K.O. ANTO Vs. STATE OF KERALA

JUDGEMENT

(1.) Challenge in these petitions is directed against the orders passed by the learned Additional Chief Judicial Magistrate in M.C Nos. 214 of 2019 and 67 of 2019. By the impugned orders, the learned Chief Judicial Magistrate rejected the challenge raised by the petitioners with regard to the maintainability of the application filed by the 2nd respondent herein, the South Indian Bank Ltd., under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ('SARFAESI Act' for the sake of brevity). The petitioners have also challenged the sustainability of the consequential order passed on the same date by the learned Magistrate as per which, an Advocate Commissioner was appointed to take delivery of the secured assets. As identical questions are raised in both these petitions, they are taken up and disposed of together.

(2.) Briefly stated, the facts, material for adjudication of the present petitions, may be stated thus:

(3.) The South Indian Bank Ltd., the 2 respondent herein, advanced Over Drafts Against Property (ODAP) in the account of M/s. Kallarackal Maharani Gold Super Market, which is represented by the 1st petitioner in both these cases in his capacity as the proprietor on execution of loan documents and security agreements. The said concern were also extended Loan Against Property (LAP) in the year 2017. In the year 2015, the Bank extended ODAP facility in the account of M/s. Kallarakal jewellers, a partnership firm of which the 1 petitioner is a partner. The borrowers committed default and this led to the issuance of a notice under section 13 (2) of the SARFAESI Act. The total amount sought to be realized is more than Rs. 40 Crores as is evident from the notices issued under Section 13(2) of the Act. After complying with the procedure, since the borrowers failed to discharge their liability in full within the period stipulated, the secured creditor took recourse to Section 14 of the Act and filed an application before the Additional Chief Judicial Magistrate seeking assistance in taking possession of the secured asset.