The court mandated timely processing of applications under Section 14 of the SARFAESI Act, emphasizing that statutory obligations must be met without delays.

JUDGMENT :

1. Learned counsel for the petitioner-company confines the prayer made in the present writ petition only to the extent of issuance of direction upon the respondent No.2 to expeditiously dispose of the petitioner’s application dated 18.01.2023 preferred under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [hereinafter referred to as ‘the SARFAESI Act, 2002’].

2. Learned counsel for the petitioner submits that the petitioner is a Banking Company duly registered under the Companies Act, 1956. The respondent No.3 being the borrower and the respondent No.4 being the co-borrower had applied for financial assistance in order to purchase a residential flat i.e. Flat No. A/3/13, 3^rd Floor, Type-13, measuring an area of 912 sq. ft. in Block No. A, Kamdhenu Apartment; situated over Khata No. 414, Plot Nos. 2359, 2360, 2361, 2369, 2353, 2358 & 2370, Mouza-Uliyan, Ward No. 02, Thana No. 1158, P.O+P.S-Kadma Town, Jamshedpur, District-East Singhbhum.

3. It is further submitted that the petitioner-company, upon verification of the documents and other credentials, had extended financial assistance of Rs.29,00,000/- to the respondent Nos. 3 & 4 for purchase of the aforesaid flat.Thereafter, the aforesaid property was registered before the District Sub- Registrar, Jamshedpur and the same was mortgaged with the petitioner- company thereby creating security interest over it. Since the petitioner-company being the lender had granted loan of Rs.29,00,000/- to the said borrowers, it is a secured creditor in terms with the SARFAESI Act, 2002.

4. It is further submitted that the borrowers-respondent Nos. 3 & 4 started defaulting payment of instalments and hence their loan account was declared non-performing asset on 30.04.2022.

5. It is further submitted that the petitioner-company issued demand notice dated 16.06.2022 to the borrower (the respondent No.3) and the co-borrower (the respondent No.4) in terms with Section 13 (2) of the SARFAESI Act, 2002 read with Rule 3 of the Security Interest (Enforcement) Rules, 2002. The said notice was duly served upon the borrower and the co-borrower through registered post.

6. It is further submitted that after lapse of the period as stipulated in the said notice issued under Section 13 (2) of the SARFAESI Act, 2002, when the borrowers failed to fully discharge their liabilities, the notice under Section 13 (4) of the SARFAESI Act, 2002 read with Rule 8(1) of the Security Interest Rules, 2002 was issued to them on 05.09.2022.

7. It is further submitted that the petitioner-company thereafter filed an application dated 18.01.2023 before the respondent No.2 invoking Section 14 of the SARFAESI Act, 2002 seeking assistance to take physical possession of the secured assets. The grievance of the petitioner-company is that the respondent No.2 instead of disposing of the said application expeditiously, has kept the same pending without passing any effective order, which has compelled the petitioner-company to prefer the present writ petition.

8. Learned counsel for the petitioner-company puts reliance on a judgment rendered by the Hon’ble Supreme Court in the case of Balkrishna Rama Tarle (Dead) through Legal Representatives & Anr. vs. Phoenix Arc Private Limited & Ors. (2023) 1 SCC 662 , paragraph-16 of which reads as under:

“16. The statutory obligation enjoined upon the CMM/DM is to immediately move into action after receipt of a written application under Section 14 (1) of the SARFAESI Act from the secured creditor for that purpose. As soon as such an application is received, the