Gandhinagar, Oct 26 (Calcutta Tube) A chief metropolitan magistrate or a district magistrate cannot deny a secured creditor assistance in taking possession of a secured asset, the Gujarat High Court has ruled.
The bench of Chief Justice S.J. Mukhopadhaya and Justice K.M. Thaker said that it was not open for a magistrate to deny assistance as per the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.
The court said in an order made available Tuesday that if a secured creditor was not in a position to take actual possession of the secured asset or a document relating to such assets, he could take assistance of the chief metropolitan magistrate or the district magistrate under the act.
The court observation came on the plea of Oriental Bank of Commerce which moved court against the refusal of the district magistrate of Mehsana to give assistance in taking possession of a disputed property.
The court while setting aside the district magistrate’s order said: ‘We remit the matter to the district magistrate, Mehsana, with a direction to assist the secured creditor in taking possession of the secured asset as per law.’