Searching Case Laws & Precedent on Legal Query.....!
Analysing the retrieved Case Laws
Scanned Judgements…!
Searching Case Laws & Precedent on Legal Query.....!
Analysing the retrieved Case Laws
Scanned Judgements…!
The courts have clarified that the order to take possession is a ministerial act, which is only to be executed after proper application and verification, and not a standalone order requiring submission of documents beforehand ["Indusind Bank Ltd. Through Authorized Officer Shri Farhad Jiwani vs Additional District Magistrate - Madhya Pradesh"], ["Banking Company vs 2nd Respondent - Kerala"].
Analysis and Conclusion:
References:- ["THE SOUTH INDIAN BANK LIMITED vs DEBTS RECOVERY TRIBUNAL II, ERNAKULAM - Kerala"]- ["Indusind Bank Ltd. Through Authorized Officer Shri Farhad Jiwani vs Additional District Magistrate - Madhya Pradesh"]- ["Banking Company vs 2nd Respondent - Kerala"]- ["Federal Bank Limited vs Chief Judicial Magistrate, Kozhikode - Kerala"]- ["THE SUNDARAM HOME FINANCE LIMITED (M/S SUNDARAM BNP PARIBAS HOME FINANCE LIMITED) vs AJITH KUMAR.K - Kerala"]
In the complex world of debt recovery under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), secured creditors often navigate between the Chief Judicial Magistrate (CJM) for possession assistance and the Debts Recovery Tribunal (DRT) for disputes. A common question arises: whether the documents necessary to be submitted before CJM can be submitted in DRT after passing order to take possession from CJM is passed?
This blog post breaks down the procedural distinctions, judicial precedents, and practical implications. While this provides general insights based on legal interpretations, it is not a substitute for professional legal advice. Consult a qualified lawyer for your specific situation.
The SARFAESI Act empowers banks and financial institutions (secured creditors) to recover dues without court intervention in many cases. Key sections include:
The CJM's role under Section 14 is ministerial and verification-based, not adjudicatory. As noted in judicial views, the CJM's role under Section 14 is ministerial, not judicial Ablum Electrical Industries (M/s) VS Authorised Officer, Cluster Head, J&K Bank, Pulwama - 2023 Supreme(J&K) 750. This means the CJM verifies statutory compliance but does not delve into disputes over the debt's validity.
When a secured creditor approaches the CJM for assistance in taking possession, they must submit specific documents to prove compliance with prerequisites. These typically include:
These are furnished before or at the time of filing the application under Section 14 Bajaj Finance Limited VS Ali Agency - 2022 0 Supreme(Ori) 23. The purpose? To satisfy the CJM that conditions precedent are met, enabling assistance like appointing a commissioner for possession. Importantly, Section 14 does not oblige the CMM/DM to go personally and take possession of the secured assets and documents relating thereto Santosh Kumar vs Piramal Capital and Housing - 2024 Supreme(Online)(HP) 2486; it's about facilitation, not judgment.
Once satisfied, the CJM passes an order for possession, completing its limited role.
After possession, borrowers can file under Section 17 before the DRT to challenge the measures' legality. The DRT examines:
Unlike the CJM, the DRT's proceedings are adjudicatory. The remedy for the borrowers lies solely within the framework of the SARFAESI Act via the Debt Recovery Tribunal Santosh Kumar vs Piramal Capital and Housing - 2024 Supreme(Online)(HP) 2486. Courts emphasize caution in writ jurisdiction due to this effective alternate remedy Ablum Electrical Industries (M/s) VS Authorised Officer, Cluster Head, J&K Bank, Pulwama - 2023 Supreme(J&K) 750.
The short answer: No, documents submitted to the CJM are not automatically transferred or part of the DRT record.
Judgments reinforce this distinction. The Supreme Court and High Courts note that while CJM verifies prerequisites like notice service Bajaj Finance Limited VS Ali Agency - 2022 0 Supreme(Ori) 23, DRT assesses the entire process's lawfulness Vadiraj Naggappa Vernekar (D) through Lrs. VS Sharad Chand Prabhakar Gogate - 2009 0 Supreme(SC) 357. No automatic incorporation exists; secured creditors or challengers must file them afresh in DRT.
For instance, if CJM order is based on wrong and incorrect information furnished by the Bank respondent, the said order passed by the CJM is vitiated Ablum Electrical Industries (M/s) VS Authorised Officer, Cluster Head, J&K Bank, Pulwama - 2023 Supreme(J&K) 750, such issues are raised in DRT, not by revisiting CJM files directly.
Several cases highlight these boundaries:
These precedents Bajaj Finance Limited VS Ali Agency - 2022 0 Supreme(Ori) 23Equitas Small Finance Bank Limited VS State of Madhya Pradesh - 2023 0 Supreme(MP) 439Vadiraj Naggappa Vernekar (D) through Lrs. VS Sharad Chand Prabhakar Gogate - 2009 0 Supreme(SC) 357 underscore: CJM ≠ DRT. Documents from one do not seamlessly flow to the other.
While not automatic, CJM documents can be relied upon in DRT if produced:
Borrowers claiming non-service or procedural lapses must substantiate independently in DRT Santosh Kumar vs Piramal Capital and Housing - 2024 Supreme(Online)(HP) 2486.
Maintain records meticulously, as the DRT considers the legality of the measures and may require production of relevant documents or evidence at that stage Equitas Small Finance Bank Limited VS State of Madhya Pradesh - 2023 0 Supreme(MP) 439.
In conclusion, while CJM documents lay the groundwork for possession, they do not shortcut DRT proceedings. Parties must proactively engage both forums. This framework balances creditor efficiency with borrower rights under SARFAESI. For tailored guidance, seek expert counsel.
References: Bajaj Finance Limited VS Ali Agency - 2022 0 Supreme(Ori) 23Equitas Small Finance Bank Limited VS State of Madhya Pradesh - 2023 0 Supreme(MP) 439Vadiraj Naggappa Vernekar (D) through Lrs. VS Sharad Chand Prabhakar Gogate - 2009 0 Supreme(SC) 357Ablum Electrical Industries (M/s) VS Authorised Officer, Cluster Head, J&K Bank, Pulwama - 2023 Supreme(J&K) 750Santosh Kumar vs Piramal Capital and Housing - 2024 Supreme(Online)(HP) 2486
#SARFAESI #DRT #CJM
and quash Ext-P8 order passed by the DRT-II, Ernakulam. ... By Ext.P8 order dated 26.08.2025, the D.R.T. deferred the taking of physical possession on the ground that a mechanical order is passed by the CJM, Thrissur without applying mind and contrary to the judgment passed in O.P. (DRT) No.336 of 2024. The petitioner impugns Ext.P8 in this Writ Petition. ... to the averments in the application and determine as to ....
It is further submitted that the order passed by the respondent no.1 is illegal and against the principles of law. ... in the considered opinion of this Court, it would be apposite to issue guidelines/directions to be followed by these DM/ADM/CJM while passing orders for deciding applications u/S 14 of the SARFAESI Act which are as follows : (i) DM/ADM/CJM have to determine whether secured assets fall within ... [(1A) The District Magistrate or the Chief Metropoli....
Section 14 does not oblige the CMM/DM to go personally and take possession of the secured assets and documents relating thereto. Thus, we reiterate that the step to be taken by the CMM/DM under Section 14 of the 2002 Act, must necessarily make an attempt to take possession of the secured assets and can take recourse thereto only if he fails in that effort and encounters resistance to such an attempt. ... Bank, the step taken by the CMM/DM while taking possession of ....
It is submitted that although the CJM has sufficient power to verify the correctness of the affidavit/application filed by the petitioner, the CJM failed to exercise his statutory powers and thereby erred in passing Ext.P2 order. ... Section 14 does not oblige the CMM/DM to go personally and take possession of the secured assets and documents relating thereto. Thus, we reiterate that the step to be taken by the CMM/DM under Section 14 of the Sarfaes....
It has been submitted that since the order of the CJM was based on wrong and incorrect information furnished by the Bank respondent, the said order passed by the CJM is vitiated and cannot be sustained in law. ... Rather, wrong information was furnished, on the basis of which the CJM passed order under section 14 of the Act which would vitiate the order passed by the CJM, renderi....
Bank and the CJM in passing the impugned order. ... Rather, wrong information was furnished, on the basis of which the CJM passed order under Section 14 of the Act which would vitiate the order passed by the CJM, rendering the said order illegal and liable to be set aside by the Court. ... It has been submitted that since the order of the CJM was based o....
After passing an order thereon, he/she (CMM/DM) must proceed to take possession of the secured assets and documents relating thereto for being forwarded to the secured creditor in terms of Section 14 (1) read with Section 14 (2) of the SARFAESI ... Section 14 does not oblige the CMM/DM to go personally and take possession of the secured assets and documents relating thereto. ... The order was passed in violation....
The writ petitions are filed seeking a challenge to Exhibit P2 order of the CJM and Exhibit P5 order of the DRT. ... Commissioner prior to the information being received of the orders of the High Court and the order passed by the CJM. ... This Court directed the CJM to deliver the copies of the documents applied for by the petitioners and keep in abeyance the order directing take over of the prope....
... Later half of sub-section (1) states that the Chief Metropolitan Magistrate ("CMM") or the District Magistrate ("DM"), on such request being made, may take possession of such assets and documents relating thereto and forward such assets and documents to the secured creditor. ... While upholding the order passed by the CJM, Aurangabad, we have recorded our views on merits and we only record that the CJM could not have rejected assistance to the pe....
(Dated this the 19th day of December, 2025) The writ petition is filed challenging Ext.P7 order
Even for non-compliance of the same it will not render the entire proceeding a nullity. Obviously no absolute right is created in favour of juvenile to claim termination of proceeding if the proceeding continued beyond 6 (six) months. Now, so far as the fact that whether the Board concerned submitted such periodic report or not to the CJM concerned can be ascertained from the administrative file of the office concerned which is not placed before this Court.
It was also submitted that the learned CJM had no authority to take cognizance and so the order is fit to be quashed. The petitioner or his father has not violated any terms and conditions of LPG (Regulation of Supply and Distribution) Order, 2000.
After passing the impugned order transferring the investigation to the CBCID an application was moved in the Court of CJM Basti by the accused Gaurish Pandey and Pradeep Kumar @ Pinku Singh with a prayer not to take the cognizance on the charge-sheet submitted in the above mentioned case and the matter may be sent to further investigation, the same was rejected by the CJM, Basti on 24.6.2013 in criminal case No. 1876 of 2013 and the learned CJM, Basti took the cognizance on the charge-sheet submitted by the I.O. 2 Under Secretary vide order dated 11.6.2013 and thereafter th....
It is noteworthy that the accused were arrested on 21.3.2001 and their 1st judicial remand was granted on 22.3.2001 and the same day an application of investigating officer was put up before CJM wherein request was made to record confessional statements of accused persons. The CJM passed the following order on the two applications submitted by PW-9: The order of the CJM does not indicate whether he has enquired from any of the accused whether they are willing to make any judicial confession? “nksauks vfHk0 dy c;ku ds fy;s tsy ls ryc gksA mls tsy esa vU; cfUn;ksa ls vyx j[kk....
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