Tahsildar Must Decide Section 14 SARFAESI Proceedings Within 45 Days, Absent Stay or Hindrance

The Bank, after classifying the borrowers’ loan account as a non-performing asset, issued a demand notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“SARFAESI Act”) and subsequently initiated proceedings under Section 14.

The District Magistrate allowed the Bank’s application on 16 March 2026.

The Bank later approached the Tahsildar seeking implementation of that order and possession of the secured property, but alleged that no effective action had been taken despite its representations.

The Bank filed this petition seeking, among other reliefs, a direction to the authorities to decide its representation.

Whether the Tahsildar should be directed to consider the Bank’s pending representation/proceedings and take consequential steps following the District Magistrate’s order under Section 14 of the SARFAESI Act.

Whether the Court should express any view on the merits of the Bank’s claim to possession of the secured asset.

Section 13(2) of the SARFAESI Act provides for a demand notice calling upon a borrower to discharge outstanding liabilities, while Section 14 enables the District Magistrate or Chief Metropolitan Magistrate to assist a secured creditor in taking possession of secured assets.

The Court applied these provisions in the context of the existing order under Section 14 and the Bank’s request for consequential action; it did not cite or apply any precedent, nor determine the merits of the Bank’s entitlement to possession.

The Court noted that the Bank had obtained an order under Section 14 and had submitted representations to the Tahsildar, but alleged that no consequential action had followed.

In view of the State’s submission that the matter could be processed by the revenue authorities in accordance with law, the Court considered it appropriate to direct the Tahsildar to address the pending proceedings or representation and take consequential steps, subject to any hindrance or stay by a competent authority or court.

The Court expressly left the merits to the authority concerned.

The Court expressed no opinion on the merits.