Facts
The Bank initiated enforcement proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“SARFAESI Act”) after the borrower’s account was classified as a non-performing asset.
Source reference: no citationFollowing notices under Section 13(2) and the possession notice, the Bank obtained an order under Section 14 from the District Magistrate on 23 July 2026.
Source reference: no citationIt alleged that the Tahsildar had not taken consequential steps to secure possession despite the Bank’s representations, and sought a direction for implementation of the order
Source reference: para. 2, 5The State did not oppose a direction requiring the Tahsildar to act within a reasonable timeframe
Source reference: para. 3Issues
Whether the concerned revenue authorities had failed to take consequential steps to implement the District Magistrate’s order under Section 14 of the SARFAESI Act
Source reference: para. 2, 5Whether the Tahsildar should be directed to implement that order and take steps to hand over possession of the secured asset within a specified period
Source reference: para. 2, 6Law Applied
The Court considered Sections 13(2) and 14 of the SARFAESI Act, 2002.
Source reference: para. 2, 6The judgment proceeded on the basis that, once an order under Section 14 has been passed, consequential steps to obtain possession may be taken by the concerned authorities in accordance with law, subject to any legal impediment or stay order.
Source reference: para. 2, 6Reasoning
The Court noted that the Bank had obtained a Section 14 order and that its grievance concerned the absence of consequential action by the Tahsildar despite representations.
Source reference: para. 5Given the State’s no-objection to a time-bound direction, the Court directed implementation of the order, while qualifying that direction by requiring compliance with law and making it subject to any legal impediment or stay by a competent court or authority.
Source reference: para. 3, 6–7Holding
The Court disposed of the writ petition and directed the concerned Tahsildar to implement the District Magistrate’s order dated 23 July 2026 and take consequential steps to hand over possession of the secured asset to the Bank within 45 days of receiving a certified copy of the judgment, provided no legal impediment or stay existed.
The Court expressed no opinion on the merits and required the authority to proceed in accordance with law.
Source reference: para. 7Acts & Sections Cited
2 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 20022
Original Court PDF
BANK OF BARODAvsSTATE OF CHHATTISGARH
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