Disposed

M/s.Hdfc Bank Ltd., v. The District Collector

Madras HC19 Jan 2018WP/999/2018

Case brief

AI extract

What is this about?

This court, in a writ petition under Article 226, directed the District Collector, Vellore, to dispose of an application filed under Section 14 of the SARFAESI Act, 2002, within four weeks, citing government directions and a prior mandate for speedy disposal.

What did the court decide?

Directing the District Collector, Vellore, to dispose of the pending application under Section 14 of the SARFAESI Act, 2002 within four weeks from the date of the order.

M/s.Hdfc Bank Ltd., Vs The District Collector — Banking and Recovery | Madras HC (2018)

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IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 19.01.2018 CORAM: THE HONOURABLE MR.JUSTICE S.MANIKUMAR and

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THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN

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W.P.No.999 of 2018

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M/s.HDFC Bank Ltd., Represented by its Authorized Ofifcer, No.110, Ceebros Buildings, 4th Floor, Nelson Manickam Road, Aminjikarai, Chennai - 600029. .. Petitioner Vs. The District Collector, Vellore Collectorate, Vellore - 638 011. .. Respondent PRAYER: Writ Petition is filed under Article 226 of the Constitution of India, praying for the issuance of a writ of Mandamus, directing the respondent herein to pass necessary order in the application dated 09.08.2016, bearing Ref.No. of Respondent Na.Ka.C1/5560/2017, dated 25.03.2017 filed by the petitioner under Section 14 of SARFAESI Act, 2002, within a time frame. D.Sathyaraj For Petitioner : M/s.T.Anupriya For Respondent : Mr.J.Ramesh Additional Government Pleader ORDER

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

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M/s.HDFC Bank Ltd., Chennai, represented by its authorised officer, has filed the instant writ petition, for a mandamus, directing the respondent herein to pass necessary order in the application dated 09.08.2016, bearing Ref.No. of Respondent Na.Ka.C1/5560/2017, dated 25.03.2017 filed by the petitioner under Section 14 of SARFAESI Act, 2002, within a time frame.

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Mr.J.Ramesh, learned Additional Government Pleader, appearing for the respondent, submitted that so far, no order has been passed.

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

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On this day, when the writ petition came up for admission, on instructions, from Mr.D.Thirunavukkarasu, Deputy Collector Vellore District / Personal Assistant to the District Collector / Magistrate, Vellore District, present in court, Mr.J.Ramesh, learned Additional Government Pleader, submitted that orders are yet to be passed in the application filed under Section 14 of the SARFAESI Act, 2002 and that enquiry is yet to be completed. However, 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 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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https://hcservices.ecourts.gov.in/hcservices/

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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 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 orders,

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“The District Collector/Magistrate, Vellore, is directed to dispose of the application dated 09.08.2016, if not done earlier, within a period of four weeks, from today. While doing so, District Collector/Magistrate, Vellore, should act in accordance with Section 14 of the SARFAESI Act, 2002.”

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