SARFAESI


Is the property sold by creditor without physical possession is Legal ?
 

 
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POWER OF DEFENSE IS IMMENSE

No not at all but since the matters are dealt at DRT levels and hence few people go for legal action.


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I defer from the earlier note. The possession mentioned under Section 13(4) and rule 8(1) of the Act of 2002 may be symbolic and physical. The secured creditior may take recourse under section 14 of the Act after publication of sale notice.

 
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Advocate

Sale conducted under the SARFAESI Act, after issue of the Possession Notice u/S.13(4) and later Sale Notice, as per Rules, by the Secured Creditor, is valid even without taking physical possession, after the landmark judgement of SC in Transcore case.  If the purchaser wanted physical possession, of the property after the sales, the Secured Creditor can approach the Chief Metropolitan Magistrate/Judical Magistrate/Distract Magistrate, for vacant possession.  The physical possession can be taken even by the bank, if there was no resistanceby the occupant.  Further, physical possession can be taken, even before issue of Sale Notice, but only after issue of Possession Notice u/S.13(4) of the Act. 

 
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Absolutely Sir, Transcore and Mardia have decided these points in the light of RBI guidelines which was then into force.

 
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