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Issues: Whether, while exercising powers under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, the District Magistrate or designated authority can defer assistance to the secured creditor and decline possession of the secured asset until the alleged tenancy rights of a third party are first terminated by due process of law.
Analysis: Section 14 obliges the District Magistrate or Chief Metropolitan Magistrate to act on the secured creditor's written request after verifying the statutory compliances set out in the proviso to Section 14(1). The function is ministerial and not adjudicatory. The authority is required to assist the secured creditor in taking possession and forwarding the secured assets, and is not empowered to decide disputes between the secured creditor and a third party claiming tenancy rights. Any grievance against the measures taken under the Act lies before the Debts Recovery Tribunal under Section 17. The order keeping the application pending until termination of the tenancy therefore travelled beyond the scope of Section 14.
Conclusion: The District Magistrate had no jurisdiction under Section 14 to postpone possession on the ground that the secured creditor must first terminate the alleged tenancy; the High Court was correct in setting aside that order and directing disposal of the Section 14 application in accordance with law.
Ratio Decidendi: The power exercised under Section 14 of the SARFAESI Act is a ministerial, non-adjudicatory power confined to verification of statutory compliance and assistance in taking possession, and it does not permit the District Magistrate to adjudicate tenancy disputes or impose conditions outside the statute.
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