Dismissed

M/s.Shriram Housing Finance v. The District Collector

Madras HC2 Feb 2018WP/2214/2018

Case brief

AI extract

What is this about?

This two-judge Bench dismissed petitions urging speedy disposal of Section 14 SARFAESI applications. The court waived notice to borrowers and directed the District Collector to decide pending possession applications within four weeks of receipt.

What did the court decide?

Direction to District Collector to dispose of Section 14 SARFAESI applications within four weeks; notice to borrowers waived.

M/s.Shriram Housing Finance Vs The District Collector — Banking and Recovery | Madras HC (2018)

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IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 02.02.2018 CORAM: THE HON'BLE MR.JUSTICE S.MANIKUMAR AND THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN

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W.P.Nos .2214 and 2217 of 2018

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M/S.Shriram Housing Finance Ltd.,
Rep by its Authorized Officer,
Mrs. Asha Lukose
No.221, 1st Floor,
Royapettah High Road,
Chennai 600004. ... Petitioner
in both WPs
vs.
1.The District Collector / Magistrate,
Kancheepuram District,
Kancheepuram. ... First Respondent
in both WPs
2.M.Babu
3.B.Jayasri ... Respondents
in W.P.No.2214 of 2018
2.Raja Kumaravel
3.R.Ponnazhagi ... Respondents
in W.P.No.2217 of 2018

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COMMON PRAYER: WRIT Petitions are filed under Article 226 of the Constitution of India, praying for issuance of a writ of Mandamus, directing the 1st respondent to pass orders on the petitions filed on 06.04.2017 21.09.2016 respectively, under Section 14(1) of the SARFAESI Act, within the time stipulated.

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For Petitioner : Mr.Ajmal Azzath in both WPs

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For Respondents: Mr.J.Ramesh (for R1) Additional Government Pleader in both WPs

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https://hcservices.ecourts.gov.in/hcservices/

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COMMON ORDER

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(Order of the Court was made by S.MANIKUMAR, J)

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For taking possession, M/s.Shriram Housing Finance Ltd, represented by its authorised officer, Chennai, has filed applications, dated 06.04.2017 and 21.09.2016 respectively, under Section 14(1) of the SARFAESI Act, 2002 to the District Collector / Magistrate, Kancheepuram District, first respondent herein. As the abovesaid applications were pending till date, the petitioner has sought for a writ of mandamus, directing the first respondent, to pass orders. Respondents 2 and 3 are the borrowers.

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As the District Collector / Magistrate, Kancheepuram District, 1st respondent is bound to pass orders, on the applications, we are of the view that there is no need to issue notice to respondents 2 and 3. Hence, notice to respondents 2 and 3, is waived.

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On this day, when the writ petition came up for admission, on instructions, from the Office of the District Collector / Magistrate, Kancheepuram, Mr.J.Ramesh, learned Additional Government Pleader submitted that orders are yet to be passed on the applications, filed under Section 14(1) of the SARFAESI Act, 2002 and that enquiry is yet to be completed. He prayed for six weeks time.

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Section 14 of the SARFAESI Act, 2002 mandates that on receipt of an 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 assets, within a period of 30 days from the date of application. Proviso to the said Section states that if no order is passed by the Chief Metropolitan Magistrate or District Magistrate, within the said period of thirty days, for the reasons beyond his control, he may after recording reasons, in writing, for the same, pass the order within such also period but not exceeding in aggregate 60 days.

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The Principal Secretary to Government, vide, Letter No.19498/Res.II/2014-1, dated 09.07.2014, has issued directions, stating that there should be speedy disposal of the applications filed under Section 14 of the SARFAESI Act. The said letter is extracted hereunder:-

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“I am to invite your kind attention to the reference cited (copy enclosed) wherein the GM, SLBC, Chennai, has requested to advise the District Collectors (District Magistrates) for speedy disposal of applications filed by banks to assist in taking

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https://hcservices.ecourts.gov.in/hcservices/

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possession of securities of the defaulters charged to the banks under Section 14 of SARFAESI Act, 2002.

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In this connection, I am to request you to take necessary action for speedy disposal of the applications filed by the banks in taking possession of securities of the defaulters charged to the banks under Section 14 of SARFAESI Act, 2002, without affecting the image of the administration.”

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Following the said letter, in W.P.No.7813 of 2016, dated 22.04.2016, a Hon'ble Division Bench of this Court, has passed the following order:-

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“In the light of the above, we direct the District Collector (District Magistrate), Thanjavur District, to pass orders on the Application dated 18/8/2015 in file Ref.No.34810/2015, filed under Section 14 of the SARFAESI Act, within the period of two months from the date of receipt of a copy of this order. While doing so, procedure set out under Section 14 of the Act should be followed. Mr.B.Kumar, learned Additional Government Pleader is directed to forward the copy of this order to the Principal Secretary to Government, Finance (Res.II), Department, Chennai for appropriate follow up action. 10. Along with the supporting affidavit, to the instant writ petition, the petitioner has also enclosed the copies of the petitions, dated 8/1/2014, 7/5/2014, 11/9/2014, 24/12/2014 and 31/1/2015, filed under Section 14 of the SARFAESI Act, 2002.”

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Placing on record the submission of the learned Additional Government Pleader and in the light of the directions issued by the Principal Secretary to Government, vide, Letter No.19498/Res.II/2014-1, dated 09.07.2014 and earlier order of this Court in W.P.No.7813 of 2016, dated 22.04.2016, this Court is inclined to pass the following orders,

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“The District Collector/Magistrate, Kancheepuram District, is directed to dispose of the applications dated 06.04.2017 and 21.09.2016 respectively, if not done earlier, within a period of four weeks, from the date of receipt of a copy of this order. While doing so, District Collector/Magistrate, Kancheepuram, should act in accordance with Section 14 of the SARFAESI Act, 2002.”

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https://hcservices.ecourts.gov.in/hcservices/

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With the above observation and direction, these writ petitions are disposed of accordingly. No costs.

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Sd/-
Assistant Registrar(CS IV)
//True copy//
Sub Assistant Registrar
dm
To
The District Collector / Magistrate,
Kancheepuram District,
Kancheepuram.
+1cc to Government Pleader SR.No.8388
W.P.Nos.2214 and 2217 of 2018
AK(CO)
GN(21/02/2018)

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https://hcservices.ecourts.gov.in/hcservices/

M/s.Shriram Housing Finance v. The District Collector

Case brief

What is this about?

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M/s.Shriram Housing Finance v. The District Collector

Case brief

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