Sarfaesi act
atul mehta
(Querist) 05 November 2012
This query is : Resolved
Respected sir,s
I am a guarantor and mortgaged my property with bank for a loan taken by friend who has a pvt ltd company,the company has defaulted in repayment. now my property in put to auction. How can i save or how can I get a stay order against the Auction by the bank. please help me.
Thanks n regards
R.K Nanda
(Expert) 05 November 2012
TAKE STAY ORDER BY FILING PETITION IN DRT AGAINST AUCTION ASAP AS SARFAESI IS BLACK LAW.
c.p.s. ramachary
(Expert) 06 November 2012
First of all you have to examine your case and find out if you have any merits to approach DRT under Sec.17 of SARFAESI Act. Obtaining stay order is not that easy as you have to establish strong grounds to challenge the action of the bank. For example if you and the borrower company are not served with the statutory notices under Sec. 13(2)&(4) or if possession is taken without communicating any reply under Sec 13(3A) of the Act, Then there may be a chance to obtain stay of-course which is only for temporary period till final disposal of the application under Sec 17 of the Act. If you can establish such good grounds the stay may be granted to you subject condition of payment of certain amount fixed by DRT.
RAJU O.F.,
(Expert) 06 November 2012
Immediately prefer an Appeal under Sec.17 of the SARFAESI Act in jurisdiction DRT, through an advocate who is conversant with the SARFAESI and DRT Acts. If the appeal and prayers are properly made by an experienced advocate, several grounds can be found to resist the auction of property.
K.K.Ganguly
(Expert) 08 November 2012
1) Since the property has been put for Auction Sale, it means that the Bank has already issued notice u/s13(2) & 13(4) of SARFAESI ACT, 2002 & you can file Application u/s 17(1) of the Act within 45 days of issue of notice u/s13(4). Now the said 45 days period is over & your application before DRT will not be admitted.
2) File a W.P. before High Court showing some acceptable reason praying for direction to DRT to admit your Application. In a recent case, Patna High Court has given such order & DRT, Patna has admitted one such Application.
3) After that you find some fault in the SARFAESI proceedings followed by the Bank & pray before the DRT for direction for setting aside the entire SARFAESI Proceedings initiated by the Bank.
4) For taking all the above steps, engage an advocate having expertise in SARFAESI matters.
