sarfaesi Act, 2002 – Civil proceedings – The proceedings under the SARFAESI Act, 2002 are undoubtedly civil proceedings – There is no rationale for the view that the proceedings initiated by a secured creditor against a borrower under the SARFAESI Act for taking possession of its secured assets, were intended to be excluded from the category of civil proceedings – The Chief Metropolitan Magistrate or the Judicial Magistrate, as the case may be, exercising powers under Section 14 of the SARFAESI Act, functions as a Civil Court/Executing Court – Proceedings under the SARFAESI Act would, therefore, be deemed to be civil proceedings in a Court – Moreover, proceedings under the SARFAESI Act under Section 13(4) are appealable to the DRT under Section 18 of the SARFAESI Act- Argument that proceedings under the SARFAESI Act would not qualify for exclusion under Section 14 of the limitation act, because those proceedings were not conducted in a Civil Court, cannot be sustained.
Held, There is no rationale for the view that the proceedings initiated by a secured creditor against a borrower under the SARFAESI Act for taking possession of its secured assets, were intended to be excluded from the category of civil proceedings.
Read Here : 2022 SCeJ 0216 , 2022 PLRonline 2702 , (2022-1)205 PLR 432
