Madhya Pradesh High Court: Secured Creditor Not Required to Invoke Section 14 under SARFAESI

The Madhya Pradesh High Court held that a secured creditor is not mandatorily required to invoke Section 14 of the SARFAESI Act, 2002, for taking physical possession of secured assets if no resistance is faced from the borrower.

The case arose from a writ petition filed by UCO Bank challenging the orders of the Debts Recovery Tribunal and Debts Recovery Appellate Tribunal, which had directed restoration of possession of mortgaged properties and refund of the auction amount.

The Court said that Section 13(4) read with Rule 8 of the Security Interest (Enforcement) Rules, 2002 permits direct possession, and Section 14 is only an enabling provision for seeking administrative assistance.

[UCO Bank v. M/s Asha Oil Industries & Ors.]