Case Note & Summary
The petitioner, Corporation Bank, had advanced loan facilities to M/s. Ankur Iron India Private Limited, which defaulted in repayment. The Bank initiated proceedings under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI Act) before the learned Chief Metropolitan Magistrate at Esplanade, Mumbai. On 14th June 2018, in Case No. 36/SA/2018, the Chief Metropolitan Magistrate allowed the application and appointed Advocate Chetna Dattaram Khedekar as Court Commissioner to take over possession of the secured assets. The jurisdictional police were directed to provide police aid to the Court Commissioner if required. The Court Commissioner issued a notice on 24th July 2018 fixing 8th August 2018 as the date for taking possession. However, on that date, the police did not provide the required assistance. The Bank then filed this writ petition under Articles 226 and 227 of the Constitution of India seeking a direction to the respondents, including the Chief Metropolitan Magistrate and the Senior Inspector of Police, Pant Nagar Police Station, to immediately take physical possession and hand it over to the Bank's Authorised Officer. The High Court, after hearing the counsel, held that the police are duty-bound to comply with the order of the Magistrate. The court directed the Senior Inspector of Police, Pant Nagar Police Station, to provide necessary police aid to the Court Commissioner for taking possession of the secured assets as per the order dated 14th June 2018. The petition was disposed of accordingly.
Headnote
A) SARFAESI Act - Section 14 - Possession of Secured Assets - Police Aid - The Bank initiated proceedings under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI Act) before the Chief Metropolitan Magistrate, who allowed the application and appointed a Court Commissioner to take possession, directing police to provide aid. The Court Commissioner issued notice but the police failed to provide assistance on the appointed date. The High Court held that the police are bound to comply with the order of the Magistrate and directed the Senior Inspector of Police to provide necessary police aid to the Court Commissioner for taking possession. (Paras 1-5)
Issue of Consideration
Whether the police authorities are obligated to provide aid to the Court Commissioner for taking physical possession of secured assets under Section 14 of the SARFAESI Act, 2002, after the Chief Metropolitan Magistrate has passed an order appointing a Commissioner and directing police assistance.
Final Decision
The High Court directed the Senior Inspector of Police, Pant Nagar Police Station, to provide necessary police aid to the Court Commissioner for taking possession of the secured assets as per the order dated 14th June 2018. The petition was disposed of.
Law Points
- Section 14 of SARFAESI Act
- 2002
- Police aid
- Court Commissioner
- Possession of secured assets
