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THE HIGH COURT OF SIKKIM : GANGTOK
JUDGMENT :
BHASKAR RAJ PRADHAN, J.
1. The present writ petition has been filed seeking a direction to the District Magistrate, Soreng District to dispose of the petitioner’s application dated 29.08.2023 filed under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act).
2. The learned counsel for the petitioner draws the attention of this Court to the said application as well as to the notice dated 13.05.2025 issued to the respondent no.2. The said notice reads as under:-
“On perusal of the documents, it has been found that an affidavit duly affirmed by the Authorized Officer as stipulated vide Proviso to sub-section (1) of Section 14 of the Act has been submitted along with the application.
Therefore, you are hereby informed that it has been decided to take over the secured assets from you on 3rd June, 2025.
You have the liberty to vacate the secured assets and hand over the vacant possessions to the Petitioner Bank before the above mentioned date of takeover, failing which the secured assets would be taken over from you, if necessary, by use of force on the appointed date.
You may note that in the event of an
The court affirmed that the order of the Debts Recovery Tribunal restraining possession of secured assets is binding and unchallenged, nullifying the petitioner's arguments.
The District Magistrate must act within 30 days to assist secured creditors under the SARFAESI Act, ensuring timely compliance with legal provisions.
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....
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 ....
The need to notice the borrowers under Section 14 of the SARFAESI Act was not necessary or justified.
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