Nafr High Court
Case Details
1 2025:CGHC:6435 NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR WPC No. 730 of 2025 1 - Hinduja Leyland Finance Limited Through Authorized OfÏcer Kirtiraj Deshmukh, Corporate OfÏce At- 27 A, Developed Industrial Estate, Guindi, Chennai, Tamilnadu, 600032. Branch OfÏce At- Pujari Chambers Complex, Tikrapara, Near Pachpedinaka, Raipur, District Raipur, Chhattisgarh. ... Petitioner(s) versus 1 - State Of Chhattisgarh Through District Magistrate, District Raipur, Chhattisgarh. SHOAIB ANWAR Digitally signed by SHOAIB ANWAR Date: 2025.02.05 23:10:35 +0530 2 - Tahsildar Tehsil And District Raipur, Chhattisgarh. 3 - Maaljamadar Tehsil And District Raipur, Chhattisgarh.
Legal Reasoning
5. Prima facie, the documents, in the instant case, show that the sixty days have already elapsed much before; therefore, the learned Chief Judicial Magistrate, Raipur, CG. is directed to conclude the proceedings under Section 14 of the SARFAESI Act within a further period of 30 days from the date of receipt of a copy of this Order.
Arguments
4 - M/s Satyanarayan Traders Through Proprietor Shri Sanjay Singh Thakur, R/o Plot No. 10 And 11, Infront Of Bhimsen Bhawan, Samta Colony, Raipur, District Raipur, Chhattisgarh. Pin- 492001 5 - M/s Art Gallery Through Proprietor Smt. Deepa Thakur, R/o Plot No. 10 And 11, Infront Of Bhimsen Bhawan, Samta Colony, Raipur, District Raipur, Chhattisgarh. Pin- 492001 2 6 - Shri Sanjay Singh Thakur S/o Shri Toman Singh Thakur Aged About 52 Years R/o Plot No. 10 And 11, Infront Of Bhimsen Bhawan, Samta Colony, Raipur, District Raipur, Chhattisgarh. Pin- 492001 7 - Smt. Deepa Thakur W/o Shri Sanjay Singh Thakur Aged About 48 Years R/o Plot No. 10 And 11, Infront Of Bhimsen Bhawan, Samta Colony, Raipur, District Raipur, Chhattisgarh. Pin- 492001 8 - Shri Toman Singh Thakur S/o Shri Mitr Singh Thakur Aged About 82 Years R/o Plot No. 10 And 11, Infront Of Bhimsen Bhawan, Samta Colony, Raipur, District Raipur, Chhattisgarh. Pin- 492001 9 - Smt. Sudha Thakur W/o Shri Toman Singh Thakur Aged About 75 Years R/o Plot No. 10 And 11, Infront Of Bhimsen Bhawan, Samta Colony, Raipur, District Raipur, Chhattisgarh. Pin- 492001 ... Respondent(s) (Cause title taken from CIS) For Petitioner(s) : Shri Akash Mishra, Advocate. For Respondent/State : Shri Santosh Bharat, Panel Lawyer. Hon'ble Shri Bibhu Datta Guru , Judge Order on Board 05.02.2025 1. Learned Counsel for the petitioner submits that the procedure contemplated under Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, ‘the SARFAESI Act') was commenced against the borrowers as their account was declared as Non-Performing Asset (NPA). 2. According to learned counsel for the petitioner, the proviso to Section 14 of the SARFAESI Act provides that the decision on like nature of the application has to be made within a period of 30 days and, if not so, 3 within a further period of 60 days. However, despite the fact that more than one year has elapsed, the proceeding under Section 14 of the SARFAESI Act has not been concluded by the learned Chief Judicial Magistrate, Raipur, CG. 3. For ready reference, the proviso to Section 14 of the SARFAESI Act is reproduced herein under:- “[Provided that any application by the secured creditor shall be accompanied by an afÏdavit duly afÏrmed by the authorized ofÏcer 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; The borrower has committed default iv. in repayment of the financial assistance granted aggregating the specified amount; consequent upon such default in v. repayment of the financial assistance the account of the borrower has been classified as a nonperforming asset; vi. afÏrming that the period of sixty days notice as required by the provisions of sub- section (2) of section 13, demanding the defaulted financial payment assistance has been served on the borrower; of the objection or representation in vii. reply to the notice received from the borrower has been considered by the secured creditor and reasons for non- acceptance of such 4 objection or representation had been communicated to the borrower; vii. the borrower has not made any repayment of the financial assistance in spite of the above notice and the Authorised OfÏcer is, therefore, entitled to take possession of the secured assets under the provisions of sub-section (4) of section 13 read with section 14 of the principal Act; viii. that the provisions of this Act and the rules made thereunder had been complied with: Provided further that on receipt of the afÏdavit from the Authorised OfÏcer, the District Magistrate or the Chief Metropolitan Magistrate, as the case may be, shall after satisfying the contents of the afÏdavit pass suitable orders for the purpose of taking possession of the secured assets within a period of thirty days from the date of application.] [Provided [also] that if no order is passed by the Chief Metropolitan Magistrate or District Magistrate within the said period of thirty days for reasons beyond his control, he may, after recording reasons in writing for the same, pass the order within such further period but not exceeding in aggregate sixty days.] Provided also that the requirement of filing afÏdavit stated in the first proviso shall not apply to proceeding pending before any District Magistrate or the Chief Metropolitan Magistrate, as the case may be, on the date of commencement of this Act.] [(1A) The District Magistrate or the Chief Metropolitan Magistrate may authorise any ofÏcer subordinate to him,- (i) to take possession of such assets and documents relating thereto; and (ii) to forward such assets and documents to the secured creditor.] (2)For the purpose of securing compliance with the provisions of sub-section (1), the Chief Metropolitan Magistrate of the District Magistrate may take or cause to be taken such steps and use, or cause to be used, such force, as may, in his opinion, be necessary. 5 (3)No act of the Chief Metropolitan Magistrate or the District Magistrate [any ofÏcer authorised by the Chief Metropolitan Magistrate or District Magistrate] done in pursuance of this section shall be called in question in any court or before any authority. 4. The SARFAESI Act provides that when Section 14 proceeding is moved, the concerned OfÏcer shall, after satisfying the contents of the afÏdavit, pass suitable orders for the purpose of taking possession of the secured assets within a period of thirty days from the date of application and, if he fails to do so, then after recording reasons in writing for the same, pass the order within such further period but not exceeding in aggregate sixty days.
Decision
6. With aforesaid direction(s), this Writ Petition stands disposed of. Sd/- (Bibhu Datta Guru) Judge Shoaib