The main legal point established is that the competency of the Authorized Officer to issue notices under the SARFAESI Act, 2002 is determined by the Bank's internal policies and the availability of alternative remedies under the Act.

JUDGMENT

SANJU PANDA, J.

1. This writ petition has been filed by one Sukesh Pani, Director, M/s. Zuvan Agro Pvt. Ltd. praying therein to quash the notice dated 27.9.2016 issued by the Collector-cum-District Magistrate, Khurda under the provisions of Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Act, 2002 to take possession of the secured assets situated at village/mouza-Kanchilo, Khata No. 55/9, Plot No. 51, area 1802 Sq.ft. and allow the petitioner to settle her outstanding dues to the opposite party-Bank on one time settlement scheme as framed by the Reserve Bank of India.

2. The short fact in brief of the instant case is that the petitioner had constituted a Private Limited Company in the name and style of "M/s. Zuvan Agro Pvt. Ltd." and had availed a term loan in the month of May, 2013 and cash credit facility to the extent of Rs. 50 lakhs and Rs. 54 lakhs respectively from the Bank of India, Ashok Nagar Branch, Bhubaneswar for meeting installation cost and working capital requirement of business which was secured by hypothecation of stocks and book debts and equitable mortgage of factory land, buildings, plant and machineries. The loan account has become non-performing assets on and from 30th June, 2015 as outstanding dues against the term loan stood at Rs. 46.79 lakhs and Rs. 57.78 lacs in respect of the term loan and cash credit respectively as on 30.6.2015. Accordingly, notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Act, 2002, in short, "SARFAESI Act, 2002" dated 20th July, 2015 had been issued informing the borrower to repay a sum of Rs. 1,04,57,424/- plus interest within 60 days from the date of notice failing which the Bank shall be free to exercise the powers vested by Section 13 of the SARFAESI Act, 2002. On receiving the notice, the petitioner met the Branch Manager and appraised him her business problems with a request for accommodation and was advised to make the outstanding payment within the time frame stipulated in the notice dated 20.7.2015. It has been contended that the notice under Section 13(2) of the SARFAESI Act, 2002 is not by the competent authority as per the provisions made under the Security Interest (Enforcement) Rules, 2002, in short "Rules, 2002" since the notice had been issued by the Assistant General Manager, who is not competent, rather as per the Rules, 2002 the competency has been vested upon the Chief Manager under the Statute and as such, the entire notice is not fit to be sustainable being without jurisdiction. However, the notice under Section 13(4) of the SARFAESI Act, 2002 has been issued by the Chief Manager describing him as the Authorised Officer. The petitioner although has made a request to the authorities to make one time settlement of the entire loan account, but when the same has not been heeded to, this writ petition has been filed.

3. The Bank has entered appearance through its counsel and filed affidavit refuting the ground of the petitioner regarding competency of the Assistant General Manager by submitting that under the provisions of Rule 2(a) of the Rules, 2002 the "authorized officer" has been defined, which means an officer not less than a chief manager of a public sector bank or equivalent, as specified by the Board of Directors or Board of Trustees of the secured creditor or any other person or authority exercising powers of superintendence, direction and control of the business or affairs of the secured creditor, as the case may be, to exercise the right of a secured creditor under the SARFAESI Act, 2002.

He submits by placing reliance upon the decision of the Board of Directors that the Board of Director has accorded approval for designating all the officers of the rank of Chief Manager and above of the Bank as "Authorized officer" as would be evident from the extract of the Bank's Non-performing Asset Management Policy Book-let wherein at Col.