Can a bank seize a huf property on account being classified as npa?

Akshay Rathi (Querist) 19 June 2015 This query is : Resolved
Case: A partnership firm having 4 partners availed a Cash Credit Loan and a Term Loan from a nationalized bank against book debts, stock, building, machinery and a HUF property as a collateral security. The karta of the HUF is a partner in the firm. No approval or NOC was taken by the bank from the members of the HUF.
However, the account was classified as NPA by the bank.
Can the bank seize the HUF property?

Follow Query

Report Abuse

Devajyoti Barman (Expert) 19 June 2015
academic query..............

Rajendra K Goyal (Expert) 19 June 2015
No reply to academic query.

Sudhir Kumar, Advocate (Expert) 20 June 2015
whether this property is mortgaged?

whether mortgaged with consent of whole HUF

Anirudh (Expert) 20 June 2015
Bank need not take any consent/approval from the members of the HUF. The action of the Karta will bind the HUF.

Guest (Expert) 20 June 2015
A question of commonsense arises, when the term loan was taken against the property of HUF, on what ground do you believe that the HUF property should be exempt from seizing by the lender?

Parthasarathi Loganathan (Expert) 20 November 2015
The lender bank is empowered to take Recovery Action for any property mortgaged even it stands in the name of the HUF

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

Ask Query
Unanswered Queries