[S.14 SARFAESI Act] Jurisdiction Of DM Purely Ministerial In Nature; Not Empowered To Hear Borrower/ Third Parties: Bombay High Court

Observing that the jurisdiction of the District Magistrate is limited only to assisting secured creditors in taking possession of secured assets under the SARFAESI Act, the Bombay High Court held that the DM isn't empowered to hear the borrower or third parties while deciding application filed by secured creditor. "The jurisdiction of the CMM/DM under Section 14 of the SARFAESI Act is purely ministerial and limited only to assisting secured creditors in taking possession of secured assets and nothing more", the court held. "Section 14 of the SARFAESI Act does not contemplate much less empower the DA to even consider much less adjudicate upon any objections raised by Borrower or anybody else", the court observed. The court further held that the Designated Authority under section 14 only needed to consider three factors – whether the secured asset falls under its jurisdiction; whether notice of demand under Section 13 has been served on Borrower; and whether a duly affirmed affidavit accompanying the application filed by the secured creditor contains the declaration as required in Clauses to of Section 14 of the SARFAESI Act.