Extreme Finance Limited wants to take possession of immovable property belonging to Amar pursuant to an order of Debt Recovery Tribunal (DRT). Discuss whether it can take assistance from the Chief Metropolitan Magistrate

The main purpose of SARFAESI Act, 2002 is to enable and empower the secured creditors to take possession of their securities and to deal with them, without the intervention of Court. The secured creditors may also authorize any securitization or reconstruction company to acquire financial assets of any bank or financial institution. Section 14 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 provides for assistance for taking possession of secured asset from the Chief Metropolitan Magistrate or the District Magistrate. The Chief Metropolitan Magistrate or the District Magistrate is empowered to facilitate taking possession of secured asset. The possession of secured asset may be for sale or transferring the asset for recovery of funds. For the purpose of taking possession or control of secured assets, the secured creditor may make a written application to the Magistrate (within jurisdiction). Such application shall be supported by an affidavit with details such as total financial assistance provided, amount due, nature of security interest existing, proof of default, status of NPA, copy of notice sent to the defaulting party etc. On receiving such application & affidavit, the Magistrate shall pass necessary orders (in 30 days) for taking possession of such asset and related documents. Due to any reasons duly written, such order cannot be passed within 30 days, the same may be sent within 60 days. The Magistrate may authorize any subordinate officer to take possession of the secured assets and forward the same to the secured creditor. The Magistrate is empowered to use force, in case of any wrongful resistance. Any action or order of the Magistrate is not questionable in any court or before any authority.