BAJAJ FINANCE LTD Vs. M/S. ALI AGENCY

JUDGEMENT

(1.) The secured creditor is before this Court challenging the order dated 9th of March, 2021 (Annexure-P/1) passed by the learned Chief Judicial Magistrate, Cuttack, rejecting the application filed by the Petitioner-Finance Company under Sec. 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short referred to as "the SARFAESI Act ").

(2.) The brief facts are that M/s. Ali Agency, a partnership farm (O.P. No.1) had been sanctioned and disbursed a loan amount of Rs.2,81,25,000.00 (Rupees two crore eighty-one lakhs and twenty-five thousand only) by the Petitioner. The Opposite Party Nos.2 and 3 are the partners of the Opposite Party No.1, and also co-borrowers. The loan was secured by mortgaging a residential property owned by Opposite Party No.3. Due to lack of financial discipline, the loan account was declared as Non-Performing Asset (NPA) on 4/10/2017. A demand Notice under Sec. 13(2) of the SARFAESI Act, 2002 was issued on 6/11/2017 seeking to recall outstanding amount of Rs.2,85,04,685.00 (Rupees two crore eighty-five lakh four thousand six hundred eighty-five only) due as on 6th of November, 2017. Symbolic possession of the mortgaged property was assumed vide Possession Notice dtd. 21/2/2018 issued under Sec. 13 (4) of the SARFAESI Act.

(3.) The Petitioner-secured creditor filed an application under Sec. 14 of the SARFAESI Act before the District Magistrate (DM), Cuttack in April, 2018 seeking providing of official assistance for taking over actual physical possession of the secured asset-mortgaged residential property. Since the same was not decided within the stipulated time, the Petitioner approached this Court by filing a Writ Petition which was disposed of vide order dtd. 11/12/2018 directing the District Magistrate (DM), Cuttack to dispose of the application within a period of six months.