Final Order 1

Order Details: COPY OF ORDER
Pdf Text: IN THE COURT OF MS. UPASANA SATIJA,
LD. CHIEF JUDICIAL MAGISTRATE, NORTH-WEST
DISTRICT, ROHINI COURTS, DELHI
Ct. Case No.25168/2025
Indian Bank .....Petitioner
VS.
M/s Raj Steels (Proprietorship Firm) & Anr. ....Respondents
ORDER ON APPLICATION FILED UNDER SECTION 14 OF
SECURITISATION AND RECONSTRUCTION OF
FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY
INTEREST ACT, 2002.
29.10.2025
Present: Mr. Aayush Gupta, proxy counsel for the applicant
along with AR Sh. Neeraj Rukhaiyar.
It is stated by AR that there is no stay order against
the applicant / secured creditor or in favour of the borrower.
His statement to this effect recorded separately.
Copy of DRT order dated 06.09.2025 filed in which
securitization application filed by respondent stands dismissed.
Original documents seen, checked and returned.
1. The present application is filed under section 14 of
the Securitisation and Reconstruction of Financial Assets and
enforcement of Security Interest Act, 2002 (hereinafter referred
as ‘SARFAESI Act’).
2. It is stated in the application that the applicant is a
secured creditor. The respondents are stated to be the borrowers
as defined in Section 2(1)(f) of SARFAESI Act. It is submitted
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that the property as mentioned in the application i.e. “(i) All that
Entire Second Floor (Without Roof / Terrace Rights) of the
Freehold Built-Up Property bearing no.82, Block-A, built on land
admeasuring 160 Sq. Mtrs, situated in the layout of Wazirpur
residential scheme, presently known as (Ashok Vihar), Phase-III,
Delhi-110052, along with 1/4th share in Stilt Parking, along with
common rights to use of entrance, passage, stairs, lift and all
other common amenities / facilities as available in the aforesaid
building, with the freehold one – fourth proportionate rights of
land and is bounded as under: East – Service Lane 4.5 Mtr. West
– Road 9 Meter, North – Plot No.81, South – Plot No.83 along
with any physical accession (if any) to said property in terms of
Section 70 of the Transfer of Property Act” is a secured asset
upon which security interest was created by the borrowers to
secure repayment of the financial assistance extended by the
applicant. The borrowers committed default in repayment of the
financial assistance and their account was classified as non-
performing asset. Subsequently, statutory notice in writing under
section 13(2) of SARFAESI Act was served upon the borrowers
requiring them to discharge their liability in full within sixty
days, also detailing the amount payable and the secured assets
intended to be enforced in the event of non-payment of secured
debts but the borrowers have failed to make the payment despite
lapse of stipulated period.
3. As per the applicant, there is no pending objection or
representation received from the borrower.
4. It is further submitted that there is no stay by any
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competent court or forum in favour of the respondents.
5. 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 afore-noted
pleas and fulfills the requirements of the said proviso.
6. 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.
7. 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.
8. The afore-noted assertions of the applicant, duly
supported by affidavit and documents, demonstrate that the
respondents had availed financial assistance from the applicant,
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
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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.
9. Accordingly, the application of the secured
creditor/applicant is allowed. Advocate Mr. Puneet Munjal,
Enrollment No.D/8029/2025, Chamber No.163, Western Wing,
Tis Hazari Courts, Delhi-110054, Delhi, Mob. +91 8529101202
is appointed to take possession of the above described.
10. 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.
11. 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
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and filed by the Receiver alongwith the report.
12. 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 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 authorised 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.
13. The fee of the Ld. Court receiver is fixed at
Rs.1,00,000/- (Rupees One Lakh only) to be paid by the
applicant company and the same shall be paid to the Ld. Court
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Receiver within seven days from today. TDS, if any, shall not be
included in the Receiver’s fee. The applicant would furnish all
necessary details of the aforesaid property and borrower to the
Receiver within 3 days of this order and would extend full
cooperation to the Receiver for execution of this order.
14. Report of compliance of the above stated directions
shall be filed in the court within one month from today.
15. 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 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.
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16. 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.
17. 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.
Announced in open Court
on 29th October, 2025
(UPASANA SATIJA)
Chief Judicial Magistrate,
North-West District, Rohini Courts, Delhi
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