The Akola Janta Commercial Co-Op. Bank ... vs District Magistrate (Collector), ...
2024 Latest Caselaw 25409 Bom

Bombay High Court

The Akola Janta Commercial Co-Op. Bank ... vs District Magistrate (Collector), ... on 4 September, 2024

Author: M.S. Jawalkar

Bench: Avinash G. Gharote, Mukulika Shrikant Jawalkar

2024:BHC-NAG:9991


                                                          1                                53.WP.7888-2023.odt




                        IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                  NAGPUR BENCH AT NAGPUR

                                      WRIT PETITION NO. 7888 OF 2023
          ( The Akola Janata Commercial Co-operative Bank Ltd., Akola, Thr. Its
                            Branch Manager/Authorized Officer
                                            Vs.
                      District Magistrate (Collector), Wardha & Ors. )

         Office Notes, Office Memoranda                       Court's or Judge's orders
         of Coram, Appearances, Court's
         orders     or    directions and
         Registrar's orders


                                 Mr. R.L. Khapre, Senior Advocate a/b Mr. Mandar R. Deshpande, Advocate for
                                 the Petitioner.
                                 Mr. M.J. Khan, AGP for the Respondent No.1/State.
                                 Mr. S.N. Mahajan, Advocate for the Respondent Nos. 2 & 3.




                                 CORAM:       AVINASH G. GHAROTE AND
                                              SMT. M.S. JAWALKAR, JJ.

DATED : 4th SEPTEMBER, 2024

Heard.

2. On 14.08.2024, the following position was recorded:

"The only question raised is whether the learned District Magistrate, acting under Section 14 of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short, "SARFAESI Act") has any power to adjudicate in the instant matter by exercising powers under Section 37A of the Maharashtra Land Revenue Code, 1966 as he has refused to exercise jurisdiction under Section 14 of SARFAESI Act.

2. Mr. Khapre, learned Senior Counsel appearing for the petitioner by relying upon para 18 of the judgment in the case of Balkrishna Rama Tarle Vs. Phoenix ARC Private Ltd. [(2023) 1 SCC 662] submits that powers of the 2 53.WP.7888-2023.odt

District Magistrate under Section 14 of the SARFAESI Act are ministerial in nature and he does not possess any adjudicatory power, on account of which the impugned order cannot sustain."

3. Today Mr. Khan, learned AGP for the Respondent No.1/State, seeks time. He however fairly submits, that on the merits of the matter, the District Magistrate acting under Section 14 of the SARFAESI Act, does not have any power of adjudication even in exercise of powers under Section 37-A of the Maharashtra Land Revenue Code, 1966 as that is not permissible in law. In that view of the matter, which according to us, is a correct position of law, the order dated 13.12.2022 (page 117), which rejects the application filed by the Petitioner/Bank, is hereby quashed and set aside and the matter is remitted back to the District Magistrate to act in terms of and within the four corners of Section 14 of the SARFAESI Act.

4. The Petition is allowed in the above terms. No costs.

5. Pending application/s, if any, shall stand disposed of accordingly.

(SMT. M.S. JAWALKAR, J.) (AVINASH G. GHAROTE, J.) SD. Bhimte

Signed by: Mr.S.D.Bhimte Designation: PA To Honourable Judge Date: 05/09/2024 15:12:25