TaxTMI 
TaxTMI 
2026 (10) TMI 1
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....es may be directed to decide the Sec. 14 Application in accordance with section 14 of the SARFAESI and any such illegal conditions imposed upon the petitioner may kindly be deleted. ii) any other relief deemed fit and expedient in the facts of the case may also be granted to the petitioner." 2. Learned counsel for the petitioner submits that the petitioner is a Housing Finance Company and a secured creditor within the meaning of the SARFAESI Act and is duly empowered to take measures for recovery of its dues from the secured assets of the borrowers/guarantors in accordance with the provisions of the said Act. It is submitted that the petitioner had extended loan facilities to respondent Nos.4 and 5, against which the borrowers c....
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....ry mandate. According to learned counsel, once the competent authority is satisfied regarding compliance with the requirements prescribed under Section 14, it cannot impose a condition requiring the secured creditor to bear or deposit police assistance charges, particularly when no such liability is created under the Act. 4. Learned counsel further submits that the District Magistrate, while exercising jurisdiction under Section 14, is not required to adjudicate upon the inter se rights of the borrower and secured creditor, but is required to satisfy himself with regard to the statutory requirements and thereafter pass appropriate orders for taking possession of the secured asset. It is argued that sub-section (2) of Section 14 expressly....
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....re the applicant to deposit processing fee/administrative fee/Setu fee/costs for extending such statutory assistance. 6. Learned counsel for the petitioner, therefore, submits that although the application under Section 14 of the SARFAESI Act was formally allowed, the benefit of the said order has effectively been curtailed by imposing an illegal condition requiring the petitioner to bear the expenses of police assistance. Such a condition, according to learned counsel, amounts to introducing a requirement which has not been contemplated by the legislature and consequently defeats the object and purpose of the SARFAESI Act. On the strength of the aforesaid submissions, learned counsel prays that the condition imposed by the learned Distr....
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....ereto; and (b) forward such asset and documents to the secured creditor. Provided that any application by the secured creditor shall be accompanied by an affidavit duly affirmed by the authorised officer of the secured creditor, declaring that- (i) the aggregate amount of financial assistance granted and the total claim of the Bank as on the date of filing the application; (ii) the borrower has created security interest over various properties and that the Bank or Financial Institution is holding a valid and subsisting security interest over such properties and the claim of the Bank or Financial Institution is within the limitation period; (iii) the borrower has created security interest over various prop....
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....taking possession of the secured assets 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 period but not exceeding in aggregate sixty days. Provided also that the requirement of filing affidavit stated in the first proviso shall not apply to proceeding pending before any District Magistrate or the Chief Metropolitan Magistrate, as the case may be, on the date of commencement of this Act. (1A) The District Magistrate or the Chief Metropolitan Mag....
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....Magistrate considers police assistance necessary for implementation of the order passed under Section 14, such assistance forms part of the statutory process contemplated by the provision itself. In the absence of any express statutory provision authorising recovery of police assistance charges from the secured creditor, such a financial condition cannot be imposed while exercising jurisdiction under Section 14 of the SARFAESI Act. 12. In the present case, the application filed by the petitioner under Section 14 of the SARFAESI Act has already been allowed by the learned District Magistrate, Gwalior vide order dated 20.10.2022. The only grievance of the petitioner is with regard to the condition requiring it to deposit the expenses/charg....