Can securitisation company issue notice u/s13(4) directly?

K.K.Ganguly (Querist) 30 January 2012 This query is : Resolved
Would the Ld. Experts kindly opine on the following:

1. A Bank had allowed a loan to a Company after mortgaging/creating a secured asset for the said loan.
2. The loan had become NPA for non payment of EMIs for a prolonged period.
3. The Bank had issued notice u/s 13(2) of SARFAESI ACT,2002 to the borrower.
4. After issuing the said notice u/s13(2) the Bank has sold the said Financial Asset/loan account to a Securitisation Company who has reconstructed the asset and rescheduled the payment terms.
5. Even after rescheduling of the payment terms the Company became defaulter in payment with the Securitisation Company.
6. Two years have passed from the date of issuing the notice u/s13(2) by the Bank.

My question is:

1) What is the remedy lying with the Securitisation Company now?
2) Shall the Securitisation Company have to issue notice u/s13(2) of SARFAESI ACT,2002 again and then issue notice u/s13(4) or it can straightway go for issuing notice u/s13(4) referring the notice issued by the Bank u/s13(2) two years back?

Thanks & Regards.

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DEFENSE ADVOCATE.-firmaction@g (Expert) 30 January 2012
Since it is a new concept in our country so companies goof up in procedures.

New co should have taken a fresh agreement with the borrower which most of them do not do.

So if you are borrower can object on locus standi.

Even otherwise fresh notice necessary.

Raj Kumar Makkad (Expert) 30 January 2012
Such company can directly issue notice under section 13 (4).

M V Gupta (Expert) 02 February 2012
The earlier notice issued by the Bank will be of no help. The Secularization company which has reconstructed the borrower company, will have to issue a fresh notice under Sec. 13(4)of theAct.

Saibal Guha Roy (Expert) 02 February 2012
The securitisation company rescheduled the loan and such reschedulement was done after issue of 13(2) notice by the Bank. Accordingly, this action of rescheduling the loan has made the earlier 13(2) notice issued by the Bank a nullity. The securitisation company has to issue a fresh notice u/s 13(2) and follow the procedure laid down thereafter. Direct action 13(4) notice by the Securitisation company will be bad in law.

RAJU O.F., (Expert) 03 February 2012
If the Securitisation Company obtained permission from RBI to commence business securitisation of bank assets, they have to first register the secured assets procured from the bank, in the Central Registry, then proceed as provided under Sec.9 of the SARFAESI Act for enforcement of the security interest, starting with the fresh issue of Demand Notice u/S 13(2)