Punjab and Haryana HC flays administrative laxity in helping creditors take over secured assetshttps://indianexpress.com/article/india/punjab-and-haryana-hc-flays-administrative-laxity-in-helping-creditors-take-over-secured-assets-5826127/

Punjab and Haryana HC flays administrative laxity in helping creditors take over secured assets

The court was told that over two years have passed but the possession of the assets has not been handed over to the secured creditor.

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The division bench of Justices Rakesh Kumar Jain and Arun Kumar Tyagi in an order said a large number of cases are being filed by secured creditors.

Taking a strong note of the laxity of authorities in helping secured creditors take over possession of mortgaged properties, the Punjab and Haryana High Court has directed the states of Punjab and Haryana and Chandigarh administration to submit details of cases where in the Tehsildar or Naib Tehsildar has not acted upon the order passed by the District Magistrate for taking possession of secured assets.

The division bench of Justices Rakesh Kumar Jain and Arun Kumar Tyagi in an order said a large number of cases are being filed by secured creditors where prayer is made for directions to the District Magistrate, Tehsildar or Naib Tehsildar for delivery of the possession. The general order seeking information regarding all such cases, the court added, is being passed to avoid unnecessary litigation which is being created due to the official “who is not taking any interest much less for the reasons best known to him, in taking the possession of the secured assets and delivering the same to the secured creditor within a reasonable time”.

The order has been passed in a petition filed by The Jammu and Kashmir Bank Limited for implementation of an order passed in April 2017, for possession of a property in question, under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 by the District Magistrate Ludhiana. The court was told that over two years have passed but the possession of the assets has not been handed over to the secured creditor.

During the hearing of the case, the court was told by bank’s counsel that in these types of cases the subordinates to the District Magistrate have been conferred the power for the purpose of taking over the possession of the secured assets but they are “misusing their power by not taking possession in time from the borrower and causing more loss to the secured creditor”.