Justice Ashok Kumar Gaur of the Rajasthan HC heard a petition pertaining to taking possession of a mortgaged property by the bank, here a respondent.
The petitioner had filed a writ petition challenging the order passed under the provisions of section 14 of the SARFAESI Act. The petitioners are the gurantors of a loan taken in the name of Tej Prakash Singh.
The counsel for the petitioner, Mr. Pawan Kumar Sharma submitted that even after the payment of the loan amount, the bank was taking over the possession of the mortgaged property on account of NPA (Non Performance Account) and no satisfactory reason was provided for doing so. Further the counsel also informed the court that a caveat had been filed for without recoursing to Section 14 of the SARFAESI Act. The counsel also co0mplained that no chance had been given to the parties to be duly represented before the passing of the order and prayed for liberty to apply fro the redressal of their grievances at the appropriate forum.
The HC dismissed the writ petition stating that it was not willing to interfere into the matter as thye Magistrate was the only one who had authority to assist a secured creditor in taking possession of a secured asset. The HC also cited the case of Pradeep Kumar v. State of Rajasthan where it was held that in case the party was aggrieved about the Section 14 of the SARFAESI Act, the party had available forms of appropriate remedy in the SARFAESI Act itself.