HIGH COURT OF JUDICATURE AT ALLAHABAD
Ashok Kumar, J.
Kashi Gomti Samyut Gramin Bank And Another - Appellants
Vs.
Chief Judicial Magistrate And Others - Respondents
Matters Under Article 227 No. 1760 of 2019
Decided On : 29-03-2019
Securitisation And Reconstruction of Financial Assets And Enforcement of Security Interest (SARFAESI) Act, 2002 – Section 14, 14 (1), 14(2), 13 (4) – Petitioner challenged order passed by Chief Judicial Magistrate, that petitioners application for taking possession of immovable property against loan sanctioned by petitioner is rejected on ground not maintainable – Whether Chief Judicial Magistrate exercising jurisdiction in non metropolitan area in exercise of powers conferred by Section 14 of Act, 2002 can assist secured creditor in taking possession of secured asset and pass order in favour of secured creditor for purpose of taking possession or control of any secured asset – Challenged – Held, Principles of interpretation of statutes and arrived at a conclusion that answer to issue is nomenclature Chief Metropolitan Magistrate used by legislature is Section 14 of Act includes Chief Judicial Magistrate functioning in non-metropolitan area and shall have jurisdiction to entertain an application made under Section 14 of SARFAESI Act, 2002 – There is no reasons in impugned order passed by Chief Judicial Magistrate, rejecting application filed under Section 14(1) of SARFAESI Act, 2002 order set aside – Chief Judicial Magistrate, directed to consider petitioners application filed under Section 14(1) of SARFAESI Act, 2002 and dispose of same strictly in accordance with law by considering claim of petitioner – Directions issued – Petition disposed of. (Paras: 13, 15 & 17)
Facts of the court:
Petitioner challenged order passed by Chief Judicial Magistrate, that petitioners application for taking possession of immovable property against loan sanctioned by petitioner is rejected on ground same not maintainable – whether Chief Judicial Magistrate exercising jurisdiction in non metropolitan area in exercise of powers conferred by Section 14 of Act, 2002 can assist secured creditor in taking possession of secured asset and pass an order in favour of secured creditor for purpose of taking possession or control of any secured asset – Challenged.
Findings of the court:
Principles of interpretation of statutes and arrived at a conclusion that answer to issue is nomenclature Chief Metropolitan Magistrate used by legislature is Section 14 of Act includes Chief Judicial Magistrate functioning in non-metropolitan area and shall have jurisdiction to entertain an application made under Section 14 of SARFAESI Act, 2002 – There is no reasons in impugned order passed by Chief Judicial Magistrate, rejecting application filed under Section 14(1) of SARFAESI Act, 2002 order set aside – Chief Judicial Magistrate, directed to consider petitioners application filed under Section 14(1) of SARFAESI Act, 2002 and dispose of same strictly in accordance with law by considering claim of petitioner – Directions issued.
Result: Petition disposed of
Ashok Kumar, J.
Heard Sri Gyan Prakash Shrivastava, learned counsel for the petitioners.
2. The instant petition has been filed by the petitioner Kashi Gomti Samyut Gramin Bank through its Regional Manager/Authorized Officer by which the petitioner has challenged the order passed by the Chief Judicial Magistrate, Azamgarh in Case No. 3562 of 2019 dated 08.02.2019. By the order dated 08.02.2019 the petitioner's application for taking the possession of the immovable property against the loan sanctioned by the petitioner is rejected on the ground that the same is not maintainable.
3. The submission of the counsel for the petitioner is that the impugned order of the Chief Judicial Magistrate is illegal and bad, as similar power is vested with the Chief Judicial Magistrate as is vested in Metropolitan City with Chief Metropolitan Magistrate.
4. Learned counsel for the petitioner has submitted that Section 14 of the Securitisation And Reconstruction of Financial Assets And Enforcement of Security Interest (SARFAESI) Act, 2002 clearly provides the power with the Chief Metropolitan Magistrate or the District Magistrate to assist secured creditor in taking possession of secured assets.
5. For the convenience, the provision of Section 14 (1) and 14(2) of SARFAESI Act, 2002 are produced herein below:-
Section 14. Chief Metropolitan Magistrate or District Magistrate to assist secured creditor in taking possession of secured asset.- (1) Whether the possession of any secured asset is required to be taken by the secured creditor or if any of the secured asset is required to be sold or transferred by the secured creditor under the provisions of this Act, the secured creditor may, for the purpose of taking possession or control of any such secured asset, request, in writing, the Chief Metropolitan Magistrate or the District Magistrate within whose jurisdiction any such secured asset or other documents relating thereto may be situated or found, to take possession thereof, and the Chief Metropolitan Magistrate or, as the case may be, the District Magistrate shall, on such request being made to him-
(a) take possession of such asset and documents relating thereto; and
(b) forward such assets and documents to the secured creditor:
Provided that any application by the secured creditor shall be accompanied by an affidavit duly affirmed by the authorised officer of the secured creditor, declaring that-
(i) the aggregate amount of financial assistance granted and the total claim of the Bank as on the date of filing the application;
(ii) the borrower has created security interest over various properties and that the Bank or Financial Institution is holding a valid and subsisting security interest over such properties and the claim of the Bank or Financial Institution is within the limitation period;
(iii) the borrower has created security interest over various properties giving the details of properties referred to in sub-clause (ii) above;
(iv) the borrower has committed default in repayment of the financial assistance granted aggregating the specified amount;
(v) consequent upon such default in repayment of the financial assistance the account of the borrower has been classified as a non-performing asset;
(vi) affirming that the period of sixty days notice as required by the provisions of sub-section (2) of Section 13, demanding payment of the defaulted financial assistance has been served on the borrower;
(vii) the objection or representation in reply to the notice received from the borrower has been considered by the secured creditor and reasons for non-acceptance of such objection or representation had been communicated to the borrower;
(viii) the borrower has not made any repayment of the financial assistance in spite of the above notice and the Authorised Officer is, therefore, entitled to take possession of the secured assets under the provisions of sub-Section (4) of Section 13 read with Section 14 of the Principal Act;
(ix) that the provisions of thi
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