Whether Executive Magistrate can be delegated the powers of the District Magistrate under section 14 of the SERFAESI Act, 2002 to take possession of secured assets – Joy Kali Oil Industries Pvt. Ltd. Vs. Union of India & Ors. – Calcutta High Court

Division Bench of High Court of Calcutta referring judgments M/s R. D. Jain and Co. v. Capital First Ltd. & Ors. (2022) ibclaw.in 93 SC and Indian Bank v. D. Visalakshi (2019) ibclaw.in 130 SC held that the statutory obligation enjoined upon the CMM/DM is to immediately move into action after receipt of a written application under Section 14(1) of the SARFAESI Act from the secured creditor. As soon as such an application is received, the CMM/DM is expected to pass an order after verification of compliance of all formalities by the secured creditor referred to in the proviso in Section 14(1) of the SARFAESI Act and after being satisfied in that regard, to take possession of the secured assets and documents relating thereto and to forward the same to the secured creditor at the earliest opportunity. This is the spirit of the special enactment. The step taken by the CMM/DM while taking possession of the secured assets and documents relating thereto is a ministerial step. It could be taken by the CMM/DM himself or through any officer subordinate to him. Section 14 does not oblige the CMM/DM to go personally and take possession of the secured assets which can be discharged even by the Executive Magistrate as is done in this case.

Whether Executive Magistrate can be delegated the powers of the District Magistrate under section 14 of the SERFAESI Act, 2002 to take possession of secured assets – Joy Kali Oil Industries Pvt. Ltd. Vs. Union of India & Ors. – Calcutta High Court Read Post »