Parrallel proceedings
prasanta kumar parida
(Querist) 25 September 2011
This query is : Resolved
Whenfor the self same loan for the only residential building of the guranteer which was kept as colatteral security, a proceeding under securitization and reconstructionb of financial assets and enforcement of security interest act 2002 is pending ,the Bank is insisting me to send notice for initiating a parallel proceeding relating to same colateral proceeding can be started under the Recovery of Daebts due to Banks and other Final Institutions Act,1993, Whether it will be legal on my part to send such a notice & I will have to send a Notice what type of Autherization is to be kept by me from the Bank. Plz. vizualise the auckward position faced by me &kindly share your valuable knowledge, so that, I can serve the notice ,without committing any offence.
Chanchal Nag Chowdhury
(Expert) 25 September 2011
The SARFAESI Act is only to secure the debts of the financial Institutions & an appeal against attachment may bring a swift stay from the DRT. To obviate that, some financial Institutions institute DRT proceedings after attachment.
I do not think they overlap & may be taken by way of caution.
prabhakar singh
(Expert) 25 September 2011
Both actions can go togather.Nothing wrong in doing so,sending a notice on instruction of client,even if misconceived,does not amount to commission of any offence.
prasanta kumar parida
(Querist) 25 September 2011
RESPECTED PRABHAKAR SIR, SOMEBODY INFORMED ME THAT, THE PARALLEL PROCEEDING IS PERMITTED BY A RULING OF THE HON'BLE SUPREME COURT. I WILL BE GREATFUL, IF YOU WILL BE KIND ENOUGH TO SUPPLY ME THE CITATION OF THE SAID RULING OF THE HON'BLE SUPREME COURT.
