Sarfaesi act
manish mundra
(Querist) 26 March 2013
This query is : Resolved
If the bank do not make reply to representation made by guarantor accoding to section 13(3A) of SARFAESI act, then can it be assumed that the guarantor has been relieved from his guarantee? Can bank again enforce this guarantee at later stage ? can bank take a plea that the reply could not be made because of any reason? whether drt/court has power to condone delay of bank in making reply under section 13(3A) of SARFAESI Act? whether bank can issue fresh notice u/s 13(2) of SARFAESI Act so as to correct its default of non replying to the representation made by guasrantor?
Raj Kumar Makkad
(Expert) 26 March 2013
Non-reply from the side of the bank is not a ground for the guarantor to get exonerated from his liability. Bank has every right to issue fresh notice under section 13 (2) of ibid Act. There may be many convincing reasons for non-reply which may be put before DRT.
Raj Kumar Makkad
(Expert) 26 March 2013
Non-reply from the side of the bank is not a ground for the guarantor to get exonerated from his liability. Bank has every right to issue fresh notice under section 13 (2) of ibid Act. There may be many convincing reasons for non-reply which may be put before DRT.
manish mundra
(Querist) 26 March 2013
But section 13(3A) is mandatory in nature. Authorised officer is deemed to be a quasi judicial person. If bank do not make reply then the act of bank cannot be overlooked. The gurantor will always say that bank has accepted his representation and thus is not making any reply. Pls clarify
Anirudh
(Expert) 26 March 2013
Section 13(3A) talks about the representation made by the Borrower and not guarantor.
manish mundra
(Querist) 26 March 2013
Guarantors are considered to be in same shoe as of borrower.
Anirudh
(Expert) 26 March 2013
Only for the purpose of paying the money due to the lender, not otherwise. The representation if any under Sec. 13(3A) should be by the borrower and not the guarantor.
manish mundra
(Querist) 26 March 2013
But what would the guarantor do if he has been issued notice u/s 13(2) and 13(4)? Will guarantor simply admit it without making any representation?
Anirudh
(Expert) 26 March 2013
If interested, he would make the borrower make the representation.
Nadeem Qureshi
(Expert) 26 March 2013
Dear Manish
section 13 (2), 13(3A) and 13 (4) of SARFAESI ACT is not related to guarantor, the Guarantor can not say that I or the Borrower send a representation and the bank or Secure creditor did not reply of this representation, My Guarantee will be finished after that.
Read the SARFAESI ACT properly with relevant judgments of SC/.HC or DRAT.
Feel Free to Call
Adv k . mahesh
(Expert) 26 March 2013
those section are not related to guarantor
Raj Kumar Makkad
(Expert) 30 March 2013
It needs to read the quoted sections once more and then to raise further query if not satisfied.
