Can a Chief Judicial Magistrate also derive power under the Securitisation and Reconstruction of Financial Assests and Enforcement of Security Interest Act 2002 (SARFAESI) to take possession of secured assets as done by Chief Metropolitan Magistrates and District Collectors ?
This question, raised in a writ petition, has been referred to a larger bench by the Madras High Court bench here in view of different decisions relating to the issue by different division benches.
Acting Chief Justice Rajesh Kumar Agrawal and Justice Chitra Venkataraman passed the order on a petition by a destitute woman challenging an order passed by Sivaganga CJM to take possession of her house at Singampuneri.
According to her counsel M. Ajmal Khan, the CJM did not have the power to pass such orders and only the District Collector could do so under the Act.
SARFAESI Act had given such a power to the CMM in case of properties in metros such as Chennai and the District Magistrates (collectors) with respect to properties located in other places.
Earlier, a single judge of the high court had referred the issue to a Division Bench.
Though the Act had omitted to include CJM, answering the reference, the Division Bench held CJMs were equivalent to CMMs.
The Judges said the Sec.3 of the Code of Criminal Procedure stated that a Magistrate would mean Metropolitan Magistrate in relation to a metropolitan area and judicial magistrate in relation to other areas.
But the petitioner's counsel said Cr.P.C was different from SARFAESI Act and the explanation provided under the former would apply only to cases connected with that code and not to the securitisation act.
