LAWS(CAL)-2014-7-53

SWASTYAYAN AGRO INDUSTRIES Vs. UNION OF INDIA

Decided On July 24, 2014
Swastyayan Agro Industries Appellant
V/S
UNION OF INDIA Respondents

JUDGEMENT

(1.) The challenges in the writ petition are the actions of the District Magistrate and the Additional District Magistrate in their exercise of powers under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act).

(2.) The Respondent No. 4 passed an Order on December 19, 2012 in presence of the parties directing physical possession of the mortgaged property of the petitioner to be taken and providing police assistance for taking over of physical possession. The petitioner claimed that, an Additional District Magistrate was not the District Magistrate contemplated under Section 14 of the SARFAESI Act, 2002. A District Magistrate cannot delegate his powers. The petitioner contrasted the unamended Section 14 with that of the amended Section 14 particularly Sub-Section (1A) thereof introduced subsequently to submit that, it was never the intention of the legislature to allow a District Magistrate to delegate his powers of Section 14 of the SARFAESI Act, 2002 to any other authority in its unamended version. If that was the intention, the subsequent addition of Sub-Section (1A) to Section 14 of the SARFAESI Act, 2002 was not necessary. That the legislature amended Section 14 to introduce Sub-Section (1A) to Section 14 amply demonstrated, according to the petitioner, the fact that, in the unamended version an Additional District Magistrate could not exercise power under Section 14 of the SARFAESI Act, 2002 and the District Magistrate could not have delegated any of his powers.

(3.) That apart, the petitioner relied on Ajaib Singh v. Gurbachan Singh & Ors., 1965 AIR(SC) 1619 and submitted that, an Additional District Magistrate cannot be a District Magistrate.