# In the matter of Balkrishna Rama Tarle Thr LRS & Anr. Vs. Phoenix ARC Pvt Ltd. & Ors., Special Leave Petition No. 16013 of 2022

> SC judgment dated 2022-09-26. Citation: TCN-2022-SC-00015. The case involves a Special Leave Petition filed against an order of the High Court of Judicature…

- **Court:** SC
- **Order date:** 26 Sept 2022
- **Citation:** TCN-2022-SC-00015
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/balkrishna-rama-tarle-thr-lrs-anr-vs-phoenix-arc-pvt-ltd-ors-special-leave-petit-c6b20eec

## Summary

### Background

The case involves a Special Leave Petition filed against an order of the High Court of Judicature at Bombay. The High Court had allowed a writ petition by Phoenix ARC Private Limited (respondent No. 1), a secured creditor, and set aside an order of the designated authority under Section 14 of the SARFAESI Act. The designated authority had declined to assist the secured creditor in taking possession of secured assets, pending termination of tenancy rights claimed by Balkrishna Rama Tarle (the original respondent No. 2 and now represented by legal heirs). Religare Finvest Ltd. had originally sanctioned a loan to borrowers, secured by a mortgage. Upon default, Religare classified the account as NPA and issued a notice under Section 13(2) of the SARFAESI Act. Religare then

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## Facts

Religare Finvest Ltd. sanctioned a loan of Rs. 6 crores to borrowers, secured by a registered mortgage. The borrowers defaulted, leading Religare to classify the account as a Non-Performing Asset (NPA). Religare issued a notice dated 2018-04-13 under Section 13(2) of the SARFAESI Act. On 2018-09-29, Religare assigned its rights to Phoenix ARC Private Limited (respondent No. 1). Phoenix ARC, as the secured creditor, issued a notice dated 2019-05-21 under Section 13(2) of the SARFAESI Act and took symbolic possession of the secured assets on 2019-09-21. The petitioner, Balkrishna Rama Tarle (original respondent No. 2), claimed to be a tenant in respect of a portion of the secured assets and sought to intervene in proceedings under Section 14 of the SARFAESI Act. The

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## Issues and analysis

### Issue 1: Whether the District Magistrate/designated authority, while exercising powers under Section 14 of …

**Ratio:** The powers exercisable by the District Magistrate/Chief Metropolitan Magistrate under

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**Reasoning:** The Court reasoned that Section 14 of the SARFAESI Act mandates the District

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**Interpretation:** Section 14 of the SARFAESI Act provides a mechanism for secured creditors to

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**Application:** In this case, the designated authority erred in keeping the application pending

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## Parties

- **Judges:** M.R.…; KRISHNA M…
- **Appellants:** Balkrishna Rama…
- **Respondents:** Phoenix Arc…

## Timeline

- **2018-04-13 — Notice under Section…**: Religare Finvest Ltd. issued a notice under Section 13(2) of the SARFAESI Act to…
- **2018-09-29 — Assignment of…**: Religare Finvest Ltd. assigned its…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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