Allow Cookies!
By using our website, you agree to the use of cookies
The Kerala High Court held that the Chief Judicial Magistrate under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, holds no jurisdiction to grant an extension of time for payment of debt that is due to secured creditors. The case in question, Canara Bank v. Stephen John, concerned a payment due of Rs. 45 lakhs. The Magistrate, under Section 14, had granted an extension of 45 days to the debtor to pay the debt. The secured creditor, i.e. Canara Bank filed a write petition as a response to this order.
Justice P.B. Kumar, while allowing the petition to proceed, held that Section 14 does not clothe the Chief Judicial Magistrate ‘judicial’ powers and the power is only regulatory in nature. The Judge also noted that “It is now settled that the fact that the power is entrusted or wielded by a person who functions as a court is not decisive of the question whether the act or decision is administrative or judicial.” The Court held that as there is no discretion given to the Chief Judicial Magistrate to determine the rights of the parties, the ambit of the power is administrative and not judicial. Further, the Court upheld the amendment that has been introduced which compels the Chief Judicial Magistrate to ensure that a declaration has been made by the secured creditor in the form of an affidavit in accordance with Section 14 (1) of the Act. If the secured creditor has not filed any such affidavit, the Chief Judicial Magistrate may not provide assistance to them.
86540
103860
630
114
59824