SARFAESI ACT | District Magistrate Not Adjudicating Authority, Must Assist Secured Creditors In Asset Possession: Jharkhand High Court
The Jharkhand High Court has ruled that it is the duty of the District Magistrate to assist secured creditors in taking possession of secured assets under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The court clarified that the District Magistrate is not the adjudicating authority under this Act.Justice Ananda Sen observed, “It...
The Jharkhand High Court has ruled that it is the duty of the District Magistrate to assist secured creditors in taking possession of secured assets under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The court clarified that the District Magistrate is not the adjudicating authority under this Act.
Justice Ananda Sen observed, “It is the duty of the District Magistrate to assist the secured creditor in taking possession of the secured assets. The timeframe has been mentioned which is 30 days. Any delay at the instance of the District Magistrate will frustrate the provision of this Act. Further, the District Magistrate is not the Adjudicating Authority under the aforesaid Act. His duty is only to assist the secured creditor in taking possession of the property i.e. giving assistance so that the possession can be taken peacefully and if someone obstructs, appropriate action can be taken against him.”
The case arose when the petitioner filed an application under Section 14 of the Act, which has been pending with the Deputy Commissioner/District Magistrate since July 8, 2022. The court noted that by delaying the application, the District Magistrate is frustrating the intent of the law.
The Court observed, “By delaying the disposal of this application, the District Magistrate is frustrating the intent of law, which should not be.”Thus, based on the above considerations, the court directed the Deputy Commissioner/ District Magistrate, East Singhbhum, to immediately within two weeks take appropriate steps and dispose of the application of the petitioner in terms of Section 14 of Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
Accordingly, the writ petition was disposed of.
Case Title: TATA Capital Housing Finance Limited V. The State of Jharkhand
LL Citation: 2024 LiveLaw (Jha) 117