Calcutta HC Directs State of West Bengal to Execute SARFAESI Order for Cholamandalam Finance Within 4 Weeks [Read Order]

In the case of Cholamandalam Investment & Finance Company Limited, the Calcutta High Court has directed the State of West Bengal to execute a SARFAESI order, holding that the state is obligated to ensure the handover of property possession within a reasonable time after the order is passed.

Cholamandalam Investment & Finance Company Limited, the petitioner, filed a writ petition in the Constitutional Writ Jurisdiction of the Calcutta High Court. The petitioner alleged that despite an order being passed under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (the SARFAESI Act) on 10.06.2025, respondent no. 2, the State of West Bengal, had not taken any steps to hand over possession of the property in question.

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The petitioner's counsel argued that all requisite payments for the process of taking possession and handing it over to the petitioner had been duly made. They contended that the failure of the state authorities to act on the SARFAESI order amounted to an inexcusable delay, depriving the petitioner of their rights under the Act.

The counsel for the State, Mr. Rajat Datta, submitted that the concerned Executive Magistrate who was to execute the order had been transferred and was therefore unavailable. He further assured the court that the District Magistrate would authorize the requisite personnel to execute the order dated 10.06.2025 as expeditiously as possible.

Justice Reetobroto Kumar Mitra, while acknowledging the explanation provided by the State regarding the transfer of the Executive Magistrate, stated the need for immediate execution of the court's orders. The court observed that the petitioner had fulfilled its obligations and that the State must now act to implement the SARFAESI order without further delay.

Accordingly, the court directed respondent no. 2 to take immediate steps to execute the order passed on 10.06.2025 within a period of four weeks from the date, upon giving notice to the petitioner. With these directions, the writ petition (WPA 25353 of 2025) was disposed of, with no order as to costs.

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