AU SMALL FINANCE BANK LTD vs STATE OF PUNJAB AND OTHERS

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 193 CWP-18324-2026 Date of Decision: 29.05.2026 AU Small Finance Bank Limited ....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. Mr. Akhil Kamra, Assistant Advocate General, Punjab. **** 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, Annexure P-3, filed under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, ‘SARFAESI Act’). 2. Counsel for the petitioner submits that respondents No.3 to 7 had availed a loan facility from the petitioner-Bank and had mortgaged immovable property. Counsel asserts that due to continuous default in repayment, loan account was classified as NPA on 08.11.2023. A demand notice under Section 13(2) of SARFAESI Act was issued on 09.04.2025 (Annexure P-1), followed by a notice dated 26.06.2025 (Annexur