Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Securitisation and Reconstruction of Financial Assets and Enforcement Security Interest Act 2002 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Securitisation and Reconstruction of Financial Assets and Enforcement Security Interest Act, 2002 – ss. 13(4), 14 – Chief Metropolitan Magistrate (CMM) shall deem to mean and include Additional Chief Metropolitan Magistrate (ACMM) – The respondent (secured creditor) instituted proceedings under the SARFAESI Act for recovery of the amount due and payable by the appellant (borrower) – The borrowers refused to handover the physical possession of security asset – Secured creditor filed an application u/s 14 of the SARFAESI Act praying for assistance from the CMM in taking physical possession of the secured asset – The matter was adjourned from time to time – Secured Creditor approached the High Court for an order directing the CMM to dispose of application u/s. 14 in a time bound manner as mandated by second proviso to s.14(1) of Act – The Division Bench considering the large volume of pendency and workload of the CMM, has observed that the ACMM, being invested with all the judicial powers of the CMM, can be considered at par with the CMM – The High Court further observed that the CMM and ACMM stand on the same footing and one cannot be said to be either inferior or subordinate to the other – On appeal, held: As mandated by s.14 of the SARFAESI Act, the CMM/DM has to act within the stipulated time limit and pass a suitable order – Thus, the powers exercised by the CMM/DM is a ministerial act – While disposing of the application u/s. 14 of the SARFAESI Act, no element of quasi-judicial function or application of mind would require – S. 14 does not oblige the CMM/DM to go personally and take possession of the secured assets and documents relating thereto – The High Court has rightly observed that the power vested in the CMM/District Magistrate is not by way of persona designata – The judicial powers and the powers, under the Cr.PC which may be exercised by the CMM, can be exercised by the ACMM also – Thus, the ACMM can be said to be at par with the CMM in so far as the powers to be exercised under the Cr.PC are concerned – The expression “CMM” as appearing in s. 14 of the SARFAESI Act shall deem to mean and include ACMM for the purposes of s. 14 of the SARFAESI Act. |
Judge | Hon'ble Mr. Justice M.R. Shah |
Neutral Citation | 2022 INSC 754 |
Petitioner | M/s R. D. Jain And Co. |
Respondent | Capital First Ltd. & Ors. |
SCR | [2022] 13 S.C.R. 57 |
Judgement Date | 2022-07-27 |
Case Number | 175 |
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