Au Small Finance Bank Ltd. Vs Rammilan Nirala

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Digitally signed by ASHISH ASHISH TIWARI TIWARI Date:2026.02.05 12:42:27 +0530

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2025:CGHC:16566

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NAFR

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HIGH COURT OF CHHATTISGARH AT BILASPUR

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W.P.(227) No. 133 of 2026

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Au Small Finance Bank Ltd. Branch Office Third Floor, Sky Park Near Bhatiya Nursingh Home, Canal Road, Raja Talab, Raipur Chhattisgarh Through Its Manager Dheeraj Pandey, Son Of Vivekanand Pandey, Aged About 44 Years, Branch Office- Third Floor, Sky Park Near Bhatiya Nursing Home, Canal Road, Raja Talab, Raipur, Chhattisgarh.

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---- Petitioner

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Versus

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1 - Rammilan Nirala S/o Tularam Nirala Aged About 51 Years R/o Parsad Bade Kandirpara, Tehsil And District- Sarangarh-Bilaigarh, Chhattisgarh 2 - Rajkumar Nirala R/o Parsada Bade Kandirpara, Tehsil And District- SarangarhBilaigarh, Chhattisgarh 3 - Soni Bai Nirala R/o Parsada Bade Kandirpara, Tehsil And District- SarangarhBilaigarh, Chhattisgarh.

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		--- Respondents
For Petitioner	: Shri Vinod Kumar Dewangan Vishwakarma, Advocates.	with Shri Baldev
	Hon'ble Shri Justice Sachin Singh Rajput
	Order on Board

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03/02/2026

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Learned Counsel for the petitioner submits that the procedure contemplated under Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, ‘the SARFAESI Act') was commenced against the borrowers as their account was declared as Non-Performing Asset (NPA). An application under Section 14 of SARFAESI Act, has been filed before the Chief Judicial Magistrate, District – Bilaigarh (C.G.).

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According to learned Counsel for the petitioner, the proviso to Section 14 of the SARFAESI Act provides that the decision on like nature of the application has to be made within a period of 30 days and, if not so, within a further period of 60 days. However, despite the fact that about 03 months has elapsed, the proceeding under Section 14 of the SARFAESI Act has not been concluded by the Chief Judicial Magistrate, District – Bilaigarh (C.G.).

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For ready reference, the proviso to Section 14 of the SARFAESI Act is reproduced

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herein under:-

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“[Provided that any application by the secured creditor shall be accompanied by an affidavit duly affirmed by the authorized officer of the secured creditor, declaring that-

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i. the aggregate amount of financial assistance granted and the total claim of the Bank as on the date of filing the application;

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ii. The borrower has created security interest over various properties and that the Bank or Financial Institution is holding a valid and subsisting security interest over such properties and the claim of the Bank or Financial Institution is within the limitation period;

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iii. the borrower has created security interest over various properties giving the details of properties referred to in sub-clause (ii) above;

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iv The SARFAESI Act provides that when Section 14 proceeding is moved, the concerned Officer shall, after satisfying the contents of the affidavit, pass suitable orders for the purpose of taking possession of the secured assets within a period of thirty days from the date of application and, if he fails to do it, then after recording reasons in writing for the same, pass the order within such further period but not exceeding in aggregate sixty days.he borrower has committed default in repayment of the financial assistance granted aggregating the specified amount;

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v. consequent upon such default in repayment of the financial assistance the account of the borrower has been classified as a nonperforming asset;

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vi. affirming that the period of sixty days notice as required by the provisions of sub-section (2) of section 13, demanding payment of the defaulted financial assistance has been served on the borrower;

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vii. the objection or representation in reply to the notice received from the borrower has been considered by the secured creditor and reasons for nonacceptance of such objection or representation had been communicated to the borrower;

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vii. the borrower has not made any repayment of the financial assistance in spite of the above notice and the Authorised Officer is, therefore, entitled to take possession of the secured assets under the provisions of sub-section (4) of section 13 read with section 14 of the principal Act;

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viii. that the provisions of this Act and the rules made thereunder had been

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complied with:

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Provided further that on receipt of the affidavit from the Authorised Officer, the District Magistrate or the Chief Metropolitan Magistrate, as the case may be, shall after satisfying the contents of the affidavit pass suitable orders for the purpose of taking possession of the secured assets within a period of thirty days from the date of application.]

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[Provided [also] that if no order is passed by the Chief Metropolitan Magistrate or District Magistrate within the said period of thirty days for reasons beyond his control, he may, after recording reasons in writing for the same, pass the order within such further period but not exceeding in aggregate sixty days.]

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Provided also that the requirement of filing affidavit stated in the first proviso shall not apply to proceeding pending before any District Magistrate or the Chief Metropolitan Magistrate, as the case may be, on the date of commencement of this Act.]

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[(1A) The District Magistrate or the Chief Metropolitan Magistrate may authorise any officer subordinate to him,-

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(i) to take possession of such assets and documents relating thereto; and

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(ii) to forward such assets and documents to the secured creditor.]

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(2)For the purpose of securing compliance with the provisions of sub-section (1), the Chief Metropolitan Magistrate of the District Magistrate may take or cause to be taken such steps and use, or cause to be used, such force, as may, in his opinion, be necessary.

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(3)No act of the Chief Metropolitan Magistrate or the District Magistrate [any

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officer authorised by the Chief Metropolitan Magistrate or District Magistrate] done in pursuance of this section shall be called in question in any court or before any authority.”

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The SARFAESI Act provides that when Section 14 proceeding is moved, the concerned Officer shall, after satisfying the contents of the affidavit, pass suitable orders for the purpose of taking possession of the secured assets within a period of thirty days from the date of application and, if he fails to do it, then after recording reasons in writing for the same, pass the order within such further period but not exceeding in aggregate sixty days.

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Prima facie, the documents, in the instant case, show that the sixty days have already elapsed much before; therefore, learned Chief Judicial Magistrate, District – Bilaigarh (C.G.). is expected to conclude the proceeding under Section 14 of the SARFAESI Act preferably within a further period of 90 days from the date of receipt of a copy of this Order.

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With aforesaid direction(s), this Writ Petition stands disposed of.

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Sd/- (Sachin Singh Rajput) Judge

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Ashish

Au Small Finance Bank Ltd. v. Rammilan Nirala

Case brief

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Au Small Finance Bank Ltd. v. Rammilan Nirala

Case brief

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