Equitas Small Finance Bank Limited v. District Magistrate Cum District Collector Sirsa

CWP-32855 of 2025

IN THE HIGH COURT OF PUNJAB & HARYANA

AT CHANDIGARH CWP-32855 of 2025 Date of decision: 18.11.2025 EQUITAS SMALL FINANCE BANK LIMITED.

....Petitioner V/S DISTRICT MAGISTRATE-CUM- DISTRICT COLLECTOR, SIRSA AND OTHERS.

... Respondents CORAM: HON'BLE MR. JUSTICE SHEEL NAGU, CHIEF JUSTICE HON'BLE MR. JUSTICE SANJIV BERRY, JUDGE

Present:

Mr. Nitin Thatai, Advocate (through V.C) and Mr. Karan Sharma, Advocate for the petitioner. Mr. Neeraj Gupta, Addl. Advocate General, Haryana. **** SHEEL NAGU, CHIEF JUSTICE (Oral) 1.

The present writ petition has been filed by petitioner-Financial Institution aggrieved by non-execution of the order dated 08.07.2025 (Annexure P-3) passed by the District Magistrate, Sirsa, under the provisions of Section 14 Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act for brevity). 2.

It is rather surprising that District Magistrate, Sirsa or the concerned Agriculture Development Officer (PP), Sirsa, and Superintendent of Police, Sirsa i.e. respondents no.1, 2 and 3 have failed to discharge their statutory duty of assisting and handing over physical possession of the secured asset to the petitioner/Financial Institution.

2.1 Non-Performing Assets (NPAs) are a huge burden on the public exchequer, banking and financial system, and, thus, prompt enforcement of recovery mechanism under the SARFAESI Act is paramount for liquidity in the system.

KAMAL GANDHI 2025.11.19 11:24 I attest to the accuracy and integrity of this document

CWP-32855 of 2025 3.

In view of the above, this court by way of writ of mandamus directs respondents No. 1, 2 and 3 to execute the order dated 08.07.2025 (Annexure P-3) passed under Section 14 of SARFAESI Act by handing over physical possession of the secured asset to the petitioner-Financial Institution as expeditiously as possible, preferably, within a period of 30 days. The petitioner-Financial Institution, thereafter, can proceed to adopt all possible legitimate means to liquidate the secured asset to recover the due amount. 4.

The petition for the time being stands disposed of in the terms aforesaid. Needless to say that the guidelines laid down by Coordinate Bench in Bank of Maharashtra Vs. District Magistrate, Hisar And Others [CWP-70182022 decided on 28.05.2024] be adhered to by the concerned authorities. 5.

We hasten to add that this order shall however be subject to any restraint/ interim/ final order which may have been passed by any judicial forum, in favour of the borrowers/ guarantor/ any aggrieved person, who is party to this lis.

6.

Respondents no. 1,2 and 3 are directed to file a compliance report before the Registry of this Court within 45 days from the date of passing of this order. The Registry shall ensure that, in case any deficiency is found in the compliance report so filed, the matter be placed before the appropriate Bench on the judicial side under IOIN category.

(SHEEL NAGU) CHIEF JUSTICE (SANJIV BERRY) JUDGE 18.11.2025 Kamal Gandhi Whether speaking/reasoned Yes/No Whether reportable Yes/No KAMAL GANDHI 2025.11.19 11:24 I attest to the accuracy and integrity of this document