SARFAESI Act - Sale Notice Amount

valarmathi (Querist) 22 August 2010 This query is : Resolved
Respected Sirs,

I request a clarification : A borrower has credited a sum say Rs.1.00 lac in his account after the issue of possession notice. When the sale notice was issued, the amount mentioned in 13(2) notice was repeated but we mentioned the "as on date" , i.e., Say 5.34 lacs on 14.05.10 (13(2) date) without including the credit and recalculating the dues. But the usual terminology of "with subsequent interest and cost" was included.

Is the sale notice "valid"? If the borrower files an affidavit challenging the sale, will an order favouring the borrower be passed?

P.s: All the remittances were credited to the borrower's account any way and we are ready to credit the excess in sale proceedings to his savings account.

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s.subramanian (Expert) 22 August 2010
you need not worry. You can issue another publication with regard to this error in the amount due and proceed with the sale. It is merely an irregularity and not an illegality. It will not affect the sale proceedings in any manner.

valarmathi (Querist) 23 August 2010
Thank you, subramanian sir.

DEFENSE ADVOCATE.-firmaction@g (Expert) 23 August 2010
Yes your sale will be illegal and can also face counter claim for damages.

Guest (Expert) 23 August 2010
KINDLY NOTE THAT THE MATTER WILL BE REFERED AND DECIDED BY THE DEBTS RECOVERY TRIBUNAL HAVING THE AREA JURISDICTION.
THE LOAN AREARERS WILL BE RECOVERED AS MOST OF THE DRTS ARE ESTABLISHED TO RECOVER THE LOAN ARREARS OF BANKS AND FINANCIAL INSTITUTIONS.SO GO AHEAD GOOD LUCK.

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