Chattisgarh High Court
H.D.B. Financial Services Limited vs State Of Chhattisgarh on 1 July, 2025
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2025:CGHC:29657
NAFR
HIGH COURT OF CHHATTISGARH AT BILASPUR
WPC No. 2124 of 2025
H.D.B. Financial Services Limited At - H.D.B. Financial Services
Limited, 1st Floor, Wilson House, Old Nagardas Road, Near Anmboli
Subway, Andheri (E.), Mumbai - 400069, Through - Authorized Officer,
Sayyad Hamid Ali S/o Sayyad Zamid Ali, Age 34 Years, R/o Bhatagaon,
Dist. - Raipur (C.G.), Adhar No. 6907-8867-0467, Posted As Legal
Assistant, Office/ Branch, Branch Office At - 2nd Floor, Forum Business
Center, Bhatagaon, Raipur (C.G.) 492001, (Address And Details
Variedly/ Completely Not Mentioned In Order Sheet / Annexures)
... Petitioner(s)
versus
1 - State Of Chhattisgarh Through - Secretary, General Administration,
Mahanadi Bhavan, New Mantralaya, Atal Nagar, New Raipur (C.G.)
2 - The Collector / District Magistrate Dist. - Bilaspur (C.G.), (Authority
Under Sec 14 Of The Sarfaesi Act)
3 - Priya House Addressed At Jalgrih Marg Complex, Tikrapara, Dist. -
Raipur (C.G.) - 492001 And Also At Bearing Khasra No.-115/s,
Comrising Area 0.011 Hect, Mauja Mathpurena, Awadhpuri Nagar
Shyam Prasad Mukharji, Dist. - Raipur (C.G.) 492101
4 - Rashmi Katiyar R/o 340/4, Bindrawan, Raipur - 492001, Rawatpura
Colony, Mathpurena, Dist. - Raipur (C.G.)
5 - Preeti Katiyar R/o 340/4, Bindrawan, Raipur - 492001, Rawatpura
Colony, Mathpurena, Dist. - Raipur (C.G.)
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6 - Anita Singh Katiyar R/o 340/4, Bindrawan, Raipur - 492001,
Rawatpura Colony, Mathpurena, Dist. - Raipur (C.G.)
7 - Ajay Katiyar R/o 340/4, Bindrawan, Raipur - 492001, Rawatpura
Colony, Mathpurena, Dist. - Raipur (C.G.)
8 - Neeraj Katiyar R/o 340/4, Bindrawan, Raipur - 492001, Rawatpura
Colony, Mathpurena, Dist. - Raipur (C.G.)
9 - Dheeraj Katiyar (Now Deceaed) (Legal Heirs Are Already Parties To
The Case At Respondent No. 4 To 8), R/o 340/4, Bindrawan, Raipur -
492001, Rawatpura Colony, Mathpurena, Dist. – Raipur (C.G.)
… Respondent(s)
For Petitioner(s) : Mr. Devershi Thakur, Advocate
For Respondent(s) : Mr. Rishabh Bisen, Panel Lawyer
Hon’ble Shri Justice Arvind Kumar Verma, Judge
Order on Board
01/07/2025
1. Learned counsel for the petitioner submits that the procedure
under Section 14 of the Securitisation and Reconstruction of
Financial Assests and Enforcement of Security Interest Act, 2002
(for short, ‘the SARFAESI Act‘) was commenced against the
borrowers i.e. respondents No. 3 to 9, as their account was
declared as NPA. It is stated that the proceeding was commenced
in the month of July, 2024.
2. According to the learned counsel for the petitioner, the proviso to
Section 14 of the SARFAESI Act provides that the decision on the
like nature of the said application to be concluded within a period
of 30 days and, if not so, within a further period of 60 days.
However, despite the fact that the application under Section 14 of
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the Act, 2002 was filed on 09.02.2024 and around 6 months’
period has elapsed, the proceeding under Section 14 of the
SARFAESI Act has not been concluded by Respondent No. 2.
3. For ready reference, the proviso clause of Section 14 of the
SARFAESI Act, is reproduced as under:-
“[Provided that any application by the secured
creditor shall be accompanied by an affidavit duly
affirmed by the authorised officer of the secured
creditor, declaring that-
(i) the aggregate amount of financial assistance
granted and the total claim of the Bank as on the
date of filing the application;
(ii)the borrower has created security interest over
various properties and that the Bank or Financial
Institution is holding a valid and subsisting security
interest over such properties and the claim of the
Bank or Financial Institution is within the limitation
period;
(iii)the borrower has created security interest over
various properties giving the details of properties
referred to in sub-clause (ii) above.
(iv)the borrower has committed default in
repayment of the financial assistance granted
aggregating the specified amount;
(v)consequent upon such default in repayment of
the fInancial assistance the account of the
borrower has been classified as a nonperforming
asset;
(vi)affirming that the period of sixty days notice as
required by the provisions of sub-section (2) of
section 13, demanding payment of the defaulted
financial assistance has been served on the
borrower;
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(vii)the objection or representation in reply to the
notice received from the borrower has been
considered by the secured creditor and reasons
for non-acceptance of such objection or
representation had been communicated to the
borrower;
(viii)the borrower has not made any repayment of
the financial assistance in spite of the above
notice and the Authorised Officer is, therefore,
entitled to take possession of the secl1red assets
under the provisions of sub-section (4) of section
13 read with section 14 of the principal Act;
(ix)that the provisions of this Act and the rules
made thereunder had been complied with:
Provided further that on receipt of the affidavit
from the Authorised Officer, the District Magistrate
or the Chief Metropolitan Magistrate, as the case
may be, shall after satisfying the contents of the
affidavit pass suitable orders for the purpose of
taking possession of the secured assets [within a
period of thirty days from the date of application]
Provided also that the requirement of filing
affidavit stated in the first proviso shall not apply to
proceeding pending before any District Magistrate
or the Chief Metropolitan Magistrate, as the case
may be, on the date of commencement of this
Act.]
[Provided further that if no order is passed by the
Chief Metropolitan Magistrate or District
Magistrate within the said period of thirty days for
reasons beyond his control, he may, after
recording reasons in writing for the same, pass the
order within such further period but not exceeding
in aggregate sixty days.]”
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4. The SARFAESI Act provides that when Section 14 proceeding is
moved, the Officer shall, after satisfying the contents of the
affidavit, pass suitable orders for the purpose of taking possession
of the secured assets within a period of thirty days from the date
of application and, if he fails to do it, then the said period of thirty
days may further extend to sixty days but shall not exceed which
aggregate to sixty days. The SARFAESI Act further provides that
the reasons shall also be recorded in the order.
5. Prima facie, the documents, in the instant case, show that the
sixty days’ period has already exceeded much before. Therefore,
the Respondent No.2 is directed to conclude the proceeding
under Section 14 of the SARFAESI Act within a further period of
30 days from the date of receipt of copy of this order.
6. With the aforesaid direction, the writ petition stands disposed of.
Sd/-
(Arvind Kumar Verma)
JUDGE
J.
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