Disposed¶21

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

Punjab & Haryana HC29 May 2026CWP/18324/2026

Case brief

AI extract

What is this about?

SARFAESI Act Section 14 application pending before Chief Judicial Magistrate, Ludhiana; mandamus for time-bound disposal within 60 days; NPA classification 08.11.2023; Section 13(2) demand notice 09.04.2025; Section 13(4) possession notice 26.06.2025; symbolic possession of secured asset; AU Small Finance Bank Limited v. State of Punjab; Punjab and Haryana High Court CWP-18324-2026; reliance on Bank of Maharashtra v. District Magistrate, Hisar, 2024 (2) PLR 346 and IIFL Home Finance Ltd. v. State of Haryana (Law Finder Doc ID #2875322).

What did the court decide?

Direction to Chief Judicial Magistrate, Ludhiana to decide application Annexure P-3 (Section 14 SARFAESI Act) as expeditiously as possible, preferably within 60 days from the date of communication of a copy of the order, unless there is any legal impediment. ¶21

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

What the court decided

AI extract

Outcome

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Issue for consideration

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

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Court's answer

In view of this Court's observations in Bank of Maharashtra v. District Magistrate, Hisar (2024 (2) PLR 346) and IIFL Home Finance Ltd. v. State of Haryana (Law Finder Doc ID #2875322), the writ petition is disposed of with a direction to the Chief Judicial Magistrate, Ludhiana to decide the Section 14 SARFAESI 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.

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Detailed headnote1 paragraphs

Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 — Section 14 application before Chief Judicial Magistrate — delay in disposal — writ of mandamus. Borrowers (respondents No.3 to 7) defaulted on a loan from AU Small Finance Bank Limited; account classified NPA on 08.11.2023; demand notice under S.13(2) issued 09.04.2025 (Annexure P-1); possession notice under S.13(4) issued 26.06.2025 (Annexure P-2) and symbolic possession taken. The Bank's application (Annexure P-3) under Section 14 SARFAESI Act, moved in September, 2025 before the Chief Judicial Magistrate, Ludhiana, remained pending. In view of this Court's observations in Bank of Maharashtra v. District Magistrate, Hisar, 2024 (2) PLR 346 and IIFL Home Finance Ltd. v. State of Haryana (Law Finder Doc ID #2875322), the Bench (Suvir Sehgal and Vikas Suri, JJ.) disposed of the writ petition directing the CJM, Ludhiana to decide the application as expeditiously as possible, preferably within 60 days of communication of the order, unless there is any legal impediment.

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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

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193 CWP-18324-2026 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 Chief Judicial Magistrate, Ludhiana to decide the application, Annexure P-3, filed under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, ‘SARFAESI Act’).

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Counsel for the petitioner submits that respondents No.3 to 7 had availed a loan facility from the petitioner-Bank and had mortgaged immovable property. Counsel asserts that due to continuous default in repayment, loan account was classified as NPA on 08.11.2023. A demand notice under Section 13(2) of SARFAESI Act was issued on 09.04.2025 (Annexure P-1), followed by a notice dated 26.06.2025 (Annexure P-2) under Section 13(4) of SARFAESI Act, whereafter symbolic possession of the secured asset was

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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-18324-2026

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-: 2 :-

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taken. Counsel states that petitioner moved an application, Annexure P-3 under Section 14 of SARFAESI Act in September, 2025 before the Chief Judicial Magistrate, Ludhiana, which is still pending. 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.

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Heard counsel for the petitioner.

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In view of 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

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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.

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(SUVIR SEHGAL) JUDGE

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May 29, 2026

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(VIKAS SURI) JUDGE

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Varinder

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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?

Why is it important?

What the court decided

Issues for consideration

Cases cited

Statutes considered

Procedural history

Parties & counsel

Coram

Case details

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