LAWS(KER)-2018-6-845

BANK OF INDIA Vs. UNION OF INDIA REPRESENTED BY ITS SECRETARY, MINISTRY OF FINANCE, SOUTH BLOCK AND OTHERS

Decided On June 18, 2018
BANK OF INDIA Appellant
V/S
Union Of India Represented By Its Secretary, Ministry Of Finance, South Block And Others Respondents

JUDGEMENT

(1.) Petitioner is a bank. The third respondent availed a loan from the petitioner. When the third respondent committed default in remitting the instalments of the loan, the petitioner initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (the Act) against the security. It is stated that later, in furtherance to the said proceedings, the petitioner approached the concerned Chief Judicial Magistrate on 17.08.2017 for an order under Section 14 of the Act for taking physical possession of the security. Ext.P2 is the application preferred by the petitioner under Section 14 of the Act. It is alleged by the petitioner that the application preferred by the petitioner in this connection is being adjourned by the Chief Judicial Magistrate from time to time, so as to enable the third respondent to liquidate the liability. The case of the petitioner is that the Chief Judicial Magistrate exercising power under Section 14 of the Act has no authority to grant time to the borrower to make payments due to the secured creditor and that the application under Section 14 of the Act has to be disposed of within the outer time limit prescribed under the Act. The petitioner, therefore, seeks appropriate directions in this regard in this writ petition.

(2.) Heard the learned counsel for the petitioner as also the learned counsel for the third respondent.

(3.) Section 14 of the Act reads thus :