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        2021 (7) TMI 1462 - HC - Indian Laws

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        Section 14 SARFAESI assistance is ministerial; authorities must act once statutory declarations are in order. Section 14 proceedings under SARFAESI are non-adjudicatory and ministerial: the competent authority verifies only whether the secured creditor's statutory ...
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Section 14 SARFAESI assistance is ministerial; authorities must act once statutory declarations are in order.

                                Section 14 proceedings under SARFAESI are non-adjudicatory and ministerial: the competent authority verifies only whether the secured creditor's statutory declarations are in order, and it must then provide the necessary police or revenue assistance to take possession of the secured asset. Rival claims are not examined at that stage, and the borrower's remedy lies under Section 17 after enforcement measures are taken. The authority therefore could not remain inactive once the Collector's order was sought to be implemented, and was required to extend the requested executive assistance.




                                Issues: Whether the authorities were bound to extend effective executive assistance under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 for taking possession of the secured asset in terms of the Collector's order.

                                Analysis: Proceedings under Section 14 are confined to verification of the secured creditor's declarations and do not involve adjudication of rival claims. Once the statutory requirements are in order, the authority must act on the request at face value and provide the reasonable and necessary police or revenue assistance required to secure possession of the asset. The statutory scheme is intended to facilitate swift enforcement of security interests, with any grievance by the borrower or other aggrieved person being left to the remedy under Section 17 after measures are taken.

                                Conclusion: The authorities were required to provide the requested assistance and could not remain inactive after the Collector's order.

                                Ratio Decidendi: A request under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 is a non-adjudicatory, ministerial process under which the competent authority must extend necessary executive assistance once the statutory declarations are in order.


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                                ActsIncome Tax
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