Full disclosure before Section 14 assistance is mandatory; nondisclosure of pending proceedings can vitiate the order and require remand.

A secured creditor seeking assistance under Section 14(1) of SARFAESI must make full and fair disclosure of all material pending proceedings and orders before the District Magistrate. Where the civil suit, orders passed in that suit, and an appellate order protecting possession except through due process of law were not disclosed, the omission deprived the Magistrate of material facts needed for a lawful decision and amounted to a serious procedural infraction and breach of natural justice. On that basis, the non-disclosure vitiated the Section 14(1) order, the writ and District Magistrate's orders were set aside, and the matter was remanded for fresh consideration after disclosure and hearing both sides.

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Issues: Whether the secured creditor's failure to disclose the pendency of civil proceedings and the appellate order before the District Magistrate while seeking assistance under Section 14(1) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 vitiated the order and justified interference under Article 227 of the Constitution of India.

Analysis: The secured creditor, while invoking Section 14(1), was required to place all relevant materials before the District Magistrate. The record showed that the pendency of the civil suit, the orders passed therein, and the appellate order protecting possession except through due process of law were not disclosed. The omission was treated as a serious procedural lapse because the District Magistrate was deprived of material facts necessary to decide the request in accordance with law. In these circumstances, the defect was not merely technical but amounted to a violation of natural justice and a procedural infraction warranting supervisory correction.

Conclusion: The non-disclosure vitiated the order under Section 14(1), and the writ order as well as the District Magistrate's order were set aside. The matter was remanded for fresh consideration after disclosure of all relevant materials and hearing both sides.

Ratio Decidendi: A secured creditor seeking assistance under Section 14(1) must make full and fair disclosure of all material proceedings and orders to the District Magistrate; failure to do so, where it affects a fair decision-making process, constitutes procedural illegality justifying interference and remand.

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