Maghar Singh Vs Authorized Signatory Officer… — Banking and Recovery | Punjab & Haryana HC (2025)

Maghar Singh Vs Authorized Signatory Officer… — Banking and Recovery | Punjab & Haryana HC (2025)

What the court decided

AI extract

Outcome

Four weeks' time ending 05.09.2025 granted to the petitioner/borrower to clear the default amount of Rs.2,23,528/-; no coercive steps for that period; upon payment, possession of the secured asset to be handed over to the borrower; failing payment, the bank free to take coercive steps under the SARFAESI Act and rules framed thereunder.

Issue for consideration

Whether the writ petition challenging the possession notice dated 17.03.2025 issued under Section 13(4) of the SARFAESI Act warrants interference, given the borrower's admitted default amount of Rs.2,23,528/- and the bank's expressed readiness to allow four weeks for clearance.

Court's answer

The petition stands disposed of with a direction to the petitioner/borrower to clear the remaining default amount of Rs.2,23,528/- within a period of four weeks ending on 05.09.2025, failing which the bank shall be free to take coercive steps for alienating the secured asset by adopting the procedure prescribed under the SARFAESI Act and the rules framed thereunder.

Ratio / Principle

For a period of four weeks, no coercive steps shall be taken against the borrower.

Key takeaways

If the petitioner/borrower clears the default amount of Rs.2,23,528/- within a period of four weeks, the possession of the secured asset shall be handed over to the borrower.ratio¶22

Detailed headnote1 paragraphs

High Court of Punjab and Haryana at Chandigarh, CWP-10824-2025 (O&M) with CM-11281-CWP-2025, decided 08.08.2025 (oral) by Sheel Nagu, C.J. and Sanjiv Berry, J. — Borrower Maghar Singh challenged a possession notice dated 17.03.2025 (Annexure P-6) issued under Section 13(4) of the SARFAESI Act, 2002 pursuant to a Section 13(2) notice by ICICI Home Finance Company (respondent No.1-bank); parties did not dispute the total default amount of Rs.2,23,528/-, and counsel for the bank expressed readiness to allow four weeks for payment. Petition disposed of: petitioner/borrower directed to clear Rs.2,23,528/- within four weeks ending 05.09.2025; no coercive steps for that period; on payment, possession of the secured asset to be handed over to the borrower; failing payment, the bank free to alienate the secured asset per the SARFAESI Act and rules framed thereunder. No precedent engaged.

CWP-10824-2025 (O&M)

-1-

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

CM-11281-CWP-2025 in/and CWP-10824-2025 (O&M) Date of decision: 08.08.2025

Maghar Singh

......Petitioner

Versus

Authorized Signatory Officer, ICICI Home Finance Company and another

.........Respondents

CORAM: HON'BLE MR. JUSTICE SHEEL NAGU, CHIEF JUSTICE HON’BLE MR. JUSTICE SANJIV BERRY

Present: Mr. Narinder S. Lucky, Advocate, for the petitioner.

Mr. Rishabh Gupta, Advocate, and Mr. Ankit Gupta, Advocate, for respondent No.1-bank.

SHEEL NAGU, C.J. (ORAL)

With the consent of learned counsel for the parties, the present petition is preponed and taken up for hearing today itself.

The petitioner/borrower is before this Court assailing the possession notice issued under Section 13 (4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, on 17.03.2025 (Annexure P-6), pursuant to the notice under Section 13 (2) of the SARFAESI Act.

Learned counsel for the rival parties, i.e. the AJAY PRASHER2025.08.13 10:56 petitioner/borrower and the respondent No.1-bank, do not I attest to the accuracy and integrity of this document

CWP-10824-2025 (O&M)

-2-

dispute that the total default amount is only Rs.2,23,528/-. Learned counsel for the bank, after seeking instructions, has expressed readiness of the bank to allow four weeks to the petitioner to clear the said default amount of Rs.2,23,528/-.

This petition, therefore, stands disposed of with a direction to the petitioner/borrower to clear the remaining default amount of Rs.2,23,528/- within a period of four weeks ending on 05.09.2025, failing which, the bank shall be free to take coercive steps for alienating the secured asset by adopting the procedure prescribed under the SARFAESI Act and the rules framed thereunder.

For a period of four weeks, no coercive steps shall be taken against the borrower. In case, the petitioner/borrower clears the aforesaid default amount of Rs.2,23,528/- within a period of four weeks, the possession of the secured asset shall be handed over to the borrower.

(SHEEL NAGU) CHIEF JUSTICE

(SANJIV BERRY) JUDGE

08.08.2025

Ajay Prasher

Whether speaking/reasoned : Yes/No Whether reportable : Yes/No

AJAY PRASHER 2025.08.13 10:56 I attest to the accuracy and integrity of this document