IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
LISA GILL, MANJARI NEHRU KAUL, JJ.
Canara Bank – Petitioner
Versus
State of Haryana & Ors. – Respondents
RA-CW-64 of 2019 IN CWP-28922 of 2018 (O&M)
Decided On : 14-07-2023
| Table of Content |
|---|
| 1. review of prior order and applications. (Para 1) |
| 2. arguments on clean hands and existing proceedings. (Para 2) |
| 3. analysis of sarfaesi act and judicial reasoning. (Para 3) |
| 4. no prejudice caused; hearing offered. (Para 4) |
| 5. application for review dismissed. (Para 5 , 6) |
JUDGMENT
Lisa Gill, J.
The applicant/respondent no.4 seeks review of order dated 15.11.2018, whereby the writ petition filed by the petitioner - Canara Bank was disposed of without any expression of opinion on the merits of the case while directing respondent no.2 to take a decision on the application dated 06.07.2018 (Annexure P-2), in accordance with law, by passing a speaking order and after affording an opportunity of hearing to the concerned parties within a period of two months from the date of receipt of certified copy of order. Prayer in the writ petition was for directing respondent no.2 to decide application dated 06.07.2018, filed by the Bank under Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
2. Ground raised by learned counsel for respondent no.4 is that the petitioner-bank did not approach this Court with clean hands inasmuch as pendency of proceedings initiated by the bank before the learned Debt Recovery Tribunal-1, Chandigarh as well as a civil suit filed by the applicant as well as proceedings under the Provincial Solvency Act, 1920, initiated by them were not brought on record.
3. We have heard learned counsel for the parties but do not find any ground for review of order dated 15.11.2018, which has in fact been passed without any expression of opinion on the merits of the matter. Direction has been given to respondent no.2 to decide the application dated 06.07.2018 (Annexure P-2), after affording an opportunity of hearing to the parties concerned. At this stage gainful reference can be made to the judgment of the Hon'ble Supreme Court in Balkrishna Rama Tarle v. Phoenix ARC Private Limited and others , 2023 (1) SCC 662 , wherein while expounding the scope of Section 14 of the SARFAESI Act and role of the District Magistrate, it has been held that for taking possession of secured assets in terms of Section 14 (1) of the SARFAESI Act, secured creditor is enjoined upon to approach the District Magistrate/Chief Metropolitan Magistrate by way of written application. Reference was made to an earlier judgment of the Hon'ble Supreme Court in M/s. R.D. Jain and Company v. Capital First Ltd. and others (Civil Appeal No.175/2022), decided on 27.07.2022 and it was held that,
4. Learned counsel for the non-applicant petitioner submits that no objection would be raised for a hearing to be afforded to the applicant before respondent no.2. Keeping in view the nature of proceedings under Section 14 of the SARFAESI Act no prejudice has been caused to the applicant, as urged.
5. In the given facts and circumstances of the case we find no ground for rev
AI
The main legal point established in the judgment is the proper application of Section 14 of the SARFAESI Act, including the requirements for the application, consideration of borrower's representatio....
Section 14 of the SARFAESI Act, 2002 mandates the District Collector to pass necessary orders within 30 days from the date of application by the secured creditor.
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.
The SARFAESI Act provides a specific framework for securitization and enforcement of security interest, and parties must adhere to its provisions. The jurisdiction of the Debts Recovery Tribunal and ....
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