Andhra Pradesh High Court - Amravati
M/S Iifl Home Finance Limited vs The State Of Andhra Pradesh on 26 September, 2024
Author: R. Raghunandan Rao
Bench: R. Raghunandan Rao
APHC010414662024 IN THE HIGH COURT OF ANDHRA Bench
Sr.No:-5
PRADESH [3446]
AT AMARAVATI
WRIT PETITION NO: 21174 of 2024
M/s. IIFL Home Finance
Limited
...Petitioner
Vs.
The State of Andhra Pradesh and others ...Respondents
**********
Advocate for petitioner : Sri Hemadri V. S. S. R. R. Chandrakanth Advocate for respondent : Sri T. Vishnu Teja, Nos.1 & 2 learned Special Government Pleader.
Advocate for respondent : None Nos.3 & 4 CORAM : THE CHIEF JUSTICE DHIRAJ SINGH THAKUR SRI JUSTICE R. RAGHUNANDAN RAO DATE : 26th September 2024 PC:
The present petition has been filed challenging the order passed by the learned Collector & District Magistrate, West Godavari District, Bhimavaram dated 11.09.2024 requiring the petitioner to submit a detailed report with regard to the percentage of defaulters in IIFL Home Finance Limited as also information as to whether the company was following the interest rate as was prescribed by Reserve Bank of India in its guidelines. The order also seeks information from the petitioner with regard to ticket size of the loan amount 2 where maximum number of loan defaults were happening with the petitioner company.
2. The grievance of the petitioner is that the information, which is sought by virtue of the order impugned, is outside the purview of the powers which are otherwise vested in the learned District Magistrate, who exercise his powers in terms of Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (for short, "SARFAESI Act"). It is also stated that the powers which are exercised by the learned District Magistrate are ministerial in nature and the obligation to provide the information is restricted to the information, which is supposed to be contained in an affidavit to be filed in terms of the proviso to Section 14 of the SARFAESI Act.
3. We are in agreement with the learned counsel for the petitioner that the order impugned to the extent that it sought information from the petitioner with regard to the number of defaulters, the rate of interest charged for housing loan etc., was outside the purview of the learned District Magistrate in the context of Section 14 of the SARFAESI Act.
4. We, accordingly, set aside the order impugned. The petitioner, however, would be expected to file an affidavit in terms of the proviso to Section 14 of the SARFAESI Act, which, in our opinion, has not been filed. Upon such an affidavit being filed, it would be open to the learned District Magistrate to pass appropriate orders in accordance with law. No order as to costs. 3 Pending miscellaneous applications, if any, shall stand closed.
DHIRAJ SINGH THAKUR, CJ R. RAGHUNANDAN RAO, J AMD 4 92 HON'BLE MR. JUSTICE DHIRAJ SINGH THAKUR, CHIEF JUSTICE & HON'BLE MR. JUSTICE R. RAGHUNANDAN RAO WRIT PETITION NO: 21174 of 2024 Dt:26.09.2024 AMD