JUDGMENT :

Sanjib Banerjee, J.

1. This is another Writ Petition by a Secured Creditor complaining of either the Authority approached under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 not taking any steps despite a request being filed or of the Order passed under Section 14 of the Act not being implemented by those responsible therefore.

2. It appears that District Collectors and other officials entitled to entertain the request under Section 14 of the said Act need formal training. It is also evident that revenue officials and Police officials may not aware of the requirements of the Act and their obligations thereunder.

3. The Act of 2002 is a departure from the general procedure which was in vogue till such Act came into operation. Ordinarily, when a Creditor seeks to claim against a Borrower, the process of adjudication is undertaken before any coercive measure is resorted to. However, under the Act of 2002, which takes a leaf out of the State Financial Corporations Act, 1951, Banks and Financial Institutions which can be regarded as Secured Creditors within the meaning of the relevant expression in the Act of 2002 have a right to directly proceed against the securities upon the Borrower's account turning non-performing. There are Guidelines as to when an Account can be said to have become a Non-Performing Asset. The moment an Account is labelled as an NPA, it triggers off the right of the concerned Secured Creditor to take steps in terms of the said Act and proceed against the Securities without even approaching any Adjudicatory forum or Authority.

4. It is necessary to discuss the matter at some length so that this Order may be used as a guide by the Authorities approached under Section 14 of the Act and the downstream officials, who are required to implement an order passed by such Authority under Section 14 of the Act.

5. A Secured Creditor within the meaning of that expression in the Act of 2002 is obliged to issue a Notice to a Borrower (which expression includes a Guarantor) immediately upon an Account becoming NPA, whereupon the borrower ought to pay up the amount due or indicate cogent grounds to resist the claim. The response of the Borrower, even if it protests the claim of the Secured Creditor, has to be taken into consideration by the Secured Creditor; but the Secured Creditor may, nonetheless, proceed against the security under Section 13(4) of the Act despite the grounds indicated by the Borrower in response to the earlier Notice. At such stage of the matter, the right of the Secured Creditor to proceed against the Secured Assets is not justiciable. In other words, the Borrower cannot approach any authority to stop the Secured Creditor from proceeding against the Secured Asset.

6. Upon the Secured Creditor proceeding against the Secured Asset, a further Notice has to be issued to the Borrower, whereupon the Borrower comes to learn that measures under Section 13(4) of the Act have been resorted to by the Secured Creditor, It is at this stage that the borrower, or any person aggrieved by the steps taken by the Secured Creditor, may apply to the appropriate Debts Recovery Tribunal complaining of the acts of the Secured Creditor. The Secured Creditor is permitted to proceed against the security till prohibited by an Order of an Appropriate Authority, usually the Debts Recovery Tribunal or the Appellate Tribunal.

7. It is not necessary to go beyond such stage for the purpose of the present proceedings since the operation of Section 14 of the Act comes at such stage where the Secured Creditor requires executive assistance for the purpose of obtaining possession of the Secured Asset or documents pertaining thereto. Section 14 of the Act permits certain classes of officials to receive a request under Section 14 of the Act. The extent of the assistance that may be sought would pertain to obtaining possession of any immovable property or possession of o