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[Cites 5, Cited by 1]

Gauhati High Court

M/S. Megh Stone Crusher Unit And Anr vs The State Of Assam And 6 Ors on 27 March, 2019

Author: Ujjal Bhuyan

Bench: Ujjal Bhuyan

                                                                 Page No.# 1/4

GAHC010061112019




                      THE GAUHATI HIGH COURT
  (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)

                          Case No. : WP(C) 1997/2019

         1:M/S. MEGH STONE CRUSHER UNIT AND ANR.
         REP. BY ITS PROPRIETOR MUKIBUR RAHMAN, AGE 42 YEARS, BIHUBOR,
         P.O.- BIHUBOR, DIST. SIVASAGAR, ASSAM, PIN- 785687.

         2: MUKIBUR RAHMAN
          SON OF LATE LUTFUR RAHMAN
          R/O. VILLAGE- BIHUBOR
          P.O. BIHUBOR
          DIST. SIVASAGAR
         ASSAM
          PIN- 785687

         VERSUS

         1:THE STATE OF ASSAM AND 6 ORS.
         REP. BY THE CHIEF SECRETARY TO THE GOVT. OF ASSAM, DISPUR,
         GUWAHATI-6.

         2:THE DISTRICT MAGISTRATE
          SIVASAGAR DISTRICT
          P.O. AND DIST.- SIVASAGAR
         ASSAM
          PIN- 785640.


         3:CIRCLE OFFICER
          NAZIRA REVENUE CIRCLE
          P.O. NAZIRA
          DIST.- SIVASAGAR
         ASSAM
          PIN- 785640.


         4:STATE BANK OF INDIA
                                                                 Page No.# 2/4

             REP. BY ITS GENERAL MANAGER
             STATE BANK BHAVAN
             MADAME CAMA ROAD
             NARIMAN POINT
             MUMBAI
             MAHARASHTRA- 400021.


            5:THE CHIEF MANAGER
             STATE BANK OF INDIA
             SANTAK BRANCH
             P.O. SANTAK
             DIST.- SIVASAGAR
            ASSAM
             PIN- 785687.


            6:ASSISTANT GENERAL MANAGER
             STATE BANK OF INDIA
             STRESSED ASSETS RECOVERY BRANCH
             M.G. ROAD
             NA-ALI
             JORHAT
             P.O.- JORHAT
             DIST.- JORHAT
            ASSAM
             PIN- 785001.


            7:AUTHORISED OFFICER
             UNDER THE SECURITISATION AND RECONSTRUCTION OF FINANCIAL
            ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT
             2002. STATE BANK OF INDIA
             STRESSED ASSETS RECOVERY BRANCH
             M.G. ROAD
             NA-ALI
             JORHAT
             P.O. JORHAT
             DIST.- JORHAT
            ASSAM. PIN- 785001

Advocate for the Petitioner   : MR. K M HALOI

Advocate for the Respondent : GA, ASSAM
                                                                                    Page No.# 3/4



                                    BEFORE
                       HONOURABLE MR. JUSTICE UJJAL BHUYAN

                                            ORDER

27.03.2019 Heard Mr. K. M. Haloi, learned counsel for the petitioner.

By filing this petition under Article 226 of the Constitution of India, petitioner seeks quashing of order dated 05.02.2019 passed by the District Magistrate, Sivasagar whereby the District Magistrate deputed Executive Magistrate-cum-Circle Officer, Nazira Revenue Circle to maintain law and order during the period when authorized officer of State Bank of India would take over possession of the mortgaged property.

It appears that petitioner had availed loan from the State Bank of India (SBI) but failed to repay the same. For such default, SBI invoked provisions of Section 13 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act).

At that stage, petitioner had approached this Court by filing WP(C) No. 8224/2018 which was disposed of vide order dated 12.12.2018 with the observation that if action is taken under Section 13(4) of the SARFAESI Act petitioner would have the alternative remedy of appeal under Section 17 of the said Act before the Debts Recovery Tribunal.

Thereafter, impugned order dated 05.02.2019 was passed by the District Magistrate.

A perusal of the impugned order would go to show that authorised officer of SBI had moved an application before the District Magistrate stating that possession of the secured assets of the borrower would be taken over for which presence of Executive Magistrate was required to maintain law and order.

Under Sub-section (4) of Section 13, 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 measures mentioned therein to recover his secured debt, one of the measures being taking over possession of the secured assets of the borrower including the right to transfer by way of lease, assignment or sale for realising the dues.

Page No.# 4/4 Under Section 17 of the SARFAESI Act, any person (including borrower), aggrieved by any of the measures referred to in sub-section (4) of Section 13 taken by the secured creditor or by his authorised officer, may make an application before the Debts Recovery Tribunal having jurisdiction in the matter within forty-five days from the date on which such measure had been taken.

In so far the present case is concerned, though the impugned order dated 05.02.2019 has been issued, the measure(s) contemplated under Sub-section (4) of Section 13 have not been taken. Even if any of the measures is taken, remedy of the petitioner as rightly pointed out by this Court is under Section 17 and not by way of a writ petition.

Petitioner may avail his remedy under Section 17 of the SARFAESI Act.

With the above observation, writ petition is disposed of.

JUDGE Comparing Assistant