IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN FRIDAY, THE 6TH JUNE 2008 / 16TH JYAISHTA 1930 WP(C).No. 15700 of 2008(R) -------------------------- PETITIONER: ------------ THE GENERAL MANAGER, NILAMBUR CO-OPERATIVE URBAN BANK LIMITED, HEAD OFFICE, NILAMBUR P.O., MALAPPURAM DISTRICT. BY ADV. SRI.K.M.SATHYANATHA MENON RESPONDENTS: ------------- 1. THE SUB INSPECTOR OF POLICE, NILAMBUR POLICE STATION, MALAPPURAM DISTRICT. 2. THE CIRCLE INSPECTOR OF POLICE, NILAMBUR POLICE STATION, MALAPPURAM DISTRICT. 3. THE SUPERINTENDENT OF POLICE, MALAPPURAM DISTRICT, MALAPPURAM. 4. SHRI. MURALIDHARAN, LAKAYIL HOUSE, P.O.NILAMBUR, MALAPPURAM DISTRICT. 5. SHRI. V.P.SAIDALAVI @ SAID HAJI, MANAGING DIRECTOR, LLX, CENE CREATIONS, ROOM NO. 104, BYE-PASS COMPLEX, P.O.MUNDUPARAMBA, MALAPPURAM DISTRICT. BY GOVT. PLEADER SRI. P.N. SANTHOSH. THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 06/06/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: PETITIONER'S EXHIBITS: W.P.C.NO. 15700/2008. ------------------------------------------------------------------- EXT.P1 TRUE COPY OF LICENCE DT. 3-12-1986. EXT.P2 RESOLUTION DT. 11-12-2007. EXT.P3 NOTICE DT. 6-12-2006. EXT.P4 RELEVANT PORTION OF ACKNOWLEDGEMENT CARD DT. 16-12-2006. EXT.P5 POSSESSION CERTIFICATE DT. 1-3-2007. EXT.P6 PUBLICATION IN MALAYALA MANORAMA DT. 1-3-2007. EXT.P7 NOTICE DT. 3-5-2007. EXT.P8 ENDORSEMENT MADE BY POSTAL AUTHORITIES. EXT.P9 PUBLICATION MADE ON 3-5-2007. EXT.P10 PUBLICATION OF SALE DT. 25-6-2007. EXT.P11 PUBLICATION IN MALAYALA MANORAMA DT. 25-6-2007. EXT.P12 SALE NOTICE. EXT.P13 ORDER IN I.A.1381/07 IN A.S.NO. 215/07. EXT.P14 DECISION OF BANK DT. 3-9-2007. EXT.P15 COMPLAINT DT. 4-12-2007. EXT.P16 RECEIPT ISSUED BY R1. EXT.P17 COMPLAINT DT. 15-12-2007. EXT.P18 RECEIPT ISSUED BY R1. EXT.P19 JUDGMENT IN W.P.C.NO. 37625/2007. EXT.P20 JUDGMENT IN W.P.C.NO. 989/2008. EXT.P21 ORDER DT. 10-3-2008 IN S.A.NO.31/2008. EXT.P22 ORDER DT. 14-3-2008 IN C.M.P.NO. 507/2008 ON THE FILE OF CHIEF JUDICIAL MAGISTRATE, MANJERI. [TRUE COPY] P.S TO JUDGE. S. Siri Jagan, J. =-=-=-=-=-=-=-=--=-=-=-=-=-=-=-=-=-= W. P (C) No. 15700 of 2008 =-=-=-=-=-=-=-=-=--=-=-=-=-=-=-=-=-= Dated this, the 6th June, 2008. J U D G M E N T Petitioner is the General Manager of a Co-operative Urban Bank. The Bank initiated proceedings against the 4th respondent under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. In the course of the proceedings for taking possession, 5th respondent intervened with a contention that he had purchased part of the property. In view of the refusal on the part of respondents 4 and 5 to hand over possession of the security interest, the petitioner filed an application before the Chief Judicial Magistrate, Manjeri under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The same was dismissed on the ground that this is a civil dispute and therefore a criminal court cannot interfere. Although notice was served on respondents 4 and 5, none appears for them. On a perusal of Ext. P22 order of the Magistrate, I find that the Magistrate did not properly understand the scope of Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. The question of inter se civil dispute does not arise here. 2. Section 14 of the Act reads thus: “14. Chief Metropolitan Magistrate or District Magistrate to assist secured creditor in taking possession of secured asset:- (1) Whether the possession of any secured asset is required to be taken by the secured creditor or if any of the secured asset is required to be sold or transferred by the secured creditor under the provisions of this Act, the secured creditor may, for the purpose of taking possession or control of any such secured asset, request, in writing, the Chief Metropolitan Magistrate or the District Magistrate within whose jurisdiction any such secured asset or other documents relating thereto may be situated or found, to take possession thereof, and the Chief Metropolitan Magistrate or, as the case may be, the District Magistrate shall on such request being made to him-- (a) take possession of such asset and documents relating W.P.C. No. 15700/2008. -: 2 :- thereto; and (b) forward such assets and documents to the secured creditor. (2) For the purpose of securing compliance with the provisions of sub-sections (1), the Chief Metropolitan Magistrate or the District Magistrate may take or cause to be taken such steps and use, or cause to be used, such force, as may, in his opinion, be necessary. (3) No act of the Chief Metropolitan Magistrate or the District Magistrate done in pursuance of the section shall be called in question in any court or before any authority.” As such, the Magistrate has a duty to take proceedings for taking possession of the security interest and forward the same to the secured creditor as provided in the Section. The Magistrate does not have to decide inter se disputes between the Bank and respondents 4 and 5 in the matter while exercising the above jurisdiction. On filing of an application under Section 14, he has a duty to see that the secured creditor gets possession of the security interest. Accordingly, Ext. P22 is quashed and the Chief Judicial Magistrate, Manjeri is directed to re-consider the matter in accordance with Section 14 of the Act and pass appropriate orders. This shall be done within a period of one month from the date of receipt of a copy of this judgment. The writ petition is allowed as above. Sd/- S. Siri Jagan, Judge. Tds/