T. JOHN BOSE Vs. STATE BANK OF INDIA

JUDGEMENT

(1.) THIS writ petition is filed, praying for a writ of Certiorari, calling for the records, pertaining to the order dated 26.11.2013, passed by the second respondent, in R.C.No.B3/31396/2013, and quash the same.

(2.) BRIEF facts of the case are that the petitioner had borrowed loan from the first respondent bank, by mortgaging his lands. Since the account was classified as non -performing asset, the first respondent bank, initiated proceedings, under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2001, (hereinafter referred to as the 'SARFAESI Act' in short), for taking possession of the secured asset. The first respondent bank had approached the Chief Judicial Magistrate, Udhagamandalam, to take physical possession of the secured asset and on the basis of the order of the Chief Judicial Magistrate, the first respondent bank had taken possession of the secured asset, on 18.11.2013. Subsequently, the second respondent -the District Collector, Nilgiris, passed the impugned order, directing the third respondent -the Tahsildar/Taluk Executive Magistrate, Coonoor Taluk, Coonoor, to take over the property and hand over possession of the same to the first respondent bank. The order of the District Collector is under challenge in the writ petition.

(3.) THE first respondent bank filed their counter stating that they brought the property for auction by issuing a notice, dated 3.7.2013, and subsequently also, but there was no proper response, due to the reason that the bidders were not willing to participate in the auction without getting physical possession of the secured asset. Therefore, the first respondent had filed a petition in Crl.M.P.No.1025 of 2013, before the Chief Judicial Magistrate, Udhagamandalam, under Section 14 of the SARFAESI Act, to take physical possession of the secured asset, who was the then competent authority, to entertain the same, in the light of the decision of the Division Bench of this Court, reported in (2009)1 MLJ(Crl) 416 -Indian Overseas Bank vs. Sree Aravindh Steels Ltd. When the criminal miscellaneous petition was pending, the authorized officer of the first respondent bank had made another application, under Section 14 of the SARFAESI Act, before the District Collector/the second respondent herein, for taking physical possession of the secured asset.