Sundaram BNP Paribas Home Finance Ltd. vs The District Magistrate/District Collector, Karur District

S. Manikumar, J—M/s. Sundaram BNP Paribas Home Finance Ltd., Royapettah, Chennai, has filed three writ petitions, W.P.(MD). Nos. 9910 to 9912 of 2015 for a direction to the District Magistrate/District Collector, Karur, to pass orders on the petitions dated 29.12.2014, 20.10.2014 and 26.02.2015 respectively filed under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (hereinafter referred as SARFAESI Act), within a time frame fixed by this Court. As averments and submissions are common, the writ petitions are being disposed of by this common order.

According to the petitioner, applications under Section 14 of the SARFEASI Act have been filed directing the District Magistrate/District Collector, Karur District,

i) to take possession of the schedule mentioned property and documents relating thereto and handover the same to the petitioner;

ii) to break open the property in case of the property is locked and to hand over the same to the petitioner;

iii) forward such assets and documents to the secured creditor the petitioner herein and

iv) to direct the Superintendent of Police/inspector of Police of the concerned jurisdiction to render police protection to the petitioner company to take possession of the schedule mentioned property.

Reliance has also made on the basis of the earlier order of this Court made in W.P.(MD) No. 5415 of 2015, dated 10.04.2015 by which the present Division Bench issued directions to the District Magistrate/District Collector, Thanjavur to dispose of the applications, setting out an outer limit.

Material on record discloses that the District Magistrate/District Collector, along with the letter L. Dis. D4/73/2015, dated 13.01.2015 and L. Dis. D4/1198/2014, dated 08.01.2015, has returned the applications to the Authorised Officer, M/s. Sundaram BNP Paribas Home Finance Limited, Karur District, with a request to send a notification declaring "Sundaram BNP Paribas Home Finance Limited" as Financial Institution, by the Central Government and to submit the supporting affidavit under Section 14 of the SARFAESI Act, in a stamped paper. He has also directed the Petitioner Finance Company, to furnish upto date encumbrance certificates of the property, in original, so as to proceed further.

In response to the above letter, the Authorised Officer, Sundaram BNP Paribas Home Finance Limited, has sent replies to the effect that Sundaram BNP Paribas Home Finance Limited is one of the notified institution under the SARFAESI Act. They have also enclosed the following documents;

Copy of the Gazette Notification dated 10.11.2003.

Copy of the Registration Certificate issued by National Housing Board.

Gujarat High Court order copy.

Section 14 Petition already filed and returned by your good office.

Supporting the prayer sought for Mr. V. Karthikeyan, learned counsel for the petitioner, submitted that the petitioner company is already a notified institution under the SARFAESI Act and there is no need to submit a separate notification as called for.

On the aspect as to whether the supporting affidavit to the petition filed under Section 14 of the SARFAESI Act requires to be on a stamped paper, on instructions from the Collector, Karur District, Mr. D. Muruganantham, learned Additional Government Pleader, submitted that the Collector would not insist upon the affidavit on a stamped paper. His submission is placed on record.

As regards the submission of all the encumbrance certificates in original of the properties for which assistance is sought for, to take possession, learned counsel for the petitioner submitted that the finance company would furnish the upto date encumbrance certificate, within a week from the date of receipt of a copy of this order. Submissions of the learned counsel appearing for both parties are placed on record.

In view of the above, the petitioner in W.P.(MD) Nos. 9910 to 9912 of 2015 is hereby directed to submit the upto date encumbrance certificates of the properties, for which assistance is sought for to take possession. The District Magistrate/District Collector, Karur District, shall not insist on the supporting affidavit to be on a stamped paper. In so far as production of notification is concerned, the District Magistrate/District Collector, Karur District, shall consider the reply of the Authorised Officer, M/s. Sundaram BNP Paribas Home Finance Limited, Royapettah, Chennai and the documents enclosed, and pass appropriate orders, on merits and in accordance with the provisions of Section 14 of SARFAESI Act, within a period of four weeks from the date of submission of the encumbrance certificates as stated supra. The writ petitions are disposed of accordingly. No costs.