Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, Section 14 – Inability to take possession within time limit of within 30 days and for reasons to be recorded within 60 days, does not render the District Magistrate Functus Officio – The time limit is to instill a confidence in creditors that the District Magistrate will make an attempt to deliver possession as well as to impose a duty on the District Magistrate to make an earnest effort to comply with the mandate of the statute to deliver the possession within 30 days and for reasons to be recorded within 60 days. In this light, the remedy under Section 14 of the Act is not rendered redundant if the District Magistrate is unable to handover the possession. The District Magistrate will still be enjoined upon, the duty to facilitate delivery of possession at the earliest. #2020 SCeJ 1963 [Para 20]
Held,
Sarfaesi Act, was enacted to provide a machinery for empowering banks and financial institutions, so that they may have the power to take possession of secured assets and to sell them. Purpose of the Act pertains to the speedy recovery of dues, by banks and financial institutions. ……
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