The District Magistrate is statutorily obligated to decide applications under Section 14 of the SARFAESI Act within thirty days.

ORDER

Per: Justice Sushrut Arvind Dharmadhikari

In this petition filed under Article 226 of the Constitution of India, the petitioner is not challenging any specific order, but is aggrieved by the inaction of respondent no.1 in not deciding the application under Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 (referred to as 'SARFAESI Act' hereinafter) filed by the petitioner.

2. Brief facts of the case are that the petitioner is a company incorporated under the Companies Act, 1956 and is engaged in the business of advancing loan facilities to its customers. The petitioner had extended loan to the borrower and in order to secure the repayment of said loan created equitable mortgage/security interest in respect of the mortgaged property. Due to default in payment of EMIs', account of borrower was classified as Non Performing Assets (NPA). Thereafter, petitioner had issued notice under Section 13(2) of the SARFAESI Act to the borrower. Subsequently, notice under Section 13(4) of the SARFAESI Act was published in the newspaper and affixed on the properties of the borrower. Since the borrower failed to handover the physical possession of the secured asset, petitioner had moved an application under Section 14 of the SARFAESI Act before the respondent /District Magistrate, Rajgarh which has not been decided by the respondent till date, hence, this petition.

3. Learned counsel for the petitioner submitted that in view of the aforesaid, a direction to respondent be issued to decide the pending application as expeditiously as possible. In support of his contentions, learned counsel for the petitioner has relied upon the judgment dated 23.11.2023 in Writ Petition No. 26170/2023 passed by this Court in case of Poonawalla Housing Finance Ltd. vs. The State of Madhya Pradesh.

4. Learned counsel appearing for the State has opposed the innocuous prayer made by the learned counsel for the petitioner.

5. Heard learned counsel for the parties.

6. Section 14 of the SARFAESI Act reads as under:

''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 o r 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 authorized 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) affirmi