BANK OF BARODA Vs. STATE OF GUJARAT

JUDGEMENT

(1.) Heard learned advocate Mr. Mihir Pathak for the petitioner, learned Assistant Government Pleader Mr. Raj Tanna for the respondent State and learned advocateMr. Dhruv Desai for learned advocate Mr. Rutvij S. Oza for the respondent nos. 3 and 4.

(2.) By this petition under Article 226 of the Constitution of India, the petitioner has challenged the order dtd. 10/12/2021 passed by respondent no.2 - Collector, Gandhinagar whereby it is held that the possession of the mortgaged property cannot be handed over to the petitioner in view of the pending litigation before the Apex Court in SLP (C) No.896/2012 and other allied matters.

(3.) Learned advocate Mr. Mihir Pathak for the petitioner submitted that the Apex Court has entertained SLP and passed the orders pertaining to the transfer of plots allotted on concessional basis and not with regard to taking over the possession by the secured creditors under the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act , 2002 (for short "the SARFAESI Act "). It was submitted that the petitioner bank is entitled to get the physical possession of the property as per provisions of sec. 14 of the SARFAESI Act and as and when the petitioner bank holds auction of such property as per the law and question of transfer arises, then the stay order granted by the Supreme Court is required to be looked into. It was submitted that provisions of sec. 14 of the SARFAESI Act only provides for giving assistance to the secured creditors to take possession of the secured assets to recover the dues as per the provisions of SARFAESI Act . Therefore, respondent no.2 Collector could not have denied to exercise powers under sec. 14 of the SARFAESI Act to provide assistance to the petitioner bank which is undisputedly a secured creditor to take the possession of the secured assets for which the respondent nos. 3 and 4 - borrowers have failed to pay the outstanding dues.