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IN THE HIGH COURT OF KERALA AT ERNAKULAM
MR. JUSTICE GOPINATH P., J
The South Indian Bank Ltd. – Appellant
Versus
Jahfer M.,Proprietor Of M/s. City Aluminium – Respondent
What is the nature of the Chief Judicial Magistrate's role under Section 14 of the SARFAESI Act? How to determine if an order passed by a Chief Judicial Magistrate under Section 14 of the SARFAESI Act is valid? What are the rights of parties regarding the practice of passing orders in a printed format under Section 14?
Key Points: - The Chief Judicial Magistrate's role under Section 14 of the SARFAESI Act is administrative and ministerial, not adjudicative (!) (!) (!) (!) (!) . - Although the role is administrative, the Magistrate must display a judicial approach and apply their mind to the facts asserted by the parties (!) (!) (!) . - Passing orders in a printed format by filling in blank spaces without proper application of mind is deprecated and unsustainable (!) (!) (!) . - The inquiry under Section 14 is quasi-judicial through a non-judicial process but does not result in adjudication of inter se rights (!) (!) . - The Magistrate must satisfy themselves that all conditions for exercising power under Section 14 have been met before passing an order (!) (!) . - The Tribunal was justified in setting aside the Magistrate's order because it was issued in a printed format without due application of mind (!) (!) . - The practice of adopting a 'cut, copy, paste' method in passing orders under Section 14 is deprecated (!) . - The Original Petition filed by the bank challenging the Tribunal's order was dismissed (!) (!) . - The Registry was directed to communicate the judgment to the Chief Judicial Magistrate who issued the original order (!) . - Parties aggrieved by the Magistrate's order should challenge it before the Debts Recovery Tribunal, not via an Original Petition under Article 227 (!) .
JUDGMENT :
The first petitioner in this Original Petition (DRT) is a banking Company registered under the Companies Act, of 1913 and the 2nd petitioner is one of the Authorized Officers of the first petitioner under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as the SARFAESI Act). The petitioners are before this Court challenging Ext.P6 order of the Debts Recovery Tribunal-I, Ernakulam (hereinafter referred to as the Tribunal) in S.A.No.286/2024. Through the said order the Tribunal set aside an order of the Chief Judicial Magistrate, Manjeri in M.C.No.929/2023 on the file of that Court, on the ground that the said order was passed without due application of mind and in a printed format. The contention that the properties in question are agricultural lands was rejected by the Tribunal.
2. Sri. K.K. Chandran Pillai, the learned senior counsel appearing for the petitioners on the instructions of Adv. P. A. Augustine would contend that the Chief Judicial Magistrate is not an Adjudicating Authority under the provisions of the SARFAESI Act. It is submitted that, while exercising powers u
The Chief Judicial Magistrate's role under Section 14 of the SARFAESI Act is administrative and does not involve adjudication; orders must reflect application of mind.
The Chief Judicial Magistrate's role under the SARFAESI Act is administrative, not adjudicative, and requires a judicious approach rather than mere procedural compliance in issuing orders.
The Chief Judicial Magistrate lacks jurisdiction to adjudicate borrowers' petitions under Section 14 of the SARFAESI Act, as this section is limited to ministerial actions without adjudicatory proces....
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 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....
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