Imp. Rulings - SARFAESI

 Imp. Rulings - SARFAESI

Section -14

• 1. High Court Orissa (10.01.2022) in Bajaj Finance Ltd. Vs. M/s. Ali Agency and Others  [W.P. (C) No. 11425 of 2021]

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i). High Court Orissa (10.01.2022) in Bajaj Finance Ltd. Vs. M/s. Ali Agency and Others  [W.P. (C) No. 11425 of 2021] held that;- 

• The remedy, therefore, under Section 17 of the SARFAESI Act, would not be available to the secured creditor or his authorized officer for rejection of an application preferred by the said secured creditor or his authorized person under the SARFAESI Act.

• Accordingly, it is held that the petitioner (secured creditor) does not have any alternative and statutory remedy before the Tribunal to lay challenge to the impugned order of the Magistrate rejecting its application under Section 14 of the Act, 2002. . . . Consequently, the present petition under Article 226 of the Constitution of India is held to be maintainable.

• These expressions (CMM and CJM) are interchangeable and synonymous to each other. Moreover, Section 14 of the 2002 Act does not explicitly exclude the CJM from dealing with the request of the secured creditor made thereunder. The power to be exercised under Section 14 of the 2002 Act by the concerned authority is, by its very nature, non judicial or State’s coercive power.

• The satisfaction of the Magistrate contemplated under the second proviso to Section 14(1) necessarily requires the Magistrate to examine the factual correctness of the assertions made in such an affidavit but not the legal niceties of the transaction. It is only after recording of his satisfaction the Magistrate can pass appropriate orders regarding taking of possession of the secured asset.

• In case, if the District Magistrate fails to pass the order in terms of what is provided under Section 14 of the Act, 2002 or if the same is not being implemented, the secured creditor would have the remedy of invoking the writ jurisdiction of this Court (High Court) under Article 226 of the Constitution of India.

[ Link - Bajaj Finance Ltd. Vs. M/s. Ali Agency and Others ]

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