Chattisgarh High Court
Yes Bank Ltd vs State Of Chhattisgarh on 22 July, 2025
1
2025:CGHC:34794
NAFR
HIGH COURT OF CHHATTISGARH AT BILASPUR
WPC No. 3819 of 2025
1 - Yes Bank Ltd., Through Authorized Officer, Rajveer Singh Sindhu, Aged About
40 Years, Head Office- Yes Bank Tower, Ifc 02, 23rd Floor, Senapati Bopat Marg,
Elphinestone, (W) Mumbai 400013 Branch Office- Yes Bank Ltd., 4th Floor, Pujari
Chamber, Near Pachpedi Naka, Tagore Nagar, Raipur, District Raipur
(Chhattisgarh) 492001
... Petitioner(s)
versus
1 - State Of Chhattisgarh Through Secretary, General Administration, Mahanadi
Bhavan, New Mantralaya, Atal Nagar, New Raipur (Chhattisgarh)
2 - The Chief Judicial Magistrate, Dist. Raipur (Chhattisgarh) (Authority Under Sec
14 Of The Sarafesi Act)
3 - Soshit Sahu, S/o Bhagwat Prasad Sahu, R/o (1) Avinash Aashiyana
Apartment, No.-104, 1st Floor, Block No.-A, Kota, Ramkrishna Parmhans, Ward
No. 02, Near- C.E.C.B. Raipur, Main Office, Distt. Raipur (Chhattisgarh) 4920099
(2) Self Power Directory Marketing Pvt. Ltd., 58 Vallabh Nagar, Pachpedi Naka,
Raipur (Chhattisgarh) 492001 (3) R/o- H.K. Rathore, M.I.G.- 271 (A), Sector-2
Deendayal Upadhyay Nagar, Near Appu Sweets, Raipur (Chhattisgarh)
4 - Smt. Sarita Sahu, W/o Shri Soshit Sahu, R/o (1) Avinash Aashiyana Apartment,
No.-104, 1st Floor, Block No.-A, Kota, Ramkrishna Parmhans, Ward No. 02, Near-
C.E.C.B. Raipur, Main Office, Distt. Raipur (Chhattisgarh) 4920099 (2) Self Power
Directory Marketing Pvt. Ltd., 58 Vallabh Nagar, Pachpedi Naka, Raipur
(Chhattisgarh) 492001 (3) R/o- H.K. Rathore, M.I.G.- 271 (A), Sector-2 Deendayal
Upadhyay Nagar, Near Appu Sweets, Raipur (Chhattisgarh)
----Respondents
(Cause-title taken from Case Information System)
For Petitioner : Mr. Saumya Sharma, Advocate
For Respondent-State : Mr. Soumitra Kesharwani, P.L.
Digitally
JYOTI signed
by
JHA JYOTI
JHA
2
Hon’ble Shri Arvind Kumar Verma
Order on Board
22/07/2025
1. Counsel for the Petitioner prays for the following relief(s):-
(i)That, this Hon’ble Court may kindly be pleased to
pass an appropriate writ, order or direction to the
respondent No. 2 and direct him to dispose of the
pending application filed under Section 14 of
SARFAESI Act accordance with law within a stipulated
time as mentioned in the Act.
(ii) That, this Hon’ble Court may kindly be pleased to
grant any other relief(s)/ writ (s), order(s) in favour of
the petitioner, which the Hon’ble Court deemed fit and
just in the facts and circumstances of the case,
including awarding of the costs to the petitioner.
2. Learned Counsel for Petitioner submits that the procedure under
Section 14 of the Securitisation and Reconstruction of Financial
Assets and Enforcement of Security Interest Act, 2002 (for short,
‘the SARFAESI Act‘) was commenced against the borrowers as
their account was declared as NPA.
3. According to 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 several months period has elapsed,
the proceeding under Section 14 of the SARFAESI Act has not
been concluded by Respondent No. 2.
4. For ready reference, the proviso clause of Section 14 of the
SARFAESI Act, is reproduced as under:-
“1[Provided that any application by the secured
creditor shall be accompanied by an affidavit duly
affirmed by the authorized 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
3Bank 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 secured 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 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.]
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.]
[(1A) The District Magistrate or the Chief
Metropolitan Magistrate may authorise any officer
subordinate to him,-
(i) to take possession of such assets and
4documents relating thereto; and
(ii) to forward such assets and documents to the
secured creditor.]
(2) For the purpose of securing compliance with
the provisions of sub-section (1), the Chief
Metropolitan Magistrate of the District Magistrate
may take or cause to be taken such steps and use,
or cause to be used, such force, as may, in his
opinion, be necessary.
(3) No act of the Chief Metropolitan Magistrate or
the District Magistrate [any officer authorised by the
Chief Metropolitan Magistrate or District Magistrate]
done in pursuance of this section shall be called in
question in any court or before any authority.”
5. The SARFAESI Act provides that when Section 14 proceeding is
moved, the Officer shall, after satisfying the contents of the
affidavit, shall 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 but shall not exceed which
aggregate to sixty days. The SARFAESI Act further provides that
the reasons shall also be recorded in the order of such extension.
6. Prima facie, the documents, in the instant case, would show that
the sixty days’ period have already completed much before.
Therefore, the Respondent No.2 is directed to conclude the
proceeding under Section 14 of the SARFAESI Act within 30 days
from the next date fixed.
7. With the aforesaid observations and directions, this petition stands
disposed of.
Sd/-
(Arvind Kumar Verma)
Judge
Jyoti