CRIMINAL M.A.NO.

617/2024

IN THE COURT OF THE ADDITIONAL CHIEF JUDICIAL

MAGISTRATE (COURT NO.18), AHMEDNAGAR.
(PRESIDED OVER BY T. M. NIRALE)

State Bank of India

Through its Authorised Officer,
Rizwan Ansari
Age : 48 years, Occ. : Service,
R/o : Plot No.1, Administration Office­II,
CIDCO, Aurangabad. …Applicant

Versus

1. Mr. Chandrashekhar Narayan Venkatraman (Borrower),

Age : 54 Yrs., Occ. : Business,
R/o : Subhash Colony, near Kamgar
Hospital, Ward No. 6, Shrirampur, Dist. Ahmednagar­ 413709.

2. Mr. Laxmi Narayan Venkatraman (Guarantor),

Age : 60 Yrs., Occ. : Business,
R/o : Subhash Colony, near Kamgar
Hospital, Ward No. 6, Shrirampur,
Dist. Ahmednagar­ 413709.

3. Mr. Kailash Narayan Venkatraman (Guarantor),

Age : 51 Yrs., Occ. : Business,
R/o : Subhash Colony, near Kamgar
Hospital, Ward No. 6, Shrirampur,
Dist. Ahmednagar­ 413709.

4. Mr. Sanjay Narayan Venkatraman (Guarantor),

Age : 50 Yrs., Occ. : Business,
R/o : 17/6, Daulat Housing Society,
Karve Road, Opp. Choice Health Club,
Kothrud, Dist. Pune­ 411038.

5. Mr. Shriram Narayan Venkatraman (Guarantor),

Age : 49 Yrs., Occ. : Business,
R/o : Near Joshi Hospital, Kanda
Market, Ward No. 6, Shrirampur,
Dist. Ahmednagar­ 413709. …Respondents
 2 Cri.M.A.No.617/2024 (Exh.01)

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Advocate Smt. A. A. Zarkar for applicant.
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ORDER BELOW EXH.01

(Date : 21/10/2024)

1) This is an application Under Section 14 of the

Securitisation and Reconstruction of Financial Assets and Enforcement
of Security Interest Act, 2002 (Act No.54 of 2002) (In short “SARFAESI
Act”) for taking possession of the secured assets known as :
Property : “All that piece and parcel of land Gat No.
12/A/2 and Gat No. 12/A/3 situated at Wadala Mahadeo, Tal.
Shrirampur, Dist. Ahmednagar, total admeasuring (1+1) 2 HA and its
boundaries as under :­

Gat No. 12/A/2 situated at Wadala Mahadeo, Tal. Shrirampur, Dist.

Ahmednagar.

Bounded by
East Land of Shri Dnyandeo Pawar,
West Land of Shri Wagh,
South Shrirampur­ Newasa Road,
North Gat No. 12A,

Gat No. 12/A/3 situated at Wadala Mahadeo, Tal. Shrirampur, Dist.

Ahmednagar.

Bounded by
East Gat No. 13A,
West Gat No. 11,
South Shrirampur­Newasa Road,
North Gat No. 343, 344 and 345,
 3 Cri.M.A.No.617/2024 (Exh.01)

2) Briefly stated, the case of the applicant is that, the

applicant has sanctioned Over Draft facility at one time to the extend of
Rs. 1,37,20,000/­ to the respondents. As per the letter of arrangement
in the name of respondent no. 1 the amount sanctioned of Rs.
29,70,000/­. The respondent agreed to repay the loan amount along
with interest with monthly rests and bank charges. It is averred in the
application that, the above property is mortgaged to the applicant as
security for due repayment of the loan by way of mortgage. The
respondent has mortgaged the above property in favour of the applicant
as a security and by way of first charge on the aforesaid immovable
property. It is further contended that, the respondent did not adhere
repayment schedule. Therefore, the applicant has classified the account
of the respondents as N.P.A. on 30.11.2023. The applicant many times
requested the respondent to make payment and regularize his account.
But he neglected to pay due amount. Therefore, the applicant bank
issued statutory demand notice dt.03.04.2024 under section 13(2) of
SARFAESI Act to pay loan dues of Rs.37,19,579.73/­ with future
interest within 60 days from service of notice. However, in­spite of
service of notice, the respondent failed to pay the amount due.
Respondent has not raised any objection/re­presentation under Section
13(3A) of SARFAESI Act. Therefore, the applicant become entitled to
exercise right under section 13(4) of SARFAESI Act. Despite, the service
of said notice, respondent has not complied with the requisitions for
payment of outstanding loan amount within stipulated period of 60
days. The respondent is creating obstacles to surrender vacant
possession of the secured asset. The applicant submitted that, the
amount of Rs.37,19,579.73/­ are due alongwith future rate of interest,
costs and expenses etc. The secured assets are situated within territorial
jurisdiction of this court. Hence, applicant is constrained to file this
application, which is well in limitation.
 4 Cri.M.A.No.617/2024 (Exh.01)

3) I have heard Ld. Advocate for the applicant. The following

points arises for my determination along­with my findings thereon are
as under :

Sr. No. Points Findings

1. Whether the applicant is entitled for
taking possession of the secured asset Yes.
as per Section 14 of SARFAESI Act ?
2. What order ? Application is
allowed.

REASONS
AS TO POINT NOS.1 AND 2 :­
4) It is requirement of Section 14 of SARFAESI Act that
Authorized Officer of applicant financial institute has to file affidavit
containing therein facts mentioned in Section 14(1)(b)(i) to 14(1)(b)
(ix) of SARFAESI Act. Accordingly, Authorized Officer has filed affidavit
at Exh.8. In addition, copies of documents are placed on record vide
Exh.3 & 6.

5) Hon’ble Bombay High Court in case of CA Manisha Mehta

and Ors. V/s. The Board of Directors of Represented by its­ Managing
Director of ICICI Bank and Ors. [Reported in 2022 SCC OnLine Bom
1096] observed that­
“It is implicit in the scheme of the SARFAESI Act that natural
justice, only to a limited extent, is available and not beyond what is
expressly provided. There seems to be little merit in the argument
advanced by Mr.Nedumpara and we hold that the language of Section
14 is too clear and unambiguous, and does not admit of any
requirement of complying with natural justice by putting the borrower
on notice while an application thereunder is under consideration.”
 5 Cri.M.A.No.617/2024 (Exh.01)

6) The Hon’ble Supreme Court in case of Balkrishna Rama

Tarle V/s. Phoenix ARC Pvt. Ltd. and anr. [Reported in (2023)1 SCC
662], observed that­
“In that view of the matter once all requirements under
Section 14 of SARFAESI Act are complied with/satisfied by secured
creditor, it is the duty cast upon CMM/DM to assist secured creditor in
obtaining the possession as well as the documents related to the
secured assets even with help of any officer subordinate to him and/or
with the help of an advocate appointed as Advocate Commissioner. At
that stage, the CMM/DM is not required to adjudicate the dispute
between borrower and the secured creditor and/or between any third
party and the secured creditor with respect to the secured assets and
the aggrieved party to be relegated to raise objections in the proceeding
under Section 17 of the SARFAESI Act, before the Debts Recovery
Tribunal.”

7) Perused the application, affidavit (Exh.9) submitted by the

Authorised Officer of applicant and documents filed on record. It
appears that applicant has granted the aforesaid financial assistance to
the respondent. In pursuance of such financial assistance respondent
has executed various documents in favour of applicant to create
security interest over the aforesaid secured assets as per list of
documents Exh.3. However, in due course he failed to repay the due
amount of loan. Thus, applicant constrained to declare Borrower
account as “Non Performing Asset” and constrained to issue demand
notice dated 03.04.2024 U/sec.13 (2) of SARFAESI Act, demanding
total outstanding amount of Rs.37,19,579.73/­. Despite service of
notice to respondent and publication of notice, he has not complied the
notice within stipulated period. Respondent has not raised any
objection under Section 13(3A) of SARFAESI Act. The applicant bank is
 6 Cri.M.A.No.617/2024 (Exh.01)

Secured Creditor and the respondent created Security Interest on the

property, which is known as Secured Assets within the meaning of
SARFAESI Act. Thus, it appears that, present application came to be
filed for taking possession of Secured Assets. Further, Secured Assets is
located within territorial jurisdiction of this Court and claim of
applicant is well in limitation. More so, as per the pleading, documents
filed in the case and affidavit of authorized officer of applicant, there is
no stay to the present proceeding.

8) In view of above facts and circumstances, I do not find any

hurdle to pass order in favour of applicant Under Section 14 of
SARFAESI Act to take over the possession of aforesaid secured assets by
appointing Advocate as a Court Commissioner. The Hon'ble Supreme
Court in case of N.K.G.S.B. Co­operative Bank Ltd. V/s. Subir
Chakravarty and Ors. [Reported in (2022) 10 SCC 286], observed that,
“It is open to the C.M.M./D.M to appoint an
advocate and authorized him/ her to take possession of
secured assets and documents relating thereto and forward
the same to the secured creditor U/sec.14(1­A) of the
SARFAESI Act”.

9) As regards jurisdiction is concerned, the Hon'ble Supreme

Court in case of Authorized Officer, Indian Bank V/s. D. Visalakshi and
Anr.[Reported in (2019) 20 SCC 47], observed that,
“That would be a meaningful, purposive and
contextual construction of Section 14 of the 2002 Act, to
include CJM as being competent to assist the secured
creditor to take possession of the secured asset.”
Thus, in view of above observation, this Court is having
jurisdiction to pass order under section 14 of SARFAESI Act.
 7 Cri.M.A.No.617/2024 (Exh.01)

10) Therefore, the application of the applicant U/sec.14 of

SARFAESI Act is liable to be allowed. I answer point No.1 in affirmative
and in answer to point No.2, proceed to pass following order :­

ORDER

1. The application is allowed.

2. Advocate Shri. Sandeep Ashok Shendurkar is appointed as a Court

Commissioner to take possession of the secured assets viz.
Property : “All that piece and parcel of land Gat No. 12/A/2 and
Gat No. 12/A/3 situated at Wadala Mahadeo, Tal. Shrirampur,
Dist. Ahmednagar, total admeasuring (1+1) 2 HA and its
boundries as under:­
Gat No. 12/A/2 situated at Wadala Mahadeo Tal. Shrirampur,
Dist. Ahmednagar.

Bounded by
East Land of Shri Dnyandeo Pawar,
West Land of Shri Wagh,
South Shrirampur­ Newasa Road,
North Gat No. 12A,

Gat No. 12/A/3 situated at Wadala Mahadeo Tal. Shrirampur,

Dist. Ahmednagar.

Bounded by
East Gat No. 13A,
West Gat No. 11,
South Shrirampur­Newasa Road,
North Gat No. 343, 344 and 345,
 8 Cri.M.A.No.617/2024 (Exh.01)

3. The Court Commissioner is authorized to take such steps and use

such force including breaking open the lock or any hurdle thereof
by taking assistance of police, if required, at the expenses of the
applicant and deliver possession thereof along with
documents/articles, if any, found therein to the authorized officer
of the applicant after preparing panchanama and taking inventory
of the secured assets.

4. The Court Commissioner shall give at least 15 day's prior notice to

the concerned before executing the order.

5. The Court Commissioner shall report compliance within one

month from the receipt of the writ of commission.

6. Issue writ of commission accordingly on payment of Rs.5,000/­

towards the Court commissioner's fees in the Court within 15 days
from the date of this order. After submission of compliance report,
Commissioner's fees be paid to him.

Sd/­
(T. M. Nirale)
Ahmednagar. Additional Chief Judicial Magistrate
Date : 21/10/2024 (Court No.18), Ahmednagar.