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.
