Jampani Krishna Babu vs Canara Bank, on 4 December, 2020
Interpreting the unamended provision, in Ayishumma
v. Hassan [2009 (3) KLT 399] and South Indian Bank Ltd. v.
Union of India [2010 (4) KLT 657], this court held further
that the only aspect to be seen by the Chief Judicial
Magistrate, while exercising power under section 14 of the
Act, is whether the property in respect of which assistance is
sought is a secured asset. It is thereafter, the provision has
been amended and the provisos to sub-section (1) and sub-
section (1A) were introduced. The amendments have not
made any change to the scheme of the provision. On the
other hand, it is seen that the amendments were intended to
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2018 (3) KHC 670
9
remove the ambiguity in the unamended provision as
regards the jurisdiction of the competent authority
exercising power under Section 14 of the Act. In the light of
the amendments, before rendering assistance to the secured
creditor, it is obligatory for the Chief Judicial Magistrate
exercising power under section 14 of the Act to satisfy that
the secured creditor has made a declaration in the form of
an affidavit as regards matters specifically mentioned in the
first proviso to sub-section (1) of Section 14. In other words,
after the amendments, if the secured creditor does not file
an affidavit declaring all the facts required to be declared in
terms of the first proviso, the Chief Judicial Magistrate is not
obliged to render assistance to them. The correctness or
otherwise of the declaration, going by the scheme of the
provision, is not a matter at all for the Chief Judicial
Magistrate to adjudicate. As taking possession of the
secured asset through the process under section 14 of the
Act is also one of the measures contemplated under sub-
section (4) of section 13 of the Act, the correctness, if any, of
the declaration made by the secured creditor for the purpose
of availing assistance under Section 14 of the Act is a matter
for the Debts Recovery Tribunal exercising power under
Section 17 of the Act to adjudicate upon, if raised.