{"id":327137,"date":"2024-07-23T10:00:50","date_gmt":"2024-07-23T04:30:50","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=327137"},"modified":"2024-07-23T09:10:04","modified_gmt":"2024-07-23T03:40:04","slug":"jhc-dm-not-adjudicating-authority-sarfaesi-act-only-duty-to-assist-secured-creditor-taking-possession-property","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2024\/07\/23\/jhc-dm-not-adjudicating-authority-sarfaesi-act-only-duty-to-assist-secured-creditor-taking-possession-property\/","title":{"rendered":"District Magistrate not adjudicating authority under SARFAESI Act; only duty to assist secured creditor in taking possession of property: Jharkhand HC"},"content":{"rendered":"
\n

Jharkhand High Court:<\/span> In a petition filed with the grievance that the petitioner’s application under Section 14<\/a> of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002<\/a> (‘SARAFESI Act’) had been kept pending by the Deputy Commissioner\/ District Magistrate, East Singhbhum, since 08-07-2022, Ananda Sen, J.<\/span>, stated that the District Magistrate was not the Adjudicating Authority under the SARFAESI Act. His duty was only to assist the secured creditor in taking possession of the property, so that the possession could be taken peacefully and if someone obstructs, appropriate action could be taken against him. Thus, the Court directed the Deputy Commissioner\/District Magistrate, East Singhbhum, to immediately, within two weeks, take appropriate steps and dispose of the petitioner’s application in terms of Section 14<\/a> of the SARFAESI Act<\/a>.<\/p>\n

The Court after perusal of the Section 14<\/a> of the SARFAESI Act<\/a>, stated that the time was the essence under the said provision. The duty of the District Magistrate was to assist the secured creditor in taking possession of the secured assets. The timeframe had been mentioned which was thirty days. Any delay at the instance of the District Magistrate would frustrate the provision of the SARFAESI Act. Further, the Court stated that the District Magistrate was not the Adjudicating Authority under the SARFAESI Act. His duty was only to assist the secured creditor in taking possession of the property, that is, giving assistance so that the possession could be taken peacefully and if someone obstructs, appropriate action could be taken against him.<\/p>\n

The Court stated that by delaying the disposal of this application, the District Magistrate was frustrating the intent of law, which should not be. Thus, the Court directed the Deputy Commissioner\/District Magistrate, East Singhbhum, to immediately, within two weeks, take appropriate steps and dispose of the petitioner’s application in terms of Section 14<\/a> of the SARFAESI Act<\/a>.<\/p>\n

[TATA Capital Housing Ltd. v. State of Jharkhand, W.P.(C) No. 5133 of 2023, decided on 05-07-2024<\/span>]<\/p>\n\n

Advocates who appeared in this case :<\/p>\n

For the Petitioner: Rishu Ranjan, Advocate.<\/p>\n

For the Respondents: Raunak Sahay, AC to GP-V.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Court stated that by delaying the disposal of the application filed by the petitioner, the District Magistrate is frustrating the intent of law, which should not be.<\/p>\n","protected":false},"author":67520,"featured_media":317614,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[33289,71280,16121,5791,71279,33207],"class_list":["post-327137","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-adjudicating-authority","tag-assist-secured-creditor","tag-district-magistrate","tag-jharkhand-high-court","tag-justice-ananda-sen","tag-possession-of-property"],"yoast_head":"\nDM not adjudicating authority under SARFAESI Act; only duty to assist secured creditor in taking possession of property: JHC | SCC Times<\/title>\n<meta name=\"description\" content=\"District Magistrate not adjudicating authority under SARFAESI Act; 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