Order passed by District Magistrate under Section 14 of SARFAESI Act, 2002 cannot be challenged on the ground that a civil suit for partition of Secured Asset between family is pending before Civil Court – Smt. Navneets Agarwal Vs. State Bank of India and Ors. – DRAT Kolkata

Hon’ble DRAT Kolkata held that the father of the Appellant purchased the property, which is the secured asset. Father of the Appellant, obtained loan from the Bank wherein mortgage was created by deposit of title deeds. As far as share of the Appellant is concerned, it is yet to be decided by the Civil Court. Further as far as measures under Section 14 of the Act are concerned, they have to be looked into independently. Since the secured assets were mortgaged by the owner of the property with the Bank, Bank was within its right to proceed under the SARFAESI Act. The District Magistrate has passed the order under Section 14 of the SARFAESI Act in accordance with law.

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