Court No. - 38
Case :- WRIT - C No. - 28750 of 2018
Petitioner :- Punjab National Bank
Respondent :- District Magistrate Allahabad And 4 Others Counsel for Petitioner :- Ashok Shankar Bhatnagar Counsel for Respondent :- C.S.C.
Hon'ble Abhinava Upadhya,J. Hon'ble Rajiv Gupta,J.
This writ petition has been filed by the Bank challenging the action of the District Magistrate, Allahabad by issuing the notice to the petitioner upon recall application filed by the borrower, respondent no. 3 and 4 to recall the order dated 31.01.2017 passed under section 14 of the SARFAESI Act.
It is claimed that the petitioner has extended loan to the borrower on a secured asset. The borrower defaulted in the payment and therefore the proceeding under section 13(4) of the SARFAESI Act was initiated by the Bank and thereafter an application under section 14 of the SARFAESI Act was filed alongwith due affidavit by the Bank before the District Magistrate, Allahabad. The District Magistrate, Allahabad passed an order dated 31.1.2017 in favour of the bank.
The borrower, respondent nos. 3 and 4, it appears has now filed an application for recall of the said order upon which the notices have been issued to the Bank.
Shri Ashok Bhatnagar, learned counsel for the petitioner has submitted that once the order under section 14 of the SARFAESI Act has been passed, the District Magistrate has become functous officio to modify and recall the order and therefore issuing notice to the Bank is totally without jurisdiction.
We have considered the submissions of learned counsel for the petitioner as well as learned standing counsel.
From the statute, it does not appear that the District Magistrate has any power to recall/review its order under section 14 of the SARFAESI Act. This has also been held by Hon'ble Apex Court in the case of Kalbharati Advertising Vs. Hemant Vimalnath Nanchania and others, reported in (2010) 9 Supreme Court Cases 437.
Since only notices have been issued upon the recall application by the Administrative authority, we are not inclined to interfere in the matter.
However, this writ petition is disposed of with the direction to the District Magistrate, Allahabad not to proceed further in the matter without considering and deciding the objection filed by the petitioner on recall application filed by the borrower. The said decision shall be taken by the District Magistrate, Allahabad within one month from the date of production of a certified copy of this order.
Order Date :- 24.8.2018 R