19/09/2026
⚖️ SECTION 14 — SARFAESI ACT, 2002
A TIME-BOUND REMEDY FOR SECURED CREDITORS
Under Section 14 of the SARFAESI Act, 2002, upon receipt of a duly compliant application and satisfaction regarding the prescribed affidavit, the District Magistrate (DM) / Chief Metropolitan Magistrate (CMM) is required to pass suitable orders for taking possession of the secured asset within 30 days from the date of application.
Importantly, where the order cannot be passed within those 30 days for reasons beyond the Magistrate’s control, the law permits a further period up to an aggregate of 60 days, but the reasons for the delay must be recorded in writing.
🔴 What does this mean in practice?
30 DAYS → Primary statutory period
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If order cannot be passed within 30 days for reasons beyond control → Reasons must be recorded in writing
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Further period → Maximum aggregate of 60 DAYS
The Supreme Court has clarified that expiry of the 30/60-day period does not automatically make the DM/CMM functus officio. At the same time, the statutory framework imposes a duty to make an earnest effort to complete the Section 14 process expeditiously.
⚠️ DELAY BEYOND THE STATUTORY PERIOD?
Where a Section 14 application remains pending without appropriate action or unexplained delay occurs, the secured creditor can invoke the writ jurisdiction of the High Court under Article 226 of the Constitution of India, seeking appropriate directions for expeditious disposal.
Recent High Court decisions have issued directions to Magistrates to conclude pending Section 14 proceedings where there has been substantial delay.
Time-bound recovery is the essence of Section 14.
