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Decided on 14-03-2024

Quorum: HON’BLE MR. JUSTICE ANOOP KUMAR DHAND

Facts of the case:-

The petitioner has challenged the decision dated 09.01.2023 issued by the learned District Magistrate of Jaipur, through which the petitioner’s plea was received by filing this writ petition. Section 14 of the SARFAESI Act of 2002, also known as the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act has been dismissed. In issuing the contested order dated 09.01.2023 the District Magistrate of Jaipur noted in the contested order that no documentation pertaining to the question of whether or not the agricultural land was mortgaged or the DLC rates of the approved land were submitted had been produced and annexed to the petitioner’s application filed under Section 14 of the SARFAESI Act of 2002.The petitioner was given the opportunity to submit a new application with the necessary supporting documentation even though the application that they had submitted was denied.

Petitioners Contentions:-

Counsel for the petitioner submits that the learned Magistrate has failed to peruse the provisions contained under Section 14 of the SARFAESI Act of 2002. Counsel submits that while deciding the application under Section 14 of the SARFAESI Act of 2002, the Magistrate was supposed to decide the application on its merits not on the technicalities niceties of law. Counsel submits that at the time of deciding the application under Section 14 of the SARFAESI Act of 2002, the Magistrate was required to see whether or not the secure assets falls within its territorial jurisdiction and whether notice under Section 13(2) of The SARFAESI Act of 2002 was furnished or not. Counsel submits that learned District Magistrate was not supposed to act beyond the aforesaid mandate of the SARFAESI Act of 2002. Hence, under these circumstances interference of this court is warranted. In support of his contention, counsel has placed reliance upon the following judgments:-

(I) R.D. Jain and Co. Vs. Capital First Ltd. And Ors. Reported In (2023) 1 SCC 675; and

(II) Additional District Magistrate Vs. SMFG India Credit Company Ltd. And Ors. (Petitions for Special Leave to Appeal C Nos.1081/2024) reported in MANU/SCOR/13095/2024.

Counsel submitted that in view of the submissions made herein above, the impugned order passed by the learned District Magistrate be quashed and set aside.

Court Analysis and Judgement:-

In the considered opinion of this Court, the DM has travelled beyond the scope of Section 14 of the SARFAESI Act of 2002 and thereafter transgressed its jurisdiction by deciding the application filed by the petitioner keeping in view the aforesaid settled proposition of law the order impugned is not sustainable in the eye of law and the same is liable to be quashed and set aside. Accordingly, the order impugned dated 09.01.2023 stands quashed and set aside. The matter is remitted back to the learned District Magistrate, Jaipur to re-register the application filed by the Petitioner under Section 14 of the SARFAESI Act of 2002 on its original number and proceed with the matter strictly in accordance with law. The instant writ petition stands disposed of. Stay application and all application(s) (pending, if any) also stand disposed of. As a word of caution, this Court expects that in future the chief Metropolitan Magistrates/District Magistrates shall follow the orders passed by this court as well as the Apex Court in its letter and spirit and shall not adventure in interpreting the order in their own way registry is directed to send a copy of this order to the Additional Chief Secretary/Principal Secretary, Department of Revenue, Government of Rajasthan, so that the officers may stop interpreting the provisions of Section 14 of the SARFAESI Act of 2002 in their own manner.

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Judgement Analysis Written by – K.Immey Grace

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