W.P. No. 2548 of 2009. Case: S.I.C.O.M. Ltd., Nagpur Vs District Magistrate/Collector, Nagpur and Ors. High Court of Bombay (India)
| Case Number | W.P. No. 2548 of 2009 |
| Counsel | For Appellant: A.V. Khare, Adv. and For Respondents: A.D. Sonak, AGP, A.M. Rizwi, Adv. |
| Judges | S. A. Bobde, J. and P. D. Kode , J. |
| Issue | Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (54 of 2002) - Section 14 |
| Citation | AIR 2011 Bom 32 |
| Judgement Date | March 19, 2010 |
| Court | High Court of Bombay (India) |
Judgment:
S.A. Bobde, J.
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Heard.
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Rule. Returnable forthwith. Heard finally by consent of parties.
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The present petition is preferred by the S.I.C.O.M. for issue of writ of certiorari against the impugned order of the District Magistrate, Nagpur refusing to take action under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as "SARFAESI Act").
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The petitioner has loaned an amount of Rs. 4 corers to the M/s. Sonaa Oil and Chemical Industries Ltd. Respondent No. 2 is one of the guarantors and respondent No. 3 is said to have executed a mortgage in respect of the said loan by deposit of title deeds in respect of land bearing No. 132, Circle No. 20, Division No. 8, Ward No. 72, admeasuring 14400 sq.ft. situated at Ramdaspeth, Nagpur.
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According to the petitioner an amount of Rs. 80 lacs is outstanding against the said loan. Therefore, the petitioner took steps for enforcement of security interest under Chapter III of the SARFAESI Act by making a demand under Section 13(2) of the Act against the depositors including respondent No. 3 mortgagor. Since respondent No. 2 failed to comply with the notice, the petitioner made an application to the District Magistrate under Section 14 of the SARFAESI Act which reads as follows:
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 asset, 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-
(a) take possession of such asset and documents relating thereto; and
(b) 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 or the District Magistrate may take or cause to be taken such steps and use, or cause to be...
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