The Chief Judicial Magistrate has jurisdiction under Section 14 of the SARFAESI Act, regardless of the presence of another Magistrate with territorial jurisdiction.

Order:

Heard Sri R. Siva Sai Swarup, learned counsel appearing for the petitioner and the learned Government Pleader for Home, appearing for the respondents.

2. The petitioner herein had obtained certain financial assistance from the Union Bank of India. The said Union Bank of India, on the ground of default in repayment of the loans, had initiated action under the SARFEASI Act. As part of these proceedings, the 2nd respondent-Union Bank of India had moved Crl.M.P.No.590 of 2024, under Section 14 of the SARFEASI Act, before the Chief Judicial Magistrate-cum-Principal Senior Civil Judge, East Godavari District, Rajamahendravaram. The Chief Judicial Magistrate, after considering the application, had appointed a learned Advocate Commissioner to take physical possession of the property which had been given as security for the repayment of the loans and to hand over the same to the authorized officer. Pursuant to these orders, the learned Advocate Commissioner, appointed by the Chief Judicial Magistrate, had issued a letter, dated 21.01.2025, to the petitioner, informing him that the Advocate Commissioner proposes to execute the warrant on expiry of seven days of receipt of the said notice.

3. Aggrieved by the issuance of the warrant, under Section 14 of the SARFEASI Act, the petitioner has approached this Court. The primary contention of the petitioner is that the property is situated in Pithapuram and as such, it would only be the Magistrate exercising territorial jurisdiction over Pithapuram, who would have the jurisdiction to issue warrants under Section 14 of the SARFEASI Act. It is the contention of the petitioner that the Chief Judicial Magistrate, East Godavari District would have no jurisdiction in the matter.

4. Section 14 of the SARFEASI Act reads as follows:

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

(1) Where the possession of any secured assets is required to be taken by the secured creditor or if any of the secured assets 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 assets, 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 asset and documents to the secured creditor:

1[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