Final Order 1

Order Details: COPY OF ORDER
Pdf Text: IN THE COURT OF MS. TANYA BAMNIYAL
CHIEF JUDICIAL MAGISTRATE, NORTH-EAST DISTRICT,
KARKARDOOMA COURTS, DELHI
CT Cases 968/2026 CAPRI GLOBAL HOUSING FINANCE LTD. Vs
LATE SHABEENA KHAN AND ORS. /0 (BHAJANPURA)
14.10.2026
ORDER
01. The 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”) is taken up for consideration.
02. 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 piece and parcel of property
having land and building bearing: Property No. C-11/61, (Plot No. 61 in Block
No. C-11) situated at Yamuna Vihar, Shahdara, East Delhi, Delhi-110053 and
the area admeasuring is 70 sq.mts boundaries of property: North-Road, South-
Service Lane, East-Property No. C-11/60, West-Property No. C-11/62”
(“hereinafter referred to as “the asset”) 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’. It is further averred that the secured creditor 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 of the
borrowers. It is stated in the application that possession of the asset needs to be
taken and orders for that may be passed.
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03. 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
Finance Company as on the date of filing the application. It reiterates the
aforenoted pleas and fulfills the requirements of the said proviso.
04. Original documents relied upon by the applicant were produced for
the inspection of the court. After inspection, the original documents were
returned. I have heard arguments advanced by the Ld. counsel for the secured
creditor and have perused the application, affidavit of authorized officer, title
deeds of the asset and other supporting documents.
05. Section 14 of the Act enjoins the Chief Judicial 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.
06. The aforenoted assertions of the applicant, duly supported by
affidavit and documents, demonstrate that the respondents had availed financial
assistance from the applicant Finance Company, that the respondents had
created security interest on the asset, that the respondents defaulted in
repayment of the loan, that the loan account was declared non-performing
asset, that 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 and that there is no pending objection or representation of
the respondents.
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07. Accordingly, the application of the secured creditor/applicant is
allowed. Advocate Ms. Archana Kumari, Enrollment No. D/4004/16, Mobile
No. 6387261487/7840819463 is appointed to take possession of the above
described.
08. The provisos to Section 14(1) of the Act provide a time limit for
disposal of application under Section 14. This has been done so that possession
of the secured Asset can be obtained by the secured Creditor expeditiously. In
the case of Cholamandalam Investment and Finance Company Limited Vs.
Rajeev Chawla and Ors. CM(M) No.716/2021 dated 22.10.2021, the Hon'ble
High Court held that time is of essence in proceedings initiated under the
Securitization and Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002. It was held that the purpose behind the Act will be
frustrated if there are delays in implementing orders passed under the Act.
09. Accordingly, it is directed that the Receiver will give 15 days
advance possession notice to the Authorised Officer of the Secured Creditor
and to the borrowers. The possession notice shall also be affixed upon the main
door or any other conspicuous portion of the secured Asset. Photographs of the
secured Asset with the pasted possession notice shall be taken and filed by the
Receiver alongwith the report.
10. For securing compliance of this order, the Receiver may obtain the
assistance of the police including women police officials, if required 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 above named person
and of the company employees involved in recovery of the asset. The Receiver,
is empowered to break open locks in case the asset is found locked. The
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receiver shall prepare inventory with regards to the items kept inside the
premises, and hand over one list duly signed by the witnesses and by the Ld.
Court Receiver to the borrower, if present at the site. One copy of the same
duly signed by the witnesses and by the Ld. Court Receiver will be annexed
with his report. Photographs of the locked premises before take over and after
take over and photographs of the items kept inside the premises shall also be
taken by the Ld. Court Receiver and be annexed with the report. Broken locks,
if any, shall be sealed in cloth pulanda and be deposited with concerned
applicant. Miscellaneous expenses on this account shall be borne by the
applicant. After taking over the subject property it be handed over to the
authorized officer of the applicant. The expenses on this account shall be borne
by the applicant and photographs be enclosed with the report. Accompanying
witnesses shall sign the proceedings.
11. The fee of the Ld. Court receiver is fixed at Rs. 50,000/- (Rupees
Fifty Thousand only) to be paid by the applicant company and the same shall
be paid to the Ld. Court Receiver promptly after receiving of order, irrespective
of the aspect of the settlement if any, arrived between the borrower and
applicant company.
12. Report of compliance of the above stated directions shall be filed
in the court within one month from today.
13. If the recovery proceedings are stayed by order of Debt Recovery
Tribunal or other fora, 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 the Receiver
shall be at liberty to recover possession of the secured asset and to hand it over
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to the applicant Finance Company notwithstanding the expiry of aforesaid
period of one month. For this purpose, the applicant Finance Company 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 Finance Company to approach this court for extension of time or
other directions. However, if the applicant Finance Company, 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 Finance Company by affidavit of the Authorized
Officer.
14. 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.
15. 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. Copy of this order be given dasti to the Ld.
counsel for the applicant. The Reader/Ahlmad shall send a copy of this order to
the Receiver by e-mode within two working days from today.
(MS. TANYA BAMNIYAL)
CHIEF JUDICIAL MAGISTRATE
NORTH-EAST: KKD COURTS:DELHI
14.10.2026
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