A. Sasi vs The Branch Manager/Authorised Officer, State Bank of India <BR>M. Arumuga Pandian Vs The Chief Judicial Magistrate, Tirunelveli and State Bank of India

R.K. Agrawal, C.J. and M. Jaichandren, J.—Heard the learned counsels appearing on behalf of the parties concerned. Since common issues are arising for the consideration of this Court, both the Writ Petitions are heard together and a common order is being passed.

At this stage of the hearing of the Writ Petitions, the learned counsels appearing on behalf of the parties concerned had submitted that the issues arising for consideration of this Court, in the above matters, are covered by a decision of a Full Bench of this Court, in K. Arockiyaraj Vs. The Chief Judicial Magistrate, Srivilliputhur and The Housing Development Finance Corporation Limited, .

It has been stated that on the applications made by the respondent banks, the Chief Judicial Magistrates concerned, had passed the impugned orders, for taking physical possession of the properties in question. It is noted that the Full Bench of this Court, in its decision cited supra, had made it clear that the secured creditor could approach the District Magistrate concerned, u/s 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, to secure the assets, if such assets are in non-metropolitan areas. It is not in dispute that the assets in question in the above Writ Petitions are situated in non-metropolitan areas.

In such circumstances, the respondent banks ought to have approached the District Magistrate concerned, to secure the assets in question, as per Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. However, it is noted that the Chief Judicial Magistrates concerned had passed the impugned orders, to secure the assets in question, contrary to the provisions contained in Section 14 of the said Act. In such circumstances, we find it appropriate to allow the above matters, setting aside the impugned orders passed by the Chief Judicial Magistrates concerned, in view of the decision of the Full Bench of this Court, made in K. Arockiyaraj Vs. The Chief Judicial Magistrate, Srivilliputhur and The Housing Development Finance Corporation Limited, . Accordingly, the above Writ Petitions stand allowed. Consequently, the connected miscellaneous petitions are closed. No costs.