The District Magistrate or the Chief Metropolitan Magistrate is the competent authority to issue proceedings under Section 14 of the SARFAESI Act. Any officer subordinate to him can be authorized to take possession of secured assets and documents relating thereto, but only if they have been duly authorized to do so.

ORDER :

1. The present writ petition is filed seeking issuance of writ of certiorari calling for records pertaining to orders in File No. Rc.D1.1530/2021, dated 06.11.2021 allegedly passed by one Chinna Obulesu on behalf of the District Collector, SPSR Nellore and not by the District Magistrate as illegal, arbitrary and lack of jurisdiction under Section 14 (1) of the Securitisation and Reconstruction of Financial Assets and Enforcement Act, 2002.

2. The facts in issue are that the 3rd petitioner is the proprietor of the 1st petitioner and the Managing Partner of the 2nd petitioner and they are the borrowers of the 3rd respondent bank. The 3rd respondent bank filed a petition before the District Collector, SPSR Nellore District for taking physical possession of the schedule properties, pursuant thereto, the District Collector, SPSR Nellore District, passed orders dated 06.11.2021, which was signed by one Mr. B. China Obulesu for Collector. Thereafter, the petitioner made an application for furnishing certified copies of the petition, affidavit and the list of documents, but, the authorities concerned refused to furnish the same. Aggrieved by the same, the present writ petition came to be filed.

3. The 2nd respondent filed his counter, while denying the allegations made in the writ affidavit, contended that the Authorised Officer, M/s. HDFC Bank Limited, Ramalingapuram Branch, Nellore Town, who is the 3rd respondent herein, filed a petition before the 2nd respondent stating that the petitioners have availed WC terms loans, WC Droline over draft and cash credit facilities vide Loan Account No. 7120970 and 7120271 and failed to repay the loan amount and the Authorised Officer issued demand notice to borrowers and guarantors under Section 13 (2) of the SARFAESI Act and possession notice under Section 13 (4) of the Act was served on them. It is stated that the as per Section 14 of the SARFAESI Act, the Chief Metropolitan Magistrate or the District Magistrate is competent to assist secured creditor in taking possession of secured assets and as per Section 14 (1A) of the Act, the District Magistrate or the Chief Metropolitan Magistrate may authorise any officer subordinate to him. It is further stated that the Collector and the District Magistrate, after perusal of the records and powers conferred under Section 14 of the Act, directed the Tahsildar, Nellore Rural, Nellore Urban and TP Gudur to take over possession of the property of the defaulted borrower and handover the same to the authorised officer of the bank and the District Collector and District Magistrate has initiated action strictly in accordance with Section 14 of the SARFAESI Act. It is further stated that the orders dated 06.11.2021 of the District Collector was issued by one Mr. B. Chinna Obulesu, for Collector, SPSR Nellore District, who is none other than the District Revenue Officer and who issued the impugned proceedings under the orders of the District Collector and the decision making process is taken by the District Collector, as contemplated under Section 14 of the SARFAESI Act

4. The 3rd respondent also filed separate counter, denying the allegations made in the writ petition.

5. Heard Sri K. Sarvabhouma Rao, learned counsel for the petitioner and Sri C.V.R. Rudra Prasad, learned counsel appearing on behalf of the respondent bank and the learned Government Pleader for Revenue.

6. Learned counsel for the petitioner would submit that the person Sri China Obulesu, who signed the proceedings for the Collector, is not a competent authority to issue the proceedings impugned, as such, he has not authority to take possession of the schedule property in accordance with Section 14 of the SARFAESI Act.

7. On the other hand, the learned Government Pleader would contend that the said B. China Obulesu is none other than the District Revenue Officer and he is authorised by the District Collector to sign the proceedings dated 06.11.2021 and as such, there is no illegality in passing