Final Order 3

Order Details: COPY OF JUDICIAL PROCEEDINGS
Pdf Text: IN THE COURT OF MS. UPASANA SATIJA,
LD. CHIEF JUDICIAL MAGISTRATE, NORTH-WEST
DISTRICT, ROHINI COURTS, DELHI
Ct. Case No.25032/2026
AU SMALL FINANCE BANK LTD. ......Petitioner
VS.
SUNDER BAND & ORS. .....Respondents
ORDER ON APPLICATION FILED UNDER SECTION 14 OF
SECURITISATION AND RECONSTRUCTION OF FINANCIAL
ASSETS AND ENFORCEMENT OF SECURITY INTEREST
ACT, 2002.
08.09.2026
Present: 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 respondents are stated to be the borrowers as
defined in Section 2(1)(f) of SARFAESI Act. It is submitted that the
property as mentioned in the application i.e. “Property Situated
At : Out Of Khasra No.-86/2, House No. F-187, Village Rithala,
Colony Known As Vijay Vihar, Phase I, Village Rithala,
Delhi-110085, Admeasuring 34.28 Sq. Mtrs.” is a secured asset
upon which security interest was created by the borrowers to secure
repayment of the financial assistance extended by the applicant.
The borrowers committed default in repayment of the financial
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assistance and their account was classified as non-performing asset.
Subsequently, statutory notice in writing under section 13(2) of
SARFAESI Act was served upon the borrowers requiring them to
discharge their liability in full within sixty days, also detailing the
amount payable and the secured assets intended to be enforced in
the event of non-payment of secured debts but the borrowers have
failed to make the payment despite lapse of stipulated period.
3. As per the applicant, there is no pending objection or
representation received from the borrower.
4. It is further submitted that there is no stay by any
competent court or forum in favour of the respondents.
5. 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.
6. 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 asset and other supporting documents.
7. 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
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vests the Magistrate with powers to take all necessary steps and to
use force for compliance of its order.
8. The aforenoted assertions of the applicant, duly
supported by affidavit and documents, demonstrate that the
respondents had availed financial assistance from the applicant, that
the respondents had created security interest on the asset, that the
respondents defaulted in repayment of the loan, that the loan
account was declared non-performing asset, that the respondents
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.
9. Accordingly, the application of the secured
creditor/applicant is allowed. Advocate Sachin Kumar, Enrollment
No.D/1753/2022, Mobile No.7289810171, Office At Chamber No.
721, Rohini Courts, Delhi-110085, Email ID –
sachink7289@gmail.com is appointed to take possession of the
above described.
10. 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
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in implementing orders passed under the Act.
11. Accordingly, it is directed that the Receiver will give
15 days advance possession notice to the Authorised Officer of the
Secured Creditor and to the borrowers. The possession notice shall
also be affixed upon the main door or any other conspicuous
portion of the secured Asset. Photographs of the secured Asset with
the pasted possession notice shall be taken and filed by the
Receiver alongwith the report.
12. 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 is empowered to break open locks in case the asset is
found locked. The Receiver shall prepare inventory with regards to
the items kept inside the premises, 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 locked premises before take
over and after take over and photographs of the items kept inside
the premises shall also be taken by the Ld. Court Receiver and be
annexed with the report. Broken locks, if any, shall be sealed in
cloth pulanda and be deposited with concerned applicant.
Miscellaneous expenses on this account shall be borne by the
applicant. After taking over the subject property, it be handed over
to the authorised officer of the applicant. The expenses on this
account shall be borne by the applicant and photographs be
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enclosed with the report. Accompanying witnesses shall sign the
proceedings.
13. The fee of the Ld. Court receiver is fixed at
Rs.40,000/- (Rupees Forty 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. Report of compliance of the above stated directions
shall be filed in the court within one month from today.
15. 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 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
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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.
16. 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.
17. 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 08th September, 2026
(UPASANA SATIJA)
Chief Judicial Magistrate,
North-West District, Rohini Courts, Delhi
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