Allahabad HC: DM must deliver SARFAESI possession but can fix its own case priority queue
· Reported by LiveLaw
The Allahabad High Court held that a District Magistrate must act on a bank's Section 14 SARFAESI possession application but can decide its own priority based on how many cases are already pending before it. This means secured creditors cannot force a DM to jump the queue for faster possession of a mortgaged property.
What this changes for a title check
For a bank or NBFC's recovery team, this ruling confirms that filing a Section 14 application with the District Magistrate starts the clock but does not guarantee a fast handover of the mortgaged property. The DM's office can slot the file behind other pending SARFAESI possession requests, and courts will not intervene to reorder that queue. Legal teams tracking recovery timelines should treat the DM's local case backlog, not the statute's timeline, as the real predictor of when physical possession will be handed over. It also means the filing date and proof of a complete, defect free Section 14 application matter more than before, since a technically deficient application can be pushed further back with no judicial remedy to compel urgency. Teams pursuing high value stressed assets in Uttar Pradesh should build in a buffer for DM level delay when reporting expected recovery dates to credit committees, rather than assuming a fixed statutory turnaround.
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