State Bank of India, Stressed Assets Recovery Branch, Bbsr Vs District Magistate Cum Collector, Jagatsinghpur

This Writ Petition has been filed by the State Bank of India, Stressed Assets Recovery Branch, Bhubaneswar praying for a direction to the District Magistrate, Jagatsinghpur to dispose of the application dated 08.04.2024 vide Annexure-3 filed by the Bank under section 14 of the SARFAESI Act, 2002 within specific time period.

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Learned counsel for the Petitioner submits that the District Magistrate is supposed to take action within one month as per the second proviso to sub-section (1) of section 14 of the Act, which has not been complied with. To

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buttress his argument vis-à-vis the obligation on the part of the CJM to act within the stipulated time prescribed under the statute, he has relied upon the decision R.D. Jain & Co. -Vrs-. Capital First Ltd. reported in (2023) 1 Supreme Court Cases 675 , wherein it was held as follows:

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However, for taking physical possession of the secured assets in terms of Section 14(1) of the SARFAESI Act, the secured creditor is obliged to approach the CMM/DM by way of a written application requesting for taking possession of the secured assets and documents relating thereto and for being forwarded to it (secured creditor) for further action. The statutory obligation enjoined upon the CMM/DM is to immediately move into action after receipt of a written application under Section 14(1) of the SARFAESI Act from the secured creditor for that purpose. As soon as such an application is received the CMM/DM is expected to pass an order after verification of compliance of all formalities by the secured creditor referred to in the proviso in Section 14(1) of the SARFAESI Act and after being satisfied in that regard, to take possession of the secured assets and documents relating thereto and to forward the same to the secured creditor at the earliest opportunity.

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As mandated by Section 14 of the SARFAESI Act, the CMM/DM has to act within the stipulated time-limit and pass a suitable order for the purpose of taking possession of the secured assets within a period of 30 days from the date of application which can be extended for such further period but not exceeding in the aggregate, sixty days. Thus, the powers exercised by the CMM/DM is a ministerial act. He cannot brook delay. Time is of the essence. This is the spirit of the special enactment.

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In view of the limited nature of the grievance of the Petitioner, this Writ Petition is disposed of directing the District Magistrate, Jagatsinghpur to take a decision on the application filed by the Bank dated 08.04.2024 vide Annexure-3 within a period of four weeks from the date of production of the certified copy of the order along with the copy of Writ Petition.

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It is made clear that we have not expressed any opinion on the merits of the application filed by the Petitioner under Annexure-1.

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Issue urgent certified copy as per Rules.

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( S.K. Sahoo)

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Judge

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Signature Not Verified

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(S.S. Mishra)