9911796707
TMI Blog2006 (11) TMI 339X X X X Extracts X X X X X X X X Extracts X X X X ..... itisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to in this order as the Act , for the sake of convenience). 2. The petitioner is a Bank. For taking possession of the secured asset ( i.e., a property) of the respondents 1 and 2, the petitioner-Bank filed an application under section 14 of the Act before the VI Additional Chief Metropolitan Magistrate, Bangalore. Subsequent purchasers of the secured property i.e., respondents 6 and 7 impleaded themselves in that petition and contended that the Bank cannot take possession of the property (secured asset), in view of the sale of that property by the borrower to them. 3. On the following three grounds, the learned A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner Bank relied upon the principles laid down on 11-4-2005 in an unreported decision of this Court in Cri. P. No. 1395 of 2005 and the decision in Citibank v. Sudeep Singh 2004 (4) Kar. L.J. 405 contending that in a proceeding under section 14(1) of the Act, the borrower or any person claiming through him need not be heard. That contention did not impress the learned Sessions Judge and he held that no order in a revision petition could be made to the prejudice of any person, unless such person was heard. In that view of the matter, the learned Sessions Judge directed that the petitioner should take steps for issuance of notices to the respondents. It is that order of the learned Sessions Judge that has been challenged in this petition. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt on the question whether by the order of the Revisional Court, the right of the borrower or any person claiming through him is affected. The decision on this point is dependent on the question whether in a proceeding under section 14 of the Act, or in a revision petition filed by the secured creditor challenging an order of the Chief Metropolitan Magistrate or District Magistrate declining to act under section 14 of the Act, right of the borrower or any person claiming right over the secured asset is being determined. A higher Court in a revision is only deciding whether the learned Chief Metropolitan Magistrate was right in declining to act under section 14(1) of the Act. It therefore becomes necessary to know under what circumstances a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refusal of the Chief Metropolitan Magistrate or District Magistrate to act under sub-section (1) may be amenable to revisional jurisdiction, sub-section (3) of section 14 provides that his act under sub-section (1) to take possession of the assets and documents cannot be called in question in any Court or before any authority. Therefore, where the Chief Metropolitan Magistrate or District Magistrate directs taking possession of secured asset under section 14 of the Act, that cannot be challenged in any higher Court. The remedy of the person aggrieved by such order including borrower is only by challenging the act of secured creditor or authorised officer under sub-section (4) of section 13, by preferring an appeal to the Debts Recovery Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chief Metropolitan Magistrate or the District Magistrate may decline to act under section 14(1) of the Act, but that is for valid and sufficient reasons to be recorded in writing. Therefore, when the order of the Chief Metropolitan Magistrate declining to act under section 14(1) of the Act is challenged in a revision petition, notice of the revision petition need not be given either to the borrower of the loan or to the purchaser of the secured asset. That analogy applies also to a petition under section 482 of the Cr. P.C. Therefore, there is no need to issue notices of this petition to the respondents. 11. In the present case, the learned Sessions Judge did not notice the scheme of the Act and object behind the provision, and directed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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