VIRENDRA RATHORE Vs. TEHSILDAR DISTT. MANDSAUR (MADHYA PRADESH)

JUDGEMENT

(1.) The present petition under Article 226/227 of the Constitution of India takes exception to the impugned order dtd. 7/8/2023 passed by the Chief Judicial Magistrate (CJM), District Mandsaur under Sec. 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short 'SARFAESI Act'). The action is sought to be taken under Sec. 14 for recovery of a loan amount due on the part of the petitioner owed to Respondent no. 2 (SRG Housing Finance Limited) (for short 'Respondent HFC').

(2.) Shorn of unnecessary details, the petitioner borrowed a secured loan of Rs.8,00,000.00 (8 Lakhs) from Respondent HFC, mortgaging his property as a collateral in lieu of the said loan. On his default in repayment, the amount became outstanding and proceedings under Sec. 13 of the SARFAESI Act of 2002 were initiated. Followed by declaration of NPA and Sec. 13 proceedings, the CJM also directed for coercive measures against the petitioner under Sec. 14 of the SARFAESI Act, taking over of possession, vide order dtd. 4/8/2023 passed in Case No. MJCR/2606/2023.

(3.) Issue for resolution at the heart of this matter is whether Respondent HFC is justified in resorting to provisions of SARFAESI Act for recovery of their outstanding dues from the petitioner, when it is lower than the monetary threshold of Rs.20.00 Lakhs; a bar fixed by the Central Government (Ministry of Finance) for Non Banking Financing Company ('for short NBFC's).