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M/S Manappuram Home Finance Ltd, Khurda v. the Collector and District Magistrate Khurda

Orissa HC7 Aug 2025WP(C)/21652/2025

Case brief

AI extract

What is this about?

SARFAESI Act s.14 delay; direction to Collector & District Magistrate, Khurda to decide Misc. Case No. 30 of 2023 within four weeks; petitioner M/s. Manappuram Home Finance Ltd., Khurda; R.D. Jain & Co. v. Capital First Ltd., (2023) 1 SCC 675 relied on; second proviso to s.14(1) one-month limit; no opinion on merits; Orissa High Court, W.P.(C) No.21652 of 2025; order dated 07.08.2025; bench S.K. Sahoo and S.S. Mishra.

What did the court decide?

Direction to the Collector & District Magistrate, Khurda (opposite party no.1) to dispose of and take a decision on Misc. Case No. 30 of 2023 under Annexure-1 within four weeks from production of the certified copy of the order along with the copy of the Writ Petition; urgent certified copy to be issued as per Rules. ¶23

M/S Manappuram Home Finance Ltd, Khurda Vs the Collector… — Banking and Recovery | Orissa HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the Collector & District Magistrate, Khurda (opposite party no.1) should be directed to dispose of Misc. Case No. 30 of 2023 (Annexure-1) filed by the petitioner under section 14 of the SARFAESI Act, 2002 within a specified time period, in view of the alleged non-compliance with the one-month limit under the second proviso to sub-section (1) of section 14.

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Court's answer

The Writ Petition is disposed of with a direction to the Collector & District Magistrate, Khurda (opposite party no.1) to dispose of and take a decision on Misc. Case No. 30 of 2023 under Annexure-1 within a period of four weeks from the date of production of the certified copy of the order along with the copy of the Writ Petition.

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Key takeaways

The Court expressly clarified that it had not expressed any opinion on the merits of the application filed by the Petitioner under Annexure-1.obiter¶24

Detailed headnote1 paragraphs

W.P.(C) No.21652 of 2025, High Court of Orissa at Cuttack (S.K. Sahoo and S.S. Mishra JJ.; order dated 07.08.2025): M/s. Manappuram Home Finance Ltd., Khurda sought a direction to the Collector & District Magistrate, Khurda (opposite party no.1) to dispose of its Misc. Case No. 30 of 2023 (Annexure-1) filed under section 14 of the SARFAESI Act, 2002 within a specific time period, counsel pleading non-compliance with the one-month limit under the second proviso to sub-section (1) of section 14 and relying on R.D. Jain & Co. v. Capital First Ltd., (2023) 1 SCC 675 (as quoted: the CMM/DM must act on a Section 14(1) application within 30 days, extendable up to 60 days in aggregate; a ministerial act brooking no delay). The Court disposed of the petition, directing the Collector & DM to dispose of and take a decision on the Misc. Case within four weeks from production of the certified copy of the order along with the copy of the Writ Petition, expressly without expressing any opinion on the merits of the application.

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IN THE HIGH COURT OF ORISSA AT CUTTACK

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W.P.(C) No.21652 of 2025

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M/s. Manappuram Home Finance Ltd., Khurda

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Petitioner

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Mr. R.N. Panda, CGC

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-versus-

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Collector and District …. Opp. Parties Magistrate, Khurda and others

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CORAM:

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Order No.

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HON’BLE MR. JUSTICE S.K. SAHOO HON’BLE MR. JUSTICE S. S. MISHRA ORDER 07.08.2025

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This matter is taken up through Hybrid arrangement (video conferencing/physical mode).

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Heard the learned counsel for the Petitioner.

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This Writ Petition has been filed by M/s.Manappuram Home Finance Ltd., Khurda praying for a direction to the Collector & District Magistrate, Khurda, opposite party no.1 to dispose of Misc. Case No. 30 of 2023 under Annexure-1 filed by the it under section 14 of the SARFAESI Act, 2002 within specific time period.

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Learned counsel for the Petitioner submits that the District Magistrate is supposed to take action within one month as per the second proviso to sub-section (1) of section 14 of the Act, which has not been complied with. To buttress his argument vis-à-vis the obligation on the part of the CJM to act within the stipulated time prescribed under the statute, he has relied upon the decision R.D. Jain &

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Page 1 of 3

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Co. -Vrs-. Capital First Ltd. reported in (2023) 1 Supreme Court Cases 675 , wherein it was held as follows:

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However, for taking physical possession of the secured assets in terms of Section 14(1) of the SARFAESI Act, the secured creditor is obliged to approach the CMM/DM by way of a written application requesting for taking possession of the secured assets and documents relating thereto and for being forwarded to it (secured creditor) for further action. The statutory obligation enjoined upon the CMM/DM is to immediately move into action after receipt of a written application under Section 14(1) of the SARFAESI Act from the secured creditor for that purpose. As soon as such an application is received the CMM/DM is expected to pass an order after verification of compliance of all formalities by the secured creditor referred to in the proviso in Section 14(1) of the SARFAESI Act and after being satisfied in that regard, to take possession of the secured assets and documents relating thereto and to forward the same to the secured creditor at the earliest opportunity.

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As mandated by Section 14 of the SARFAESI Act, the CMM/DM has to act within the stipulated time-limit and pass a suitable order for the purpose of taking possession of the

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Page 2 of 3

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secured assets within a period of 30 days from the date of application which can be extended for such further period but not exceeding in the aggregate, sixty days. Thus, the powers exercised by the CMM/DM is a ministerial act. He cannot brook delay. Time is of the essence. This is the spirit of the special enactment.

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In view of the limited nature of the grievance of the Petitioner, this Writ Petition is disposed of directing the Collector & District Magistrate, Khurda, opposite party no.1 to dispose of and to take a decision on Misc. Case No. 30 of 2023 under Annexure-1 within a period of four weeks from the date of production of the certified copy of the order along with the copy of Writ Petition.

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It is made clear that we have not expressed any opinion on the merits of the application filed by the Petitioner under Annexure-1.

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Issue urgent certified copy as per Rules.

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( S.K. Sahoo) Judge

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(S.S. Mishra) Judge

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PKSahoo

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Signature Not Verified