1 Case No.1042/SA/2022.

IN THE COURT OF THE CHIEF METROPOLITAN MAGISTRATE,

AT ESPLANADE, MUMBAI
(Presiding Officer – M. R. A. Shaikh)
Securitisation Application No.1042/SA/2022
(CNR No.MHMM11-007836-2022)

UCO BANK
A Body Corporate constituted under the Banking
Companies (Acquisition and Transfer of
Undertakings) Act V of 1970 having its Branch Office
at M.G. Road, 62, M.G. Road, Secunderabad-500 003.
…. Applicant
Through it's Authorized Officer.

Versus

1. M/s. SPRY RESOURCES INDIA PVT. LTD.

(Borrower)

2. MR. P. V. V. SATYANARAYANA
(Guarantor)

3. MR. P. K. RAMESH
(Guarantor)

4. MR. P. GURUKRISHNA
(Guarantor)

5. M/S. COMP U LEARN INDIA LTD. (CTIL)

(Guarantor)

having address at 6-3-1192, 4th Floor, My Home

Tycoon, Bagumpet, Kundanbagh, Hyderabad-500057. ....Respondents.

Appearance :-

For Applicant:- M&S LEGAL VENTURES.

 2 Case No.1042/SA/2022.

ORDER BELOW EXH.1

(Delivered on 28.03.2023)

This is an application Under Section 14 of the Securitisation

and Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002 (in short “SARFAESI Act”) for taking possession of the
secured asset known as :-
''FLAT NO.B-202, (WING-B FLAT NO.202, 2 ND FLOOR)
HAVING ADMEASURING 1317 SQ.FT. IN THE BUILDING KNOWN AS
'UNIVERSAL PARADISE', SITUATED AT NANDA PATKAR ROAD, OPP.
ADARSHA PETROL PUMP LANE, VILE PARLE (EAST), MUMBAI-400057
CTS NOS.1730P, 1731P, 1732P, 1763P AND 764 OF VILLAGE VILE
PARLE, MUMBAI SUBURBAN TALUKA ANDHERI".

Brief contents of application are as under :-

2. On the request of Respondents, applicant bank has granted/
sanctioned various credit facilities total aggregating of Rs.3,79,28,000/-
(Rupees Three Crore Seventy Nine Lakhs Twenty Eight Thousand Only)
vide Sanction Letter dated 10.05.2012 to the Respondents. It is
contended that, the Respondents executed necessary loan security
documents such as Sanction Letter, Omnibus Agreement, Guarantee
Deed, Registered Mortgage Deed etc. for the repayment of the loan
availed; the Respondents have created security interest over their said
asset.

3. The secured asset is situated within territorial jurisdiction of

this Court. Till the date of filing of this application, applicant is holding
a valid and subsisting security interest over secured asset. In due course,
borrowers have committed default in repayment of the financial
assistance as agreed. Thus, the account of the borrowers have been
classified as “Non Performing Asset” on 31/03/2013.
 3 Case No.1042/SA/2022.

4. Then, Demand Notice dated 27/07/2013 U/Sec.13 (2) of

the SARFAESI Act was issued to the Respondents at their last known
addresses by way of personal service and RPAD calling upon to repay
the outstanding amount within 60 days from the date of service of
notice. Said demand notice was duly received by the Respondents.
Furthermore, the Applicant has published said demand notice in local
Newspapers. Thus, the said demand notice was served upon the
Respondents by Newspapers publication. Despite, the service of said
notice, Respondents have not complied with the requisitions for
payment of outstanding loan amounts within stipulated period of 60
days. Hence, Applicant is constrained to file this application, which is
well in limitation.

5. However, in due course respondents failed to repay the said

Loan amounts. Thus, applicant is constrained to declare borrower’s
account as “Non Performing Asset”. Then Applicant issued Demand
Notice U/Sec.13 (2) of SARFAESI Act, demanding total outstanding
amount of Rs.3,50,95,253.43/- (Rupees Three Crore Fifty Lakhs Ninety
Five Thousand Two Hundred Fifty Three and Paise Forty Three Only).

6. In catena of judgments Hon'ble Supreme Court and Hon'ble

Bombay High Court have settled the position of law that no notice is
required to be issued to borrowers and guarantors when application
Under Section 14 of SARFAESI Act is filed. Thus, no notice is issued by
Court to respondents.

7. It is requirement of Section 14 of SARFAESI Act that,

Authorized Officer of applicant financial institute has to file affidavit
containing therein facts mentioned in Section 14(1)(b)(i) to 14(1)(b)
(ix). Accordingly, Authorized Officer had filed Affidavit at Exh.3. In
 4 Case No.1042/SA/2022.

addition to affidavit, copies of certain documents are placed on record.

Authorized Officer has also tendered original documents before Court,
for verification with copies on record. Such documents are loan sanction
orders, Loan Agreements, title deeds of mortgage property, notice given
under section 13(2) of SARFAESI Act to respondents, postal receipts,
Paper Publication etc.

8. As per Section 14(1A) of the SARFAESI Act this Court may

authorize any subordinate officer of court to take over possession of
secured assets. However, looking that this court is flooded with
applications under section 14 of SARFAESI Act and considering that
already subordinate officers of this court are overburdened with
workload, it seems that it is neither practicable nor feasible to take over
possession of secured assets expeditiously by authorizing subordinate
officer of this court for taking over possession of secured assets. In this
scenario, it is significant to take aid of ratio laid down by Hon'ble
Supreme Court of India in NKGSB Co-operative Bank Ltd. Vs. Subir
Chakravarty SPL (C) 30240 of 2019, Order dated 25/02/2022 to
appoint additional members from Bar as Court Commissioner. Hence, in
consultation with The Bombay Metropolitans' Courts' Bar Association,
Esplanade Court, Mumbai, this Court has prepared a list of Advocates,
who are interested to work as Court Commissioner. From the said list,
Advocate Mr. Dhiresh Pratap Singh is appointed as a Court
Commissioner for taking over the possession of the aforesaid secured
asset.

9. Before parting with order, I would like to mention here that,

this Court has experienced time and again that under the garb of
settlement talks are going on, the applicant bank through its
Authorized Officer is dictating/suggesting/directing to Court
 5 Case No.1042/SA/2022.

Commissioner that not to comply the writ of commission within

stipulated time granted by the Court. Such attempt by Bank/financial
institution may amounts to contempt of Court. Thus, such practices
have to be deprecated. The Bank/financial institutes have to permit
Court Commissioner to comply writ of commission and if any settlement
works out then release the property to concerned. But at any cost not
required to be restrained to Court Commissioner from compliance of
writ of commission. Thus, I proceed to pass following order;
ORDER

(I) Application Under Section 14 of the SARFAESI Act is allowed

and Authorized Officer (As per 'SARFAESI Act') is permitted to
take over possession of aforesaid secured asset on behalf of
applicant Bank.

(II) Advocate Mr. Dhiresh Pratap Singh, R/o. Superintendent

Bungalow, S.P. M.C. 35, N.S.C.Marg, Charni Road, Mumbai
(Mobile No.7021214234), is hereby appointed as Court
Commissioner to take over possession of the secured asset
known as ''FLAT NO.B-202, (WING-B FLAT NO.202, 2ND FLOOR)
HAVING ADMEASURING 1317 SQ.FT. IN THE BUILDING
KNOWN AS 'UNIVERSAL PARADISE', SITUATED AT NANDA
PATKAR ROAD, OPP. ADARSHA PETROL PUMP LANE, VILE
PARLE (EAST), MUMBAI-400057 CTS NOS.1730P, 1731P, 1732P,
1763P AND 764 OF VILLAGE VILE PARLE, MUMBAI
SUBURBAN TALUKA ANDHERI" and hand over to abovesaid
Authorized Officer only, under panchanama, and not to
handover to any other officer of the applicant, who is not
Authorized Officer on record in this proceeding.
 6 Case No.1042/SA/2022.

(III) Applicant to pay Rs.10,000/- (Rupees Ten Thousand Only) for

taking possession of aforesaid secured asset to the Court
Commissioner as a fees as well as to and fro charges to him/her,
by Cash/Pay Order/Demand Draft/cheque in favour of aforesaid
Court Commissioner within fifteen days from the date of this
order, and take care that cheque will not be bounced for any
reason, otherwise it will be viewed seriously to take appropriate
action against the concerned Authorized Officer.

(IV) Authorized Officer to furnish his/her full office address,

residential address, mobile number, land line numbers of office
and residence, in order to facilitate Court commissioner to
contact him/her. The Bank/Financial Institute, Authorized
Officer are directed not to dictate/direct/suggest to Court
Commissioner by any mode to deffer taking over possession of
secured asset, unless stay granted by any Competent Court, and
if any one does so, then it is subject to appropriate action
against him or her whoever may be so.

(V) Court Commissioner to issue 15 days advance notice to the

concerned party/parties and to take such steps and use such
force including breaking open the lock or any hurdle thereof by
taking assistance of police if required at the expenses of the
applicant and if any articles/documents found in the secured
asset then deliver its possession to the Authorized Officer of the
applicant after preparing panchanama and taking inventory.

(VI) The Police Station Officer within whose territorial jurisdiction

 7 Case No.1042/SA/2022.

secured asset is located, is hereby directed to provide police aid

to Court Commissioner if he/she required so for taking over
possession of secured asset. Despite of advance letter from
Court Commissioner to provide police aid, if such police officer
failed to provide police aid for no reason or petty or
unreasonable ground then it will be viewed seriously for taking
appropriate action. Equally if such police officer gives any ill-
treatment or insulting treatment to Court Commissioner, then it
is also subject to appropriate action. Such police officer is also
directed not to indulge himself in the issue of legality or
illegality of order.

(VII) Court Commissioner shall report the compliance within 90 days

from the receipt of Writ of the Commission. However, in the
meantime, if any Competent Court grants stay to execute this
order then automatically until such stay order will be in force,
time to comply writ of commission will be deemed to be
extended and no separate application for extension of time for
execution of writ of commission will have to be filed before this
Court by the Court Commissioner.

(VIII) If any person attempts to seek favour from Court Commissioner

in order to delay the taking over possession of secured asset,
then Court Commissioner is duty bound to communicate such
fact to this Court and provide details of said person, including
landline or mobile number of that person if any, to facilitate this
Court to take appropriate action against said person.
 8 Case No.1042/SA/2022.

(IX) If Court Commissioner found to be indulged in favouring to any

person for delay to take over possession of secured asset then
such act will be subject to appropriate action, including
reference to Bar Council of Maharashtra & Goa for necessary
action for misconduct.

(X) If Court Commissioner failed to execute possession warrant for

any default on his part, then Court Commissioner fees as well as
to and fro charges are subject to refund to applicant along with
interest @18% per annum from the date of its receipt. Thus,
before receipt of Court Commissioner fees, Court Commissioner
to give undertaking accordingly.

(XI) If any contingency arises in future to refund Court

commissioner fees and Court Commissioner failed to repay it to
applicant, then it is subject to reference to Bar Council of
Maharashtra and Goa for taking appropriate action for
misconduct.

(XII) On compliance of Clause No. III & IV, issue Writ of Commission.
Digitally signed
MUJAFFAR by MUJAFFAR
RAHEMAN
RAHEMAN ASGHAR
ASGHAR SHAIKH
SHAIKH Date: 2023.03.29
18:41:38 +0530

(M. R. A. Shaikh)
Chief Metropolitan Magistrate
Date:- 28.03.2023. Esplanade, Mumbai.
SBA/-