Execution of SARFAESI Orders Cannot Be Left to the Whims of Revenue Officials: Punjab & Haryana High Court Mandates Strict Timelines

“Just because no execution timeline is prescribed under Section 14 does not mean that the District Magistrate and Revenue Authorities can sit over the file and frustrate the object of the SARFAESI Act,” observed Chief Justice Sheel Nagu of the Punjab and Haryana High Court in a strong rebuke to administrative inertia.

On 20th August 2025, a Division Bench comprising Chief Justice Sheel Nagu and Justice Ramesh Kumari issued strict directives to enforce orders passed under Section 14 of the SARFAESI Act, 2002. The Court expressed concern over repeated non-compliance by Revenue Officers, particularly Tehsildars and Duty Magistrates, in executing judicial orders meant to facilitate secured creditors’ recovery.

“Non-Performing Assets Are A Public Burden—Delayed Execution Violates Legislative Mandate”

The petition arose from a grievance by AU Small Finance Bank over the non-execution of an order dated 14.02.2025 passed by the Chief Judicial Magistrate, Ludhiana under Section 14 of the SARFAESI Act, for handing over physical possession of a secured asset.

The High Court took serious exception to the delay and declared:

“NPAs are a huge burden on the public exchequer and financial system. Prompt enforcement of recovery under SARFAESI is paramount for liquidity in the system.”

The Court found it “surprising” that the Tehsildar-cum-Duty Magistrate, Ludhiana failed to discharge his statutory obligation, thereby delaying possession of the asset despite a valid judicial order.

High Court Directs Time-Bound Execution and Compliance with Prior Judgments

In a clear mandamus to the authorities, the Court ordered: “Respondent No.3 or the concerned authority is directed to execute the order dated 14.02.2025… by handing over possession to the petitioner Bank as expeditiously as possible, preferably within 30 days.”

Further, the Court insisted that the guidelines laid down in Bank of Maharashtra v. District Magistrate, Hisar, CWP-7018-2022 (decided 28.05.2024) be followed scrupulously.

The Bench also referred to earlier directives issued in a common order dated 14.05.2024 in CWP Nos. 11499/2019 and 7738/2023, where procedural timelines for passing and executing Section 14 orders were prescribed in detail.

Supreme Court in R.D. Jain Case Cited to Reiterate Ministerial Nature of SARFAESI Execution

The Court extensively quoted R.D. Jain & Co. v. Capital First Ltd., (2023) 1 SCC 675, where the Supreme Court held:

“The CMM/DM’s power under Section 14 is purely ministerial. Time is of the essence. Orders must be passed within 30 days of the application, extendable to a maximum of 60 days.”

It further clarified: “Execution of such orders is also a ministerial step, which may be done through subordinates or even Advocate Commissioners.”

This principle, the High Court noted, eliminates any justification for delay, particularly when recovery of public funds is at stake.

Orientation Course Ordered for All District Magistrates and Tehsildars in Punjab, Haryana & Chandigarh

Recognizing that the problem may stem from administrative ignorance—or worse, willful disobedience—the Court took a historic step:

“This Court is compelled to direct the Chandigarh Judicial Academy to hold an Orientation Course for all District Magistrates and Tehsildars of Punjab, Haryana and UT Chandigarh at the earliest.”

The Chief Secretaries of Punjab and Haryana and the Deputy Commissioner of Chandigarh were directed to ensure participation and compliance.

The Court expressed dismay at the growing frequency of such petitions and warned:

“Failure to execute orders under Section 14 would amount to contempt of this Court’s directions.”

A compliance report is required by 7th November 2025, failing which, the matter will be taken up for initiation of action against defaulters.

High Court Reclaims Legislative Intent Behind SARFAESI Act With Bold Institutional Action

This decision makes it abundantly clear that Section 14 of the SARFAESI Act is not a dead letter, and administrative indifference to statutory duties will no longer be tolerated. By not only directing time-bound execution but also mandating training for district-level officers, the Court has addressed both the symptom and the cause of systemic non-compliance.

“Execution of judicial orders cannot be left to the whims of revenue bureaucracy when public money and banking health are at stake,” the Court signaled with unmistakable force.

Date of Decision: 20th August 2025