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IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH
M.NAGAPRASANNA
Axis Bank Limited, Represented By Its Authorized Representative Mr. Vijay Hottin, S/o. Lingappa – Appellant
Versus
Anand, S/o. Basavaraj – Respondent
ORDER :
M.NAGAPRASANNA, J.
1. The petitioner is before this Court seeking the following prayer:
a. Issue a Writ in the nature of Certiorari setting aside the observation that “This possession delivery warrant is not binding on the 3rd parties, if they are in possession of the property in any of the capacity, passed in the order dated 04.01.2025 in Crl.Mis.No.92/2024 on the file of Senior Civil Judge and CJM, Koppal vide Annexure-A
b. Pass such other order as deems fit to the Hon’ble Court including cost.
2. The issue that brings the petitioner bank to this Court is an outlandish order passed by the concerned Court. The order passed by the concerned Court reads as follows:
“This petition filed by the petitioner under Section 14 of the SARFAESI Act is hereby allowed.
The petitioner is entitled to take physical possession of the secured asset which is described as PETITION Schedule property.
The Advocate Commissioner to be appointed as court commissioner to take physical possession of the secured asset and to deliver the same to the petitioner.
It is also ordered that the court commissioner Sri. Tajuddin, Advocate is appointed and the petitioner to take physical possession of the secured ass
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 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.
(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 SARFAESI Act, 2002 mandates that applications under Section 14 must be disposed of expeditiously without requiring notice to borrowers, as the process is ministerial and non-adjudicatory.
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.
The District Magistrate's role under Section 14 of the SARFAESI Act is ministerial, requiring prompt action without adjudicating disputes between parties.
In SARFAESI Act proceedings, a magistrate is not required to notify borrowers prior to granting possession, emphasizing procedural compliance over notice requirements.
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