High Court of Chhattisgarh
Case Details
1 RAHUL JHA Digitally signed by RAHUL JHA Date: 2025.02.28 10:32:54 +0530 HIGH COURT OF CHHATTISGARH AT BILASPUR 2025:CGHC:9842 NAFR WPC No. 1049 of 2025 1 - Central Bank Of India Through Its Authorized Officer, Branch Ambikapur, District Sarguja, Chhattisgarh. versus Petitioner(s) 1 - State Of Chhattisgarh Through Its Secretary, Department Of Revenue, Mantralaya, Mahanadi Bhavan, Atal Nagar, Nava Raipur, District Raipur, Chhattisgarh. 2 - The District Collector And District Magistrate Ambikapur, District Sarguja, Chhattisgarh.
Legal Reasoning
3 - M/s Shyam Food Products Through Its Proprietor- Shri Jay Shankar Sahu, Situated At Gram Labji, Police Station Manipur, Tahsil Ambikapur, District Sarguja, Chhattisgarh. 4 - Shri Laxman Sahu S/o Bigan Ram Sahu R/o Ward No. 46, Bilaspur Road, Ambikapur, Police Station Manipur, Tahsil Ambikapur, District Sarguja, Chhattisgarh. (Guarantor) 5 - Smt. Phuleshwari Devi W/o Shri Laxman Sahu R/o Ward No. 46, Bilaspur Road, Ambikapur, Police Station Manipur, Tahsil Ambikapur, District Sarguja, Chhattisgarh. (Guarantor) 6 - Smt. Chanda Sahu W/o Shri Jay Shankar Sahu R/o Ward No. 46, Bilaspur Road, Ambikapur, Police Station Manipur, Tahsil Ambikapur, District Sarguja, Chhattisgarh. (Guarantor) Respondent(s) For Petitioner(s) For State For Resp No. 3 to 6 : Mr. Syed Afaque Hussain Rizvi, Advocate : Mr. Anand Shukla, Advocate : Mr. R.K. Gupta, Addl. Advocate General 2 (HON’BLE SHRI JUSTICE BIBHU DATTA GURU) 27/02/2025 Order on Board 1. By the present writ petition, the petitioner/Bank is questioning the order dated 16.01.2025, by which, the proceeding on the application under Section 14 of the Secularization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short ‘the Act 2002’) has been concluded on the ground that the borrowers who have noticed in that proceedings undertakes and inclined to repay the loan. 2. (A) Learned counsel for the petitioner submits that Section 14 of the Act, 2002 provides 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 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— (I) XXXXX 3 (ii) XXXXX (iii) XXXXX (iv) XXXXX (v) XXXXX (vi) XXXXX (vii) XXXXX (viii) XXXXX (ix) XXXXX Provided further that on receipt of the affidavit from the Authorised Officer, the District Magistrate or the Chief Metropolitan Magistrate, as the case may be, shall after satisfying the contents of the affidavit pass suitable orders for the purpose of taking possession of the secured assets1[within a period of thirty days from the date of application] Provided further 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. (B) Learned counsel for the petitioner submits that the above Section 14 of the Act, 2002 specifically provides that District Magistrate/Chief Judicial Magistrate has to take possession of the mortgaged property under Section 14 of the Act, 2002 and the maximum period under which is to be concluded is also prescribed provisions under Section 14 of the Act, 2002 that upon receiving request in writing, the District Magistrate or Chief Judicial Magistrate within whose jurisdiction any such secured asset or other documents may be situated or found to take possession thereof. 4 (C) He further submits that Proviso under Section 14 of the Act, 2002 in clear terms provides that after receipt of the request within a period of 30 days proceeding is to be concluded and if for any reason beyond the control of the authority possession could not be taken, then the order has to be passed within such further period but not exceeding 60 days. Statutes provides the maximum period of 60 days under which order under Section 14 of the Act, 2002 is to be passed. Respondent No.2 without considering the provision under Section 14 of the Act, 2002 has fixed the case after more than two months which is in contravention of the provision under Section 14 of the Act, 2002. (D) Learned counsel for the petitioner further submits that the power under Section 14 of the Act, 2002 to the District Magistrate is only to direct the revenue authority to facilitate the bank for obtaining possession of the property in question i.e. secured/mortgaged property and the said application cannot be rejected on the ground that the borrower is ready to pay the loan amount or not. The District Magistrate is not having any power under Section 14 of the Act, 2002 to consider such type of prayer and hence, the District Magistrate has exceeds its jurisdiction by concluding the proceeding on the application moved under Section 14 of the Act, 2002 on the assurance of the borrower that they are ready to repay the loan amount vide order dated 16.01.2025 which is contrary to the provision of Section 14 of the Act, 2002. 3. Learned counsel for the respondents/State as well as for respondent Nos. 3 to 6 on advance copy submits that after notice, the borrower/private 5 respondent can approach the District Magistrate stating that they are inclined to repay the loan amount and they made a request to the District Magistrate not to proceed under the said application, hence, the District Magistrate has rightly proceeded to conclude the proceeding on the application vide order dated 16.01.2025. 4. I have heard learned counsel for the parties and perused the documents. 5. From perusal of Section 14 of the Act, 2002, it appears that the District Magistrate is only authorized to assist the secured creditors in taking possession of secured assets under the provisions of the Act, 2002 and the District Magistrate is not having any power under the Act, 2002 to adjudicate anything and to consider the request made by the borrower, hence, the impugned order which is under challenge by the petitioner is contrary to the provision of Section 14 of the Act, 2002 and the District Magistrate exceeds its jurisdiction, the order dated 16.01.2025 is quashed. However, the District Collector/ District Magistrate is directed to proceed afresh in the application submitted by the Bank under Section 14 of the Act, 2002, in accordance with the provision of Section 14 of the Act, 2002. 6. With the aforesaid observation, the present writ petition is allowed to the above extent. Rahul Sd/- (BIBHU DATTA GURU) JUDGE