AUTHORIZED OFFICER, BANDHAN BANK LIMITED GRUH CENTRE Vs. DISTRICT MAGISTRATE CUM DISTRICT COLLECTOR BALOD

JUDGEMENT

(1.) Aggrieved by the order (Annexure P/1) dtd. 29/2/2020 passed by the District Magistrate Balod, District Balod in the case No. 11/B-121/2018-19, the present writ petition has been filed.

(2.) Vide the impugned order, the District Magistrate has rejected a claim Application put forth by the Petitioner-Financial Institution under Sec. 14 of the SARFAESI Act 2002. The rejection of the said Application under Sec. 14 by the District Magistrate has been on the ground that the calculation of interest made by the Petitioner-Bank in the affidavit supported with the Application under Sec. 14 was in correct. That because of the excessive interest charged, the borrowers have been subjected to great mental agony and also their reputation in the society has been tarnished. That in the given factual backdrop, if the possession is ordered to be given to the PetitionerBank, it would call substantial injustice to the borrowers and for all these reasons the Sec. 14 Application was rejected by the District Magistrate.

(3.) The facts of the case in brief are that the Respondents No. 2 to 4 have taken certain loan from the Petitioner-Bank. The loan was sanctioned for an amount of Rs.30.00 Lakh, out of 30 Lakh, the Petitioner-Authority has already released an amount of Rs.20.00 Lakh on different dates. Meanwhile, however since there was a default on the part the respondents No. 2 to 4, appropriate proceedings under SARFAESI Act were initiated by the Petitioner-Bank. Subsequent to exhausting of the rights under Sec. 13, the Petitioner-Bank moved an Application under Sec. 14 of the SARFAESI Act before the District Magistrate District Balod for an appropriate order for taking over the possession of the mortgage property. The said Application was filed as early as in the year 2018. Vide the impugned order (Annexure P/1), the same has been rejected. The ground of rejection is already mentioned in the preceding paragraphs.