How to object and defend e-auction
Querist :
Anonymous
(Querist) 19 July 2020
This query is : Resolved
Dear Experts,
I want to have a suggestion from you, for the below problem.
M/S Prashanth Enterprises, is a Registered Partnership Firm, having three partners, who are family members.
They purchased a land in the name of M/S Prashanth Enterprises. They have taken a loan from Axis Bank, and executed a registered Document namely " Deposit of Title Deeds and obtained loan.
According to them( M/S Prashanth Enterprises) they have closed this Partnership Company and started another company ie., M/S Anuragh Products Pvt Ltd., having the same Partners, who are here as Directors. Since they have failed to pay the amount to the bank, the bank made an e-auction mentioned the Borrower name is M/S Anuragh Products Pvt Ltd., for recovery of the loan amount.
While running M/S Prashanth Enterprises, they took material from M/ Raju Associates on credit basis and failed to pay their due amount. and thus M/S Raju Associates filed a suit for recovery of the due amount and got obtained an Exparte Decree, 2 years back, which was not enforced by filing EP as of this day, by its own reasons. Now they want to file EP.
1.So My doubt is : how M/S Raju Associates, objects and stop the e-auction.
2. How the e-auction is maintainable since the loan taken and the property stands in the name of M/S Prashanth Enterprises and whereas the bank is shown as M/S Anuragh Products Pvt Ltd., is a borrower.
Plz. suggest. I am for M/S raju Associates.
Thanks u Sir.
.
Guest
(Expert) 20 July 2020
Guarantor would be liable in case of default of the borrower. Banker is Legally Right in placing the Guarantor's Property for Auction Or E Auction as the case may be. Paying an part amount and obtaining the Stay in the concerned Court would be the only option. and it has to be done urgently on priority basis depending on this situation and delay in filing the suit for Stay would be an advantage to the Banker the Lender please.
P. Venu
(Expert) 20 July 2020
Had the Bank taken the proceedings under SARFAESI Act? If so, did the companies concerned had taken any objection or further proceedings?
SHIRISH PAWAR, 7738990900
(Expert) 20 July 2020
Hello,
M/s. Raju Associates cannot object e-auction as he has no right over the property. Bank cannot directly start recovering from Anurag products pvt. ltd. company. However for advice you have state full facts and about the transaction of the companies in detail. Show your notice and documents to local advocate and discuss with him.
Rajendra K Goyal
(Expert) 20 July 2020
Partners of a firm and the firm are jointly and severally liable to pay debt of the firm.
If no loan was taken by Anurag products Pvt. Ltd. From Bank, any recovery proceedings against them need to be challenged.
The property was mortgaged with the Bank, Bank can proceed for e-auction against Parashanth Enterprises lonee and owner of the property.
Raju Associates has decree against Parashanth Enterprises, it has right to recover from its assets.
Raju associate can recover its dues from the proceeds of auction of the property, after satisfying Bank outstanding with whom the property is mortgaged and is having Ist charge on it.
