Final Order 3

Order Details: COPY OF ORDER
Pdf Text: IN THE COURT OF MS. UPASANA SATIJA,
LD. CHIEF JUDICIAL MAGISTRATE, NORTH-WEST
DISTRICT, ROHINI COURTS, DELHI
Ct. Case No.927/2026
Bank of Baroda ......Petitioner
VS.
Preet Pal Singh ....Respondents
ORDER
ORDER ON APPLICATION FILED UNDER SECTION 14 OF
SECURITISATION AND RECONSTRUCTION OF
FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY
INTEREST ACT, 2002.
11.02.2026
Present: Sh. Siddharth, Ld. Counsel for the applicant.
1. The present application is filed under section 14 of the
Securitisation and Reconstruction of Financial Assets and
enforcement of Security Interest Act, 2002 (hereinafter referred as
‘SARFAESI Act’).
2. It is stated in the application that the applicant is a
secured creditor. The respondent is stated to be the borrower as
defined in Section 2(1)(f) of SARFAESI Act. The present
application is filed seeking assistance of this Court for taking
physical possession of following hypothecated vehicle:
Maruti Grand Vitara Smart Hybrid Sigma
Colour Pearl Arctic White
Vehicle No. DL-7CV-4945
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Engine No.- K15CN7168358,
Chassis No. MBJTYKL1SPF156616,
Fuel Type Petrol (hereinafter referred to as ‘asset’)
3. It is submitted that the aforesaid property as
mentioned in the application is secured asset upon which security
interest was created by the borrower to secure repayment of the
financial assistance extended by the applicant on three different
occasions. The borrower committed default in repayment of the
financial assistance and his account was classified as non-
performing asset. Subsequently, statutory notice in writing under
section 13(2) of SARFAESI Act was served upon the borrower
requiring them to discharge his liability in full within sixty days,
also detailing the amount payable and the secured asset intended to
be enforced in the event of non-payment of secured debts but the
borrower has failed to make the payment despite lapse of
stipulated period.
4. As per the applicant, there is no pending objection or
representation received from the borrower.
5. It is further submitted that there is no stay by any
competent court or forum in favour of the respondent.
6. Affidavit of the Authorized Officer of the secured
creditor, as required by proviso of Section 14(1) of the Act, has
also been filed. The affidavit discloses the extent of financial
assistance granted and the claim of the Finance Company as on the
date of filing the application. It reiterates the aforenoted pleas and
fulfils the requirements of the said proviso.
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7. Original documents relied upon by the applicant were
produced for the inspection of the court. After inspection, the
original documents were returned. I have heard arguments
advanced by the Ld. Counsel for the secured creditor and have
perused the application, affidavit of authorized officer, title deeds
of the assets and other supporting documents.
8. Section 14 of the Act enjoins 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 Magistrate with powers to take all necessary steps and to
use force for compliance of its order.
9. The aforenoted assertions of the applicant, duly
supported by affidavit and documents, demonstrate that the
respondent had availed financial assistance from the applicant, that
the respondent had created security interest on the asset, that the
respondent defaulted in repayment of the loan, that the loan
account was declared non-performing asset, that the respondent
failed to pay the outstanding loan amount even after receiving
notice under section 13 (2) of the Act which afforded a period of
sixty days to do so and that there is no pending objection or
representation of the respondents.
10. Accordingly, the application of the secured
creditor/applicant is allowed. Advocate Yugansh Sharma,
Enrollment No. D/12296/25, Mobile No.8448456391, Chamber
No. K-78, Near Gate No.2, Tis Hazari Court, EmailId-
advocateyugaanshsharma@gmail.com is appointed to take
possession of the above described assets.
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11. The provisos to Section 14(1) of the Act provide a
time limit for disposal of application under Section 14. This has
been done so that possession of the secured Asset can be obtained
by the secured Creditor expeditiously. In the case of
Cholamandalam Investment and Finance Company Limited vs.
Rajeev Chawla and Ors. CM(M) No.716/2021 dated 22.10.2021,
the Hon'ble High Court held that time is of essence in proceedings
initiated under the Securitization and Reconstruction of Financial
Assets and Enforcement of Security Interest Act, 2002. It was held
that the purpose behind the Act will be frustrated if there are
delays in implementing orders passed under the Act.
12. Accordingly, for securing compliance of this order,
the Receiver may obtain the assistance of the police including
women police officials, if required and take such other steps and
use such force as is found necessary. Police shall render assistance
and provide adequate force for protection of the above named
person and of the company employees involved in recovery of the
asset. The Receiver shall take photographs/video-record the entire
possession proceedings. The Receiver shall prepare inventory with
regards to the items kept inside the assets, if any and hand over one
list duly signed by the witnesses and by the Ld. Court Receiver to
the borrower, if present at the site. One copy of the same duly
signed by the witnesses and by the Ld. Court Receiver will be
annexed with his report. Photographs of the items kept inside the
assets shall also be taken by the Ld. Court Receiver and be
annexed with the report. Miscellaneous expenses on this account
shall be borne by the applicant. After taking over the subject
assets, they be handed over to the authorised officer of the
applicant. The expenses on this account shall be borne by the
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applicant and photographs be enclosed with the report.
Accompanying witnesses shall sign the proceedings.
13. The fee of the Ld. Court receiver is fixed at
Rs.25,000/- (Rupees Twenty Five Thousand only) to be paid by
the applicant company and the same shall be paid to the Ld. Court
Receiver within seven days from today. TDS, if any, shall not be
included in the Receiver’s fee. The applicant would furnish all
necessary details of the aforesaid property and borrower to the
Receiver within 3 days of this order and would extend full
cooperation to the Receiver for execution of this order.
14. After taking possession of the secured asset, the
Receiver shall intimate about the same to the borrower.
15. Report of compliance of the above stated directions
shall be filed in the court within one month from today.
16. If the recovery proceedings are stayed by order of
Debt Recovery Tribunal or other fora, and in case the stay order is
subsequently vacated or the applicant is granted liberty to recover
possession of the property, the mandate of the Receiver to recover
possession would stand extended and the Receiver shall be at
liberty to recover possession of the secured asset and to hand it
over to the applicant Finance Company notwithstanding the expiry
of aforesaid period of one month. For this purpose, the applicant
Finance Company may itself contact the Receiver and the Receiver
shall recover possession on the same terms as are mentioned in this
order. There shall be no need for the applicant Finance Company
to approach this court for extension of time or other directions.
However, if the applicant Finance Company, of its own, decides
not to recover possession, it shall apply to this court to terminate
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the mandate of the Receiver and it shall not be lawful for it to itself
instruct the Receiver to refrain from or to delay the recovery of
possession. In case there is delay on the part of the applicant in
compliance with this order, the same shall be explained by the
applicant Finance Company by affidavit of the Authorized Officer.
17. 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.
18. Since the directions sought by the applicant have been
passed, nothing survives in the matter. Let file be consigned to
record room after receiving compliance report.
Copy of this order be given dasti to the Ld. counsel
for the applicant. The Reader/Ahlmad shall send a copy of this
order to the Receiver by e-mode within two working days from
today.
Announced in open Court
on 11th February, 2026 (UPASANA SATIJA)
Chief Judicial Magistrate,
North-West District, Rohini Courts, Delhi
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