Sam 31 July 2016

Sarfaesi sale

I have availed a business loan (cash credit) of Rs 5 lac from a Nationalised bank in Tamil nadu on 2012. At that time I have deposited my title deeds as security without registration of MOD. The account has slipped to NPA on June 2016. I have received notice under sec13(2) of SARFAESI act. My question is, Whether the Bank will be able to Sell my property under SARFAESI act when the EC shows the property in my name ? and also If the property is being sold in auction will they require my consent ? Will the bank force me to execute a sale deed in favour of the bidder ?

And I also heard that the registration of the banks Sale certificate is enough for transfer of title to the bidder , KIndly somebody clarify..

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2 Replies

Md. Younus (employee) 01 August 2016

Hi,

My query is as under:

Mr. X brother of y (bride) had arrange a marriage of y & z. Up on request of Z, X get release mortgaged house of Z for Rs.3.25 lakhs in the year June 2010. In a good faith X has not taken any signature of either Z or his father.

Property is in the name of Z's father's who expired in 2014.

X has paid the amount to mortgagee and took the mortgage deed from him, which he mark cancel on the face of agreement and wrote as amount received from Mr. X and signed by the mortgagee along with date, which is prepared on Rs.100/- nonjudicial stamp paper. Also X took the original, registered Sale Deed from the mortgagee.

After this the relationship between Y & Z got diturbed and Y filed DVC which has been dismissed. In this judgement it is mentioned that the amount paid to release the mortgaged property cannot be taken as dowry since it has been paid before three months of the commencement of marriage.

She filed an appeal, this also got dismissed in 2015.

Meanwhile Mr. Z divorced X in Dec. 2012.

Till date nothing has been done to recover the amount of Rs.3.25 lakhs.

The original registered sale deed is with Mr. X which has been taken from mortgagee at the time of paying money.

QTN. How can Mr. X proceed to recover the amount now. Kindly guide in detail.

Thanks

m.kameswaran (student) 08 August 2016

under sarfeasi act , bank has to send a notice to you regarding repayment details , to pay, if u fail tha banker can very well sell your proprety after due procedure under sarfeasi act.

your consent is not required , notice itself suuficient, and EC , IS NOT A MATTER AT ALL.

SALE CERTIFICATE IS WELL SUFFICIENT TO BIDDER.

ONLY IF IT IS SOLD INSUUFICIENT PRICE , YOU CAN SUE THE BANKER AND AND DEMAND STOPPING THE SALE. BUT U HAS TO READY TO REPAY OR DEPOSIT THE AMOUNT IN COURT.

OR IF SOLD IN GOOD AND REASONABLE PRICE , AFTER DEDUCTING THE LOAN PRINCIPAL AND INTEREST AND OTHER PROCEEDING CHARGES, IF ANY AMOUNT REMAINING , IT WIIL BE GIVEN TO U. THATS ALL