Loan Recovery of the Loan: Punjab & Haryana HC directs the orientation course on the Sarfaesi Act for DMS and Income Officaries

The Punjab & Haryana HC noted that non-performing assets are a huge burden for the public treasury, bank and financial system | PhotoRredit: Bavornej; Istockphoto

In a considerable judgment that lenders with a bad loan recovery can help, the Supreme Court of Punjab & Haryana has dedicated the Chandigarh Judicial Academy to follow an orientation course for all Districtsmagistrates (DMS) and Tehsildars to make sure of the Sarfara and Chandigar and Chandigar and Chandigardars to make sure to make sure that the Sarfara and Chandigardars ensure that they are ordered by the Sarfaba and Chandigardars for the SarfaBaab de Punjab, the Sarfari and Chandigardars, the Sarfara and Chandigardars, and Chandigarigar, the Sarfari and Chandigardars, the Sarfaraa and Chandigardars, the Sarfaraa and Chandigardars, the Sarfaraa and Chandigardars. are executed within the prescribed time.

This directive can encourage the self -line organization of the banking sector – the Indian Banks’ Association – to take the need with all states to raise the DMS and district income officials when accelerating the process of taking and handing over security to the security of Activa and reinstalling the debtor and re -structure of the debtor and reinstall construction of debtifi and reinforcements of debtiva and reinforcements of debtiva and reinforcements of debtiva and reinstall construction of debtiva and reinforcements from debtiva and reinstall construction of debtiva and reinstall construction of debtiva and reinstall construction of debtiva and backstaisesiva and reinstall construction of debtiva and re -structure to the security and re -structure of debtifiesiva and re -structure of debtifi and reinstall construction and Interest Act, 2002 (Sarfaesi Act).

Hari Hara Mishra, CEO of Association of Arcs in India, said: “This is a welcome judgment. There is a need for government officials to prioritize helping banks and financial institutions with enforcement under Sarfaesi in a structured training program.

“This will facilitate their effective role play and improve the recovery performance under Sarfaesi and strengthen the holiness of creditor rights about charged effects aimed at timely implementation.”

According to the latest RBI data, the recovered amount that is involved in the amount in recovery cases under the Sarfaesi Act fell to 24.7 percent in FY24 of 27.8 percent in FY23.

In the Au Small Finance Bank vs State of Punjab & Others, the Punjab & Haryana HC noted that non-performing assets (NPAs) are a huge burden for the public treasure chest, the banking and financial system, and therefore, rapid enforcement of recovery mechanism under the Sarfaesi act for the liquidity.

“It is surprisingly to note that this court encounters the cause of actions raised by the banks that an order was accepted by section 14 of the Sarfaesi Act time and time again,” said Super Juditor Sheel Nagu and Justice Ramesh Kumari.

The Sarfaesi Act schedule lifts the district magistrate to accept an order on the basis of section 14 of the Sarfaesi Act within the longer period of 60 days, and then the Tehsildar or the income authority concerned should perform such an order without any unnecessary delay.

“Alleen omdat het tijdsbestek niet wordt voorgeschreven voor de uitvoering van een bevel die is aangenomen onder sectie 14 van de SARFAESI Act betekent niet dat de districtsmagistraat en de betrokken inkomstenautoriteit het dossier bevinden, waardoor het object van Sarfaesi Act, die de juryleden heeft gezegd, de juryleden van de openbare Exchequer, die een enorme uitbarsting van de openbare Exchequer is, die een enorme The outburst of the public exchequer is, who is a huge eruption of the public exchequer, who is the jury members.

Published on September 3, 2025