TaxTMI 
TaxTMI 
2024 (7) TMI 1211
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....een classified as Non Performing Asset ("NPA"), pursuant to which the respondent/Bank served a notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, ("SARFAESI Act"). 4. Subsequently, the respondent/Bank filed the case bearing no. CT 96/2024 under Section 14 of the SARFAESI Act before the learned CMM, North-West, Rohini Court to assist the secured creditor in taking possession of the secured asset against the petitioner. 5. It is submitted that by order dated 09th January, 2024 the learned CMM has allowed the petition filed on behalf of the respondent/Bank. Consequently, the petitioner has received a notice dated 16th January, 2024 from the receiver appointed by the learned CMM to take possession of the property in question. 6. The petitioner has approached this Court on the ground that the Court of learned CMM, North-West, Rohini does not have the territorial jurisdiction, as the property in question falls within the jurisdiction of learned CMM, North District, under Police Station: Model Town. 7. The present matter was listed for hearing yesterday i.e. 08th February, 2024, when this Cour....
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.... xxx xxx xxx (4) In case the borrower fails to discharge his liability in full within the period specified in sub-section (2), the secured creditor may take recourse to one or more of the following measures to recover his secured debt, namely:- (a) take possession of the secured assets of the borrower including the right to transfer by way of lease, assignment or sale for realising the secured asset; 4[(b) take over the management of the business of the borrower including the right to transfer by way of lease, assignment or sale for realising the secured asset: Provided that the right to transfer by way of lease, assignment or sale shall be exercised only where the substantial part of the business of the borrower is held as security for the debt: Provided further that where the management of whole of the business or part of the business is severable, the secured creditor shall take over the management of such business of the borrower which is relatable to the security for the debt;] (c) appoint any person (hereafter referred to as the manager), to manage the secured assets the possession of which has been taken over by the ....
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....ount in which debt claimed is outstanding for the time being.] [(2) The Debts Recovery Tribunal shall consider whether any of the measures referred to in sub-section (4) of section 13 taken by the secured creditor for enforcement of security are in accordance with the provisions of this Act and the rules made thereunder. xxx xxx xxx" 13. Perusal of the aforesaid clearly shows that the DRT has the jurisdiction to assess whether the enforcement of security by the secured creditor is in accordance with the provisions of the Act. 14. This Court notes that Section 14 of the SARFAESI Act categorically states that the Chief Metropolitan Magistrate or the District Magistrate has the authority to assist the secured creditor in possession of the secured asset. However, the said section further provides that the Chief Metropolitan Magistrate or the District Magistrate, within whose jurisdiction any such secured asset or other documents related thereto, may be situated or found to take possession thereof, then said Chief Metropolitan Magistrate or the District Magistrate, as the case may be, shall upon application made in this regard by the secured creditor, take posses....
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....er has been considered by the secured creditor and reasons for non-acceptance of such objection or representation had been communicated to the borrower; (viii) the borrower has not made any repayment of the financial assistance in spite of the above notice and the Authorised Officer is, therefore, entitled to take possession of the secured assets under the provisions of sub-section (4) of section 13 read with section 14 of the principal Act; (ix) that the provisions of this Act and the rules made thereunder had been complied with: Provided further that on receipt of the affidavit from the Authorised Officer, the District Magistrate or the Chief Metropolitan Magistrate, as the case may be, shall after satisfying the contents of the affidavit pass suitable orders for the purpose of taking possession of the secured assets 2[within a period of thirty days from the date of application:] [Provided also that if no order is passed by the Chief Metropolitan Magistrate or District Magistrate within the said period of thirty days for reasons beyond his control, he may, after recording reasons in writing for the same, pass the order within such further perio....