Relief to ICICI Home Finance: Chhattisgarh HC Raps Tehsildar for Delay, Calls SARFAESI Action a "Ministerial Step" [Read Order]
The court set an outer limit of 60 days from the date of receiving the court's order for the completion of this ministerial act, thereby enforcing the strict timeline mandated by law and Supreme Court precedent.
In a ruling in favour of ICICI Home Finance Company Limited, the Chhattisgarh HighCourt has directed the Tehsildar to comply with a possession order under the SARFAESI Act, emphasising that the duty is a "ministerial step" with a strict timeline that cannot be delayed, and setting a 60-day deadline for the action.
The writ petition was filed by ICICI Home Finance Company Limited against the State of Chhattisgarh and the Tehsildar of Raipur. The petitioner sought the court's intervention as the Tehsildar had failed to act on a District Magistrate's order dated 25.08.2025, which directed the taking of physical possession of secured assets from borrowers, Durga Verma and Kuleshwar Singh Verma, to recover a loan default.
The Counsel for the petitioner argued that despite the DM's order under Section 14 of the SARFAESI Act, more than two and a half months had passed without any action from the Tehsildar. They contended that the Tehsildar had not even issued a memo to a subordinate officer to initiate the possession process, thereby frustrating the very purpose of the SARFAESI Act and the court's order.
A single bench comprising Justice Parth Prateem Sahu analyzed the provisions ofSection 14 of the SARFAESI Act, placing significant reliance on the Supreme Court's decision in R.D. Jain and Co. vs. Capital First Limited and others. The High Court highlighted the Supreme Court's observation that the process of taking physical possession under Section 14 is a "ministerial step" and not a quasi-judicial function.
It noted that the Chief Metropolitan Magistrate or District Magistrate is statutorily obligated to act immediately upon receiving an application from a secured creditor and must pass an order within 30 days, extendable to a maximum of 60 days. The court reiterated that "time is of the essence" in such proceedings, and any delay defeats the objective of the special enactment.
Finding merit in the petitioner's grievance and noting the inordinate delay by the Tehsildar, the court disposed of the writ petition. It was not inclined to keep the matter pending for a response from the Tehsildar. The court issued a clear directive to the Tehsildar, Raipur, to take all necessary steps for the physical possession of the secured assets in accordance with the DM's order of 25.08.2025.
The court set an outer limit of 60 days from the date of receiving the court's order for the completion of this ministerial act, thereby enforcing the strict timeline mandated by law and Supreme Court precedent.
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