Supreme Court Overrules 3 HC Judgments

Part 14 Energy vested is just not by the use of persona designata.

In view of the above, it was held that the ability vested within the discovered Chief Metropolitan Justice of the Peace/discovered District Justice of the Peace is just not by the use of persona designata.

Thus, in view of the scheme of the SARFAESI Act, extra significantly, Part 14 of the SARFAESI Act and the character of the powers to be exercised by discovered Chief Metropolitan Justice of the Peace/discovered District Justice of the Peace, the Excessive Courtroom within the impugned judgment and order has rightly noticed and held that the ability vested within the discovered Chief Metropolitan Justice of the Peace/discovered District Justice of the Peace is just not by the use of persona designata.

The following subject examined was whether or not, the Extra Chief Metropolitan Justice of the Peace may be mentioned to be subordinate to the Chief Metropolitan Justice of the Peace.? On this regard, the next observations are made:

Extra Chief Metropolitan Justice of the Peace can’t be mentioned to be subordinate to the Chief Metropolitan Justice of the Peace in train of judicial powers

it may be seen that any Metropolitan Justice of the Peace may be appointed by the Excessive Courtroom to be the Chief Metropolitan Justice of the Peace. The Excessive Courtroom might appoint any Metropolitan Justice of the Peace to be an Extra Chief Metropolitan Justice of the Peace, and such Justice of the Peace shall have all or any of the powers of a Chief Metropolitan Justice of the Peace underneath Cr.PC or underneath another legislation in the intervening time in drive because the Excessive Courtroom might direct. The Chief Metropolitan Justice of the Peace and each Extra Chief 24 Metropolitan Justice of the Peace shall be subordinate to the Periods Choose; and each different Metropolitan Justice of the Peace shall, topic to the overall management of the Periods Choose, be subordinate to the Chief Metropolitan Justice of the Peace. Thus the judicial powers and the powers, underneath the Cr.PC which can be exercised by the Chief Metropolitan Justice of the Peace, may be exercised by the Extra Chief Metropolitan Justice of the Peace additionally. Thus, the Extra Chief Metropolitan Justice of the Peace may be mentioned to be at par with the Chief Metropolitan Justice of the Peace in as far as the powers to be exercised underneath the Cr.PC are involved. The Chief Metropolitan Justice of the Peace as well as, might have administrative powers. Nevertheless, for all different functions and extra significantly the powers to be exercised underneath the Cr.PC each are at par. Subsequently, the Extra Chief Metropolitan Justice of the Peace can’t be mentioned to be subordinate to the Chief Metropolitan Justice of the Peace in as far as train of judicial powers are involved.

“Chief Metropolitan Justice of the Peace” as showing in Part 14 of the SARFAESI Act shall deem to imply and embody Extra Chief Metropolitan Justice of the Peace

In view of the above dialogue and as noticed hereinabove when the powers to be exercised by the Extra Chief Metropolitan Justice of the Peace are at par with the powers to be exercised by the Chief Metropolitan Justice of the Peace [Section 25 17(2) of Cr.PC] and the Chief Metropolitan Justice of the Peace and Extra Chief Metropolitan Justice of the Peace shall be subordinate to the Periods Choose (Part 19 of the Cr.PC) and the steps to be taken by the Chief Metropolitan Justice of the Peace underneath Part 14 of the SARFAESI Act as noticed hereinabove are ministerial in nature and doesn’t contain any adjudicatory course of and there’s no component of any quasi ­judicial perform, we see no cause to take a distinct view than the view taken by the Bombay Excessive Courtroom within the impugned judgment. We maintain that the expression “Chief Metropolitan Justice of the Peace” as showing in Part 14 of the SARFAESI Act shall deem to imply and embody Extra Chief Metropolitan Justice of the Peace for the needs of Part 14 of the SARFAESI Act. Equally, when the Extra District Magistrates are conferred with the powers to be exercised by the District Magistrates both by delegation and/or by particular orders and the Extra District Magistrates are exercising the identical powers that are being exercised by the District Magistrates, the identical analogy may be utilized, extra significantly, when the powers exercisable underneath Part 14 of the SARFAESI Act, are ministerial steps.

SARFAESI Litigation Rising

Whereas upholding the Excessive Courtroom judgment, the bench additional noticed:

It can’t be disputed and even judicial discover may be taken of the truth that the CMMs and/and even the DMs are required to carry out so many different duties underneath completely different statutes. They need to carry out many administrative duties additionally. District Magisters are in general administrative management of their jurisdiction/district. Equally, CMMs are additionally required to carry out administrative duties and so they have additionally to take care of the opposite instances/felony trials and lots of trials underneath particular statutes additionally. It can’t be disputed that the litigations underneath the SARFAESI Act and proceedings and/or purposes underneath Part 14 of the SARFAESI Act are rising. Whilst observed by the Excessive Courtroom within the impugned judgment and order, as on 09.08.2017, 926 instances had been pending underneath Part 14 of the SARFAESI Act earlier than just one CMM. Subsequently, plenty of purposes underneath Part 14 are pending. It additionally can’t be disputed that the SARFAESI Act offers for expeditious disposal of the purposes filed underneath Part 14 of the SARFAESI Act. As per, second proviso to Part 14, appropriate orders for the aim of taking possession of the secured property are required to be handed inside a most interval of sixty days from the date of the appliance. Subsequently, if the submission on behalf of the appellants that solely the involved CMM/DM alone would have jurisdiction to resolve the purposes underneath Part 14 of the SARFAESI Act is accepted, in that case, it will likely be virtually inconceivable for the involved CMM/DM to resolve the appliance underneath Part 14 of the SARFAESI Act expeditiously and inside the time stipulated underneath second proviso to Part 14 of the SARFAESI Act. If the interpretation which we suggest that, the District Justice of the Peace/Chief Metropolitan Justice of the Peace underneath Part 14 of the SARFAESI Act contains the Extra District Justice of the Peace/Extra Chief Metropolitan Justice of the Peace, the identical may be mentioned to be a purposive interpretation to realize the article and function of proceedings underneath the SARFAESI Act, extra significantly when as noticed hereinabove, the orders to be handed underneath Part 14 of the SARFAESI Act are ministerial steps and to help the secured creditor in getting/acquiring the possession of the secured property. Thus, there is no such thing as a component of train of adjudicatory powers underneath Part 14 of the SARFAESI Act

Case particulars

R.D. Jain and Co. vs Capital First Ltd. 2022 LiveLaw (SC) 634 | CA 175 OF 2022 | 27 July 2022 | Justices MR Shah and BV Nagarathna

Headnotes

Securitisation and Reconstruction of Monetary Belongings and Enforcement Safety Curiosity Act, 2002 ; Part 14 – The District Justice of the Peace, Chief Metropolitan Justice of the Peace is just not a persona designata for the needs of Part 14 of the SARFAESI Act – Extra District Justice of the Peace and Extra Chief Metropolitan Justice of the Peace can train powers underneath Part 14. (Para 9-12)

Securitisation and Reconstruction of Monetary Belongings and Enforcement Safety Curiosity Act, 2002 ; Part 14 – Step to be taken by the CMM/DM underneath Part 14 is a ministerial step. Whereas disposing of the appliance underneath Part 14 of the SARFAESI Act, no component of quasi ­judicial perform or software of thoughts would require -The Justice of the Peace has to adjudicate and resolve the correctness of the knowledge given within the software and nothing extra. Subsequently, Part 14 doesn’t contain an adjudicatory course of qua factors raised by the borrower in opposition to the secured creditor taking possession of secured property. (Para 8)

Code of Prison Process, 1973 ; Sections 11, 12, 15, 16, 17, 19 and 35- The Extra Chief Metropolitan Justice of the Peace may be mentioned to be at par with the Chief Metropolitan Justice of the Peace in as far as the powers to be exercised underneath the Cr.PC are involved – The Chief Metropolitan Justice of the Peace as well as, might have administrative powers. (Para 10-10.1)

Securitisation and Reconstruction of Monetary Belongings and Enforcement Safety Curiosity Act, 2002 ; Part 14 (1A) – it’s open to the CMM/DM to nominate an advocate and authorise him/her to take possession of the secured property and paperwork relating thereto and to ahead the identical to the secured creditor underneath Part 14(1A) of the SARFAESI Act – Referred to NKGSB Cooperative Financial institution Restricted vs. Subir Chakravarty 2022 LiveLaw (SC) 212 (Para 6,.2)

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