The Supreme Court in the case Phoenix Arc Private Limited vs V. Ganesh Murthy observed and has issued in a Special leave petition filled, can a High Court, in exercise of its power under Section 482 of Code of Criminal Procedure, wherein quashing an order passed by the District Magistrate under Section 14 of the SARFAESI Act?
In the present case, the petition filed under Section 482 CrPC was allowed by the Madras High Court, wherein challenging an order passed by Chief Metropolitan Magistrate Court, Egmore, Chennai under Section 14 SARFAESI Act (for assisting secured creditor in taking possession of secured asset). Therefore, the court agreed with the contentions of the petitioners that this order was being passed by the Magistrate without affording an opportunity of hearing to the Petitioner.
It was observed that before the Apex Court. The contentions raised were against the order passed by the District Magistrate under of the SARFAESI Act, wherein the proceedings were not maintainable under Section 482 of Cr.P.C.,
The bench comprising of Justice MR Shah and Justice MM Sundresh observed and has taken note of this submission and has issued notice in the matter.
The conflicting views:
The Madras High Court expressed the conflicting views. In an order passed in the year 2020, it has been held by another single bench of the High Court that the Chief Metropolitan Magistrate is a persona designata under the SARFAESI Act and his orders cannot be challenged under Section 482 of Code of Criminal Procedure. Very recently, it has been observed by the Single judge that the order under Section 14 of SARFAESI Act ‘can be very well challenged’ before the High Court under Section 482 CrPC.
