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M. R. SHAH, B. V. NAGARATHNA
R. D. Jain and Co. – Appellant
Versus
Capital First Ltd. – Respondent
What is the power and designation status of District Magistrates and Chief Metropolitan Magistrates under Section 14 of the SARFAESI Act? What is the scope of applicability of the Additional District Magistrates and Additional Chief Metropolitan Magistrates to exercise powers under Section 14 of the SARFAESI Act? What is the rationale for treating the expressions "District Magistrate" and "Chief Metropolitan Magistrate" to include their additional counterparts for Section 14 purposes?
Key Points: - The powers under Section 14 can be exercised by Additional Chief Metropolitan Magistrates and Additional District Magistrates. (!) (!) - District Magistrate and Chief Metropolitan Magistrate are not persona designata for Section 14; these expressions include Additional District Magistrate and Additional Chief Metropolitan Magistrate for Section 14 purposes. (!) (!) (!) - The actions under Section 14 are ministerial and do not involve quasi-judicial functions; delegation to or by Additional officers is permissible to ensure expeditious disposal. (!) (!)
JUDGMENT :
M.R. Shah, J.
1. Feeling aggrieved and dissatisfied with the impugned judgment and order dated 22.12.2017 passed by the High Court of Judicature at Bombay in Writ Petition No. 1961/2017, by which, the Division Bench of the High Court while interpreting Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement Security Interest Act, 2002 (hereinafter referred to as the “SARFAESI Act”) has held that (i) the District Magistrate, Chief Metropolitan Magistrate is not a persona designata for the purposes of Section 14 of the SARFAESI Act; (ii) the expression “District Magistrate” and the “Chief Metropolitan Magistrate” as appearing in Section 14 of the SARFAESI Act shall deem to mean and include Additional District Magistrate and Additional Chief Metropolitan Magistrate for the purposes of Section 14 of the SARFAESI Act, the borrower has preferred the present appeal.
2. The facts leading to the present appeal in a nutshell are as under:-
2.1 That respondent No. 1 herein – Financial Institution – Capital First Limited is the secured creditor (hereinafter referred to as the “secured creditor”) within the meaning of Section 2(1)(zd) of the SARFAESI Act.
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