YES BANK LIMITED Vs. STATE OF PUNJAB

JUDGEMENT

(1.) The petitioner-bank is before this Court invoking writ as well as supervisory jurisdiction under Article 226/227 Constitution of India, being aggrieved by in-action on the part of Chief Judicial Magistrate, Ludhiana, to decide the application submitted by petitioner u/s 14 of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (in short the SARFAESI Act) which is pending since 15/5/2025.

(2.) It is stated in the application that the respondent- borrower(s) availed a loan facility of Rs.30.00 lacs from the applicant bank, and upon default in repayment, the account was classified as 1 of 4 Non-Performing Asset (NPA) whereafter demand notice dtd. 3/12/2024 (Annexure P-2) under Sec. 13(2) of the SARFAESI Act was duly served upon the borrower(s), calling upon them to discharge their liability within 60 days. The borrower(s) failed to comply with the said demand notice, and accordingly, the secured creditor proceeded to take recourse to measures u/s 13(4), of SARFAESI Act by issuing possession notice dtd. 24/2/2025 (Annexure P-3) and whereafter the bank filed application under Sec. 14 of the SARFAESI Act, on 15/5/2025.

(3.) The Apex Court in R.D. Jain and Co. Versus Capital First Limited and Others, 2023 (1) SCC 675 while explaining the width and ambit of jurisdiction under Sec. 14 SARFAESI Act held thus :-