Kerala High Court
State Bank Of India vs M/S. B & G Wedding Centre on 30 April, 2014
Author: A.M.Shaffique
Bench: A.M.Shaffique
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HONOURABLE MR.JUSTICE A.M.SHAFFIQUE
WEDNESDAY, THE 8TH DAY OF OCTOBER 2014/16TH ASWINA, 1936
WP(C).No. 25960 of 2014 (T)
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PETITIONER:
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STATE BANK OF INDIA
REGIONAL BUSINESS OFFICE, ROBINSON ROAD
PALAKKAD-677014
REPRESENTED BY ITS CHIEF MANAGER/AUTHORISED OFFICER.
BY ADV. SRI.S.EASWARAN
RESPONDENT(S):
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1. M/S. B & G WEDDING CENTRE
CALICUT, ANGADIPPURAM P.O., PERINTHALMANNA
MALAPPURAM-679321.
2. T.ASEEZ
S/O.ALI THOTTOLI, THOTTOLI HOUSE, J.N.JUNCTION
PERINTHALMANNA, MALAPPURAM DISTRICT-679321.
3. T.HUSSAIN
S/O.ALI THOTTOLI, THOTTOLI HOUSE, J.N.JUNCTION
PERINTHALMANNA, MALAPPURAM DISTRICT-679321.
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
08-10-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
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WP(C).No. 25960 of 2014 (T)
APPENDIX
PETITIONER'S EXHIBITS :
EXHIBIT P1 : COPY OF THE POSSESSION NOTICE DATED 30.04.2014
ISSUED BY THE PETITIONER
EXHIBIT P2 : COPY OF THE APPLICATION FILED UNDER SECTION 14 OF THE
SECURITIZATION ACT BEFORE THE CHIEF JUDICIAL MAGISTRATE
COURT, MANJERI.
RESPONDENT(S)' EXHIBITS : NIL
//TRUE COPY\\
P.A TO JUDGE
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A.M. SHAFFIQUE, J.
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W.P.(C). No. 25960 of 2014
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Dated this the 8th day of October, 2014
JUDGMENT
This writ petition is filed by a secured creditor who had taken proceedings against the respondents under Section 13(4) of the SARFAESI Act. It is contended that though there was a stay granted by the Debt Recovery Tribunal, the same was subsequently vacated on 07.06.2014. Pursuant to the same, petitioner had filed an application under Section 14 of the SARFAESI Act before the Chief Judicial Magistrate, Manjeri. According to the petitioner, in a proceeding under Section 14 of the SARFAESI Act there is no necessity to issue notice to the debtors/borrowers. Being an administrative order, Magistrate can invoke Section 14 of the Act and give necessary protection for taking possession of the secured assets.
-2- W.P.(C). No. 25960 of 2014
2. Reliance is placed on the judgments reported in 2008 (2) KLT 965 (Sosamma Abraham v. State Bank of Travancore), 2008 (2) KLT 736 (Sindhu v. State of Kerala) and 2009 (3) KLT 399 (Ayishumma v. Hassan).
3. Having regard to the nature of the order being passed in this case I do not think that there is necessity to issue notice to the respondents.
4. The law is well settled that Section 14 is being invoked by the secured creditor only for the purpose of taking possession of the premises and as per the procedure adopted by the Chief Judicial Magistrate's across the State, the Chief Judicial Magistrate appoints an Advocate Commissioner to take possession of the premises in order to hand over the same to the secured creditor. This Court had consistently held that even if notice is ordered to the debtor/owner of the property, no useful purpose will be served since the Chief Judicial -3- W.P.(C). No. 25960 of 2014 Magistrate does not adjudicate on any issues even if there is an objection from the side of the respondents.
In the light of the aforesaid submission, I am of the view that this writ petition can be disposed of directing the Chief Judicial Magistrate, Manjeri to invoke the jurisdiction under Section 14 of the Act, in the light of the judgments referred above. Necessary orders may be passed on Ext.P2 application within a period of 15 days from the date of receipt of a copy of this judgment.
Sd/-
A.M. SHAFFIQUE JUDGE das