Authority: High Court of Punjab & Haryana at Chandigarh (Coram: Hon'ble Mr. Justice Jasgurpreet Singh Puri, Hon'ble Mr. Justice Sanjiv Berry)

Order Date: 17 July 2026

Case Overview

  • Petition filed by AU Small Finance Bank Limited (petitioner) against District Magistrate cum District Collector SAS Nagar (Mohali) and others (respondents) seeking enforcement of an order dated 10 March 2026 issued by the Chief Judicial Magistrate, SAS Nagar, under Section 14 of the SARFAESI Act, 2002.
  • The petitioner alleged that the respondents failed to assist in handing over physical possession of the secured asset to the official receiver appointed under the SARFAESI order, thereby hindering recovery of the outstanding dues.
  • The Court noted the importance of prompt enforcement of SARFAESI provisions to mitigate the burden of non‑performing assets on the banking system.

Final Outcome

  • The Court, by way of a writ of mandamus, directs Respondents No.2 to 4 to provide all necessary assistance, including police help, to the official Receiver (Respondent No.5) and to execute the order dated 10 March 2026 by handing over physical possession of the secured asset to AU Small Finance Bank within 30 days of this order.
  • Respondent No.4 is ordered to file a compliance report before the Court Registry within 45 days from the date of this order; any deficiencies in the report will be placed before the appropriate Bench under the IOIN category.
  • The order is subject to any restraining, interim, or final orders that may have been passed by any other judicial forum in favour of borrowers, guarantors, or other aggrieved parties.
  • The Court reiterates that the guidelines laid down by the Coordinate Bench in Bank of Maharashtra Vs. District Magistrate, Hisar And Others (CWP‑7018‑2022 decided on 28.05.2024) must be adhered to.
  • The order does not prejudice any party’s right to approach the Debt Recovery Tribunal (DRT) or Debt Recovery Appellate Tribunal (DRAT) for appropriate remedies under the SARFAESI Act.

Topics: Court Order, SARFAESI Enforcement, Asset Recovery