Section 14 SARFAESI commission period can be extended without a fresh application for possession proceedings

Under Section 14 of the SARFAESI Act, the Chief Judicial Magistrate may extend the period of a writ of commission issued for taking possession of secured assets, and expiry of the earlier period does not require the secured creditor to file a fresh application. The provision is designed to provide prompt ministerial assistance in delivery of possession, and insisting on a fresh application would defeat that object by causing avoidable delay. The Court also recognised that the Magistrate may appoint an advocate as Court Commissioner for of the possession order.

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Issues: Whether the Chief Judicial Magistrate has power to extend the period of a Writ of Commission issued for taking possession of secured assets under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 without requiring the secured creditor to file a fresh application.

Analysis: Section 14 is intended to provide prompt ministerial assistance to a secured creditor in taking possession of the secured asset. Where an order under Section 14 has already been passed and a Court Commissioner has been appointed to take and deliver possession, the mere expiry of the period mentioned in the writ of commission does not extinguish the power of the Magistrate to continue the execution process. Requiring a secured creditor to file a fresh application merely because possession could not be taken within the earlier period would defeat the object of the special enactment and introduce avoidable delay. The Court also applied the principle that the Magistrate may appoint an advocate as Court Commissioner for execution of such orders.

Conclusion: The Chief Judicial Magistrate has power to extend the period of the Writ of Commission and a fresh Section 14 application is not required for that purpose.

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