Chattisgarh High Court
Hero Fincorp Ltd vs State Of Chhattisgarh on 7 March, 2025
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2025:CGHC:11369
RAHUL NAFR
JHA
Digitally signed
by RAHUL JHA
Date: 2025.03.10
10:44:35 +0530
HIGH COURT OF CHHATTISGARH AT BILASPUR
WPC No. 1298 of 2025
1 - Hero Fincorp Ltd. Through Authorised Officer, Ram Badan Soni, S/o
Late Mangal Prasad Soni, Aged About 48 Years, Office At- Hero Fincorp
Ltd. P.S. City Road, Saket Vihar, Changora Bhanta, Raipur, District
Raipur, Chhattisgarh.
Petitioner(s)
versus
1 - State Of Chhattisgarh Through Secretary, Revenue And Disaster
Management Department, Raipur, District Raipur, Chhattisgarh.
2 - District Magistrate Raipur, District Raipur, Chhattisgarh.
3 - M/s. Jai Mata Di Paper Mills Pvt. Ltd. Through Proprietor- Dr. Geeta
Saroha, Office At- 34/9 J, Medical Enclave, P.G.I.M.S., Rohtak Medical
Campus, Raipur, District Raipur, Chhattisgarh.
4 - Dr. Geeta Saroha R/o 34/9 J, Medical Enclave, P.G.I.M.S., Rohtak
Medical Campus, Raipur, District Raipur, Chhattisgarh.
Respondent(s)
For Petitioner(s) : Mr. Saket Pandey, Advocate
For Respondent(s) : Ms. Upasana Mehta, Dy. GA
(HON’BLE SHRI JUSTICE BIBHU DATTA GURU)
Order on Board
07/03/2025
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1. Learned Counsel for Petitioner submits that the procedure under
Section 14 of the Securitisation and Reconstruction of Financial
Assets and Enforcement of Security Interest Act, 2002 (for short,
‘the SARFAESI Act‘) was commenced against the borrowers i.e.,
Respondents No. 1 to 4, as their account was declared NPA.
2. According to learned Counsel for the petitioner, the proviso to
Section 14 of the SARFAESI Act provides that the decision on the
like nature of the said application to be concluded within a period
of 30 days and, if not so, within a further period of 60 days.
However, despite the fact that from 12/06/2024 though several
months period has elapsed, the proceeding under Section 14 of
the SARFAESI Act has not been concluded by the Chief Judicial
Magistrate, Raipur.
3. For ready reference, the proviso clause of Section 14 of the
SARFAESI Act, is reproduced as under:-
“1[Provided that any application by the secured creditor
shall be accompanied by an affidavit duly affirmed by
the authorized officer of the secured creditor, declaring
that-
i. the aggregate amount of financial assistance granted
and the total claim of the Bank as on the date of filing
the application;
ii. The borrower has created security interest over
various properties and that the Bank or Financial
Institution is holding a valid and subsisting security
interest over such properties and the claim of the Bank
or Financial Institution is within the limitation period;
iii. the borrower has created security interest over
various properties giving the details of properties
referred to in sub-clause (ii) above;
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iv. The borrower has committed default in repayment of
the financial assistance granted aggregating the
specified amount;
v. consequent upon such default in repayment of the
financial assistance the account of the borrower has
been classified as a nonperforming asset;
vi. affirming that the period of sixty days notice as
required by the provisions of sub-section (2) of section
13, demanding payment of the defaulted financial
assistance has been served on the borrower:
vii. the objection or representation in reply to the notice
received from the borrower has been considered by the
secured creditor and reasons for non-acceptance of
such objection or representation had been
communicated to the borrower;
viii. the borrower has not made any repayment of the
financial assistance in spite of the above notice and the
Authorised Officer is, therefore, entitled to take
possession of the secured assets under the provisions
of sub-section (4) of section 13 read with section 14 of
the principal Act;
ix. that the provisions of this Act and the rules made
thereunder had been complied with:
Provided further that on receipt of the 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 thirty days from the
date of application.]
[Provided [also] that if no order is passed by the
Chief Metropolitan Magistrate or District Magistrate
within the said period of thirty days for reasons beyond
his control, he may, after recording reasons in writing for
the same, pass the order within such further period but
not exceeding in aggregate sixty days.]
Provided also that the requirement of filing
affidavit stated in the first proviso shall not apply to
proceeding pending before any District Magistrate orthe
Chief Metropolitan Magistrate, as the case may be, on
the date of commencement of this Act.]
4[(1A) The District Magistrate or the Chief
Metropolitan Magistrate may authorise any officer
subordinate to him,-
(i) to take possession of such assets and
documents relating thereto; and
(ii) to forward such assets and documents to
the secured creditor.]
(2) For the purpose of securing compliance with the
provisions of sub-section (1), the Chief Metropolitan
Magistrate of the District Magistrate may take or cause
to be taken such steps and use, or cause to be used,
such force, as may, in his opinion, be necessary.
(3) No act of the Chief Metropolitan Magistrate or the
District Magistrate [any officer authorised by the Chief
Metropolitan Magistrate or District Magistrate] done in
pursuance of this section shall be called in question in
any court or before any authority.”
4. The SARFAESI Act provides that when Section 14 proceeding is
moved, the Officer shall, after satisfying the contents of the
affidavit, shall pass suitable orders for the purpose of taking
possession of the secured assets within a period of thirty days
from the date of application and, if he fails to do it, then the said
period of thirty days may further extend but shall not exceed
which aggregate to sixty days. The SARFAESI Act further
provides that the reasons shall also be recorded in the order of
such extension.
5. Prima facie, the documents, in the instant case, would show that
the sixty days’ period has already completed much before.
Therefore, the Chief Judicial Magistrate, Raipur is directed to
conclude the proceeding under Section 14 of the SARFAESI Act
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within 30 days from the next date fixed.
6. With the aforesaid direction, the Writ Petition stands disposed of.
Sd/-
(BIBHU DATTA GURU)
JUDGE
Rahul