District authorities must restore secured-asset possession under Section 14 after alleged forcible re-entry.

The petitioner, a secured creditor, initiated proceedings under the SARFAESI Act after borrowers defaulted on their loan.

The judgment records that an order under Section 14 was passed on 30 January 2025 for taking possession of the secured property, and that possession proceedings culminated in a panchnama dated 11 April 2025

The petitioner alleged that the borrowers broke the locks and re-entered the property on 29 August 2025.

It said that it notified the revenue authorities and sought restoration of possession, but the borrowers remained in occupation

The petitioner then sought, under Article 226, restoration of possession and administrative and police assistance to implement the Section 14 order

1. Whether the District Magistrate should take steps to restore possession of the secured asset to the petitioner following the alleged re-entry after possession had been taken under Section 14 of the SARFAESI Act

2. Whether the district administration and police should provide assistance to implement the Section 14 order and secure peaceful possession for the petitioner

Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 provides for assistance in taking possession of a secured asset.

The Court applied the principle that, once possession proceedings have been undertaken pursuant to a Section 14 order, the district administration must ensure their effective implementation and that the secured creditor is not deprived of possession otherwise than in accordance with law.

The petition was brought under Article 226 of the Constitution; the judgment cites no precedent.

The Court relied on the Section 14 order and the panchnama as evidence that possession proceedings had been undertaken.

Given the petitioner’s allegation that the borrowers had thereafter re-entered the property and remained there, the Court considered administrative action necessary to give effect to the statutory proceedings.

It directed the authorities to verify the secured asset and relevant possession proceedings, and to address any resistance in accordance with law.

The Superintendent of Police, Gwalior, was directed to provide adequate police assistance.

The exercise was to be undertaken forthwith, without avoidable delay, subject to verification of the asset and possession proceedings.