ICICI Home Finance Wins SARFAESI Mandamus

Authority: High Court of Punjab & Haryana at Chandigarh

Order Date: 08 July 2026

Petitioner: ICICI Home Finance Co. Limited, a housing finance company.
Respondents: Sushil Kumar and others (borrowers) and the Chief Judicial Magistrate, Ludhiana (respondent No.3).
Borrowers obtained a loan of Rs 15,75,000 from the petitioner; default led to classification as a Non‑Performing Asset (NPA).
A demand notice under Section 13(2) of the SARFAESI Act was served on 12 Nov 2024, giving 60 days for repayment.
Borrowers failed to comply; a possession notice under Section 13(4) was issued on 18 Feb 2025.
The petitioner filed an application under Section 14 of the SARFAESI Act on 12 Mar 2025 seeking possession of secured assets.
The application remained pending before the Chief Judicial Magistrate, Ludhiana, with no order issued, exceeding the statutory period of 30 days (extendable to 60 days).
The Court referred to Supreme Court judgments (R.D. Jain & Co. v. Capital First Ltd., 2023; NKGSB Coop. Bank Ltd. v. Subir Chakravarty, 2022) emphasizing that the magistrate’s function under Section 14 is ministerial and must be completed within the prescribed time limit.
The Court also noted the guidelines from the Coordinate Bench in Bank of Maharashtra v. District Magistrate, Hisar (CWP‑7018‑2022, decided 28 May 2024).

The Court issued a writ of mandamus directing the Chief Judicial Magistrate, Ludhiana, to decide the Section 14 application dated 12 Mar 2025 on or before 10 Sep 2026.
If the magistrate cannot decide on that date, the Court ordered the decision to be rendered expeditiously within 30 days thereafter.
The order is subject to any interim or final orders that may have been passed by other judicial forums in favour of the borrowers, guarantors, or any aggrieved parties.

Topics: SARFAESI Act, Mandamus, Housing Finance