Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002: s.14(1A) |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 Referred Case 5 Referred Case 6 Referred Case 7 Referred Case 8 Referred Case 9 Referred Case 10 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002: s.14(1A) – Power of CMM/DM to appoint and authorize an advocate to take possession of the secured assets and documents and to forward the same to the secured creditors by virtue of s.14(1A) of the 2002 Act – Held: Purpose of the 2002 Act is to empower the financial institutions to manage the non performing assets by adopting measures for recovery or reconstruction – s.13(4) states that when a default is committed by the borrower in discharging his liability in full, the secured creditor may take recourse to one or more of the measures – One of the measures is to take possession of the secured assets of the borrower – If secured creditor intends to take possession of secured assets, the application u/s.14 must be moved to CMM/DM in writing – s.14(1A) added by amendment provides that CMM/DM may authorize any officer subordinate to him for the aforesaid purpose – The statutory obligation enjoined upon the CMM/DM is to immediately move into action after receipt of a written application under s.14(1) of the 2002 Act – There is de jure functional subordinate relationship between the CMM/DM and the advocate being an officer of the Court – There is no rule as such framed by the central government which expressly or impliedly prohibits CMM/ DM to engage an advocate commissioner for taking possession – Hence, by applying ‘functional subordination’ test, CMM/DM may appoint advocate as a subordinate officer for the purpose of s. 14(1A) of the 2002 Act. |
Judge | Hon'ble Mr. Justice A.M. Khanwilkar |
Neutral Citation | 2022 INSC 238 |
Petitioner | Nkgsb Cooperative Bank Limited |
Respondent | Subir Chakravarty & Ors. |
SCR | [2022] 1 S.C.R. 1177 |
Judgement Date | 2022-02-25 |
Case Number | 1637 |
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