CHENNAI: The Madras High Court has directed the Chief Judicial Magistrate (CJM) of Chengalpattu district to fix the fees for the advocate commissioners appointed for executing warrants in cases of properties involved in Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) Act, 2002, by taking into account factors including the outstanding dues, value of the property and the distance.
The direction was issued by the first bench of Chief Justice Sushrut Arvind Dharmadhikari and Justice G Arul Murugan while disposing of the writ petitions challenging fixation of `80,000 fees for advocate commissioner’s even in properties valued at `2.21 lakh.
“The Chief Judicial Magistrate, Chengalpattu, shall not treat `80,000 as a fixed or default figure to be awarded in every petition filed under Section 14 of the SARFAESI Act,” the bench said in the recent order.
It added, “The fee awarded in each case must be proportionate to the work actually involved including amount outstanding, the value and location of the secured asset, the number of properties covered by the warrant, and the distance to be travelled.”
The bench also directed the CJM to take note of the timelines prescribed under the proviso to Section 14(1) of the SARFAESI Act, 2002, and to ensure that applications under this section are disposed of within the period contemplated therein, save for genuine and recorded reasons.
