Disposed¶¶21

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

SARFAESI Act, 2002 – Section 14 – non-execution of order for taking possession

Punjab & Haryana HC29 May 2026CWP/18220/2026

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Case brief

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What is this about?

Keywords: SARFAESI Act; Section 14 SARFAESI; Chief Judicial Magistrate, Moga; secured asset; physical possession; mandamus; non-compliance with possession order; 60-day compliance direction; competent authority; Bank of Maharashtra vs. District Magistrate, Hisar, 2024 (2) PLR 346; IIFL Home Finance Limited vs. State of Haryana, Law Finder Doc ID #2875322; AU Small Finance Bank; CWP-18220-2026; Punjab and Haryana High Court; decided 29.05.2026.

What did the court decide?

Direction to the competent authority to comply with order dated 22.12.2025 (Annexure P-3) within a period of 60 days from the date of communication of a copy of the order, unless there is any legal impediment in doing so. ¶¶21

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

What the court decided

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Outcome

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Issue for consideration

Whether respondents No.2 to 4 can be directed, by writ of mandamus, to provide assistance in handing over physical possession of the secured asset where the order dated 22.12.2025 of the Chief Judicial Magistrate, Moga under Section 14 of the SARFAESI Act remained unexecuted for more than five months.

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Court's answer

Keeping in view the 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), the writ petition is disposed of with a direction to the competent authority to comply with order dated 22.12.2025 (Annexure P-3) within 60 days from the date of communication of a copy of the order, unless there is any legal impediment in doing so.

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Detailed headnote1 paragraphs

SARFAESI Act, 2002 — Section 14 — non-execution of order for taking possession — mandamus. Petitioner bank sought a writ of mandamus directing respondents No.2 to 4 to provide assistance in handing over physical possession of a secured asset, since the order dated 22.12.2025 (Annexure P-3) of the Chief Judicial Magistrate, Moga under Section 14 SARFAESI Act had not been given effect for over five months. HELD: keeping in view the 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, the competent authority was directed to comply with the order dated 22.12.2025 within 60 days from communication of a copy of the order, unless there was any legal impediment. Writ petition disposed of (Suvir Sehgal, J.; Vikas Suri, J.). [Punjab and Haryana High Court, 29.05.2026]

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

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177 CWP-18220-2026 Date of Decision: 29.05.2026

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AU Small Finance Bank Limited ....Petitioner

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Versus

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State of Punjab and others

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....Respondents

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

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----

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

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Mr. Akhil Kamra, Assistant Advocate General, Punjab.

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SUVIR SEHGAL, J. (ORAL)

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This writ petition has been filed, inter alia, for issuance of a writ in the nature of mandamus directing respondent No.2 to 4 to provide assistance in handling over the physical possession of the secured asset.

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Counsel for the petitioner submits that order dated 22.12.2025 (Annexure P-3) has been passed by the Chief Judicial Magistrate, Moga under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, ‘SARFAESI Act’), but despite lapse of more than 5 months, physical possession of the secured asset has not been delivered.

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

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On asking, State counsel has put in appearance on behalf of

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VARINDER PRASHAD 2026.05.30 15:53 I attest to the accuracy of this document PHHC

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CWP-18220-2026

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-: 2 :-

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respondents-State. He does not have any instructions.

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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 competent authority to comply with order dated 22.12.2025 (Annexure P-3) 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.

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(SUVIR SEHGAL) JUDGE

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(VIKAS SURI) May 29, 2026 JUDGE Varinder Whether speaking/reasoned : Yes/No Whether reportable : Yes/No

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VARINDER PRASHAD 2026.05.30 15:53 I attest to the accuracy of this document PHHC

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?

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What the court decided

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