Whether the District Magistrate is required to grant an opportunity of hearing to the petitioners while examining application filed by the secured creditor under Section 14 of the Act, 2002 – M/s. Maa Kalika Bhandar and Others Vs. The Collector and District Magistrate, Khordha and Others – Orissa High Court
July 5, 2022
Hon'ble High Court held that if any person is aggrieved of any action taken by the secured creditor under Section 13(4), the remedy available to such person is to file an application before the DRT under Section 17. Still further, as per Section 34 of SARFAESI Act, 2002 the jurisdiction of the civil court is barred which clearly indicates the intention of the legislature is to avoid conferring of parallel jurisdiction to other courts/authorities. Reading of Section 14 nowhere permits conferring of any power of adjudication or entitlement to determine inter-se rights upon the District Magistrate while examining application under Section 14. Therefore, as far as statutory provisions are concerned, they clearly do not support the contention of the petitioner that the District Magistrate should have afforded an opportunity of hearing especially when neither any adjudicatory functions are to be performed nor any right inter-se the parties are to be determined by the District Magistrate. The only remedy available with the petitioners is to challenge the action of the bank by filing of an application before the DRT under section 17 of the Act, 2002
