IMPORTANT POINT
The District Magistrate's role under Section 14 of the SARFAESI Act is ministerial, requiring prompt action without adjudicating disputes between parties.

ORDER :

Anoop Kumar Dhand, J.

By way of filing this writ petition, the petitioner has assailed the order dated 09.01.2023 passed by the learned District Magistrate, Jaipur by which the application filed by the petitioner under section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'the SARFAESI Act of 2002') has been rejected.

2. By passing the impugned order dated 09.01.2023, the District Magistrate, Jaipur has observed in the order impugned that no document has been produced and annexed with the application filed by the petitioner under Section 14 of the SARFAESI Act of 2002 with regard to the fact that whether the agricultural land was mortgaged or not and the DLC rates of the sanctioned land were not submitted. While rejecting the application filed by the petitioner, a liberty was granted to the petitioner to file fresh application with appropriate documents.

3. Counsel for the petitioner submits that the learned Magistrate has failed to peruse the provisions contained under Section 14 of the SARFAESI Act of 2002. Counsel submits that while deciding the application under Section 14 of the SARFAESI Act of 2002, the Magistrate was supposed to decide the application on its merits not on the technicalities niceties of law. Counsel submits that at the time of deciding the application under Section 14 of the SARFAESI Act of 2002, the Magistrate was required to see whether or not the secure assets falls within its territorial jurisdiction and whether notice under Section 13(2) of the SARFAESI Act of 2002 was furnished or not. Counsel submits that learned District Magistrate was not supposed to act beyond the aforesaid mandate of the SARFAESI Act of 2002. Hence, under these circumstances interference of this Court is warranted. In support of his contention, counsel has placed reliance upon the following judgments:-

(I) R.D. Jain and Co. v. Capital First Ltd. and Ors. reported in (2023) 1 SCC 675; and

(III) Additional District Magistrate v. SMFG India Credit Company Ltd. and Ors. (Petitions for Special Leave to Appeal C Nos.1081/2024).

Counsel submitted that in view of the submissions made hereinabove, the impugned order passed by the learned District Magistrate be quashed and set aside.

4. Heard and considered the submissions made at Bar and perused the material available on record.

5. The short question which is posed for consideration of this Court is "Whether while exercising the powers under Section 14 of the SARFAESI Act of 2002, the District Magistrate (for short 'DM') would act as an executing authority or adjudicating authority?"

6. While considering the aforesaid question, the scope, ambit and jurisdiction of DM under Section 14 of the SARFAESI Act of 2002 is required to be considered. For convenience, Section 14 of the SARFAESI Act of 2002 is reproduced and the same reads as under:-

"14. Chief Metropolitan Magistrate or District Magistrate to assist secured creditor in taking possession of secured asset.-

(1) Where the possession of any secured assets is required to be taken by the secured creditor or if any of the secured assets is required to be sold or transferred by the secured creditor under the provisions of this Act, the secured creditor may, for the purpose of taking possession or control of any such secured assets, request, in writing, the Chief Metropolitan Magistrate or the District Magistrate within whose jurisdiction any such secured asset or other documents relating thereto may be situated or found, to take possession thereof, and the Chief Metropolitan Magistrate or as the case may be, the District Magistrate shall, on such request being made to him--

(a) take possession of such asset and documents relating thereto; and

(b) forward such asset and documents to the secured creditor:

1[Provided that any application by the secured creditor shall be accompanied by an affidavit duly affirmed by the authorised officer of the secured creditor, declaring t