GRUH FINANCE LIMITED Vs. DISTRICT MAGISTRATE - RAJKOT

JUDGEMENT

(1.) The petitioner-GRUH Finance Limited has prayed for a direction against the first respondent to take possession of the mortgaged property. In the background of this prayer, is the order dated 23rd October, 2015 passed by District Magistrate, Rajkot whereby he rejected application of the petitioner under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act , 2002 which was for seeking assistance to get possession of the secured assets.

(2.) As the sole question falls for consideration is whether in the facts of the case the first respondent-District Magistrate was justified in passing the order and whether he can refuse to exercise the jurisdiction on the ground that civil rights of the parties were involved.

(3.) A loan to the tune of Rs.25,50,000/- was sanctioned by the petitioner in favour of the second and third respondents. The property mortgaged was identified as property situated at Mavdi Revenue Survey No.35 (Old) paiki, new Survey No.120 paiki Plot No.3 paiki, 'Shri Gayatri Krupa', Girnar Society Street No.3-Guruprasad Chowk, Rajkot and hand over the possession thereof to the petitioner. As the loanees defaulted in making the repayment, their accounts came to be classified as non-performing assets. The petitioner took steps under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act , 2002 (SARFAESI Act ) to recover the amount by issuing notice under Section 13(2) and thereafter under Section 13(4) of the SARFAESI Act which reached the stage of petitioner filing application under Section 14 before the District Magistrate.