Dismissed

M/s.India Infoline Housing v. The District Collector

Madras HC9 Jan 2018WP/374/2018

Case brief

AI extract

What is this about?

The Court directed the District Collector, Tirupur, to dispose of a pending Section 14 application under the SARFAESI Act within four weeks, adhering to statutory provisions and executive directions for speedy disposal of bank possession cases.

What did the court decide?

The District Collector directed to dispose of the application dated 04.08.2016 within four weeks following SARFAESI Act procedures.

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

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IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 09.01.2018 CORAM: THE HON'BLE MR.JUSTICE S.MANIKUMAR AND

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THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN

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W.P.No.374 of 2018

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M/s.India Infoline Housing Finance Ltd (IIFL), Having its registered office at 12A-10, 13th Floor, Parinee Crescenzo, C-38 and C-39, G Block, Behind MCA, Bandra Kurla Complex, Bandra East, Mumbai-400051. Through its Authorized Officer, Pandian Raj.C.

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... Petitioner

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vs.

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The District Collector, Tirupur District, Tirupur.

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... Respondent

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Prayer: WRIT Petition filed under Article 226 of the Constitution of India, praying for the issuance of a writ of Mandamus, directing the respondent herein to pass orders in Section 14 petition under SARFAESI Act 2002 filed by the petitioner before the respondent on 04.08.2016 bearing Ref.No.8954/2016/C3.

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For Petitioner : Mr.M.Arunachalam

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For Respondent : Mr.M.Elumalai

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Government Advocate

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ORDER

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

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For taking physical possession, M/s.India Infoline Housing Finance Ltd,(IIFL), represented by its authorised officer, Mumbai, has filed application, dated 04.08.2016, under Section 14(1) of the SARFAESI Act, 2002, before the District Magistrate cum District Collector, Tirupur District, Tirupur, respondent herein. As the abovesaid application is pending till date, the petitioner has sought for a writ of mandamus, directing the respondent, to pass orders.

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On this day, when the writ petition came up for admission, on instructions, from the Office of the District https://hcservices.ecourts.gov.in/hcservices/

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Magistrate cum District Collector, Tirupur District, Tirupur, Mr.M.Elumalai, learned Government Advocate submitted that orders are yet to be passed on the application, filed under Section 14(1) of the SARFAESI Act, 2002. Enquiry is yet to be completed and he prayed for four 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 applications. 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 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 https://hcservices.ecourts.gov.in/hcservices/ from the date of receipt of a copy of this order.

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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 Government Advocate 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 the earlier order of this Court in W.P.No.7813 of 2016, dated 22.04.2016, this Court is inclined to pass the following order:-

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“The District Magistrate cum District Collector, Tirupur District, Tirupur, is directed to dispose of the application dated 04.08.2016, 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 Magistrate cum District Collector, Tirupur District, Tirupur, should act in accordance with Section 14 of the SARFAESI Act, 2002.”

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With the above observation and direction, these writ petition is disposed of accordingly. No costs.

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Sd/ASSISTANT REGISTRAR /TRUE COPY/ SUB ASSISTANT REGISTRA

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The District Collector/ District Magistrate Tirupur District, Tirupur.

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+1 CC to Mr.M.Arunachalam Advocate SR.NO.1770

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LRS(CO) VC (06/02/2018)

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

M/s.India Infoline Housing v. The District Collector

Case brief

What is this about?

What did the court decide?

M/s.India Infoline Housing v. The District Collector

Case brief

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What did the court decide?

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