This writ petition is filed by a secured creditor who had taken proceedings against the respondents under Section 13(4) of the SARFAESI Act. It is contended that though there was a stay granted by the Debt Recovery Tribunal, the same was subsequently vacated on 07.06.2014. Pursuant to the same, petitioner had filed an application under Section 14 of the SARFAESI Act before the Chief Judicial Magistrate, Manjeri. According to the petitioner, in a proceeding under Section 14 of the SARFAESI Act there is no necessity to issue notice to the debtors/borrowers. Being an administrative order, Magistrate can invoke Section 14 of the Act and give necessary protection for taking possession of the secured assets. -2-
W.P.(C). No. 25960 of 2014
2. Reliance is placed on the judgments reported in 2008 (2) KLT 965 (Sosamma Abraham v. State Bank of Travancore), 2008 (2) KLT 736 (Sindhu v. State of Kerala) and 2009 (3) KLT 399 (Ayishumma v. Hassan).
3. Having regard to the nature of the order being passed in this case I do not think that there is necessity to issue notice to the respondents.
4. The law is well settled that Section 14 is being invoked by the secured creditor only for the purpose of taking possession of the premises and as per the procedure adopted by the Chief Judicial Magistrate's across the State, the Chief Judicial Magistrate appoints an Advocate Commissioner to take possession of the premises in order to hand over the same to the secured creditor. This Court had consistently held that even if notice is ordered to the debtor/owner of the property, no useful purpose will be served since the Chief Judicial -3-
W.P.(C). No. 25960 of 2014 Magistrate does not adjudicate on any issues even if there is an objection from the side of the respondents.
In the light of the aforesaid submission, I am of the view that this writ petition can be disposed of directing the Chief Judicial Magistrate, Manjeri to invoke the jurisdiction under Section 14 of the Act, in the light of the judgments referred above. Necessary orders may be passed on Ext.P2 application within a period of 15 days from the date of receipt of a copy of this judgment.
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A.M. SHAFFIQUE JUDGE das