Pankaj Purohit, J
1. Heard learned counsel for the parties.
2. Counter affidavit filed on behalf of respondent no.2 is taken on record.
3. By means of the present writ petition, petitioner has challenged the order dated 16.09.2022, annexure-5 to the writ petition, issued by respondent no.1-District Magistrate, Nainital under Section 14 of the Securitization and Reconstruction Financial Assets and Enforcement of Security Interest, Act, 2002 (for short “the SARFAESI Act, 2002”) for taking possession of the secured assets qua the husband of the petitioner.
4. The facts of the case shorn-off unnecessary details are that respondent no.3 was issued a Cash Credit Limit (CCL) by the respondent-Bank of Rs.1.25 crores and the husband of the petitioner stood as Guarantor to the said CCL. The husband of the petitioner took collateral guarantee by mortgaging his property to secure the loan issued by the secured creditor i.e. respondent no.2. Borrower failed to repay the installment, therefore, the account was turned NPA on 30.05.2021.
5. The respondent-Bank has issued proceedings for recovery of the amount due against the borrower as well as the guarantors. The husband of the petitioner died on 23.10.2021. But, by then, the proceedings under the SARFAESI Act were also initiated. Respondent no.2-secured creditor filed an application before the District Magistrate under Section 14 of the SARFAESI Act, 2002 to take the possession of the secured assets of the borrower as well as of the collateral guarantor. Thereafter, the District Magistrate issued notice and passed an order dated 16.09.2022, annexed as annexure-5 to the writ petition. Hence, the writ petition.
6. It is submitted by learned counsel for the petitioner that the order issued by the District Magistrate under Section 14 of the SARFAESI Act, 2002 is against the husband of the petitioner, who was already expired on 23.10.2021, therefore, such order cannot be executed and given effect to.
7. So far as the fact of demise of husband of the petitioner is concerned, there is no denial from the side of the respondents.
8. Accordingly, the writ petition is disposed of with a direction that the respondent no.2 may move a fresh application under Section 14 of the SARFAESI Act, 2002 to the District Magistrate in the changed circumstances and the District Magistrate shall decide the application in accordance with law.
9. Pending application, if any, stands disposed of accordingly.
