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IN THE HIGH COURT OF KERALA AT ERNAKULAM
Mohammed Nias C.P.
JM Financial Asset Reconstruction Company Ltd. – Appellant
Versus
Sivakumar G., S/O. P.V.Gopinanathan Nair – Respondent
| Table of Content |
|---|
| 1. challenge to possession of secured asset under sarfaesi act. (Para 1 , 2) |
| 2. prior court orders regarding possession noted. (Para 3 , 4 , 5) |
| 3. investigation into complaints against officials permitted. (Para 6 , 7 , 8) |
| 4. parties need to adhere to earlier rulings. (Para 9 , 10) |
| 5. importance of identifying the secured asset. (Para 11 , 12) |
| 6. judicial intervention in enforcement actions acknowledged. (Para 13 , 14) |
| 7. authorities can investigate without infringing rights established by courts. (Para 15 , 16 , 17) |
| 8. court's decision on the writ petition. (Para 18) |
JUDGMENT :
Mohammed Nias C.P., J.
Petitioner, an Asset Reconstruction Company (ARC), registered under Section 3 (1) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as the ‘SARFAESI Act’), challenges Ext.P10 order passed by the 5th respondent Tahsildar, dated 24-10-2019.
2. The respondents 1 and 2 availed cash credit facilities from the Federal Bank Limited, and for the purpose of securing repayment of the said facilities, the 1st and the 7th respondents created a mortgage over the immovable property having an extent of 7.74 Ares
The court emphasized prior judicial orders' authority in determining secured asset possession and highlighted the necessity for proper identification in enforcement actions.
A secured creditor retains rights over a property until actual possession is transferred, despite a sale certificate being issued to an auction buyer, as affirmed by the court.
Possession taken by a Village Assistant without authorization is illegal and violates the SARFAESI Act.
The secured creditor's right to repossess property under the SARFAESI Act prevails against third-party trespassers post-judicial possession.
(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 ....
Authorized officer is not expected to adjudicate the contentious issues raised by the concerned parties but only verify the compliance referred to in the first proviso of Section 14 and being satisfi....
Possession under SARFAESI Act requires observance of statutory processes, including a valid rental agreement and tenant rights.
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.
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