THE HONOURABLE SRI JUSTICE N. TUKARAMJI CRIMINAL REVISION CASE No.1061 of 2024

ORDER:

This Criminal Revision is filed under Sections 438 and 442 of Bharatiya Nagarik Suraksha Sanhita, 2023 (for short ‘BNSS, 2023) seeking to set aside the order dated 21.09.2024 in Crl.M.P.No.106 of 2024 passed by the learned Chief Judicial Magistrate, Warangal, under Section 14 of Secularization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short ‘the Act’) and grant interim suspension till the disposal of the C.C.No.27/2024 before Hon’ble District Consumer Disputes Redressal Commission, Warangal.

2. Heard Mr.Mandapati Murali Krishna, learned counsel for petitioner, Mr.Jithender Rao Veeramalla, learned counsel appearing for respondent No.1 and Mr.A.Krishnam Raju, learned counsel appearing for respondent No.2

3. At hearing it is brought to the notice by the respondent No.2 that the order passed by the Magistrate under Section 14 of the Act cannot be challenged in regular revision or criminal proceedings and the appropriate remedy is under Section 17 of the Act. Learned counsel has cited the authority of Hon’ble Supreme Court in M/s. Phoenix Arc Private Limited v. Ganesh Murthy and another, SLP (C) No.22093-22094 of 2022 (dated 06.07.2023)

4. Upon such submission, the learned counsel for the petitioner fairly concedes that the Hon’ble Supreme Court has settled this issue. However, as the petitioner is disputing the fact that the Magistrate, before issuance of the order under Section 14 of the Act, did not properly inquire into the facts averred by Respondent No. 2 in the petition. Nonetheless, the petitioner is ready to avail appropriate remedy under the Act, however, until such remedy is pursued, the petitioner’s interest may be protected, lest, the petitioner would suffer pejudize and irreparable loss.

5. I have perused the materials on record.

6. The legal position regarding the maintainability of a criminal petition against an order passed by the Magistrate under Section 14 of the Act is no more res integra. The authority cited by the respondent No.2 in phoenix (supra) the Hon’ble Supreme Court has unequivocally held that Section 482 of Cr.P.C cannot be invoked in such cases. Further, the Hon’ble Supreme Court in the authority of R.D.Jain and Company v. Capital First Limited and others, (2023) 1 SCC 675, has clarified that an order passed under Section 14 of the Act is only a ministerial act and

no adjudicatory process is involved in ordering for a Secured creditor to obtain possession of secured assets.

7. That being the position and as the petitioner has fairly agreed to avail the remedies under Section 17 of the Act, this revision case stands unsuitable. Howsoever, having regard to the interim order passed earlier by this Court in this revision, granting two weeks time to the petitioner to file appropriate application under the Act before appropriate forum, till then continuing the interim order is found to be proper. Accordingly the suspension of the order dated 21.09.2024 in Crl.M.P.No.106 of 2024 in C.C.No.27of 2024 passed by the learned Chief Judicial Magistrate at Warangal, shall continue to be inforce till

16.05.2025.

8. With this direction, the Criminal Revision Case is disposed of.

Miscellaneous petitions, pending if any, shall stand closed.

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JUSTICE N. TUKARAMJI Date: 01.05.2025 Note:

Issue cc by 05.05.2025 b/o.

lk THE HONOURABLE SRI JUSTICE N. TUKARAMJI CRIMINAL REVISION CASE No.1061 of 2024 Dated 01.05.2025 lk