Authority: Calcutta High Court (Bench of Justice Partha Sarathi Chatterjee)
Order Date: 15 October 2026
Case Overview
- Petitioners: Cholamandalam Investment and Finance Company Limited and others, represented by Advocate Reshmi Ghosh, filed writ petition (WPA 30197 of 2026) seeking direction to the District Magistrate, North 24 Parganas, to dispose of their application under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
- The application for physical possession of the secured asset was filed on 21 November 2025 after the loan account had been classified as NPA; notices under Sections 13(2) and 13(4) were issued subsequently.
- The District Magistrate has not issued any order despite the statutory requirement to decide within 30 days, or at most an additional 60 days, as per the first and second provisos to Section 14.
- Respondents (State of West Bengal, private respondents) raised objections, including claim that the secured creditor accepted money after NPA classification; however, the court noted that Section 14 proceedings are ministerial and borrowers have no right of audience.
Final Outcome
- The writ petition is disposed of by directing the District Magistrate, North 24 Parganas, to positively dispose of the petitioners’ Section 14 application within eight weeks from receipt of this order.
- The order may be certified and supplied to parties upon request.
Topics: Secured Asset Possession, Securitisation Act, Judicial Direction