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TARLOK SINGH CHAUHAN, BIPIN CHANDER NEGI
State Bank of India – Appellant
Versus
State of Himachal Pradesh – Respondent
JUDGMENT :
Tarlok Singh Chauhan, J.
Since common question of law arises for consideration in all these writ petitions, therefore, the same are taken up together for hearing and are being disposed of by common reasoning.
2. The moot question that arises for consideration, in all these petitions, is the nature of power exercisable by the District Magistrate in application(s) filed by the Bank or Financial Institutions under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest 2002 (for short, the Act).
3. The undisputed facts are that the borrowers availed of various financial assistance from the petitioner-Bank by mortgaging their immovable properties. However, the borrowers failed to repay the loan amount, as a result whereof, their loan accounts were classified as non performing assets (NPA). The petitioner-Bank thereafter issued notices under Section 13(2) and 13(4) of the Act to the borrowers, but to no avail, constraining the petitioner-Bank to file application(s) under Section 14 of the Act seeking assistance in taking over possession of the secured assets. However, prior to the aforesaid application(s), the borrowers being a
The nature of power under Section 14 of the Act is executory and ministerial in nature and not adjudicatory.
The District Magistrate's role under Section 14 of the SARFAESI Act is ministerial, requiring prompt action without adjudicating disputes between parties.
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 District Magistrate or Chief Metropolitan Magistrate must personally exercise the powers under S.14 of the Securitisation Act, as these powers cannot be delegated.
The District Magistrate's jurisdiction under Section 14 of the SARFAESI Act is limited to ascertaining whether the statements required by the secured creditor in its affidavit have been made. The Dis....
Possession of the secured asset can be taken by the secured creditor before confirmation of sale of the secured assets as well as post confirmation of sale.
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