Authority: High Court of Punjab & Haryana at Chandigarh

Order Date: 17 July 2026

Case Overview

  • Parties: petitioner Jana Small Finance Bank Ltd (financial institution) vs. State of Punjab and others, specifically the Chief Judicial Magistrate (CMM), Ludhiana.
  • Nature of Proceeding: Writ petition under Article 226 of the Constitution invoking supervisory jurisdiction, seeking mandamus against the CMM for failure to decide an application filed under Section 14 of the SARFAESI Act.
  • Loan Details: The bank extended a loan facility of Rs 30,57,668 to the borrower(s). The loan defaulted and was classified as a Non‑Performing Asset (NPA).
  • SARFAESI Process:
  • Demand notice under Section 13(2) served on 15‑Dec‑2025.
  • Borrower(s) failed to comply; possession notice under Section 13(4) issued on 19‑Feb‑2026.
  • Application under Section 14 filed on 27‑Feb‑2026 with the CMM, Ludhiana.
  • Delay: The application remained pending for more than the statutory period; the CMM had not acted within the maximum 60‑day limit.
  • Legal Precedents Cited:
  • R.D. Jain & Co. vs. Capital First Ltd. (2023 (1) SCC 675) – clarified that the CMM’s duty under Section 14 is ministerial and must be exercised within 30 days, extendable up to a total of 60 days.
  • NKGSB Coop. Bank Ltd. v. Subir Chakravarty (2022 10 SCC 286) – reiterated the ministerial nature of the CMM’s role.
  • Bank of Maharashtra vs. District Magistrate, Hisar (CWP‑7018‑2022 decided on 28‑May‑2024) – guidelines to be adhered to by authorities.
  • No Other Proceedings: The petition states that no proceedings are pending before Debt Recovery Tribunal (DRT) or Debt Recovery Appellate Tribunal (DRAT).

Final Outcome

  • The Court issued a writ of mandamus directing the Chief Judicial Magistrate, Ludhiana, to decide the pending Section 14 application by 10 Sep 2026. If the matter cannot be decided on that date, the magistrate must decide it within 30 days thereafter.
  • The order is subject to any restraint, interim, or final order that may have been passed by any other judicial forum in favour of the borrowers, guarantors, or any aggrieved party.

Topics: SARFAESI Act, Banking Regulation