Final Order 1

Order Details: COPY OF ORDER
Pdf Text: IN THE COURT OF SH. JITENDRA PRATAP SINGH, CHIEF METROPOLITAN
MAGISTRATE, EAST DISTRICT, KARKARDOOMA COURTS, DELHI
MISC CRL. 15/2023
Punjab and Sind Bank V. Smt. Rajbala Goyal & Ors.
ORDER
1. This is an application under Section 14 of the Securitization and Reconstruction of
Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred to as
“the Act”).
2. It is stated in the application that the applicant is a secured creditor whereas the
respondents are “borrowers” as defined in section 2(1)(f) of the said Act. According to the
applicant, “All that part & parcel of build up property K1, K Block, 3 rd Floor, with roof
rights, measuring 83.61 sqm, bearing Khasra Number 58/14, situated at village Khureji
Khas, opposite Radhey Shyam Mandir, Main Market Laxmi Nagar, Shahdara, Delhi
110032, which is bounded as under :
East : Main road/ part of property,
West : Road/ Opp. Radhey Shyam Mandir,
North : Property No.K2,
South : Other property”
is a secured asset, since a “security interest” was created thereon by the borrowers to
secure repayment of a loan. The borrowers are stated to have defaulted in repayment of the
loan. It is further stated by the applicant that the loan account has been declared as “non
performing asset” on 01.05.2022 as per the RBI guidelines and law. It had issued statutory
notice under section 13(2) of the Act but the respondents failed to discharge their liability in full
within the stipulated period of sixty days from the date of notice. As per the applicant, there is
no pending objection received from the borrowers.
3. Affidavit of the authorized officer of the secured creditor, as required by proviso of
section 14(1) of the Act, has also been filed. The affidavit discloses the extent of financial
assistance granted and the claim of the Bank as on the date of filing the application. It
reiterates the aforenoted pleas and fulfills the requirements of the said proviso. Documents in
support of the above averments have been produced by the secured creditor. Original
documents seen and returned.
4. Section 14 of the Act enjoins the Chief Metropolitan Magistrate to pass suitable
orders for taking possession of the secured asset and to forward it to the secured creditor. It
further vests the Magistrate with powers to take all necessary steps and to use force for
compliance of its order.
5. The aforenoted assertions of the applicant, duly supported by affidavit and
documents, demonstrate that the respondents had availed financial assistance from the
applicant and had created security interest on the asset. Respondents defaulted in repayment
of the loan and the loan account was declared nonperforming asset. The respondents failed
to pay the outstanding loan amount even after receiving notice under section 13 (2) of the Act
which afforded a period of sixty days to do so. As per affidavit of AR of Bank, there is no
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pending objection or representation of the respondents and that the secured asset is not
under possession of a lessee under a valid lease made prior to creation of mortgage.
6. Accordingly, the application of the secured creditor/applicant is allowed. Ms. Neelam
Rani, Advocate, Enrl. No.D249/2011, Mobile No.9911996664, office at K131, Tis Hazari
Court, Delhi 110054 and at G501, Karkardooma Court, Delhi110032, is appointed
Receiver to take possession of the asset and to forward it to the secured creditor.
7. For securing compliance of this order, receiver shall issue notice to respondents and
fix the date of taking possession. He may obtain the assistance of the police and take such
other steps and use such force as is found necessary. Police shall render assistance and
provide adequate force for protection of the receiver and of the bank employees involved in
recovery of the asset. Receiver, is empowered to break open locks in case the asset is found
locked and in that eventuality he shall prepare an inventory of the articles lying therein. He
shall then hand over copy of the inventory, duly signed by her and witnesses, to the borrowers
(if present on the site) and another copy so signed shall be filed in court with his report. While
executing these directions, he shall observe caution not to violate orders of any court or forum
in respect of the aforesaid property. The fee is fixed at Rs.80,000/ . and the same shall be
paid within 1 week, once notice is issued by the Receiver to the respondent. Miscellaneous
expenses, if any, in carrying out this order shall be borne by the secured creditor. All the
aforesaid terms are acceptable to the applicant.
8. Report of compliance of the above stated directions shall be filed as expeditiously as
possible. Objections, if any, by whomsoever concerned should be made before the Debt
Recovery Tribunal and no objection would be entertained in this Court.
9. If the recovery proceedings are stayed by order of Debt Recovery Tribunal or other
forum, and in case the stay order is subsequently vacated or the applicant is granted liberty to
recover possession of the property, the mandate of the receiver to recover possession would
stand extended and she shall be at liberty to recover possession of the secured asset and to
hand it over to the applicant bank notwithstanding the expiry of aforesaid period of 30 days.
For this purpose, the applicant bank may itself contact the receiver and the receiver shall
recover possession on the same terms as are mentioned in this order. There shall be no
need for the applicant bank to approach this court for extension of time or other directions.
However if the applicant bank, of its own, decides not to recover possession, it shall apply to
this court to terminate the mandate of the receiver and it shall not be lawful for it to itself
instruct the receiver to refrain from or to delay the recovery of possession. In case there is
delay on the part of the applicant in compliance with this order, the same shall be explained by
the applicant bank by affidavit of the authorized officer.
10. Nothing stated in this order shall be construed as a finding of liability or a judicial
determination of the issues in contention between the parties.
11. Since the directions sought by the applicant have been passed, nothing survives in
the matter. Let file be consigned to record room after receiving compliance report. Two copies
of the order be given dasti to counsel for applicant with directions to deliver one of the copies
to receiver within ten days from today.
(Jitendra Pratap Singh)
CMM (East), KKD, Delhi/21.01.2023
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