CENTRAL BANK OF INDIA Vs. DISTRICT COLLECTOR

JUDGEMENT

(1.) The petitioner Bank granted financial assistance in favour of Mr.M.R.Palani and his wife Mrs.Dhanalakshmi, in the form of a Housing Loan for a sum of Rs.13,80,000/-. The borrower, for due repayment of the loan, apart from executing the Loan Agreement on 09.09.2014, also created a security over an immovable property. The borrower committed default in payment of dues and therefore, the account was declared as 'Non Performing Asset' on 30.04.2016 and it was followed by a Demand Notice dated 06.06.2016, under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) and since the Borrower had failed to comply with the terms of the said Notice, a Possession Notice came to be issued under Section 13(4) of the SARFAESI Act on 07.6.2016 and it was followed by publication in vernacular as well as English news dailies. The petitioner Bank in order to get actual physical possession of the secured assets has invoked the jurisdiction of the respondent, by filing an application under Sections 14(1) and 14(2) of the SARFAESI Act on 30.05.2018 and it is yet to be given disposal and on account of the same, the Bank is unable to get reasonable amount and it may not be in a position to sell the property, in the event of auction of the secured immovable assets.

(2.) Attention of this Court has also been invited to the order dated 01.12.2020 in W.P.No.16660 of 2020 (the Authorised Officer, South Indian Bank Ltd., Regional Office, Trichy Road, Sungam, Coimbatore Vs. the District Collector, Salem), wherein this Court has extracted the Circular of the Commissionerate of Revenue Administration and Disaster Management bearing R.C.No.RA 6(3)/6075/2019, dated 01.03.2019, issued by the Additional Chief Secretary / Commissioner of Land Revenue Administration, which prescribes the procedure to be adopted in respect of application filed under Section 14(1) of the SARFAESI Act.

(3.) In sum and substance, it is the submission of the learned counsel appearing for the petitioner that in the light of the well settled legal position, the borrower need not to be put on notice, while considering the application filed under Section 14(1) of the SARFAESI Act and further that due compliance of the mandatory provisions in the form of Sections 13(2) and 13(4) notices have already been complied with and hence there cannot be any impediment on the part of the 1st respondent to consider and dispose of the application at an early date and prays for appropriate orders.