Chattisgarh High Court
Hdfc Bank Limited vs State Of Chhattisgarh on 18 June, 2025
1
2025:CGHC:25183
NAFR
HIGH COURT OF CHHATTISGARH AT BILASPUR
WPC No. 2983 of 2025
1 - Hdfc Bank Limited Through Authorized Officer, Rajesh Kulakada, Dy. Vice President,
Aged 51 Years, Having Office Address At Hdfc Bank Ltd., Department Of Special
Operations, Peninsula Business Park, B-Wing, 4th Floor, Ganpatrao Kadam Marg, Lower
Parel West, Mumbai, Maharashtra - 400013 And Branch Office Hdfc Bank, 1st Floor, Ecg,
Bajrang Towers, Opp. Uco Bank, New Rajendra Nagar, Raipur (C.G.) - 492001.
... Petitioner(s)
versus
1 - State Of Chhattisgarh Through Secretary, General Administration, Mahanadi Bhavan,
New Mantralaya, Atal Nagar, New Raipur (C.G.)
2 - The Chief Judicial Magistrate Dist - Raipur (C.G.) (Authority Under Sec 14 Of The
Sarfaesi Act)
3 - M/s. Ac Steels Through Partner Shri Rajendra Surana, R/o. Sector- C, 71/72, Urla
Industrial Area, Dharsiwa, Dist. Raipur (C.G.)
4 - Rajendra Surana Addressed At Middle Income Group, Housing Corporative Society, Flat
No. 87, Vivekanand Nagar, District - Raipur (C.G.)
5 - Rahul Surana Addressed At Middle Income Group, Housing Corporative Society, Flat
No. 87, Vivekanand Nagar, District - Raipur (C.G.)
6 - Shreyansh Surana Addressed At Middle Income Group, Housing Corporative Society,
Flat No. 87, Vivekanand Nagar, District - Raipur (C.G.)
7 - Santoshi Devi Surana Addressed At Middle Income Group, Housing Corporative Society,
Flat No. 87, Vivekanand Nagar, District - Raipur (C.G.)
... Respondent(s)
2
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
18/06/2025
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 7, 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 the Act, 2002 was filed on
14.12.2024 and from December, 2024 though 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
3granted 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;
(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
4with 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.]”
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.
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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
Madhurima