Limited scope of section 14 under SARFAESI: Magistrate cannot decide compliance objections, only territorial jurisdiction and notice service.

Under section 14 of the SARFAESI Act, the Magistrate's inquiry is confined to verifying territorial jurisdiction over the secured asset and service of notice under section 13(2). Disputed objections about compliance with the Act, including alleged irregularities in measures under section 13(4), cannot be adjudicated at that stage and must be pursued before the Debts Recovery Tribunal under section 17. An order that examined the merits of such non-compliance went beyond the limited scope of section 14 and was contrary to binding law; the rejection of the application was set aside and directions were issued to proceed under section 14.

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Issues: Whether, while acting under section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, the Magistrate could enter upon an adjudication of objections relating to compliance with the Act, or whether the enquiry was confined to territorial jurisdiction and service of notice under section 13(2).

Analysis: The jurisdiction under section 14 is limited to verifying whether the secured asset falls within the Magistrate's territorial jurisdiction and whether notice under section 13(2) has been served. No adjudication of disputed objections, including alleged procedural irregularities in taking measures under section 13(4), is contemplated at that stage. Such grievances are to be raised before the Debts Recovery Tribunal under section 17, which provides an efficacious statutory remedy. The impugned order, having gone beyond these limits and examined the merits of alleged non-compliance, was contrary to the binding law governing section 14 proceedings.

Conclusion: The order rejecting the application under section 14 was set aside and the Magistrate was directed to pass an order under section 14 and take steps to implement it.

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