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IN THE HIGH COURT AT CALCUTTA
AMRITA SINHA
State Bank of India – Appellant
Versus
State of West Bengal – Respondent
| Table of Content |
|---|
| 1. background facts of bank's loan recovery process. (Para 1 , 2 , 3 , 4 , 5) |
| 2. arguments on action required by district magistrate. (Para 6 , 7 , 9 , 10 , 12 , 13 , 15) |
| 3. court's analysis on statutory timelines and creditor rights. (Para 8 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29 , 30) |
| 4. directs district magistrate to act in accordance with the law. (Para 31) |
| 5. final decision and order regarding writ petition. (Para 32 , 33) |
JUDGMENT :
Amrita Sinha, J.
1. The writ petition is at the instance of a bank challenging the inaction on the part of the District Magistrate in taking steps in response to the request made by the bank under Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (herein after referred to as ‘the Act’ for the sake of brevity).
2. The facts leading to the request made by the bank are as follows:-
3. The respondent no. 3, borrower availed loan facility from the bank in November, 2007. As the loan amount was not paid in accordance with the loan agreement, the account of the said respondent was marked as non performing asset in July, 2014. A notice was issued by
The time limit under Section 14 of the Act is directory; failure to act within stipulated time does not render the authority functus officio, emphasizing timely recovery for creditors.
The Court clarified the jurisdiction of the Chief Judicial Magistrate under Section 14 of the SARFAESI Act, holding that both the District Magistrate and Chief Judicial Magistrate have the jurisdicti....
The jurisdiction of the Civil Court is completely barred in so far as those matters, which would fall for adjudication within the jurisdiction of the Tribunal.
Remedy of appeal under Section 17(1) of the SARFAESI Act is not available to secured creditors against District Magistrate orders but only to aggrieved parties.
The court emphasized the mandatory timeline for deciding applications under Section 14 of the SARFAESI Act to facilitate timely recovery of secured assets, indicating any undue delay undermines the o....
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