Mr. Justice N. Kotiswar Singh

What are differences between Section 13 and 14 of SARFAESI Act, 2002 and Can High Court in exercise of Article 226 interfere with Order passed by CJM under Section 14 of the SARFAESI Act, 2002? – M/s Ablum Electrical Industries Vs. Authorised Officer, Cluster Head, J&K Bank, Pulwama. – Jammu & Kashmir and Ladakh High Court

Hon’ble High Court held that the power exercised by the CJM under Section 14 is merely an enabling power to assist the secured creditor to take possession of the secured assets which the secured creditor can do himself under Section 13 of the Act. The only difference between Section 13 and 14 is that, Section 14 provides a prop to the secured creditor by providing support and assistance of the CJM to the creditor to take possession of the secured assets which the creditor is otherwise entitled to do on his own under Section 13 of the Act. But before seeking the help of the Magistrate, all the conditions precedent for invoking Section 13 of the Act must be complied with, without which, the secured creditor cannot approach the Magistrate under section 14 of the Act. Thus, what one can say is that the acts contemplated under Section 14 of the Act, is continuation of the process and the power of the secured creditor to take possession of the secured asset under Section 13 of the Act. The difference is that while under Section 13 the creditor himself can take possession of the secured assets without the intervention of the court or tribunal, under Section 14, he can do the same with the help of the Magistrate.

What are differences between Section 13 and 14 of SARFAESI Act, 2002 and Can High Court in exercise of Article 226 interfere with Order passed by CJM under Section 14 of the SARFAESI Act, 2002? – M/s Ablum Electrical Industries Vs. Authorised Officer, Cluster Head, J&K Bank, Pulwama. – Jammu & Kashmir and Ladakh High Court Read Post »

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