Dismissed

Khabir Sekh v. Aadhar Housing Finance Limited

DRT3 Sept 2025SA/309/2025

Case brief

AI extract

What is this about?

The Tribunal dismissed the petitioner's appeal against the order of the Chief Judicial Magistrate authorizing the Authorized Officer to take possession of secured assets under Section 14 of the SARFAESI Act, finding no fault in the Magistrate's order and no merit in the challenge.

What did the court decide?

The appeal and interim application were dismissed on contest; the applicant was granted liberty to approach the bank for settlement.

Khabir Sekh versus Aadhar Housing Finance Limited — Banking and Recovery | DRT (2025)

¶1

Paga.No.

¶2

KOTKATA DEBTS REGOUERY TRIBUNAL NO. 2 sA/309/2025 ORDER SHEET Mr. Khabir Sekh (Con0nurgonl

¶3

Crle No

¶4

'Vr

¶5

Aadhar Housing Finance Ltd. & Ors

¶6

OI[c. rClon s,tth
Dato dd..rd daled
of Od.rufislgnltrr! Sln&rcot
03 Odat .. ttl5llllst
03.09.2025 Counsel for the arties mot.sary
Mr. Md. Salahuddin
IVlr. Md. Raziuddin . . . For the Applicant
IVlr. Somnath Roy For the Defendant F.l
Both sides are represented.
SA 309 of 2025 along with l.N166512025 is dismiss
on contest
Final order / Judgment is in separate sheet of 5 page
File be consigned to record room.
Order be uploaded on the Tribunal's website
.G:
(Arbind Madhav)
Presiding Officer
DRT-2, Kolkata
KB

$,j

sA/309/2025 DRr.,'((

DEBTS RECOVERY TRIBUNAL. 2, KOLKATA ieevan Sudha Bldg., 7th Floor,42lC, J.L. Nehru Road, Kolkata -7OOO71 Before Shri Arbind Madhav, Presiding Officer

¶11

S.A. No.309 ot 2025 with tA/l665/2025

¶12

ln the matter of

¶13

Mr. Khabir Sekh, S/O Afsar Sk, residing at Village - Muraraigram, post Office and Police Station - lt/urarai, Dist. - Birbhum , Pin -731219.

¶14

...... SARFAESI Applicants

¶15

-Versus-

¶16

¶17

The Authorised Officer, Aadhar Housing Finance Limited, Asansol Branch at No 20.1. 2.d Floor, Chatterjee Plaza, G.T. Road, Ushagram, Opposite Hotel paras, Asansul, Paschim Burdwan, West Bengal, Pin Code-7.13303.

¶18

./.;icihar Housing Finance Limited, Asansol Branch at No.203, 2nd Floor, Chatterlee , iaza, G.T.Road, Ushagram, Opposite Hotel Paras, Asansol, paschim Burdwal Pin Code -713303.

¶19

¶20

It4 r Arilit Ghosh, Advocate Commissioner, 28, Lansdown place, Kolkata-700029.

¶21

Defendants

¶22

..., r_-,-,r.I1.iel for :ne parties. ii,r the SARFAESi Applicant

¶23

Mr. Md Salahuddin

¶24

Mr. Md. Raziuddin

¶25

For the Respor-rdent F.l

¶26

Mr. Somnath Roy

¶27

JUDGMENT

¶28

(Delivered on 03.09.2025)

¶29

54/309/2025 has been filed to set aside the order dated 0711112024 passeo oy l-earned Chief Judicial Magistrate, Birbhum at Suri under Section 14 ct t,, ll,'rrri:aESl Act. A loan was sanctioned amounting to Rs.4,gg.676l (Rupees iour ;r,,. l.i,,,etv' nine thousand six hundred seventy six) only for a term of 1g years. The Title Deed was handed over and a Facility Agreement was also signed and the l:r:in was discharged on 30.06.2014 for a term of 1B years. The Title Deed w.i f ,:r,rJed over to a Facility Agreement was also signed and the loan was d ischarger r c,r, l0 06 2C14 after deducting insurance amount of Rs.50,000/- repayable on irr:nthiy instalment of Rs.6,0501 for 18 years.

¶30

') a

¶31

'l lre applicant paid till date an amount of Rs 3,80,000/-. (Three Lacs Eiqhl Thousand) only.

¶32

¶33

I ! ii

¶34

sA/3O9/2O)s DRT 2/KOL

¶35

The further case of the applicant is that Section 14 of the applicant was filed before

¶36

the Learned Chief Judicral Magistrate, Birbhum at Suri to take over possession. No notice was served to the applicant in the said Miscellaneous Case before the Learnerl Chief Judicial Magistrate. The order was passed ex-parte on 07.11.2024 appointrng Advocate Commissioner to take over possession.

¶37

lt has further been made out that due to misconception Writ Petition was filed before the Hon'ble High Court being W.P.A. 12139 of 2025. That Writ was disposed of vide order dated 30.05.2025.

¶38

5 For the same relief lA/1665/2025 has been filed

¶39

6 Composite affidavit-in-opposition has been filed against SA as well as the IA. tt has been made out that loan was sanctioned to the tune of Rs.4,99,6761 and letter of sanction was issued by the F.l. The applicant duly accepted the sanction letter with full awareness of the consequence of default. The loan was secured by creat,n.l security interest upon deposit of original Title Deed in respect of the mortgage(l property The applicant defaulted and account was classifred as N P.A on 01 05 2A21 Thereafter, notice Under Sectron 13(2) oI the SARFAESI Act was issued on 11 06.2021 . ln superstation of the said notice dated 11.06.2021 , a fresh notice v ,:s issued on 09.01 .2024 calling upon to pay a sum of Rs.8,86,'102l- wrthin sixty days oi the receipt of the notice. ln spite of receipt of the said notice the applicant never exercised their right under Section 13(3A) of the Act by making a proper representation. Thereafter, notice under Section 13(4) of the Act was issued on 22.07.2024 and the possession notice was affixed on the outer wall of the prq-,reit,,^rr was also made by hand service and also published in two wrdely crrcutatecl newspapers being Business Standard (English) and Aajkal (Bengali) on 25 07 2a24 The copy of possession notice, incorporating, affixing the factum of taking over possession and copy of newspaper publications have been annexed (Annexure-D).

¶40

The further case of the defendant is that application under Section 14 of tre. ,. was filed before the Learned Chief Judicial Magistrate, Birbhum at Suri vrde Miscellaneous No.198 of 2024 and order was passed. The applicant preferred one Writ Application against that order. Learned Chief Judicial Magistrate has passed order after due satisfaction as to the fulfillment of all requirements.

¶41

B. ln pursuance of the order passed by the Learned Chief Judicial Magistratt Birbhum at Suri on 07.11.2024 possesslon has been taken over on 30.08 2025 lhe certificate of possession has been placed before the Tribunal.

¶42

The point for determrnation therefore is whether the order passed by the Learned Chief Judicial lt/agistrate under Section 14 of the Act is in accordance with the liability and procedure or not.

¶43

Before proceeding further it is proper to set out Sectron 14 of the Act

¶44

'14. Chief Metropolitan Magistrate or District Magistrate to assist secured

¶45

creditor in taking possession of secured asset. -

¶46

¶47

¶48

sA/309/2025-DRr 2/KOL

¶49

¶50

(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 so ii^, transferred by the secured creditor under the provisions of this Act, the secu red creditor may, for the purpose of taking possession or control of any such secured assets, request, in writing, the Chief Metropolitan lVlagistrate or the District Magistrate within whose^jurisdiction any such secured asset or other documents relating thereto may be situated or found, to take possessror; thereof, and the Chief Metropolitan magistrate or, as the case may be. the District tvlagistrate shall, on such request being made to him ---

¶51

(a) take possession of such asset and documents relating thereto; and

¶52

(b) forward such asset and documents to the secured creditor:

¶53

IProvided^{that any application by the secured creditor shall be} accompanied by an affidavit duly affirmed by the authorized officer of the secured creditor, declaring that --

¶54

(i) the aggregate amount of financial assistance granted and the total claim of the Bank as on the date of filing the application,

¶55

(ii) the borrower has created security interest over various properlies and that the bank or Financial lnstitution is holding a valid and subsisting security interest over such properties and the claim of the Bank or Financial lnstitution is within the limitation period;

¶56

(iii) the borrower has created security interest over various propertr.s giving the details of properties referred to in sub-clause (ii) above

¶57

(iv) the borrower has committed default in repayment of the financial assistance granted aggregating the specified amount;

¶58

(v) consequent upon such default in repayment of the financial assistance the account of the borrower has been classified as a r)or performing asset;

¶59

(vi) affirming that the period of sixty days' notice as required by the provisions of sub-section (2) of section 13, demanding payment of the defaulted financial assistance has been served on the borrower

¶60

(vii) the objection or representation in reply to the notice recerved troni the borrower has been considered by the secured creditor and reasons for non-acceptance of such objection or representatron had been communicated to the borrower;

¶61

(viii) the borrower has not made any repayment of the financial assistanc,. in spite of the above notice and the Authorized Officer 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

¶62

A, principal Act; (Z--/

¶63

¶64

sA/309/2025 DRI .',',i i

I I I ,l II

i I I ,l

I I I

I 'I

I l: I l

! I IL 1

(ix) that the provisions of this Act and the rules made thereunder had been complied with:

¶76

Provided further that on receipt of the affidavit from the Authorized Officer, the District Magistrate or the Chief Metropolitan Magistrate, as the case may be, shall after satisfying the corrtents ,- the affidavit pass suitable orders for the purpose of takrng possessron of the secured assets [within a period of thirty days from the date of applicationl:

¶77

[Provided^{Also that if no order is passedby the Chief} Metropolitan Magistrate or District Magistrate within the sard period of thiry days for reasons beyond his control, he may. after recordrng reasons in writing for the same, pass the order wrthin such further period but not exceeding in aggregate sixty days,l

¶78

Provided also that the requirement of filing affidavit stated n the first proviso shall not apply to proceeding pending before any District lVlagistrate or the Chief Metropolitan Magistrate, as the case may be, on the date of commencement of this Act.l

¶79

[(1A)^{The District Magistrateor the Chief Metropolitan Magistrate} may authorize any officer subordinate to him ---

¶80

(i) to take possession of such assets and documents to be secured creditor.]

¶81

(ii) to foMard such assets and documents to the secured creditor.l

¶82

(2) For the purpose of securing compliance with the provisions of sul section('l), the Chief Metropolitan Magistrate or the District Magistrate may take or cause to be taken such steps and use, or cause to be used, such force. as may. rn hrs opinion be necessary.

¶83

No act of the Chief Metropolitan Magistrate or the District Magistrate [any officer authorized by the Chief Metropolitan Magistrate or District Magistratel done in pursuance of this section shall be called in question in any court or before any authority.^"

¶84

11 From the reading of the Section 14 of the Act it is crystal clear that this Section is invoked of secured creditor only where the possession of the secured asset is required to be taken.

¶85

'12 The application which is required to be moved by the secured credrtor must be accompanied by an affidavit duly affirmed by the authorized officer declaring, inter alia, that a notice under Section 1 3(2) of the Act stood served and Section 14 is to be invoked after the borrower has failed to discharge in full his liability to the secured

¶86

¶87

sA/3O9/2025 DRT 2/KOL

¶88

creditor withrn a period of sixty days despite having been served with a notice under Section 13(2) ol the Act.

¶89

'13. ln the instant case notices have been served, annexures have been served by the SARFAESI applicant upon the defendant. The possession has already been taken over by the defendant.

¶90

ORDERED

¶91

After perusal of the impugned order, I find that the Learned t/agistrate has after due consideration of the application, the affidavit and the other documents and only after being satisfied passed the order.

¶92

I do not see any fault with the order of the Learned chief Judicial t/agistrate, Birbhum at Suri.

¶93

Learned counsel for the applicant lastly submits that he is willing to discharge his duty and be given liberty to approach the bank for with an OTS proposal.

¶94

The applicant is at liberty to approach the bank for setflement.

¶95

Finding no fault of the order of the Learned chief Judicial lvlagistrate, Birbhum at Suri, I do not see any merit in the SA as well as lN166Sl2O2S

¶96

The SA being 5A/309/2025 as weil as lA/1665/2025 stands dismissed on

¶97

contest

¶98

File be consigned to Record Room.

¶99

This order is dictated and corrected by the undersigned and pronounced on this the day of 3rd September,2025.

¶100

Copy of the Order be uploaded in the Tribunal's Website.

¶101

L, 4Jrh^{,! ff)} (Arbind Man? Presiding Officer DRT-2, Kolkata

¶102

Khabir Sekh v. Aadhar Housing Finance Limited

Case brief

What is this about?

What did the court decide?

Khabir Sekh v. Aadhar Housing Finance Limited

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Shyam Sundar Gourisaria versus State Bank of India

Bangiya Gramin Vikas Bank versus Icon Nature Care Pvt. Ltd.

Aarburgreen Estates LLP versus State Bank of India

Punjab National Bank versus Ramkrishna Basu

Punjab National Bank versus Sudipta Ghosh

Punjab National Bank versus Sri Chandra Nath Acherjee