The central legal point established in the judgment is that the jurisdiction of the DA under Section 14 of the SARFAESI Act is limited to assisting secured creditors in obtaining possession of the secured assets and does not extend to considering objections or conducting adjudications beyond its specified scope.

JUDGMENT :

A.S. Doctor, J.

1. The present Writ Petition impugns an order dated 27th August 2021 (“impugned order”) passed by Respondent No.1 (Additional District Magistrate, Nashik) in an application filed by Petitioners under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (‘SARFAESI Act’) seeking assistance of Respondent No.1 to recover possession of the properties mortgaged (“secured asset”) by Respondent Nos. 3 to 8 (Borrowers) in favour of Petitioner. By the impugned order not only has Respondent No.1 failed and neglected to assist Petitioner in recovering possession of the secured asset, but has effectively granted relief in favour of Borrowers and Respondent No.2 (a Third Party).

2. We are constrained to note that the impugned order is yet another instance of the Designated Authorities (“DA”) under Section 14 of the SARFAESI Act not only failing and/or neglecting to exercise the jurisdiction vested in them under Section 14 of the SARFAESI Act, but instead, and regrettably acting in excess of the jurisdiction vested in them under Section 14 and also contrary to Section 14 of the SARFAESI Act. We find that such conduct on the part of the DA is now common place and is being impugned repeatedly before this Hon’ble Court. This is despite the fact that the scope of Section 14 as also the jurisdiction of the DA thereunder is not only clear from a plain reading of Section 14 but has since been emphasized in several judgements of the Hon’ble Supreme Court as well as this Hon’ble Court. Before we advert to the same, it is necessary to set out the facts of the present case leading upto the passing of the Impugned Order.

3. In or about September 2014, Borrowers had approached one Religare Finvest Limited (‘Religare’) for a loan of Rs. 6 Crores. Religare by its sanction letter dated 30th September, 2014 issued the said loan to Borrowers. The said loan was secured by a registered mortgage created by Borrowers in favour of Religare in respect of the following properties, i.e., the secured assets :-

“All the piece and parcel of N.A. land bearing Gut No.463 (North Part), admeasuring at about 2000 sq.mtrs and South Part admeasuring at about 3900 sq.mtrs, and all that piece and parcel of NA land Gut No.465 (West) Part admeasuring at about 2600 sq. mtrs and total admeasuring at about 8500 sq. mtrs along with the constructed ground floor + 1st floor, show room along with service station having total built up area of about 669.44 sq. mtrs situated at Madsangvi Revenue Village Limit, Revenue Limit Nashik within the limits of Nashik Municipal Corporation and Joint Sub-Registrar Nashik, District Nashik.”

4. Thereafter, Borrowers committed defaults in repayment of the said loan which led to Religare classifying Borrowers’ account as a Non-Performing Asset (NPA) with effect from 31st March, 2018. Religare, thereafter, issued a notice dated 13th April, 2018 under Section 13(2) of the SARFAESI Act (‘first SARFAESI notice’) calling upon Borrowers to pay the amount then outstanding under the said facility within the sixty days period provided for under Section 13(2) of the SARFAESI Act.

5. Thereafter by a Deed of Assignment dated 29th September, 2018, Religare, unconditionally and absolutely, assigned all its right, title, interest and benefit under the said loan agreement to Petitioner No.1 (hereinafter referred to as Petitioner). Petitioner, thus, having stepped into the shoes of Religare become the secured creditor and in that capacity issued a notice dated 21st May, 2019 under Section 13(2) of the SARFAESI Act (‘second SARFAESI notice’) to Borrowers calling upon Borrowers to make payments of a sum of Rs.5,83,22,866/-. By the second SARFAESI notice, Petitioner recalled the first SARFAESI notice (issued by Religare) and called upon Borrowers to read the second SARFAESI notice, as being the stipulated demand notice under Section 13(2) of the SARFAESI Act.

6. Borrowers, by their letter da