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Section 30: Cognizance of offences by Metropolitan Magistrate or Judicial Magistrate First Class

Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 2002
Section 29 All 42 Sections of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 Section 31

Legal Commentary & Landmark Judgments: Section 30

Section 30 of the SARFAESI Act, 2002 governs the cognizance of offences under the Act, establishing the mandatory requirement of a written complaint by authorized statutory authorities and vesting trial jurisdiction exclusively in senior magistracy.

  • Strict Cognizance Bar: No court shall take cognizance of any offence punishable under Section 27, 28, or 29 except upon a complaint in writing made by an officer of the RBI, Central Government, or Central Registrar.
  • Competent Court Tier: Offences are triable exclusively by a court not inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the First Class (JMFC).
  • Prohibition on Private Complaints: Complete statutory bar against private criminal complaints or police FIRs for offences under Chapter V.
Key Landmark Precedents:
  • Mardia Chemicals Ltd. v. Union of India (2004) 4 SCC 31: The Supreme Court highlighted that the SARFAESI Act builds in strict procedural checks, including Section 30, which restricts criminal prosecution to authorized statutory authorities to prevent frivolous or vexatious criminal proceedings.
  • K.M. Mathew v. State of Kerala (1992) 1 SCC 217: The Supreme Court established that statutory restrictions on taking cognizance (complaint by authorized officer only) are mandatory condition precedents; private criminal complaints under statutory penal provisions lacking such authorization are void ab initio.
Courtroom Practice & Strategic Litigation Guidance:

If a private criminal complaint or FIR is lodged by a borrower against bank officials or ARCs alleging offences under SARFAESI Chapter V, immediately move the High Court under Section 482 CrPC / Section 528 BNSS to quash proceedings for absolute lack of cognizance under Section 30.

Section 29 All 42 Sections of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 Section 31