2017 Supreme(Chh) 63
IN THE HIGH COURT OF CHHATTISGARH
Sanjay K. Agrawal, J.
Smt. Polly Chakraborty, W/o Dr. A. Chakraborty - Petitioner
Versus
Chhattisgarh Rajya Sahkari Bank Maryadit - Respondent
Writ Petition (Cr.) No. 78 of 2013
Decided On : 18-04-2017
For the Petitioner: Mr. Salim Kazi
For the Respondent: Mr. Aishwarya Pandey
Headnote:
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 - Section 14 - Constitution of India, 1950 - Article 226/227 – Debt recovery and Monetary Laws - Possession of secured assets - Jurisdiction - Counsel for petitioner, would submit that order passed by learned Chief Judicial Magistrate under Section 14 of SARFAESI Act rejecting application of secured creditor for assisting in taking possession of secured assets, was final in view of Section 14 (3) of SARFAESI Act and that order was only amenable to writ jurisdiction of this Court under Article 226/227 of Constitution and therefore order passed by learned Additional Sessions Judge is absolutely without jurisdiction and without authority of law - Counsel for the secured debitor would support impugned order - I have heard learned counsel for parties, considered their rival submissions and also gone through the record with utmost circumspection – Held, Applying law laid down by Supreme Court in Harshad Govardhan Sondagar (supra) and in view of provisions contained in Section 14 (3) of SARFAESI Act, it is quite vivid that order passed by Chief Judicial Magistrate was only amenable to jurisdiction of this Court under Article 226/227 of Constitution of India as such, learned Additional Sessions Judge has no jurisdiction and authority to entertain revision petition against the order passed under Section 14 of SARFAESI Act - Order passed by learned Additional Sessions Judge in Criminal Revision quashed - Petition is allowed.
Sanjay K. Agrawal, J.
The Chhattisgarh Rajya Sahkari Bank Maryadit, secured creditor, made an application under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'the SARFAESI Act') for taking the possession of secured assets before the Chief Judicial Magistrate, Bilaspur. The learned Chief Judicial Magistrate by its order dated 3-7-2012 rejected the said application finding no merit. The said Bank being aggrieved against the order rejecting its application filed a review application under Section 397 read with Section 399 of the Cr.PC before the Court of Sessions. The Court of Sessions by its order dated 24-5-2013 granted that application by allowing the review and remanded the matter for hearing afresh. Questioning the order of the 4th Additional Sessions Judge, Bilaspur, the instant writ petition has been filed.
2. Mr. Saleem Kazi, learned counsel appearing for the petitioner, would submit that the order passed by the learned Chief Judicial Magistrate under Section 14 of the SARFAESI Act rejecting the application of the secured creditor for assisting in taking possession of secured assets, was final in view of Section 14 (3) of the SARFAESI Act and that order was only amenable to the writ jurisdiction of this Court under Article 226/227 of the Constitution of India and therefore the order passed by the learned Additional Sessions Judge is absolutely without jurisdiction and without authority of law.
3. Mr. Aishwarya Pandey, learned counsel appearing for the secured debitor would support the impugned order.
4. I have heard learned counsel for the parties, considered their rival submissions and also gone through the record with utmost circumspection.
5. Admittedly, the application under Section 14 of the SARFAESI Act was rejected by the learned Chief Judicial Magistrate against which revision under Section 397 read with Section 399 of the CrPC was entertained and was allowedly partly remanding the matter to the Chief Judicial Magistrate for deciding afresh. Now, the question would be whether the learned Additional Sessions Judge had acted with jurisdiction or without jurisdiction.
6. Section 14 (3) of the SARFAESI Act provides that no act of the Chief Metropolitan Magistrate or the District Magistrate done in pursuance of Section 14 shall be called in question in any court or before any authority. Thus, Section 14 (3) attaches finality to the order passed by the Chief Judicial Magistrate or the District Magistrate, as the case may be. But, that statutory provision would not take away the jurisdiction of this Court under Article 226/227 of the Constitution of India.
7. Section 14 (3) of the SARFAESI Act came-up for consideration before the Supreme Court in the matter of Harshad Govardhan Sondagar v. International Assets Reconstruction Company Limited and others, (2014) 6 SCC 1 in which Their Lordships of the Supreme Court considered the earlier decision of the Supreme Court in the matter of Columbia Sportswear Co. v. Director of Income Tax, (2012) 11 SCC 224 and held that the order of the Chief Judicial Magistrate or the District Magistrate, as the case may be, can be questioned before the High Court under Article 226/227 of the Constitution of India by the aggrieved party, and observed as under:-
"29. Sub-section (3) of Section 14 of the SARFAESI Act provides that no act of the Chief Metropolitan Magistrate or the District Magistrate or any officer authorised by the Chief Metropolitan Magistrate or District Magistrate done in pursuance of Section 14 shall be called in question in any court or before any authority. The SARFAESI Act, therefore, attaches finality to the decision of the Chief Metropolitan Magistrate or the District Magistrate and this decision cannot be challenged before any court or any authority. But this Court has repeatedly held that statutory provisions attaching finality to the decision of an authority excluding the power of a