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2023 Supreme(MP) 213

IN THE HIGH COURT OF MADHYA PRADESH
Sushrut Arvind Dharmadhikari and
Prakash Chandra Gupta, JJ.
Fullerton India Credit Company Limited v. Additional District Magistrate Collector Office, Moti Tabela, Indore
Writ Petition No. 10672 of 2023 (I); Decided on 8.5.2023

Advocates:
Ravindra Maheshwari for petitioner; Bhuwan Goutam, Government Advocate, for respondents/State.

Headnote:

Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 -- Ss. 13(2) and 14 -- loan availed from company by mortgaging property -- default in payment of loan -- company issued notice to borrowers for discharging full liability -- not discharged -- District Magistrate required to assist secured creditors in taking possession of secured assets -- opportunity of hearing to borrowers not required at any stage. (2013) 9 SCC 620 followed. W. A. No. 784 of 2018 referred to. [Paras 6 & 7]

foRrh; vkfLr;¨a dk çfrÒwfrdj.k v©j iquxZBu rFkk çfrÒwfr fgr dk çorZu vfèkfu;e] 2002 & èkkjk 13¼2½ rFkk 14 & laifRr caèkd j[kdj daiuh ls _.k çkIr fd;k & _.k d¢ lank; esa O;frØe & daiuh us iw.kZ nkf;Ro dk fuoZgu djus d¢ fy, mèkkj ysus oky¨a d¨ lwpuk tkjh dh & fuoZgu ugha fd;k x;k & çfrÒwr vkfLr;¨a dk dCtk ysus esa çfrÒwr ysunkj¨a dh lgk;rk djus dh ftyk U;k;kèkh'k ls vis{kk & mèkkj ysus oky¨a d¨ fdlh Òh çØe ij lquokà dk volj nsuk visf{kr ughaA ¼2013½ 9 ,l lh lh 620 vuqlfjrA fjV vihy Øekad 784 lu~ 2018 fufnZ"VA ¼iSjk 6 ,oa 7½

ORDER

1. By this petition, petitioner has prayed for the following reliefs:

" i. Kindly, issue an appropriate writ and/or direction and/or order to allow this petition and set aside/quash the impugned order dated 16.1.2023 and 5.4.2023 in SARFAESI Case No. 0031/B-121/2022-23 (Fullerton India v Hotel Savera and others) passed by the Respondent No. 1, Learned Additional District Magistrate, Indore.

ii. Kindly, issue an appropriate writ and/or direction and/or order to direct the Additional District Magistrate, Indore to decide the application filed by the petitioner bank under, section 14 of the SARFAESI Act without awarding any opportunity of hearing to the respondent No. 2 to 5 and without considering any of the contentions / submissions / documents of the respondent No. 2 to 5 at any stage of such proceedings and consequently assist petitioner in getting the possession of the secured asset.

iii. Kindly, issue any such further or other appropriate writ and/or direction and/or order in favour of petitioner as may be deemed. appropriate looking to the facts and circumstances involved in the matter.

iv. Kindly, award the entire cost of the writ petition in favour of the Petitioner."

2. The brief facts of the case are that the respondent Nos. 2 to 5 who are borrowers, have availed a loan facility from the Petitioner amounting to Rs.97,78,740/- and for that particular loan, the respondent Nos.2 to 5 has mortgaged their property situated at Commercial House (Hotel Savera), Plot No. 9/4 (Old No.44), Kibe Compound, Chhoti Gwaltoli, Tehsil, District Indore. Thereafter, the respondent Nos. 2 to 5 were defaulting in the payment of loan to the petitioner because of which the petitioner has classified their loan account as Non-Performing Asset (NPA) on 31-07-2022. In consequence of the same, the petitioner issued a notice on 30.8.2022 to the respondent Nos.2 to 5 for discharging their full liabilities towards the petitioner within 60 days of receipt of the notice as per section 13(2) of the Securitization and Reconstruction of Financial Asset and Enforcement of Security Interest Act, 2002 (hereinafter referred to as SARFAESI ACT). Thereafter, the petitioner further filed an application on 16.1.2023 under section 14 of the SARFAESI Act before the District Magistrate, Indore, seeking assistance in taking possession of the mortgaged property from the respondent Nos. 2 to 5. The petitioner's application was transferred to the Additional District Collector, Indore. The said application was registered bearing No. 0031/B-121/2022-23. The Additional District Collector took cognizance upon the application filed by the petitioner and issued notice to the respondent Nos. 2 and 3 vide order dated 16.1.2023 Upon said notice, the respondents have appeared before the Additional District Magistrate, Indore on 1.3.2023. Being aggrieved by the said proceedings of the case pending before the Additional District Magistrate, the petitioner has filed the present petition.

3. Heard arguments and perused the record.

4. Section 14 of the SARFAESI ACT is reproduced below:-

" 14. Chief Metropolitan Magistrate or District Magistrate to assist secured creditor in taking possession of secured asset. -

(1) Where 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 in documents relating thereto; and (b) forward such asset and documents to t

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