Aditya Birla Housing Finance Limited Vs State of Haryana And Others (Punjab & Haryana High Court)
Summary: The Punjab & Haryana High Court considered a writ petition filed by M/s Aditya Birla Housing Finance Limited alleging non-execution of an order dated 02.04.2026 passed by the District Magistrate, Panipat under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). The petitioner submitted that the concerned authorities had failed to discharge their statutory duties of providing assistance and handing over physical possession of the secured asset to the petitioner-financial institution.
The Court observed that Non-Performing Assets (NPAs) constitute a substantial burden on the public exchequer, banking and financial system and that effective enforcement of the recovery mechanism provided under the SARFAESI Act is essential. In view of these circumstances, the Court issued a writ of mandamus directing respondents No. 3 and 4 to provide all necessary assistance, including police help, and to execute the District Magistrate’s order dated 02.04.2026 by handing over physical possession of the secured asset to the petitioner-financial institution as expeditiously as possible, preferably within 30 days. The writ petition was disposed of accordingly.
The Court further directed the concerned authorities to adhere to the guidelines laid down by a Coordinate Bench in Bank of Maharashtra Vs. District Magistrate, Hisar and Others, CWP-7018-2022, decided on 28.05.2024. The direction was made subject to any restraint, interim or final order passed by any judicial forum in favour of the borrowers, guarantor or any other aggrieved person who was a party to the proceedings. Respondent No. 3 was also directed to file a compliance report before the Registry within 45 days. The Court clarified that the order would not prevent any aggrieved party from availing an appropriate remedy before the DRT, DRAT or other appropriate forum in accordance with law.
Cases Discussed
- Bank of Maharashtra Vs. District Magistrate, Hisar and Others, CWP-7018-2022, decided on 28.05.2024.
FULL TEXT OF THE JUDGMENT/ORDER OF PUNJAB & HARYANA HIGH COURT
1. The present writ petition has been filed by petitioner alleging non-execution of the order dated 02.04.2026 (Annexure P-3) which has been passed by the learned District Magistrate, Panipat under the provisions of Section 14 of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ( hereinafter referred to as ‘the SARFAESI Act‘).
2. It was submitted by learned counsel that the concerned Officers have failed to discharge their statutory duties of assisting and also handing over physical possession of the secured asset to the petitioner-financial institution.
3. Since Non-Performing Assets (NPAs) are a huge burden on the public exchequer, banking and financial system, effective enforcement of recovery mechanism under the provisions of SARFAESI Act is essential and thus provided under the law.
4. In view of the above, a writ in the nature of mandamus is issued to respondents No.3 and 4 to provide all necessary assistance including police help etc., and to execute the order dated 02.04.2026 (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.
5. The writ petition is therefore disposed of in the terms aforesaid. The guidelines laid down by a Coordinate Bench of this Court in Bank of Maharashtra Vs. District Magistrate, Hisar and Others i.e CWP-7018-2022 decided on 28.05.2024 must be adhered to by the concerned authorities.
6. We further direct 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.
7. Respondent No.3 is further 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.
8 We clarify that this order shall not come in the way of any party aggrieved by any recourse/action taken under SARFAESI Act to avail appropriate remedy before DRT/DRAT/appropriate forum in accordance with law.
