Disposed¶18

Au Small Finance Bank Ltd. v. State of Punjab and Others

Punjab & Haryana HC25 May 2026CWP/12638/2026

Case brief

AI extract

What is this about?

Keywords: SARFAESI Act Section 14 application before Chief Judicial Magistrate; time-bound disposal of S.14 application; mandamus to CJM Ludhiana; symbolic possession after S.13(4) notice; NPA classification 08.09.2025; Bank of Maharashtra v. District Magistrate Hisar 2024 (2) PLR 346; IIFL Home Finance v. State of Haryana; Punjab & Haryana High Court; CWP-12638-2026; decision dated 25.05.2026; Suvir Sehgal J.; Vikas Suri J.; 60-day direction; writ petition disposed of.

What did the court decide?

Direction to the Chief Judicial Magistrate, Ludhiana to decide the petitioner's Section 14 SARFAESI Act application (Annexure P-3) as expeditiously as possible, preferably within 60 days from communication of a copy of the order, unless there is any legal impediment. ¶18

Au Small Finance Bank Ltd. Vs State of Punjab… — Banking and Recovery | Punjab & Haryana HC (2026)

What the court decided

AI extract

Outcome

¶18

Issue for consideration

Whether a writ of mandamus should issue directing the Chief Judicial Magistrate, Ludhiana to decide the petitioner's pending application dated 17.02.2026 (Annexure P-3) under Section 14 of the SARFAESI Act.

¶12

Court's answer

The writ petition is disposed of with a direction to the Chief Judicial Magistrate, Ludhiana to decide the petitioner's application (Annexure P-3) under Section 14 of the SARFAESI Act as expeditiously as possible.

¶18

Ratio / Principle

The preferred timeline for the decision is 60 days from communication of a copy of the order, unless there is any legal impediment.

¶18

Detailed headnote1 paragraphs

SARFAESI – Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, S. 14 – Writ petition (CWP-12638-2026, decided 25.05.2026) by AU Small Finance Bank Ltd. seeking mandamus to Chief Judicial Magistrate, Ludhiana to decide its application dated 17.02.2026 (Annexure P-3) under S.14 SARFAESI Act, pending before him – Loan account classified NPA on 08.09.2025; notices under S.13(2) (16.09.2025) and S.13(4) (15.12.2025) issued; symbolic possession of secured asset taken – Despite interim order of the High Court and reference to Division Bench judgments, the S.14 petition stood deferred – Relying on observations of this Court in Bank of Maharashtra vs. District Magistrate, Hisar and others, 2024 (2) PLR 346 and IIFL Home Finance Limited vs. State of Haryana and others (Law Finder Doc ID #2875322), Bench of Suvir Sehgal, J. (oral) and Vikas Suri, J. disposed of the writ petition directing the CJM, Ludhiana to decide the application as expeditiously as possible, preferably within 60 days from communication of copy of the order, unless there is any legal impediment.

¶1

CWP-12638-2026

¶2

-1-

¶3

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH

¶4

(127)

¶5

CWP-12638-2026 Date of decision:- 25.05.2026

¶6

AU SMALL FINANCE BANK LTD. ... Petitioner

¶7

Versus

¶8

STATE OF PUNJAB AND OTHERS ... Respondents

¶9

CORAM: HON'BLE MR. JUSTICE SUVIR SEHGAL HON’BLE MR. JUSTICE VIKAS SURI

¶10

Present:- Mr. Vaibhav Mittal, Advocate and Mr. Shivansh Mahajan, Advocate for the petitioner. ********

¶11

SUVIR SEHGAL, J. ( ORAL )

¶12

This writ petition has been filed, inter alia, for issuance of a writ, in the nature of mandamus, directing Chief Judicial Magistrate, Ludhiana to decide the application dated 17.02.2026, Annexure P-3, filed by petitioner under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, ‘the SARFAESI Act’).

¶13

Counsel for the petitioner submits that borrowers had taken a loan from the petitioner’s finance company and had mortgaged immovable property. Counsel asserts that due to continuous default in repayment, the loan account was classified as NPA on 08.09.2025. A notice under Section 13(2) of the SARFAESI Act was issued on 16.09.2025 (Annexure P-1), followed by notice under Section 13(4) of the SARFAESI Act dated 15.12.2025 (Annexure P-2), whereafter symbolic possession of the secured asset was taken. Counsel states that petitioner moved an application (Annexure P-3) under Section 14 of the SARFAESI Act before the Chief Judicial Magistrate, Ludhiana in February 2025, which is still pending. Counsel for the petitioner states that pursuant to interim order passed by this Court, both the judgments of the Division Bench were specifically brought to

¶14

KAMAL SHARMA 2026.05.26 16:45 I attest to the accuracy and authenticity of this order/judgment. High Court, Sector-1, Chandigarh.

¶15

CWP-12638-2026 -2-

¶16

the notice of the presiding officer, but the petition under Section 14 of the SARFAESI Act has been deferred. Counsel has made a reference to the statutory provisions and has urged that the application has to be decided within the time frame provided in the statute.

¶17

Advance copy of the petition has been served upon the official respondents.

¶18

On asking, Mr. A.S.Khara, Senior DAG, Punjab has put in appearance on behalf of respondents No.1 and 2-State. He does not have any instructions. 5. Mr. Vikas Bali, Advocate has put in appearance on behalf of respondents No.3 to 7 and has filed Power of Attorney, which is taken on record. 6. Having heard counsel for parties and keeping in view the observations of this Court in Bank of Maharashtra vs. District Magistrate, Hisar and others 2024 (2) PLR 346 as well as in IIFL Home Finance Limited vs. State of Haryana and others , Law Finder Doc ID #2875322 , writ petition is disposed of with a direction to Chief Judicial Magistrate, Ludhiana, to decide the application (Annexure P-3) as expeditiously as possible, preferably within a period of 60 days from the date of communication of copy of this order, unless there is any legal impediment in doing so.

¶19

(SUVIR SEHGAL) JUDGE

¶20

25.05.2	026	( VIKAS SURI )
Kamal	Whether Speaking/Reasoned	JUDGE Yes/No
	Whether Reportable	Yes/No

¶21

KAMAL SHARMA 2026.05.26 16:45 I attest to the accuracy and authenticity of this order/judgment. High Court, Sector-1, Chandigarh.

Au Small Finance Bank Ltd. v. State of Punjab and Others

Case brief

What is this about?

What did the court decide?

Au Small Finance Bank Ltd. v. State of Punjab and Others

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

Issues for consideration

Cases cited

Statutes considered

Procedural history

Parties & counsel

Coram

Case details

Similar cases

Murari Lal Sharma Vs State of Haryana and Others

Rajiv Kumar Vs State of Punjab and Ors.

D a P Estate Pvt. Ltd. Vs State of Haryana and Others

Hukam Singh and Anr. Vs Chandigarh Housing Board and Anr.

Papan and Anr. Vs the Advisor to the Administrator Cum Chairman and Anr.

Gulab Kaur Vs State of Haryana and Others