The District Magistrate must act within 30 days to assist secured creditors under the SARFAESI Act, ensuring timely compliance with legal provisions.

JUDGMENT :

Ananda Sen, J.

By way of filing this writ petition, the petitioner has sought for following reliefs:-

a. “For issuance of an appropriate writ/writs, order/orders, direction/directions or writ in the nature of mandamus commanding upon the respondents especially respondent no. 2 to show cause as to how and under what circumstances the application dated 08.07.2022 preferred under section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (hereinafter SARFAESI Act) is pending since 08.07.2022.

b. For issuance of an appropriate writ/writs, order/orders, direction/directions or writ in the nature of mandamus commanding upon the respondent no. 2 to immediately and forthwith dispose of the application dated 08.07.2022 preferred by the petitioner strictly within the time frame as contained in section 14 of the SARFAESI Act.”

2. It is the grievance of the petitioner that the application of the petitioner under Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 has been kept pending by the Deputy Commissioner/ District Magistrate, East Singhbhum, since 08.07.2022.

3. The time is the essence of Section 14. Section 14 of the SARFAESI Act, reads as hereunder:-

“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:

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 that—

(i) the aggregate amount of financial assistance granted and the total claim of the Bank as on the date of filing the application;

(ii) the borrower has created security interest over various properties and that the Bank or Financial Institution is holding a valid and subsisting security interest over such properties and the claim of the Bank or Financial Institution is within the limitation period;

(iii) the borrower has created security interest over various properties giving the details of properties referred to in sub-clause (ii) above;

(iv) the borrower has committed default in repayment of the financial assistance granted aggregating the specified amount;

(v) consequent upon such default in repayment of the financial assistance the account of the borrower has been classified as a non-performing asset;

(vi) affirming that the period of sixty days notice as required by the provisions of sub-section (2) of section 13, demanding payment of the defaulted financial assistance has been served on the borrower;

(vii) the objection or representation in reply to the notice received from the borrower has been considered by the secured creditor and reasons for non-acceptance of such objection or representation had been communicated to the borrower;

(viii) the borrower has not made any repayment of the financial assistance in spite of the above notice and the Authorised Officer is, therefore, entitled to take possession of the secured assets under the provisions of sub-section (4) of section 13 read with section 14 of the principal Act;

(ix) that the provisions of this Act and the rules made thereund