Sarfaesi of cold storage unit
Saikat Sen
(Querist) 21 February 2014
This query is : Resolved
Dear Sir/Madam,
Rameswarpur cold storage pvt ltd a cold storage that is financed by our Bank.The land is in the name of the cold storage but the classification of the land is agricultural instead of non agricultural.
Can we go for SARFAESI in case the unit defaults & the classification of land remain agricultural.
Thanks & Regards,
Saikat Sen
ajay sethi
(Expert) 21 February 2014
you can issue notice under section 13(2) of act . let the cold storage unit reply to said notice . bank can consider reply of the unit and pass order .
if the action of the bank/financial institution illegal, can be raised in the proceedings under Section 17 of the Securitisation Act before the Debt Recovery Tribunal.
It is for the Debt Recovery Tribunal to decide in each case whether the action of the bank/financial institution was in accordance with the provisions of the said Act and legally sustainable
please note that you are prohibited from bringing the agricultural properties for sale as contemplated under Section 31 (1) of the Act as they are exempted from bringing for sale.
Nadeem Qureshi
(Expert) 21 February 2014
you are from bank, your bank can easily bear conaultation fee of a lawyer.
K.K.Ganguly
(Expert) 22 February 2014
1. Agricultural land is not mortgageable under SARFAESI Act,2002,
2. So, the Bank can not enforce security interest on the said agricultural land & initiate SARFAESI Proceeding to take possession of & sell the said agricultural land,
3. The Bank's only option left is to file Original Application (O.A.) under Section 19 of the Recovery of Debts Due to Banks & Financial Institutions Act,1993 for recovering the outstanding amount by selling the assets of the Borower & its guarantors, if any.
T. Kalaiselvan, Advocate
(Expert) 22 February 2014
Have you not consulted your legal adviser?, I agree with the opinions given by many experts more particularly by expert Mr. Ganguly on the subject. Do you want to advise your legal adviser on this subject to proceed further after clarifying from this source? or is it in your academic interest?
Dr J C Vashista
(Expert) 23 February 2014
Please submit your reply to the questions raised hereinabove.
Saikat Sen
(Querist) 06 March 2014
Dear Sir,
The use of the agri land is for cold storage purpose & the land is butted & bounded.So,in that case is sec 31 is applicable?
