Facts
The Petitioner Bank extended financial assistance to Respondent No. 4, who subsequently defaulted, leading to the classification of the loan account as a Non-Performing Asset (NPA)
Source reference: para. 2The Petitioner initiated recovery under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), issued notices under Section 13(2), and eventually obtained an order dated 31.07.2023 from the District Magistrate under Section 14 of the Act to take possession of the secured asset
Source reference: para. 2Despite submitting representations to the Tehsildar (Respondent No. 3) for the implementation of this order, no action was taken
Source reference: para. 2The Petitioner filed this writ petition seeking a direction to the respondent authorities to decide their representation and conclude the recovery proceedings
Source reference: p. 2Issues
1. Whether the revenue authorities can indefinitely delay the implementation of an order passed by the District Magistrate under Section 14 of the SARFAESI Act, 2002
Source reference: para. 32. Whether the Court should exercise its writ jurisdiction to direct the Tehsildar to provide possession of the secured asset within a stipulated timeframe
Source reference: para. 7Law Applied
Section 14 of the SARFAESI Act, 2002, which mandates the District Magistrate or Chief Metropolitan Magistrate to assist secured creditors in taking possession of secured assets
Source reference: para. 2, 3The court emphasized that these proceedings are intended for the "expeditious enforcement of security interest and recovery of public money"
Source reference: para. 3administrative and revenue authorities cannot keep such statutory proceedings pending indefinitely without justifiable cause
Source reference: para. 3Reasoning
The court noted that the Petitioner had strictly complied with the statutory formalities under the SARFAESI Act, including the issuance of demand and possession notices
Source reference: para. 3It observed that the District Magistrate had already adjudicated the matter under Section 14 and issued an order in favor of the Bank on 31.07.2023
Source reference: para. 6The court reasoned that since the order had attained finality and remained unchallenged by any higher authority or court stay, the Tehsildar was duty-bound to take consequential steps
Source reference: para. 7The court accepted the State's submission that it had no objection to a time-bound direction, reinforcing that the administrative delay hindered the recovery of public dues
Source reference: para. 4, 7Holding
The Court allowed the writ petition and directed the concerned Tehsildar to consider and decide the pending proceedings/representation of the Petitioner and take consequential steps to hand over possession in accordance with the law
This action must be completed within 45 days of receipt of the certified copy of the order, provided there is no legal hindrance or stay from a competent court
Source reference: para. 7No order as to costs was made
Source reference: p. 5Original Court PDF
CHHATTISGARH RAJYA GRAMIN BANKvsSTATE OF CHHATTISGARH
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