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IN THE HIGH COURT OF ALLAHABAD
Hon'ble Pankaj Bhatia,J.
Durga Travels Thru. Proprietor Pankaj Sharma – Appellant
Versus
Debts Recovery Tribunal, Lko. – Respondent
| Table of Content |
|---|
| 1. violation of rights under article 300a and improper possession process. (Para 2 , 3 , 4 , 5 , 6) |
| 2. arguments regarding maintainability and proper notice procedures. (Para 8 , 9 , 21) |
| 3. analysis of sarfaesi act provisions on possession taking. (Para 14 , 15 , 16 , 17 , 18 , 20 , 22) |
| 4. writ petition allowed; possession must be taken in accordance with law. (Para 24 , 25) |
JUDGMENT :
Pankaj Bhatia, J.
1. Heard Sri Manoj Kumar Dwivedi and Sri Ashish Chaturvedi, learned Counsel for the petitioner as well as Sri Abhishek Khare, Ms. Parul Sharma, Sri Shivansh Shukla and Sri Navneet Yadav, learned Counsel for the respondents.
2. The present petition has been argued by the petitioners alleging that the manner in which the possession has been taken violates the rights of the petitioners, which are vested by virtue of Article 300A of the Constitution of India. It was further alleged that the manner in which the possession was taken, was contrary to the mandate of Section 14 of The Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002 (hereinafter referred to as “the SARFAESI Act”) and in view of violation of the constitutional and
Possession taken under the SARFAESI Act must comply with statutory procedures; failure to serve proper notice constitutes a violation of constitutional rights.
A District Magistrate's authority under the SARFAESI Act is administrative; subsequent orders can be made to modify the officer assigned for asset possession without it being deemed functus officio.
Possession of the secured asset can be taken by the secured creditor before confirmation of sale of the secured assets as well as post confirmation of sale.
The court clarified that the jurisdiction of the relevant Authority under Section 14 of the SARFAESI Act is limited to assisting a secured creditor in recovering possession of secured assets from a d....
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....
(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 ....
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