Section 14 SARFAESI possession proceedings are administrative, with no prior hearing required before the District Magistrate.

Proceedings under Section 14 of SARFAESI do not require prior notice or hearing to the borrower or guarantor when the secured creditor seeks assistance to take possession of the secured asset. The District Magistrate's role at this stage is administrative and ministerial, not adjudicatory, so principles of natural justice are not imported into consideration of the request. The borrower's remedy arises after possession is taken. An order insisting on impleadment of the legal heirs before action under Section 14 was held not legally sustainable and was set aside.

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Issues: Whether proceedings under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 require notice or hearing to the borrower or guarantor, and whether the District Magistrate acts in a non-adjudicatory capacity while facilitating possession of the secured asset.

Analysis: Section 14 authorises the Chief Metropolitan Magistrate or District Magistrate to assist the secured creditor in taking possession of the secured asset when request is made in writing. The provision operates as part of the SARFAESI recovery scheme and does not contemplate an opportunity of hearing at the stage of consideration of such request. The function performed by the District Magistrate is administrative and ministerial, not adjudicatory. The remedy of the borrower lies after possession is taken, and the requirement of natural justice is not imported into Section 14 at this stage.

Conclusion: The order insisting on impleadment of the legal heirs before proceeding under Section 14 was held to be not legally sustainable and was set aside.

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