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

Order Date: 08.07.2026

Case Overview

  • Parties: Petitioner – ICICI Home Finance Co. Limited (financial institution); Respondents – Vishnu Sahu and others (borrowers). The Chief Judicial Magistrate, Ludhiana, is the third respondent.
  • Nature of Proceeding: Petition under Article 226/227 of the Constitution seeking a writ of mandamus for non‑action by the Chief Judicial Magistrate on an application filed under Section 14 of the SARFAESI Act.
  • Loan Details: Borrowers obtained a loan facility of Rs 11,00,000 from ICICI Home Finance. The loan was classified as a Non‑Performing Asset (NPA).
  • SARFAESI Timeline:
  • Demand notice under Section 13(2) served on 19.02.2025, demanding repayment within 60 days.
  • Borrowers defaulted; possession notice under Section 13(4) issued on 07.05.2025.
  • Application under Section 14 filed on 09.06.2025 with the Chief Judicial Magistrate, Ludhiana.
  • Procedural Background: No Security Agreement (SA) pending before Debt Recovery Tribunal/Board. The petitioner alleges the magistrate failed to act within the statutory period (30 days, extendable to 60 days) prescribed under Section 14.
  • Legal Precedents Cited:
  • R.D. Jain & Co. vs Capital First Ltd. (2023) 1 SCC 675 – clarifies the ministerial nature of the magistrate’s duty and the 30‑day (extendable to 60) time‑limit.
  • NKGSB Coop. Bank Ltd. v. Subir Chakravarty (2022) 10 SCC 286 – reiterates that the magistrate’s action is ministerial, not adjudicatory.
  • Bank of Maharashtra vs. District Magistrate, Hisar (CWP‑7018‑2022 decided on 28.05.2024) – guidelines to be adhered to.

Final Outcome

  • The Court issues a writ of mandamus directing the Chief Judicial Magistrate, Ludhiana, to decide the Section 14 application (Annexure P‑2) dated 09.06.2025 on or before 20.07.2026. If the matter cannot be decided on that date, the magistrate must decide it expeditiously within 30 days thereafter.
  • The order is expressly subject to any interim, restraining, or final orders that may have been passed by any other judicial forum in favour of the borrowers, guarantors, or any aggrieved party.

Topics: SARFAESI Enforcement, Judicial Mandamus, Housing Finance