GRUH FINANCE LIMITED Vs. DISTRICT MAGISTRATE

JUDGEMENT

(1.) This petition came to be filed by the petitioner-Gruh Finance Limited seeking direction against respondent No.1 authority-the District Magistrate to take possession of the mortgaged 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. It was further prayed to quash the order dated 23rd October, 2015 passed by respondent No.1 District Magistrate whereby the District Magistrate rejected the application of the petitioner filed under section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

(2.) It appears that loan to the tune of Rs. 25,50,000/- was obtained from the petitioner by second and third respondents. The abovesaid property was mortgaged in the transaction. As the loanees committee default in making repayment of the loan, their accounts could be classified as non-performing assets and the petitioner initiated proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ('SERFAESI Act' for short) for recovery of the due amount. In the process, application under Section 14 of the SERFAESI Act was filed before District Magistrate seeking to recover the possession of the secured assets which culminated into the order impugned.

(3.) It appears that respondent No.4 herein who was a party in the original pleadings, preferred Letters Patent Appeal No.413 of 2017 seeking leave to appeal to challenge the aforesaid judgment dated 07th December, 2016. It was the case of the said personrespondent No.4 herein that he was holding the property by virtue of Gift Deed and that petitioner could have taken steps to recover the possession under the SERFAESI Act.