Tehsildar's Possession Letter Does Not Trigger Fresh Limitation Under SARFAESI Act — DRT Chandigarh

Case Overview

Case Name: Deepak Kumar Vs Authorised Officer
Forum: Debt Recovery Tribunal, Chandigarh
Decided On: 20.05.2026
Statute Involved: Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002

Background of the Dispute

The assessees in this matter had availed a housing loan of Rs. 22.50 lakhs in 2018 from the secured creditor — a financial institution — for purchasing a double-storey residential property bearing No. 5-31-2088/261/10 situated at Village Lohara, Hadbast No. 260, Locality known as Shaheed Sukhdev Singh Nagar, Ludhiana. The property was equitably mortgaged by depositing title deeds with the bank as security against the loan.

Following regular repayments for an initial period, the assessees experienced financial difficulties during the COVID-19 pandemic, leading to default in instalments. As a consequence, the loan account was classified as a Non-Performing Asset (NPA) on 03.02.2024. Subsequently, the bank initiated recovery proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as "the Act").

Sequence of Recovery Actions by the Secured Creditor

The following enforcement steps were taken by the bank in chronological order:

  1. Demand Notice under Section 13(2) dated 10.02.2024 — Issued to both borrowers demanding repayment of Rs. 21,61,671/- outstanding as of 09.02.2024, within 60 days.
  2. Objections under Section 13(3-A) — Filed by the first assessee on 16.03.2024; reply issued by the bank on 29.03.2024.
  3. Possession Notice under Section 13(4) dated 22.05.2024 — Issued to take symbolic possession of the secured property.
  4. Application under Section 14 of the Act — Filed before the Chief Judicial Magistrate, Ludhiana, seeking assistance in taking physical possession; allowed vide order dated 07.08.2024.
  5. Possession Letters by Tehsildar — Issued on 29.08.2025, scheduling physical possession attempts on 08.09.2025 and later 12.09.2025, pursuant to directions of the Hon'ble High Court of Punjab and Haryana vide order dated 11.08.2025.

Grounds Raised by the Assessees

The assessees filed a Securitization Application (SA) under Section 17(1) of the Act challenging multiple aspects of the enforcement proceedings. The key contentions were as follows: