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2024:CGHC:37458
NAFR

HIGH COURT OF CHHATTISGARH AT BILASPUR

WPC No. 4742 of 2024

1 - Idfc First Bank Ltd Through Its Authorised Officer, Sandesh Jain, S/o. Shri A.K.
Jain Having Branch Office 1st Floor, Satpal Chambers, Civil Line, Near Rajbhavan,
Distt. Raipur (C.G.) 492001
... Petitioner

versus

1 - State Of Chhattisgarh Through Its Principal Secretary, Department Of Revenue

And Disaster Management Department, S 2-1, Mahanadi Bhavan, Nava Raipur, Atal
Nagar,Raipur(C.G.)

2-Chief Judicial Magistrate District Mahasamund, Chhattisgarh

3 - Asif Khan S/o. Mohammad Arman R/o. Plot No. 05, Abadi Land Part Of Khasra
No. 283, Mouja- Raikhera, P.H. No. 02, Ric Patewa, District - Mahasamund (C.G.)
493445

4 - Mohd. Arif S/o. Mo. Arman R/o. Plot No. 05, Abadi Land Part Of Khasra No. 283,
Mouja- Raikhera, P.H. No. 02, Ric Patewa, District - Mahasamund (C.G.) 493445

5 - Mumtaz Bega Khan W/o. Mo. Arman Khan R/o. Ward No. 10, Raikera, Sirpur,
District-Mahasamund(C.G.)493445

6 - Mo. Arman Khan S/o. Mo. Akram Khan R/o. Ward No. 10, Raikera, Sirpur,
District - Mahasamund (C.G.) 493445
... Respondents

Digitally
For Petitioner : Mr. Ritesh Sharma, Advocate
signed by
NISHA NISHA DUBEY

DUBEY
Date:
2024.09.26
10:08:36
For State : Mr. Vinay Pandey, Dy. Adv. General.
+0530
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S.B.: Hon'ble Shri Parth Prateem Sahu, Judge

Order On Board
23/09/2024

1. As this Court is not deciding rights of the parties, therefore, writ petition

is disposed of without issuance of notice to respondents No.3 to 6.

2. Petitioner has filed this petition seeking following relief (s) :-

“10.1 That the Hon'ble Court may kindly be pleased to

issue an appropriate writ and/or direction and/or order to
allow this petition and set aside the order dated 03.07.2024
passed by respondent No.2, the ld. Chief Judicial
Magistrate, District Mahasamund.

10.2 That this Hon'ble Court may kindly be pleased to

direct the respondent No.2 to pass orders on the
application moved by the petitioner Bank under Section 14
of the SARFAESI Act, 2002 without issuance of notices to
the Borrowers(private respondents herein) within stipulated
time preferably 15 days.”

3. Learned counsel for petitioner submits that petitioner is a secured

creditor. After completion of the proceeding under Section 13 of the

Secularization and Reconstruction of Financial Assets and

Enforcement of Security Interest Act, 2002 (for short 'the Act of 2002')

before Chief Judicial Magistrate which was registered on 3.7.2024, the

Chief Judicial Magistrate has issued notice fixing the date for

appearance on 17.09.2024. He contended that as the proceedings

under Section 14 of the Act, 2002 is ministerial in nature, therefore,

notice to the borrower is not required. He further contended that under

Section 14 of the Act, 2002, the law makers have specifically provided

that if no order is passed by the Chief Metropolitan Magistrate or District

Magistrate within the said period of thirty days for reasons beyond his

control, he may, after recording reasons in writing for the same, pass the
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order within such further period but not exceeding in aggregate sixty days

from the date of receipt of application.

4. Learned State counsel would submit that as the petitioner is only

seeking a direction to respondent No.2 to conclude the proceedings

under Section 14 of the Act, 2002, he is having no objection.

5. Heard learned counsel for respective parties and perused the

documents annexed with petition.

6. Perusal of the documents would show that petitioner issued notice to

private respondents under Section 13 of the Act, 2002, making

demand of Rs.8,7,881.70/-. Petitioner thereafter submitted an

application under Section 14 of the Act, 2002 before the respondent

No.2 on 3.7.2024 in which respondent No.2 has issued notice and

fixed the date on 17.9.2024 for appearance of the respondents therein.

The date fixed is beyond the period of two months.

7. Section 14 of the Act of 2002 is an enabling provision to the secured

creditors in taking possession of secured assets. Relevant portion of

Section 14 of the Act, 2002 is extracted below for ready reference:-

“14. Chief Metropolitan Magistrate or District

Magistrate to assist secured creditor in taking
possession of secured asset.—(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 sold or transferred by the secured creditor
under the provisions of this Act, the secured creditor may,
for the purpose of taking possession or control of any
such secured assets, request, in writing, the Chief
Metropolitan Magistrate or the District Magistrate within
whose jurisdiction any such secured asset or other
documents relating thereto may be situated or found, to
take possession thereof, and the Chief Metropolitan
Magistrate or, as the case may be, the District Magistrate
shall, on such request being made to him—
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(i) xxxxx
(ii) xxxxx
(iii) xxxxx
(in) xxxxx
(v) xxxxx
(vi) xxxxx
(vii) xxxxx
(vii) xxxxx
(ix) xxxxx
Provided further that on receipt of the 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 assets1[within a period of thirty days from the
date of application]
Provided further that if no order is passed by the Chief
Metropolitan Magistrate or District Magistrate within the
said period of thirty days for reasons beyond his control,
he may, after recording reasons in writing for the same,
pass the order within such further period but not
exceeding in aggregate sixty days.

8. Third Proviso of Section 14(1) of the Act, 2002 specifically

provides for the period under which District Magistrate/Chief

Judicial Magistrate has to take possession of mortgaged property

subject matter of the application under Section 14 of the Act, 2002.

The maximum period under which is to be concluded is also

prescribed. Provision under Section 14 of the Act, 2002 also talks

that upon receiving request in writing, the District Magistrate or

Chief Judicial Magistrate within whose jurisdiction any such

secured asset or other documents relating thereto may be situated

or found to take possession thereof.

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9. Proviso under Section 14 of the Act, 2002 in clear terms provides

that after receipt of the request within a period of 30 days

proceeding is to be concluded and if for any reason beyond the

control of the authority possession could not be taken, then the

order has to be passed within such further period but not

exceeding 60 days. Statutes provides the maximum period of 60

days under which order under Section 14 of the Act, 2002 is to be

passed. Respondent No.2 without considering the provision under

Section 14 of the Act, 2002 has fixed the case after more than two

months which is in contravention of the provision under Section 14

of the Act, 2002.

10. For the foregoing reasons and considering the provision under

Section 14 of the Act, 2002, writ petition is disposed of directing

respondent No.2 to conclude the proceedings and pass order

under Section 14 of the Act, 2002 within a further period of 30 days

from the next date fixed.

Sd/-
(Parth Prateem Sahu)
Nisha Judge