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2017 Supreme(Mad) 1322

IN THE HIGH COURT OF JUDICATURE AT MADRAS
S. MANIKUMAR & M. GOVINDARAJ, JJ.
P. Kirubakaran – Petitioner
Versus
The District Collector, Thiruvallur – Respondent
W.P. No. 15297 of 2017 and W.M.P. No. 16581 of 2017
Decided On : 19-06-2017

Advocates Appeared:
For the Petitioner: Mr. R. Karunagaran.

The District Collector's authority under the SARFAESI Act is limited to acting in accordance with Sec. 14, and challenges to such notices may be considered dilatory tactics if previous notices have been received.

Headnote:

SARFAESI - District Collector Notice - Securitization and Reconstruction of Financial Assets and Enforcement of Security interest Act 2002 - Sec. 13(2), Sec. 13(4), Sec. 14, Sec. 17(1)

Fact of the Case:

The District Collector issued a notice under the SARFAESI Act 2002 for an enquiry regarding the possession of a land property due to default in loan repayment. The petitioner challenged the notice on the grounds of non-receipt of notices under Sec. 13(2) & 13(4) of the Act.

Finding of the Court:

The court found that the petitioner had received demand and possession notices in the past, and the current notice was for a hearing. The court also noted that the District Collector was only required to act in accordance with Sec. 14 of the SARFAESI Act and dismissed the petitioner's challenge.

Issues: Non-receipt of notices under Sec. 13(2) & 13(4) of the SARFAESI Act 2002, jurisdiction of the District Collector to entertain requests for debt deposit.

Ratio Decidendi: The court held that the petitioner's challenge to the notice was a dilatory tactic, as they had received previous notices and the current notice was for a hearing. The court also clarified that the District Collector's jurisdiction was limited to acting in accordance with Sec. 14 of the Act.

Final Decision: The writ petition was dismissed, and no costs were imposed. The connected Writ Miscellaneous Petition was closed.

ORDER :

1. Impugned Notice dated 27.01.2017 issued by the District Collector-cum-District Magistrate, Thiruvallur, reads as follows:

Spl. Reg. No. 09/2015/M2

Office of the District Magistrate/District Collector, Tiruvallur

Dated : 27.01.2017

HEARING NOTICE

Sub: SARFAESI Act 2002 - Securitization and Reconstruction of Financial Assets and Enforcement of Security interest Act 2002 - Petition Filed by M/s. Asset Reconstruction Company limited, No. 715C, 7th Floor, Spencer Plaza Space-II, No. 769, Anna Salai, Chennai - 2 to pass orders on the secured assets of land property in Tiruvallur Taluk, Ikkadu Village, S. No. 680 & 681, Extent; 982 sq. ft. - Loan granted to the P. Kirubakaran, S/o Palayam, Plot No. 12-A, Teachers Colony, Ikkadu Village, Tiruvallur Taluk and District - Defaultment on repayment of loan - taking possession of the secured assets - Preliminary Report - Requested - Reg.

Ref:

1. Application received from M/s. Asset Reconstruction Company Limited, No. 715 C, 7th Floor, Spencer Plaza, Space-II, No. 769, Anna Salai, Chennai - 2 dated 02.02.2015.

2. This office Spl. Reg. No. 09/2015/M2 dated 05.02.2015.

3. W.P. No. 38499/2015 filed by M/s. Asset Reconstruction Company Limited, Anna Salai, Chennai-2.

4. Special Government Pleader, Government Pleader's Office, High Court, Chennai, letter dated: Nil.

M/s. Asset Reconstruction Company Limited, No. 715C, 7th Floor, Spencer Plaza, Space-II, No. 769, Anna Salai, Chennai-2 have approached the District Magistrate praying the District Administration to take possession of the scheduled mentioned Property under Securitisation and Reconstruction of Financial Asset's and Enforcement of Security Interest Act, 2002.

Hence, in this connection, you are directed to appear in person or through your counsel (with all the documentary evidences and written statements if any, further documents if any) for enquiry on 02.02.2017 (Thursday) at 4.00 p.m. to be conducted by the District Collector, Tiruvallur, at Collector's Chambers (First Floor) Collectorate, Tiruvallur without fail. If you fail to do so, orders will be passed in your absence.

Sd/-

M. Karuppaiah

for District Magistrate,

District Collector,

Tiruvallur.

By Order

Huzur Sarishtadar (Magisterial)

To,

1. M/s. Asset Reconstruction Company Limited, No. 715C, 7th Floor, Spencer Plaza, Space-II, No. 769, Anna Salai, Chennai-2.

2. Thiru. P. Kirubakaran, S/o Palayam, Plot No. 12A, Teachers Colony, Ikkadu Village, Tiruvallur Taluk and District.

Copy to the Tahsildar, Tiruvallur - to submit enquiry report immediately to this office along with the original documents already sent to you.

2. Earlier, vide order dated 19.12.2016, in W.P. No. 38499 of 2015, we directed the District Collector-cum-District Magistrate, Thiruvallur to dispose of the petitions dated 08.01.2014, 07.05.2014, 11.09.2014, 24.12.2014 and 31.01.2015, if not done earlier, within a period of one month, from the date of receipt of a copy of the order made in W.P. No. 38849 of 2015 and while doing so, District Collector-cum-District Magistrate, Thiruvallur, was directed to act in accordance with Section 14 of the SARFAESI Act, 2002.

3. Though, notice dated 27.01.2017 stated supra, is sought to be assailed by way of an appeal before the DRT-III, Chennai, the SARFAESI appeal in SA Sr. No. 4036 of 2017, Assistant Registrar, DRT-III, has returned the same. Learned counsel for the appellant seemed to have represented SA Sr. No. 4036 of 2017, stating that the appellant has not received notice under Sections 13(2) and 13(4) of the SARFAESI Act, 2002 and that only a memo issued by District Collector-cum-District Magistrate, Thiruvallur has been received. Hence, a request has been made to post SA Sr. for maintainability. The Assistant Registrar, DRT-III, Chennai has returned SA Sr. No. 4036 of 2017, as hereunder.

"There is no order passed by the District Collector in this application for the appellant to be challenged before this Tribunal and the earlier cause of action of Possession Notice dated 25.08.2010 is ba













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