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IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.S.SUNDAR, P.DHANABAL
M.K. Ravi – Appellant
Versus
Indian Bank, Royapetah Branch – Respondent
ORDER :
1. This writ petition is filed challenging the order of the Chief Judicial Magistrate, Tiruvallur in Crl.M.P.No.10883 of 2024, dated 20.11.2024, filed under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 [hereinafter referred to as “SARFAESI Act”].
2.1. Brief facts that are relevant for disposal of the writ petition are as follows.
2.2. The petitioner admitted that he had availed a loan of Rs.50.00 lakhs from the first respondent bank by mortgaging his property. Though it is stated by the petitioner that he had repaid substantial amount, the petitioner admitted that he committed default in payment of the monthly installments. It is not in dispute that the first respondent bank proceeded against the mortgaged property. After the property was brought for sale, a sale certificate was issued in favour of the auction-purchaser, the second respondent herein.
2.3. It is admitted by the petitioner that the sale certificate was also registered in favour of the second respondent on 31.10.2024. However, the first respondent, after the registration of the sale certificate, approached the Chief Judicial Magistrate, Ti
A secured creditor retains rights over a property until actual possession is transferred, despite a sale certificate being issued to an auction buyer, as affirmed by the court.
(1) Possession of secured asset – Powers exercisable by CMM/DM under Section 14 of SARFAESI Act are ministerial step – Section 14 of SARFAESI Act does not involve any adjudicatory process qua points ....
Authorized officer is not expected to adjudicate the contentious issues raised by the concerned parties but only verify the compliance referred to in the first proviso of Section 14 and being satisfi....
The powers of a Magistrate under Section 14 of the SARFAESI Act are strictly ministerial and do not permit adjudication of third-party claims on secured assets.
A secured creditor loses its rights under the SARFAESI Act upon the auction of mortgaged property, precluding further claims for possession under the same Act.
The powers under Section 14 of the SARFAESI Act are ministerial; prior notice to the borrower is not required. Remedies are limited to the Debt Recovery Tribunal following action under the Act.
The borrower's right of redemption is extinguished upon the publication of the auction notice, allowing the auction purchaser to claim possession.
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