Taking Possession Beyond SARFAESI Act's 30-Day Timeline Is Valid As Time Limit Is Directory, Not Mandatory

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The HC held that the time limit for Chief Metropolitan Magistrate or District Magistrate to act under Section 14 of the SARFAESI Act is directory, not mandatory. These authorities do not become functus officio upon expiry of the statutory period of thirty days or extended period of sixty days. The Court reasoned that interpreting the timeline as mandatory would frustrate the Act's primary objective of timely debt recovery, leaving secured creditors remediless due to administrative delays and unjustly enriching defaulting borrowers. The borrower has no right to object to recovery steps when liable to repay the loan. The petition was allowed, directing the District Magistrate to dispose of the bank's application within four weeks.....