An order passed by a Chief Judicial Magistrate under Section 14 of the SARFAESI Act to assist a secured creditor in taking possession of assets is valid if statutory affidavit requirements are met, and will not be interfered with absent a palpable jurisdictional error.

Order on Board

1. Heard.

2. This is a writ petition under Article 227 of the Constitution of India filed by the petitioner against the order dated 29.07.2025 passed by learned Chief Judicial Magistrate, Mahasamund in MJC No.160/2025 whereby the learned Chief Judicial Magistrate, while exercising the jurisdiction under Section 14 of the Securitisation And Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (in short, ‘the SARFAESI Act’) allowed the application filed by the respondent and directed to take physical possession of the subject property.

3. Learned counsel for the petitioner would submit that without affording any opportunity of hearing to the petitioner, the learned Chief Judicial Magistrate has passed the order. The petitioners are still in the possession of the subject property. They came to know about the order when they have issued a notice for vacating the subject house issued by the Tehsildar. He would further submit that the petitioners are in extreme hardship if the order passed by the learned Chief Judicial Magistrate would be executed, and therefore, before passing of the order, the petitioner should have been heard, the order impugned is passed without following the due procedure of law, and therefore, the same is liable to be setaside.

4. I have heard learned counsel for the petitioner and perused the material annexed with the petition.

5. Except the order dated 29.07.2025, no any other documents have been filed by the petitioner in support of the petition. It transpires from the order impugned that the Chief Judicial Magistrate has exercised its jurisdiction under Section 14 of the SARFAESI Act.

6. Section 14 of the SARFAESI Act provides that :-

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:

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