Ms Aditya Birla Housing Finance Limited Vs… — Banking and Recovery | Punjab & Haryana HC (2026)

Ms Aditya Birla Housing Finance Limited Vs… — Banking and Recovery | Punjab & Haryana HC (2026)

What the court decided

AI extract

Outcome

Writ of mandamus issued directing respondents No. 3, 4 & 5 to execute the Section 14 SARFAESI Act order dated 08.08.2024 (Annexure P-3) by handing over physical possession of the secured asset to the petitioner-Financial Institution, preferably within 30 days; petitioner thereafter free to adopt legitimate means to liquidate the asset; respondent No. 5 to file a compliance report before the Registry within 45 days, with deficiencies to be placed before the appropriate Bench under IOIN category.

Issue for consideration

Whether respondents No. 3, 4 and 5 (Senior Superintendent of Police, Sangrur; Sub-Divisional Magistrate, Sunam Udham Singh Wala; Naib Tehsildar-cum-Executive Magistrate, Sunam Udham Singh Wala) failed to discharge their statutory duty of assisting the petitioner-Financial Institution by handing over physical possession of the secured asset pursuant to the Section 14 SARFAESI Act order dated 08.08.2024, and whether a writ of mandamus should issue directing them to execute that order.

Court's answer

By writ of mandamus, respondents No. 3, 4 & 5 are directed to execute the order dated 08.08.2024 (Annexure P-3) passed u/s 14 of the SARFAESI Act by handing over physical possession of the secured asset to the petitioner-Financial Institution as expeditiously as possible, preferably within a period of 30 days.

Ratio / Principle

Thereafter, the petitioner-Financial Institution can proceed to adopt all possible legitimate means to liquidate the secured asset to recover the due amount.

Key takeaways

Observation that Non-Performing Assets (NPAs) are a huge burden on the public exchequer, banking and financial system, and prompt enforcement of the recovery mechanism under the SARFAESI Act is paramount for liquidity.obiter¶20
The guidelines laid down by the Coordinate Bench in Bank of Maharashtra Vs. District Magistrate, Hisar And Others (CWP-70182022, decided 28.05.2024) are to be adhered to by the concerned authorities.ratio¶24

Detailed headnote1 paragraphs

Punjab & Haryana High Court (Sheel Nagu, CJ, oral, with Neerja Kulwant Kalson, J) - CWP-38781 of 2025, decided 12.01.2026. Aditya Birla Housing Finance Ltd. v. State of Punjab & others: writ petition by a financial institution aggrieved by the non-execution of the order dated 08.08.2024 (Annexure P-3) passed by the Additional District Magistrate, Sangrur under Section 14 of the SARFAESI Act. Noting that respondents No. 3-5 (SSP, Sangrur; SDM, Sunam Udham Singh Wala; Naib Tehsildar-cum-Executive Magistrate, Sunam Udham Singh Wala) had failed to discharge their statutory duty of assisting and handing over physical possession of the secured asset, and that no S.A. was pending before the DRT/DRAT, the Court issued a writ of mandamus directing respondents No. 3, 4 & 5 to execute the Section 14 order and hand over physical possession expeditiously, preferably within 30 days, observing that prompt SARFAESI enforcement is paramount given the burden of NPAs on the public exchequer and banking system. The petitioner was left free thereafter to adopt all legitimate means to liquidate the secured asset. The guidelines of the Coordinate Bench in Bank of Maharashtra v. District Magistrate, Hisar (CWP-70182022, decided 28.05.2024) were directed to be adhered to; the disposal was made subject to any restraint/interim/final order of any judicial forum in favour of borrowers/guarantors/aggrieved persons party to the lis. Respondent No. 5 was directed to file a compliance report within 45 days, deficiencies (if any) to be placed before the appropriate Bench under IOIN category. Petition disposed of accordingly.

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CWP-38781 of 2025

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH

CWP-38781 of 2025

Date of decision: 12.01.2026

M/S ADITYA BIRLA HOUSING FINANCE LIMITED.

….Petitioner

V/S

STATE OF PUNJAB AND OTHERS

… Respondents

CORAM: HON’BLE MR. JUSTICE SHEEL NAGU, CHIEF JUSTICE HON’BLE MS. JUSTICE NEERJA KULWANT KALSON, JUDGE

Present: Mr. Karan, Advocate for

Mr. Nakul Sharma, Advocate for the petitioner.

Mr. Vipin Pal Yadav, Addl. Advocate General, Punjab.

SHEEL NAGU, CHIEF JUSTICE (Oral)

The present writ petition has been filed by petitioner-Financial Institution aggrieved by non-execution of the order dated 08.08.2024 (Annexure P-3) passed by the Additional District Magistrate, Sangrur, under the provisions of Section 14 Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act for brevity).

1.1. It is informed that no S.A. is pending before the Debts Recovery Tribunal or Debts Recovery Appellate Tribunal.

It is rather surprising that Senior Superintendent of Police, Sangrur, Sub-Divisional Magistrate, Sunam Udham Singh Wala or the concerned Naib Tehsildar-cum-Executive Magistrate, Sunam Udham Singh Wala, i.e. respondents no. 3, 4 and 5 have failed to discharge their statutory duty of assisting and handing over physical possession of the secured asset to the petitioner/Financial Institution.

2.1 Non-Performing Assets (NPAs) are a huge burden on the public exchequer, banking and financial system, and, thus, prompt enforcement of recovery mechanism under the SARFAESI Act is paramount for liquidity in the KAMAL GANDHI 2026.01.13 10:53 I attest to the accuracy and integrity of this documentsystem.

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CWP-38781 of 2025

In view of the above, this court by way of writ of mandamus directs respondents No. 3, 4 & 5 to execute the order dated 08.08.2024 (Annexure P-3) passed u/s 14 of SARFAESI Act by handing over physical possession of the secured asset to the petitioner-Financial Institution as expeditiously as possible, preferably, within a period of 30 days. The petitioner-Financial Institution, thereafter, can proceed to adopt all possible legitimate means to liquidate the secured asset to recover the due amount.

The petition for the time being stands disposed of in the terms aforesaid. Needless to say that the guidelines laid down by Coordinate Bench in Bank of Maharashtra Vs. District Magistrate, Hisar And Others [ CWP-70182022 decided on 28.05.2024] be adhered to by the concerned authorities.

We hasten to add that this order shall however be subject to any restraint/ interim/ final order which may have been passed by any judicial forum, in favour of the borrowers/ guarantor/ any aggrieved person, who is party to this lis.

Respondents no. 5 is directed to file a compliance report before the Registry of this Court within 45 days from the date of passing of this order. The Registry shall ensure that, in case any deficiency is found in the compliance report so filed, the matter be placed before the appropriate Bench on the judicial side under IOIN category.

(SHEEL NAGU) CHIEF JUSTICE

(NEERJA KULWANT KALSON) JUDGE

12.01.2026

Kamal Gandhi

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

KAMAL GANDHI 2026.01.13 10:53 I attest to the accuracy and integrity of this document