- (1.) The Court : An alleged lessee is before this court. He says that he has been wrongfully dispossessed from the subject property by the borrower and/or mortgagee under section 14 of the SARFAESI Act, 2002. Harshad Govardhan Sondagar vs. International Assets Reconstruction Company Ltd. and Ors., 2014 6 SCC 1 makes it explicit that for such an alleged wrong there is no remedy under section 17 of the Act. [see paragraph 32]. This clarifies the general law laid down by the Hon'ble Supreme Court in Kanaiyalal Lalchand Sachdev and Ors. vs. State of Maharashtra and Ors., 2011 2 SCC 782 that an action under section 14 "constitutes an action taken after the stage of section 13[4]" and that an appeal lies under section 17[1] of the said Act.
(2.) Furthermore, paragraph 25 of Harshad Govardhan Sondagar vs. International Assets Reconstruction Company Ltd. and Ors., 2014 6 SCC 1 states that in the application before the District Magistrate or the Chief Metropolitan Magistrate the financial institution has to state whether the secured assets are under possession of a lessee prior to creation of the mortgage.
(3.) The right, title and interest of the petitioner as a monthly tenant or lessee is disputed by the bank or financial institution. Therefore, following the above dictum by the Hon'ble Supreme Court I am of the opinion that before the petitioner was evicted from the property, a hearing ought to have been given to him, by the District Magistrate and a finding arrived at regarding his status.;