Home Case Index All Cases Indian Laws Indian Laws + HC Indian Laws - 2015 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (3) TMI 160 - CALCUTTA HIGH COURTPolice assistance to secured creditor to enforce a security interest under the SARFAESI Act, 2002 - Section 14 of the SARFAESI Act, 2002 - Section 13(9) of the SARFAESI Act, 2002 - Proceedings before BIFR - Held that:- On the first issue, I have perused the order of the District Magistrate which is at page 51 of the writ petition. The order is dated September 24, 2014. The District Magistrate records perusal of the papers and documents submitted by the respondent nos. 1 and 2. The District Magistrate in his finding observed that reasonable opportunity was afforded to the borrower in accordance with the provisions of the SARFAESI Act, 2002 and that the borrower had failed to repay the loan amount with interest. Considering such aspect, the District Magistrate was of the view that police assistance as required by the respondent nos. 1 and 2 were required to be provided and as such allowed such prayer. No material was placed before me to suggest that the District Magistrate was not apprised of the material facts relating to an application under Section 14 of the SARFAESI Act, 2002.I find no infirmity in the order passed by the District Magistrate dated September 24, 2014. In the facts of the instant case, five creditors of the respondent no. 3 are secured creditors within the meaning of Companies Act, 1956. In respect of the respondent no.3, four secured creditors are “secured creditors” within the meaning of the SARFAESI Act, 2002 also. Three of the four secured creditors within the meaning of the SARFAESI Act, 2002 have proceeded to invoke the provision of the SARFAESI Act, 2002 in respect of the respondent no.3. The aggregate value of the three secured creditors who have invoked the provision of the SARFAESI Act, 2002 being entitled to do so is more than 60% which is above the prescribed limit under Section 13(9) of the SARFAESI Act, 2002. In the instant case, all the secured creditors of the respondent no.3 governed by the provisions of the SARFAESI Act, 2002, excepting one, have taken measures under Section 13 of the SARFAESI Act, 2002. The collective value of the amount outstanding against the respondent no.3 in respect of three secured creditors, governed by the SARFAESI Act, 2002, is in excess of three-fourth of the value of the amount outstanding against the respondent no.3. The reference before the BIFR, therefore, has abated. All and any order of the abatement passed by the BIFR in such reference is a nullity. The writ petition is devoid of any merit. - Decided against the appellant.
|