TMI Blog2021 (10) TMI 1390X X X X Extracts X X X X X X X X Extracts X X X X ..... her proceeding of whatever nature relating to the said financial asset is pending by or against the bank or financial institution, then only the same shall continue in the name of the petitioner who has acquired the debt by way of assignment from the original lender. Admittedly in the facts of the case, the order under Section 14 of SARFAESI Act is passed on 10.9.2018 prior to the date of Deed of Assignment on 5.11.2019. Therefore, it cannot be said that the proceedings under Section 14 of SARFAESI Act relating to the financial assets which are subject matter of the proceedings, were pending on the date of acquisition of financial assets under sub-section (1) of Section 5 of the SARFAESI Act - the respondent No.1 could not have directed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... strict Magistrate, Valsad) to implement the order dated 10.09.2018 passed under section 14 of SARFAESI Act, 2002 through subordinate officer and handover the physical possession of the property in question to the petitioner in place of Religare Finvest Limited. ALTERNATIVELY C. Be pleased to direct the Respondent no.1 (District Magistrate, Valsad) to substitute the name of the petitioner in the order dated 10.09.2018 passed under section 14 of SARFAESI Act, 2002 in place of Religare Finvest Limited and issue fresh order accordingly within one month from the receipt of the order/direction of this Hon ble Court. D. Be pleased to hold and declare that under the provisions of Section 5 of the SARFAESI Act, 2002 the requirement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed of the application of the petitioner by holding that the order dated 10.9.2018 is passed under Section 14 of the SARFAESI Act and therefore, the petitioner was to take appropriate orders from the Debts Recovery Tribunal. 3. Learned advocate Mr. Sandip C. Bhatt appearing for the petitioner submitted that in view of the provisions of subsection (4) of Section 5 of the SARFAESI Act, the name of the petitioner is required to be substituted in the order dated 10.9.2018 passed by the respondent No.1 because the petitioner has executed the Deed of Assignment with the original lender in the year 2019 after passing of the order under Section 14 of the SARFAESI Act. 3.1 Learned advocate Mr. Sandip C. Bhatt further submitted that the petition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in dispute that the respondent No.1 passed the order under Section 14 on 10.9.2018 whereas the petitioner has entered into the Deed of Assignment with the original lender on 5.11.2019. 5.1 In view of above undisputed fact, it would be relevant to refer to the provision of sub-section (4) of Section 5 of the SARFAESI Act, which pertains to the acquisition of rights or interest in financial assets and reads thus:- 5(4) If, on the date of acquisition of financial asset under sub-section (1), any suit, appeal or other proceeding of whatever nature relating to the said financial asset is pending by or against the bank or financial institution, save as provided in the third proviso to subsection (1) of section 15 of the Sick Industria ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tioner is required to file a fresh application under Section 14 of the SARFAESI Act and the petitioner could also not have requested the respondent No.1 to substitute the name of the petitioner in the order passed under section 14 on 10.9.2018 prior to the date of Deed of Assignment. 5.5 In view of above, the impugned order dated 5.3.2021 is hereby quashed and set aside and the petitioner is directed to file fresh application under Section 14 of the SARFAESI Act to get the assistance of the respondent No.1 for taking over the possession of the assets of the borrower to realise the debts which it has been assigned by way of Deed of Assignment dated 5.11.2019. With the aforesaid direction, the petition is disposed of. Notice is discharg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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