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2025 DAILYLAW 10313 (GAU)

UCO BANK AND ANR v. THE STATE OF ASSAM AND ORS

WP(C)/1949/2025 · 2025-06-17

Acting, N Unni Krishnan Nair

Writ Petition (Civil)body2025

Judgment text

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Page No.# 1/4 GAHC010070992025 2025:GAU-AS:8147- DB THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : WP(C)/1949/2025 UCO BANK AND ANR A BANKING COMPANY AND CORPORATE CONSTITUTED UNDER THE BANKING COMPANIES ACQUISITION AND TRANSFER OF UNDERTAKING ACT , 1971 HAVING ITS HEAD OFFICE AT 10 BTM SARANI BRABOURNE ROAD KOLKATTA 1 DOING ITS BANKING BUSINESS TROUGHOUT INDIA THROUGH DIVERSE REGIONAL BRANCH AND MALIGAON BRANCH UCO BANK MALIGAON CHARIALI PO MALIGAON PS JALUKBARI GUWAHATI 781011 REP BY ITS AUTHORIZED CHIEF MANAGER 2: THE CHIEF MANAGER UCO BANK ADDRESS- MALIGAON BRANCH MALIGAON CHARIALI PO MALIGAON PS JALUKBARI GUWAHATI 78101 VERSUS THE STATE OF ASSAM AND ORS REP HEREIN BY ITS COMMISSIONER AND SECRETARY GENERAL ADMINISTRATION DEPTT GOVT OF ASSAM ADDRESS I BLOCK THIRD FLOOR JANATA BHAWAN DISPUR GUWAHATI 781006 DIST KAMRUP METRO ASSAM 2:THE DISTRICT COMMISSIONER O/O THE DISTRICT COMMISSIONER LICHUBAGAN HENGRABARI GUWAHATI 781036 DIST KAMRUP METRO ASSAM 3:THE COMMISSIONERATE OF POLICE M G ROAD PANBAZAR GUWAHATI 781001 DIST. KAMRUP METOR ASSAM 4:M/S A TO Z (DEPARTMENTAL STORE) REP BY ITS PROPRIETOR MR DWIJEN KUMAR ADDRESS- GOSHALA BAZAR MALIGAON GUWAHATI 78101 Advocate for the Petitioner : MR. S CHAMARIA, MR A N SARMAH,MR M M ZAMAN,MR R Page No.# 2/4 AKHTAR Advocate for the Respondent : GA, ASSAM, BEFORE HON’BLE THE CHIEF JUSTICE (ACTING) MR. LANUSUNGKUM JAMIR HON’BLE MR. JUSTICE N. UNNI KRISHNAN NAIR O R D E R 18.06.2025 (L.S. Jamir, C.J(Acting)) Heard Mr. S. Chamaria, learned counsel for the petitioners. Also heard Ms. S. Sarma, learned Government Advocate appearing for the State respondents. 2. None has entered appearance for the respondent No. 5, although the service of notice upon the said respondent is complete. 3. The petitioners have instituted the present proceeding raising a grievance against the inaction on the part of the jurisdictional Deputy Commissioner in taking appropriate steps towards facilitating recovery by the petitioner bank of the property mortgaged by the respondent No. 4. 4. The petitioners have contended that on completion of the requisite process as provided for under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (in short Act of 2002), an application was submitted before the District Magistrate, Kamrup (M) on 10.09.2022 under the provisions of Section 14 of the Act of 2002 to assist in taking over the physical possession of the secured assets mortgaged by the respondent No. 4 herein. Page No.# 3/4 5. In pursuance to the said application filed by the petitioners, the District Magistrate, Kamrup (M) vide Order dated 28.10.2024 had issued an Order deputing one Executive Magistrate to oversee the law and order issues during the taking over the possession of the secured assets mentioned in the Order by the petitioner Bank in terms of the provisions of the Act of 2002. It is contention of the petitioner that although said Order dated 28.10.2024 was so issued, no follow up steps therein was taken by the District Administration and accordingly, a delay had occasioned in the petitioner Bank taking over the possession of the secured assets involved in the matter. 6. It is well settled that the scope and extent of jurisdiction vested in a District Magistrate as provided under Section 14 of the SARFAESI Act is clear from a bare reading of Section 14 as well as catena of decisions passed by the Apex Court [See:- M/S R.D. Jain And Co. vs. Capital First Ltd and Ors. reported in 2023 1 SCC 675] For taking physical possession of the secured assets in terms of Section 14(1) of the SARFAESI Act, the secured creditor is obliged to approach the DM/ADM/CJM by way of a written application. The statutory obligation upon the DM/ADM/CJM is to immediately move into action by passing an order after verification of compliance of all formalities by the secured creditor referred to in the proviso in Section 14(1) of the SARFAESI Act. As per Section 14 of the SARFAESI Act, the DM/ADM/CJM has to act within the stipulated time limit and pass a suitable order for the purpose of taking possession of the secured assets within a period of 30 days from the date of application which can be further extended for such further period but not exceeding to 60 days. The possession of the secured assets could be taken by the DM/ADM/CJM himself/herself or through any officer sub-ordinate to him/her. Thus, from the above, it is apparent that nature of power u/S 14 of SARFAESI Act vested in the Page No.# 4/4 DM/ADM/CJM is executory and ministerial and not adjudicatory. 7. In view of the said discussions, we are of the considered view that the present writ petition need not be detained any further and can be disposed of. Accordingly, the present writ petition is disposed of directing the District Magistrate, Kamrup (M) to take requisite steps for facilitating taking over possession of the secured assets involved in the matter by the petitioner Bank, strictly in accordance with the provisions of Section 14 as well as the law laid down by the Hon’ble Apex Court in the case of M/S R.D. Jain And Co. (supra), within a period of 4 (four) weeks form the date of receipt of a certified copy of this Order. 8. With the above observations and directions, the present writ petition is disposed of. JUDGE CHIEF JUSTICE (ACTING) Comparing Assistant