S.Rethinam vs The Chief Judicial Magistrate
2022 Latest Caselaw 6459 Mad

                                                                            W.P(MD)No.5481 of 2022

                                  BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

                                                     DATED : 29.03.2022

                                                           CORAM:

                                    THE HONOURABLE MR.JUSTICE PARESH UPADHYAY
                                                       and
                                     THE HONOURABLE MR.JUSTICE R.VIJAYAKUMAR

                                                  W.P(MD)No. 5481 of 2022

                     S.Rethinam                                                         .. Petitioner
                                                               Vs

                     1.The Chief Judicial Magistrate,
                       Karur,
                       Karur District.

                     2.Cholamandalam Investment and Finance
                              Company Limited, Chennai,
                       Branch Office at Trichy,
                       represented by its
                       Authorized Officer N.Surendrakumar                          .. Respondents


                              Writ Petition filed under Article 226 of the Constitution of
                     India praying for the issuance of a Writ of Certiorari, calling for
                     records pertaining to the Impugned Order in Cr.M.P.No.553/2021
                     dated 10.12.2021 passed by the Respondent No.1 and quash the
                     same as illegal.

                                         For Petitioner   : Mr.R.Venkatesan

                                                          ORDER

[Made by R.VIJAYAKUMAR, J.]

1. The present writ petition has been filed

challenging the order passed by learned Chief Judicial Magistrate,

Karur under Section 14(1) of Securitisation and Reconstruction of

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W.P(MD)No.5481 of 2022

Financial Assets and Enforcement of Security Interest Act, 2002

(hereinafter referred to as 'the Act').

2. The petitioner has borrowed from the respondent

finance company and he was issued with a notice under Section

13(2) the Act on 30.07.2021 and thereafter a notice under Section

13(4) on 21.10.2021. The possession notice was also published in

two newspapers. Thereafter, the respondent finance company

approached learned Chief Judicial Magistrate, Karur in Cr.M.P.No.

553 of 2021 for taking possession of the secured assets. Learned

Chief Judicial Magistrate, Karur, after hearing the submissions made

on the side of the company had passed an order, appointing an

Advocate Commissioner, to take possession of the properties, which

are the secured assets. The said order is under challenge in this writ

petition.

3. The Division Bench of our High Court in the

judgment reported in 2021 (3) CTC 383 (Karvy Financial Services

Ltd and others v District Magistrate and District Collector, Chennai

and others dated 23.04.2021), has also held that the scope and

power of the authority under Section 14 of the Act is just

administrative in character in order to assist in taking possession of

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W.P(MD)No.5481 of 2022

the secured assets and the borrower need not be heard by the Chief

Judicial Magistrate before passing an order under Section 14 of the

Act. The only remedy available to the borrower is to approach the

Debts Recovery Tribunal by challenging the possession notice under

Section 13(4) of the Act by way of filing an appeal under Section 17

of the said Act.

4. The grounds raised by the writ petitioner cannot

be entertained under Article 226 of the Constitution of India.

5. Writ Petition stands dismissed. However, the

dismissal of this petition will not stand in the way of the writ

petitioner from approaching the Debts Recovery Tribunal. No costs.

Consequently, connected W.M.P.(MD) Nos. 4437 & 4438 of 2020 are

closed.

                                                               [P.U., J]      [R.V., J]
                                                                       29.03.2022

                     Index  : No
                     ssm/15

                     To

                     The Chief Judicial Magistrate,
                     Karur,
                     Karur District.

https://www.mhc.tn.gov.in/judis

W.P(MD)No.5481 of 2022

PARESH UPADHYAY, J.

and R.VIJAYAKUMAR, J.

ssm

W.P(MD)No.5481 of 2022

29.03.2022

https://www.mhc.tn.gov.in/judis