Home Case Index All Cases Companies Law Companies Law + HC Companies Law - 2010 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (7) TMI 284 - HC - Companies LawOrder passed by the CMM or DM under section 14 of the SARFEASI Act - Whether there is no provision in the said Act for review of the said order, the respondent Nos.3 to 6 invoked the provisions of section 21 of the General Clauses Act, 1897 for reconsideration of the earlier order passed by the District Magistrate and it is also permissible for the CMM and DM to amend, vary or rescind his own order? Held that:- In the instant case once the Magistrate has exercised power within the limit circumscribed by section 14, the said act of the Magistrate stands excluded from the purview of section 21 of the Act of 1897. Provision of section 14 of the Act does not vest DM with the jurisdiction to adjudicate and decide any dispute regarding the secured assets, vesting the said jurisdiction in him by applying the provisions of section 21 of the Act of 1897 would amount to re-writing the provisions of section 14, which is impermissible in law, since court can merely interpret the provisions of the statute, it cannot re-write, recast or redesign the section of the statute. In view of this legal position the contention canvassed by the learned counsels for respondent Nos.3 to 6 in this regard is devoid of substance. The respondent Nos.3 to 6 approached the District Magistrate who had no jurisdiction had passed the impugned order dated 19th April, 2010 and directed the petitioner to hand over the possession of the land, viz., Survey Nos.158 and 159 and, therefore, the auction of the secured assets which was scheduled on 20th April, 2010 could not take place. The conduct of the respondent Nos.3 to 6 on the back-drop of the above referred facts clearly demonstrates that though they have admitted the liability, dues of the bank, however, were successful in preventing the auction of the secured assets on one reason or the other, which has virtually resulted in frustrating the objectives of the SARFEASI Act.
|