Equitable Mortgage of Agricultural Land
CA Ankit Goyal
(Querist) 29 July 2009
This query is : Resolved
Hi everyone,
i require your views on following
Most of our clients offer equitable mortgage of agricultural lands as security for commercial loans
but"
as per section 31 (i) of SARFESI Act the proceedings under the act cannot be initialized on "Agricultural Land".
My query is whether security created on equitable mortgage of agricultural land can be realized by bank under any circumstances? If yes, Which act governs the same and What is the procedure in this regard?
Any specific act applicable on state of Punjab, Harayana & Gujarat will be helpfull.
Thank you
Y V Vishweshwar Rao
(Expert) 29 July 2009
Under SARFESI ACT the Security- Agricultural land can not be enforced - i.e;-sold by the Authorised Officer udner the Act
The Mortgage of the agricultural Land is Security for the liabaility , it can be enforced udner the Civil Suit Proceedigns by filing suit for Mortgage Preliminary decree and Mortgage Final decree for Sale of the Mortgaged proerty as contemplated under Order 34 of C P C, for recovery of Mortgage Due amount by Creditor / Mortgagee/ bank /
And also under DRT Proceeeigns for recovery of the Due maount above 10,00,000-00 !
