AU SMALL FINANCE BANK LTD vs STATE OF PUNJAB AND OTHERS

CWP-12638-2026 -1- IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH (127) CWP-12638-2026 Date of decision:- 25.05.2026 AU SMALL FINANCE BANK LTD. ... Petitioner Versus STATE OF PUNJAB AND OTHERS ... Respondents CORAM: HON'BLE MR. JUSTICE SUVIR SEHGAL HON’BLE MR. JUSTICE VIKAS SURI Present:- Mr. Vaibhav Mittal, Advocate and Mr. Shivansh Mahajan, Advocate for the petitioner. **** SUVIR SEHGAL, J. (ORAL) 1. This writ petition has been filed, inter alia, for issuance of a writ, in the nature of mandamus, directing Chief Judicial Magistrate, Ludhiana to decide the application dated 17.02.2026, Annexure P-3, filed by petitioner under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, ‘the SARFAESI Act’). 2. Counsel for the petitioner submits that borrowers had taken a loan from the petitioner’s finance company and had mortgaged immovable property. Counsel asserts that due to continuous default in repayment, the loan account was classified as NPA on 08.09.2025. A notice under Section 13(2) of the SARFAESI Act was issued on 16.09.2025 (Annexure P-1), followed by notice under Section 13(4) of the SARFAESI Act