Final Order 1

Order Details: COPY OF ORDER
Pdf Text: IIFL Home Finance Ltd Vs Deepak Gupta & Ors
03.06.2026
Fresh application u/s 14 of SARFAESI Act is received by way of
assignment. It be checked and registered as per rules.
Present: AR of applicant in person.
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 “Freehold DDA built up
Flat no. 107, Area measuring 18 Sq. Mts, 3rd Floor, Under Janta-Category,
Pocket-9, Block-B, Sec-B-4, situated in the layout plan of Narela
Residential Scheme, Delhi-40.” 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 applicant that the borrowers have 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.
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4. Separate statement of AR is recorded regarding original documents
relied upon by the applicant. 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. Sh. Ankit, Advocate,
Enrl. No. D/1552/2023, mobile no. 8826983533, 9813532522, Office at : Ch.
No. P-26, Post Office Line, THC, Delhi-54 & Ch. No. 223-224, Block H,
Sonipat District Court, Haryana, is appointed as Receiver to take possession
of the secured asset i.e.“Freehold DDA built up Flat no. 107, Area measuring
18 Sq. Mts, 3rd Floor, Under Janta-Category, Pocket-9, Block-B, Sec-B-4,
situated in the layout plan of Narela Residential Scheme, Delhi-40.” 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-
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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 acknowledgment 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.
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. 70,000/- (Rupees Seventy
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
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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.
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
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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.
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.
(Priyanka Rajpoot)
Chief Judicial Magistrate, North District,
Rohini Courts, Delhi/03.06.2026
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