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TMI Blog2019 (9) TMI 1734X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion that the impugned order passed by the learned District Magistrate deserves to be set aside and is accordingly set aside. However, it is made clear that the respondent no.2-Bank shall be free to take recourse to other remedies available under the law for realization of debts. The writ petition stands allowed. - S.C.SHARMA AND SHAILENDRA SHUKLA JJ. ORDER Parties through their counsel. The petitioners before this Court have filed the present petition being aggrieved by order dated 20.11.2018 passed by the District Magistrate, Badwani exercising the powers conferred under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as SARFAESI Act, 2002) for taking possession of secured asset i.e. agricultural land/holding admeasuring 5.350 hectares situated at village Lakhangaon, Tehsil Thikri, District Barwani. Learned counsel has argued before this Court that keeping in view Section 31 of the SARFAESI Act, 2002 the impugned order passed by the District Magistrate is bad in law and the order passed by respondent no.1, at the behest of respondent no.2, deserves to be quashed by this Court. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hose jurisdiction any such secured asset or other documents relating thereto may be situated or found, to take possession thereof, and the Chief Metropolitan Magistrate or, as the case may be, the District Magistrate shall, on such request being made to him-- (a) take possession of such asset and documents relating thereto; and (b) 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 or 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 done in pursuance of this section shall be called in question in any court or before any authority. 17. Right to appeal (1) Any person (including borrower), aggrieved by any of the measures referred to in sub-section (4) of section 13 taken by the secured creditor or his authorised officer under this Chapter, may make an application alongwith such fee, as may be prescribed to the Debts Recovery Tribunal having jurisdiction in the matter within forty-five days fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... possible and disposed of within sixty days from the date of such application: PROVIDED that the Debts Recovery Tribunal may, from time to time, extend the said period for reasons to be recorded in writing, so, however, that the total period of pendency of the application with the Debts Recovery Tribunal, shall not exceed four months from the date of making of such application made under sub-section (1). (6) If the application is not disposed of by the Debts Recovery Tribunal within the period of four months as specified in sub-section (5), any part to the application may make an application, in such form as may be prescribed, to the Appellate Tribunal for directing the Debts Recovery Tribunal for expeditious disposal of the application pending before the Debts Recovery Tribunal and the Appellate Tribunal may, on such application, make an order for expeditious disposal of the pending application by the Debts Recovery Tribunal. (7) Save as otherwise provided in this Act, the Debts Recovery Tribunal shall, as far as may be, dispose of the application in accordance with the provisions of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 and the rules made thereun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gricultural land as security interest could not have been validly included in the notice for recovery of the secured loan. The correctness of the finding of the High Court depends on the effect of Section 31 (i) of the Act, which reads as follows:- 31. Provisions of this Act not to apply in certain cases-The provision of this Act shall not apply to- (a) . (b) . (c) . (e) . (f) . (g) . (h) . (i) any security interest created in agricultural land; (j) . 45. The purpose of enacting Section 31(i) and the meaning of the term agricultural land assume significance. This provision, like many others is intended to protect agricultural land held for agricultural purposes by agriculturists from the extraordinary provisions of this Act, which provides for enforcement of security interest without intervention of the Court. The plain intention of the provision is to exempt agricultural land from the provisions of the Act. In other words, the creditor cannot enforce any security interest created in his favour without intervention of the Court or Tribunal, if such security interest is in respect of agricultural land. The exemption thus protects agriculturists from losing their source of livelihood ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly the State Legislature which is competent to legislate on land under Entry 18 of List II. This contention appears to be completely untenable. Though Section 31(i) exempts agricultural land from the operation of the Act it is not possible to construe such a provision as a legislation on agricultural land. In fact, it is quite the contrary. Moreover, Section 31 (i) is one of the provisions in the Act which has been held by this Court as referable to Entry 45 of List I, in Union of India and Another v. Delhi High Court Bar Association and Ors. 39. The Court held that:- 14 . Entry 45 of List I relates to banking . Banking operations would inter alia, include accepting of loans and deposits, granting of loans and recovery of the debts due to the bank. There can be little doubt that under Entry 45 of List I, it is Parliament alone which can enact a law with regard to the conduct of business by the banks. Recovery of dues is an essential function of any banking institution. In exercise of its legislative power relating to banking, Parliament can provide the mechanism by which (2002) 4 SCC 275 monies due to the banks and financial institutions can be recovered. 51. In State Bank of India ..... X X X X Extracts X X X X X X X X Extracts X X X X
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