of such applications within 30 days of filing. Observing that the statutory timeline had been breached, the Court ordered the magistrate to dispose of the pending applications within four weeks. Consequently, the writ petitions were disposed of with a specific direction to the magistrate to pass the pending orders.
Issues considered
- Whether the Chief Judicial Magistrate, Alibag, complied with the statutory requirement to dispose of Section 14 applications within the time limit prescribed by the Securitisation Act and the High Court’s earlier direction.
- Whether the High Court can issue a mandatory direction to the magistrate to dispose of pending applications within a specified period.
Legislation cited
Subjects
- secured creditor
- Section 14
- Securitisation Act
- magistrate disposal
- writ petition
- High Court direction
- pending applications
Judgment
8 & 11_WP_9391 & 9417_26.doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO. 9391 OF 2026
AND
WRIT PETITION NO. 9417 OF 2026
SMFG India Home Finance Co. Ltd. … Petitioner
vs.
Chief Judicial Magistrate, Alibag and others … Respondents
Ms. Pooja Singh a/w. Ms. Shrutika Patil for petitioner in both petitions.
None for respondents.
CORAM : MANISH PITALE &
SHREERAM V. SHIRSAT, JJ
DATE : 31st JULY, 2026
P.C. :
. The petitioner in these petitions is a secured creditor. In
pursuance of steps taken under the provisions of the Securitisation
and Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002 (the said Act), the petitioner has filed applications
under Section 14 thereof before respondent No.1 – Chief Judicial
Magistrate, Alibag.
2. The learned counsel for the petitioner contends that the said
respondent has proceeded to the stage of verification of documents,
but orders have still not been passed in the said applications and
hence, prayer is made for issuing specific direction to the said
respondent to dispose of the applications of the petitioner.
3. This Court, in the case of L & T Finance Limited vs. State of
Maharashtra and others, 2023 SCC OnLine Bom 931, in paragraph
Digitally signed
No.23(a), has issued direction that the Magistrates in the State of
by PRIYA
PRIYA KAMBLI
Date:
KAMBLI 2026.07.31
17:59:26
+0530
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8 & 11_WP_9391 & 9417_26.doc
Maharashtra, shall dispose of such applications filed under Section
14 of the said Act, not later than 30 days from the dates of filing of
such applications.
4. In Writ Petition No.9391 of 2026, the petitioner filed the said
application under Section 14 of the said Act on 25.02.2025 and in
Writ Petition No.9417 of 2026, the petitioner filed such application
on 20.06.2025. Evidently, the direction issued by this Court in the
aforesaid judgement in the case of L & T Finance Limited vs. State of
Maharashtra and others (supra), has not been complied with in these
petitions.
5. In view of the above, the writ petitions are disposed of by
directing respondent No.1 – Chief Judicial Magistrate, Alibag to
dispose of the pending applications bearing Criminal Miscellaneous
Application Nos.249 of 2025 and 751 of 2025 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
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