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IN THE HIGH COURT OF KARNATAKA AT DHARWAD BENCH
SURAJ GOVINDARAJ
State Bank of India, Bengaluru – Appellant
Versus
Swathi Agencies – Respondent
| Table of Content |
|---|
| 1. petitioner's relief sought against the court's order. (Para 1 , 2 , 3 , 4) |
| 2. secured creditor's authority under the sarfaesi act. (Para 5) |
| 3. key points for judicial consideration. (Para 6 , 7) |
| 4. no adjudicatory powers under section 14. (Para 8) |
| 5. magistrate's powers and obligations under sarfaesi. (Para 9 , 10 , 11 , 12) |
| 6. writ petition allowed; observation set aside. (Para 13) |
ORDER :
1. The petitioner-Bank is before this Court seeking for the following reliefs:
a. Issue a Writ in nature of Certiorari quashing the impugned order dated. 29.04.2025 in Crl. Misc. No. 16/2025 passed by the Court of Senior Civil Judge and CJM, Koppal vide Annexure-B in so far as the impugned observation, in the interest of justice and equity.
b. Grant such other and further reliefs as this Hon’ble Court may deem fit and proper in the facts and circumstances of the case, in the interest of justice and equity.
2. Notice to respondents has been dispensed with in view of the matter being one between the Court and the secured creditor namely the petitioner.
3. The petitioner is a nationalized Bank and a secured creditor within the meaning of Securitisation and Reconstruction of Financial Assets
The powers of a Magistrate under Section 14 of the SARFAESI Act are strictly ministerial and do not permit adjudication of third-party claims on secured assets.
The court affirmed that no notice is required to be issued to a debtor under Section 14 of the SARFAESI Act when taking possession of secured assets.
Under Section 14 of the SARFAESI Act, a court is not required to provide notice to a debtor or consider claims from third parties regarding secured assets during the possession proceedings.
The powers under Section 14 of the SARFAESI Act are ministerial; prior notice to the borrower is not required. Remedies are limited to the Debt Recovery Tribunal following action under the Act.
(1) Possession of secured asset – Powers exercisable by CMM/DM under Section 14 of SARFAESI Act are ministerial step – Section 14 of SARFAESI Act does not involve any adjudicatory process qua points ....
The District Magistrate's role under Section 14 of the SARFAESI Act is ministerial, requiring prompt action without adjudicating disputes between parties.
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