The single judge bench of the Jharkhand High Court held that it is the duty of the District Magistrate to assist the secured creditor in taking possession of the secured assets. Further, the District Magistrate is not the Adjudicating Authority under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
Brief facts
The factual matrix of the case is that the application was filed by the Petitioner under Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 has been kept pending by the Deputy Commissioner/ District Magistrate, since 08.07.2022.
Observations of the court
The Hon’ble Court observed that the District Magistrate has an obligation to help the secured creditor retrieve the secured property. The time frame of thirty days has been mentioned. This Act's provisions will be thwarted by any delay caused by the District Magistrate. Furthermore, under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 Act, the District Magistrate is not the Adjudicating Authority. He has no other obligation than to support the secured creditor in peacefully regaining possession of the property; should someone attempt to hinder, he may face legal repercussions.
Based on these considerations, the court directed that the Deputy Commissioner/ District Magistrate, to immediately within two weeks take appropriate steps and dispose of the application of the petitioner in terms of Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
The decision of the court
With the above direction, the court disposed of the Writ Petition.
Case Title: TATA Capital Housing Finance Limited V. The State of Jharkhand
Coram: Hon’ble Mr. Justice Ananda Sen
Case No.: W.P.(C) No.5133of 2023
Advocate for the Petitioner: Mr. Rishu Ranjan, Advocate.
Advocate for the Respondent: Mr. Raunak Sahay, AC to GP-V
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