Disposed¶18

Canara Bank,Bangaluru v. the Chief Judicial Magistrate, Khorda

Orissa HC19 Jan 2026WP(C)/35674/2025

Case brief

AI extract

What is this about?

SARFEASI/SARFAESI Section 14 possession application pendency; time-bound disposal by Magistrate; six-week deadline fixed by High Court of Orissa; Chief Judicial Magistrate Khordha; Canara Bank writ petition disposed; impleadment of Applicants in I.A. No.127 of 2026; hearing to borrower/legal heirs before disposal; contentions kept open; counsel's reference to Razia Begum v. Sahebzadi Anwar Begum (AIR 1958 SC 886) on necessary party.

What did the court decide?

Direction to the Chief Judicial Magistrate, Khordha to dispose of the Section 14 SARFEASI application within six weeks, impleading the Applicants in I.A. No.127 of 2026, after hearing the borrower/his legal heirs; all contentions kept open. ¶18

Canara Bank,Bangaluru Vs the Chief Judicial Magistrate, Khorda — Orissa HC (2026) — LawSathi Research

What the court decided

AI extract

Outcome

¶18

Issue for consideration

Whether the High Court should direct the Chief Judicial Magistrate, Khordha to dispose of the pending application under Section 14 of the SARFEASI Act, 2002 within a time-bound period. +1 more

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Court's answer

This Court broadly agrees that the legal imperative for the Magistrate is to dispose of the subject Section 14 application in a time-bound way, after giving an opportunity of hearing to the borrowers or their legal heirs; there is no justification for keeping the application in limbo indefinitely.

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Ratio / Principle

The writ petition is disposed of with a direction fixing six weeks for the Magistrate to dispose of the Section 14 petition, impleading the Applicants in I.A. No.127 of 2026, and all contentions of the parties are kept open.

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Detailed headnote1 paragraphs

High Court of Orissa at Cuttack, W.P.(C) No.35674 of 2025, Order dated 19.01.2026 (Coram: Justices Dixit Krishna Shripad and Chittaranjan Dash): Canara Bank's short grievance was the long pendency of its application under Section 14 of the SARFEASI Act, 2002 before the Chief Judicial Magistrate, Khordha. Counsel for the Bank urged time-bound disposal (invoking Apex Court decisions); counsel for the borrower contended his client, though not arrayed in the writ petition, was a necessary party (Razia Begum v. Sahebzadi Anwar Begum, AIR 1958 SC 886) and a party to the Magistrate's proceedings. Agreeing broadly with the Bank, the Court held the Magistrate must dispose of the Section 14 application time-bound after hearing the borrower(s)/legal heirs, with no justification for indefinite limbo. Writ petition disposed of, fixing six weeks for disposal of the Section 14 petition by the Magistrate upon impleading the Applicants in I.A. No.127 of 2026; all contentions kept open.

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IN THE HIGH COURT OF ORISSA AT CUTTACK W.P.(C) No.35674 of 2025

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Canara bank, Bangaluru

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…. Petitioner

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Mr. G. Dash, Advocate

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-versus-

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The Chief Judicial Magistrate, Khordha

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…. Opp. Party

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Mr. J.K. Khandayatray, ASC

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CORAM: JUSTICE DIXIT KRISHNA SHRIPAD JUSTICE CHITTARANJAN DASH

ORDER

Order No. 03.

19.01.2026

The short grievance of the lender Bank, which happens to be the Petitioner in the case, is as to long pendency of application filed under Section 14 of the SARFEASI Act, 2002.

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Learned counsel for the Petitioner vehemently argues that in view of a catena of decisions of the Apex Court, the dismissal of coercive action under Section 14 of the SARFEASI Act, 2002 at the hands of the Magistrate has to happen within the shortest possible period, 60 days being the longest.

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Learned counsel for borrower opposes the petition contending that his client has not been arrayed as a party to the petition, though he is a necessary party in terms of decision of Apex Court in Razia Begum v. Sahebzadi Anwar Begum , AIR 1958 SC 886. He also contends that his client happens to be a party in the proceedings before the learned Magistrate and therefore, he should be permitted to raise all the points that could figure in favour of his client.

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Page 1 of 2

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Having heard learned counsel for the parties and having perused the petition papers, we are broadly agreeing with the submission of learned counsel for the Petitioner that the legal imperative for the Magistrate is to dispose off the subject application in a time bound way, of course, after giving an opportunity of hearing to the borrowers or their legal heirs, as the case may be. There is absolutely no justification for keeping the subject application in limbo for indefinite period of time. The Magistrate has to take the call on the subject application immediately after giving an opportunity of hearing to the borrower/ his legal heirs.

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Ordered accordingly and writ petition is disposed off, fixing a period of six weeks for disposal of Section 14 petition by the Magistrate by impleading Applicants in I.A. No.127 of 2026. All contentions of the parties are kept open.

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Web copy of this order to be acted upon by all concerned.

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(Dixit Krishna Shripad) Judge

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(Chittaranjan Dash) Judge

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Signature Not Verified

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Digitally Signed

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Signed by: MADHUSMITA MALLICK Designation: Jr. Stenographer Reason: Authentication Location: HIGH COURT OF ORISSA, C Madhusmita UTT ACK Date: 20-Jan-2026 17:06:22

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Canara Bank,Bangaluru v. the Chief Judicial Magistrate, Khorda

Case brief

What is this about?

What did the court decide?

Canara Bank,Bangaluru v. the Chief Judicial Magistrate, Khorda

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

Issues for consideration

Cases cited

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Procedural history

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