Sarfaesi authorized officer delegation regarding


Demand Notice under section 13(2) signed as Authorized Officer along with Name mentioned.

a) Can somebody else signing as Authorized Signatory without mentioning their name reply to Objections raised by the borrower ?

b) Can somebody else signing as Authorized Signatory without mentioning their name withdraw the issued 13(2) notice ?.

c) How to take legally valid consent from Authorized Officer on these letters signed by others ?

Thanks in advance.

 
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Founder Chairman of Global Lgal Services

You take advantage of it by raising procedure,   statutory violation in the D.R.T.


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practising Advocate

a) Only the duly  Authorised Officer can sign ,  withname or without name.

b)No, one except the Authorised Officer can withdraw the Notice U/S 13 (2) of SARFAESI ACT.

c)You can get valid confirmation ,by writing to the Authorised Officer , along with a copy of the same to the concerned Branch Manager and the Zonal Manager,ask them to confim the consent. If there shall be any flaw that shall come out.


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Thanks M/s Ajit Singh Cheema and Kolla V Raman. Regards.

 
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1. There is no stipulation in SARFAESI Act,2002 for mentioning the name of the Authorised Officer who signs the Demand Notuice u/s13(2) of the Act or who withdraws the same,

 

2. The can be many A.O.s in a Bank & there is no mention in the Act that the same A.O. should sign the Demand Notice & also the letter to withdraw it,

 

3. You can go to the Bank & find out who are the people who signed the notice & its withdrawal,

 

4. However, Chief Manager & above are assigned with the job of being the A.O. in SARFAESI Proceedings.

 
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practising Advocate

We must have a very clear concept. The sarfaesi Act notices are to be given on behalf of particular branch .All scale 4 officer and above may be competent to be AUTHORISED OFFICERS..

There cannot be more than one AOs for a particular Branch. However one AO may send notices on behalf of number of Branches for which he has been Authorised by Secured Creditor.

You may simply ask the Branch Office Concerned, about the name of Authorised Officer For the Branch. 

 
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1. There may be more than one A.O. in a Bank (not Branch) issuing notices regarding same SARFAESI proceeding,

 

2. There are instances when one A.O. posted at the Branch has issued Demand Notice u/s 13(2) and another A.O. posted at the Zonal Office (controlling office of the said Branch) has  issued letter u/s13(3-A) informing the Borrower that his representation against the said Demand Notice has not been accepted,

 

3. When after few months the said A.O. of  Zonal Office was on leave, another Chief manager or AGM posted at the said Zonal office acted as A.O. & issued Possession Notice u/s13(4) of the Act to the same Borrower.


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Advocate

Really there is confusion among bankers, regarding the issue of Notice under Sections 13(2) and 13(4) of the SARFAESI Act. Many bankers believe and act as if all the officers in Chief Manager and above cadre of banks are Authorised Officers. I have obtained one judgment (reported)  in which it was decided that the Branch Manager cannot become Authorised Officer for the same branch. In the said case the Branch Manager was Chief Manager. Unfortunately the Act is defecient in clarity on many points. The Authorised Officer must at least be authorised for this purpose, by the Board of Directors of the Bank/FI. I have seen one instance that the Demand Notice was signed by the PEON. When it was challenged, the said peon was promoted.

 
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