Madurai

“Collectors cannot impose caveat on bank officials over property recovery”

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The Madurai Bench of the Madras HC held that such a condition imposed by tThe Collector was "unwarranted".

District Collectors cannot impose a caveat forcing bank officials to take responsibility for any untoward incidents while agreeing to assist them in taking possession of immovable properties under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, the Madras High Court Bench here has said.

A Division Bench of Justices Nooty Ramamohana Rao and S.S. Sundar made the observation while disposing of a writ petition filed by State Bank of India, Stressed Assets Management Branch in Coimbatore, to delete such a caveat imposed by Thanjavur Collector in an order passed on August 19 agreeing to assist the institution in taking possession of a property.

Holding that such a condition imposed by the Collector was “unwarranted,” the judges said it was the duty of Collectors and Chief Metropolitan Magistrates, who had been empowered under Section 14 of the Act to render assistance to secured creditors in taking possession of stressed assets, to prevent any untoward incident during the course of taking possession.

“At any rate, if any untoward incident occurs, the general law will have to be pressed into service to take care of the offenders. The bank or its authorised officer to whom the task of taking possession is entrusted cannot be held either responsible or accountable. Hence, we delete the sentence in the order passed by the District Collector and the rest of the order remains as it is,” the Bench said.

It also expressed hope that the Collector’s order would be given effect to and acted upon within 30 days.

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Printable version | Dec 12, 2019 10:12:54 PM | https://www.thehindu.com/news/cities/Madurai/%E2%80%9CCollectors-cannot-impose-caveat-on-bank-officials-over-property-recovery%E2%80%9D/article14631043.ece

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