Courts may direct District Magistrates to decide pending SARFAESI Section 14 applications within a time-bound period.

The petitioner-bank had extended secured financial assistance to the private respondents, whose loan accounts were subsequently classified as Non-Performing Assets.

After issuing a demand notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“SARFAESI Act”), the Bank initiated proceedings for taking possession of the secured assets.

It filed an application under Section 14 of the SARFAESI Act before the District Magistrate on 25 May 2026, registered as Revenue Case No. 202605090100030/2025–2026.

The application remained undecided, allegedly beyond the statutory period, leading the Bank to seek a direction for its expeditious disposal.

Whether the High Court should direct the District Magistrate to consider and decide the Bank’s pending application under Section 14 of the SARFAESI Act within a time-bound period.

Whether such a direction could be issued without expressing any opinion on the Bank’s entitlement to possession of the secured assets.

The Court applied Section 14 of the SARFAESI Act, which provides for assistance by the Chief Metropolitan Magistrate or District Magistrate in taking possession of secured assets and contemplates expeditious consideration of such applications.

The Court accepted that proceedings under Section 14 are limited in nature and do not involve adjudication of the substantive rights of the parties.

The Court also referred to the principle of expeditious disposal of Section 14 applications, including the statutory requirement concerning disposal within the prescribed period.

The petitioner relied on the decision in W.P.(C) No. 2274 of 2026, decided on 7 May 2026, in which directions had similarly been issued for action under Section 14 of the SARFAESI Act.

The Court found that the Bank’s Section 14 application had been pending before the competent District Magistrate since 25 May 2026 and that the grievance was confined to non-consideration of that application.

Given the limited and non-adjudicatory nature of Section 14 proceedings, together with the requirement of expeditious disposal, the Court held that a time-bound direction was warranted.

The direction was procedural only: the Court did not determine whether the Bank was entitled to possession or otherwise decide the merits of the application.

The District Magistrate was required to pass an independent order, and the High Court expressly refrained from commenting on the Bank’s entitlement.

No order as to costs was made.