Sale certificate
Querist :
Anonymous
(Querist) 22 December 2011
This query is : Resolved
Pls let me know whether a sale Certificate can be issued by a debt recovery Tribunal, without considering a public action? Any Citation to explain this can also be shared....
Raj Kumar Makkad
(Expert) 15 January 2012
Kanaiyalal Lalchand Sachdev and others vs State of Maharashtra and others [SUPREME COURT OF INDIA, 07 Feb 2011]
Banking & Finance - Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, ss. 13(2), 14 and 17 - Recovery of loan amount - Respondent no. 3 (Bank) had advanced a loan of Rs. 4,50,00,000/- to appellant no. 6 on an equitable mortgage by deposit of the title deeds of certain properties - Appellant Nos.1 to 5 and 'X' stood as personal guarantors to the said loan - On default of re-payment of loan amount, respondent no. 3 filed petition before the Chief Metropolitan Magistrate u/s. 14 of the Act for taking possession of the secured assets - The Magistrate allowed the said application and directed the Assistant Registrar, to take possession of the mortgaged properties after issuing notice to the appellants - Being aggrieved by the said order, the appellants filed writ petition before HC - The HC dismissed said writ petition on the ground that an alternative remedy was available to the appellants u/s. 17 of the Act - The HC directed the respondents to maintain status quo in the matter for a period of 10 weeks from the date of its order, so as to enable the appellants to approach the Debts Recovery Tribunal u/s. 17 of the Act - Hence, the instant appeals - Whether HC rightly dismissed writ petition filed by the appellants on the ground that an alternative remedy was available to the appellants? - Held, an action u/s. 14 of the Act constitutes an action taken after the stage of s. 13(4) of the Act, and therefore, the same would fall within the ambit of s. 17(1) of the Act - Thus, the Act itself contemplates an efficacious remedy for the borrower or any person affected by an action u/s. 13(4) of the Act, by providing for an appeal before the DRT - Therefore, the HC rightly dismissed the petition on the ground that an efficacious remedy was available to the appellants u/s. 17 of the Act - Impugned order was upheld - Appeals dismissed.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 15 January 2012
This citation deals with limited law , it does not absolve the lender to follow proper procedure.
Any sale certificate without auction is not legal.
Anirudh
(Expert) 15 January 2012
I wonder whether the Debt Recovery Tribunal ever carries out any "Sales" by itself and whether issues any Sale Certificate at all?
