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2018 DIGILAW 1308 (MAD)

HDFC Bank Limited, Madurai v. District Collector cum District Magistrate, Tiruppur

2018-04-04

S.MANIKUMAR, V.BHAVANI SUBBAROYAN

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JUDGMENT : S. Manikumar, J 1. HDFC Bank Limited, Madurai, represented by its Law Officer, has sought for a writ of mandamus, directing the District Collector cum District Magistrate, Tiruppur, to provide assistance under Section 14 of the SARFAESI Act, 2002. 2. Supporting the prayer sought for, HDFC Bank Limited, Madurai has enclosed the summons in Na. Ka. No. 8387/2017/E3 dated 06.07.2017, 03.10.2017 and 02.01.2018, issued by the District Collector cum District Magistrate, Tiruppur. Contending inter-alia that no order has been passed on the petition filed under Section 14 of the SARFAESI Act, 2002, instant writ petition has been filed for the prayer, stated supra. 3. On 02.04.2018, when the matter came up for hearing Mr. V. Prabhu, learned Government Advocate took notice on behalf of the respondent. We directed the matter to be listed on 04.04.2018 and thus, it is listed today. 4. On instructions from the District Collector cum District Magistrate, Tiruppur, vide Ref. No. 8387/2017/C3 dated 03.04.2018, Mr. M. Sricharan Rangarajan, learned Additional Government Pleader submitted that the District Collector cum District Magistrate, Tiruppur District, has conducted enquiry based on the documents filed by the bank authorities and that next date of enquiry has been fixed as 06.04.2018. Intimation has also been sent to the bank. 5. As the District Collector cum District Magistrate, Tiruppur, the 1st respondent is bound to pass orders on the application, we are of the view that there is no need to issue notice to respondents 2 to 4. Hence, notice to respondents 2 to 4, is waived. 6. Heard the learned counsel for the petitioner and the learned Government Advocate, appearing for the 1st respondent and perused the materials available on record. 7. Notice dated 28.03.2018, addressed to the Bank as well as to Mr. S. Babu Rajesh, Mr. V. Ravichandran and Mr. R. Sekaran, Partners of 1st respondent Bank/Guarantors, is extracted hereunder. “LANGUAGE” 8. As per Section 14 of the SARFAESI Act, 2002 mandates that on receipt of an affidavit from the Authorised Officer, the District Magistrate or the Chief Metropolitan Magistrate, as the case may be, shall after satisfying the contents of the affidavit, pass suitable orders for the purpose of taking possession of the secured assets, within a period of 30 days from the date of application. Proviso to the said Section states that if no order is passed by the Chief Metropolitan Magistrate or District Magistrate, within the said period of thirty days, for the reasons beyond his control, he may after recording reasons, in writing, for the same, pass the order within such also period but not exceeding in aggregate 60 days. 9. The Principal Secretary to Government, vide, Letter No. 19498/Res.II/2014-1, dated 09.07.2014, has issued directions, stating that there should be speedy disposal of the application filed under Section 14 of the SARFAESI Act. The said letter is extracted hereunder: “I am to invite your kind attention to the reference cited (copy enclosed) wherein the GM, SLBC, Chennai, has requested to advise the District Collectors (District Magistrates) for speedy disposal of applications filed by banks to assist in taking possession of securities of the defaulters charged to the banks under Section 14 of SARFAESI Act, 2002. 2. In this connection, I am to request you to take necessary action for speedy disposal of the applications filed by the banks in taking possession of securities of the defaulters charged to the banks under Section 14 of SARFAESI Act, 2002, without affecting the image of the administration.” 10. Following the said letter, in W.P. No. 7813 of 2016, dated 22.04.2016, a Hon'ble Division Bench of this Court, has passed the following order: “In the light of the above, we direct the District Collector (District Magistrate), Thanjavur District, to pass orders on the Application dated 18.8.2015 in file Ref. No. 34810/2015, filed under Section 14 of the SARFAESI Act, within the period of two months from the date of receipt of a copy of this order. While doing so, procedure set out under Section 14 of the Act should be followed. Mr. B. Kumar, learned Additional Government Pleader is directed to forward the copy of this order to the Principal Secretary to Government, Finance (Res. II), Department, Chennai for appropriate follow up action. 10. Along with the supporting affidavit, to the instant writ petition, the petitioner has also enclosed the copies of the petitions, dated 8.1.2014, 7.5.2014, 11.9.2014, 24.12.2014 and 31.1.2015, filed under Section 14 of the SARFAESI Act, 2002.” 11. II), Department, Chennai for appropriate follow up action. 10. Along with the supporting affidavit, to the instant writ petition, the petitioner has also enclosed the copies of the petitions, dated 8.1.2014, 7.5.2014, 11.9.2014, 24.12.2014 and 31.1.2015, filed under Section 14 of the SARFAESI Act, 2002.” 11. Placing on record the notice of the District Collector cum District Magistrate, Tiruppur dated 28.03.2018 and in the light of the directions issued by the Principal Secretary to Government, vide, Letter No. 19498/Res.II/2014-1, dated 09.07.2014 and earlier order of this Court in W.P. No. 7813 of 2016, dated 22.04.2016, this Court is inclined to pass the following orders, “The District Collector cum District Magistrate, Tiruppur is directed to dispose of the application in Ref. No. Na. Ka. No. 8387/2017/E3, if not done earlier, within a period of three weeks, from the date of receipt of a copy of this order. While doing so, District Collector cum District Magistrate, Tiruppur, should act in accordance with Section 14 of the SARFAESI Act, 2002.” 12. With the above observation and direction, this writ petition is disposed of accordingly. No costs.