Final Order 3

Order Details: COPY OF JUDICIAL PROCEEDINGS
Pdf Text: 19 MISC CRL/2790/2025
Au Small Finance Bank Ltd Vs. UMESH KUMAR
(Pandav Nagar)
16.01.2026
Present: Sh. Abhishek, Ld. Counsel for applicant along with
AR.
1. This order decides the application under Section 14 of
the Securitization and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002 (hereinafter referred to as
“the Act”) moved by present applicant praying that possession of the
secured asset may be taken and delivered to the applicant. The
property, described as “Property bearing no. B-13, Old plot no. A-
1, out of khasra no. 193/3, 195,196, consisting of whatsoever
thereon according to the site, with the rights of upper
construction upto the last storey, situated in the area of Village
Khichripur, in the abadi of B-block, gali no. 1, East Vinod Nagar,
Illaqa Shahdara, Delhi-110091, owned by Smt. Bhagwati,
Admeasuring 83.61 Sq. mtrs.” is stated to be a secured asset, as
secured interest was created upon the same by the borrowers to
secure repayment of the financial assistance/loan provided by the
applicant.
2. The application is accompanied by the affidavit of the
authorized officer of the secured creditor, as required by proviso of
section 14 (l) of the Act. The application, supporting affidavit and
documents demonstrate that the applicant is a secured creditor
whereas the respondents are borrowers within the meaning of the Act.
The affidavit further discloses the extent of financial assistance
granted and the claim of the applicant as on the date of filing the
application. It also emerges from the affidavit that the borrowers have
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defaulted in repayment of the financial assistance/loan. The loan
account has already been declared a Non-Performing Asset.
3. The affidavit has further averred that the secured creditor had
issued the statutory notice under section 13 (2) of the Act but the
respondents have failed to discharge their liability in full within the
stipulated period of sixty days from the date of notice. As per the
applicant, no objection received from the borrowers is pending.
4. Original documents relied upon by the applicant were
produced for the inspection of the court. After inspection, the original
documents were returned.
5. I have heard the submissions made by the Ld. counsel for the
applicant and perused the application, affidavit of authorized officer,
title deeds of the asset and other supporting documents.
6. Section 14 of the Act mandates the Chief Judicial Magistrate
to pass suitable orders for taking possession of the secured asset and
to forward it to the secured creditor. It further vests the Chief Judicial
Magistrate with powers to take all necessary steps and to use force
for compliance of its order.
7. Accordingly, the present application is allowed. Ms. Deepika
Kalra, Enrollment No. D-7543/19, Mobile No. 9871360600, Office
at: K-14, K.L. Sharma Building, Tis Hazari Courts, Delhi is
appointed as Receiver to take possession of the secured asset i.e.
“Property bearing no. B-13, Old plot no. A-1, out of khasra no.
193/3, 195,196, consisting of whatsoever thereon according to the
site, with the rights of upper construction upto the last storey,
situated in the area of Village Khichripur, in the abadi of B-block,
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gali no. 1, East Vinod Nagar, Illaqa Shahdara, Delhi-110091,
owned by Smt. Bhagwati, Admeasuring 83.61 Sq. mtrs.” and to
forward it to the secured creditor.
8. The Receiver shall give possession notice to the Authorized
Officer of the secured creditor and the borrower, to be served
personally / speed post at least fifteen days in advance. A copy of
such fifteen-days’ advance notice shall also be affixed on the main
door or other conspicuous part of the said property. A copy of this
order be also affixed along with such notice and photographs be also
taken as proof of the same.
9. After expiry of the notice, the Receiver shall take possession
of the aforesaid property. The entire proceedings shall be
photographed or video-recorded as per the demand of the situation.
The Receiver shall be empowered to break open the locks, doors,
windows, shutters and to remove any other kind of obstruction, if
required, for taking possession of the property. In such eventuality,
the Receiver shall prepare an inventory of the articles found lying
therein, which shall be duly signed by the witnesses as well as the
Receiver. Copies of the inventory duly signed as stated above shall
be handed over to the borrowers, if present at the site, under
acknowledgement and also to the Authorized Officer of the applicant.
10. After taking over the possession of the aforesaid secured asset,
the Receiver shall forward the same to the applicant through its
Authorized Officer. The Receiver shall exercise all due care and
caution to not violate the orders of any Court or forum relating to the
aforesaid property.
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11. The applicant shall furnish all necessary details to the Receiver
and would extend full co-operation for the purpose of execution of
this order. The SHO of the Police Station concerned is also directed
to provide police assistance to the Receiver to ensure smooth
execution of this order.
12. The fee of the Receiver is fixed at Rs. 80,000/- (Rupees
Eighty Thousand Only), which should be paid in advance to the
Receiver against acknowledgement.
13. It was held by the the Hon’ble Delhi High Court in the
judgment of Cholamandalam Investment and Finance Company
Limited vs. Rajeev Chawla and Ors. CM(M) No.716/2021 dated
22.10.2021 that time is essence in the proceedings initiated under
SARFAESI and the purpose behind the Act will be frustrated, if there
are delays in implementing the order passed under this Act.
Accordingly, it is directed that the Receiver shall issue the
possession notice to the Authorized Officer of the secured creditor
and to the borrowers within seven working days of receiving the
copy of this order.
14. The Receiver shall file his report along with
photographs/video, CD, documents if any, inventory prepared if any,
within one month of the execution of this order.
15. For removal of doubts, it is made clear that
objections/applications, if any, may be preferred by any borrower,
guarantor, mortgagor, lessee or any other aggrieved person before the
Debt Recovery Tribunal having jurisdiction, as per the amended
provisions of section 17 of SARFAESI Act.
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16. If the recovery proceedings are stayed by Debt Recovery
Tribunal or any other forum and in case the stay order is subsequently
vacated and the applicant is granted liberty to recover the possession
of the property, the mandate of the receiver to recover possession
would stands extended and he/she shall be at liberty to recover the
possession of secured asset and hand over the same to the applicant
of this case. For this purpose, the applicant through Authorized
Representative may itself contact the Receiver and the Receiver shall
recover the possession of the same on the same terms as mentioned in
this order and there shall not be any requirement for the applicant to
approach this court for the extension of time or any other directions.
However, if the petitioner of its own decides not to recover the
possession, it shall apply to this court to terminate the mandate of the
Receiver and it shall not be lawful for the petitioner to itself instruct
the Receiver to refrain from or to delay the recovery of possession.
17. If the applicant, of its own, decides not to recover the
possession of the secured asset because of any reason, then it shall be
mandatory on the part of the applicant to inform about the same to the
court within a week, from the date of order, failing which the
applicant shall be liable to pay the fee amount to the Receiver.
18. In case there is delay on the part of the applicant in compliance
with this order, the same shall be explained by the applicant bank by
filing affidavit in this regard of the authorized officer, in the court.
19. Nothing stated in this order shall be construed as a finding of
liability or a judicial determination of the issues in contention
between the parties.
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20. The application is accordingly disposed of. No further
proceedings are required by the undersigned on this application.
Thus, file be consigned to the Record Room after due compliance
21. Ahlmad/Reader is directed to inform the Receiver immediately
regarding his/her appointment in the present matter. A copy of this
order be given to the Receiver as well as to the Counsel/AR of the
applicant for compliance.
(Prigya Gupta)
CJM/East/KKD Courts/Delhi
16.01.2026
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