Bank of Maharashtra Vs District Magistrate (Punjab and Haryana High Court)
Summary: Punjab and Haryana High Court disposed of a batch of writ petitions filed by Banks and Financial Institutions seeking expeditious decision and implementation of orders under Section 14 of the SARFAESI Act, 2002. The Court noted persistent delays both in deciding applications and in implementing orders already passed. Taking note of Haryana Government guidelines dated 21.05.2024, the Court directed that applications under Section 14 should be decided by the District Magistrate/Metropolitan Magistrate within the statutory period of 30 days and, where reasons beyond the authority’s control prevent this, within an aggregate period not exceeding 60 days after recording reasons.
Orders passed under Section 14 were directed to be implemented expeditiously and positively within 60 days, subject to orders of a competent court or other legal impediment. Where an application or implementation remains pending beyond 60 days, the affected party may approach the Divisional Commissioner, who must consider the representation within 15 days and issue appropriate directions. Referring to Allahabad Bank Vs. District Magistrate and the Supreme Court decision in Bala Krishna Ram Tarle Vs. Phoenix ARC (P) Ltd., the guidelines recognise that the CMM/DM’s function under Section 14 is administrative or ministerial rather than adjudicatory, and disputes regarding secured creditor action are to be pursued before the DRT.
