Sarfaesi act
praveen
(Querist) 24 December 2011
This query is : Resolved
My client is intending to purchase a immovable property including plant and machinery under auction by BANK under SARFAESI Act, this property is mortgaged to bank by the company. directors of this company are also directors of another company which has defaulted in customs and excise dues Now suppose he buys in the auction, will excise dues and customs dues payable by the directors of the second mentioned company which is also under SARFESI Act will be claimed from the new auction buyer. WILL SOMEOTHER LIABILITY CREEP IN ALONG WITH THE PURCHASE OF PROPERTY UNDER SARFAESI ACT. IF ANY, WHAT KIND AND TYPE OF LIABILITY ARE LIKELY TO ARISE.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 24 December 2011
Wait for amendments in this act now before Parliament after which all these problems will vanish since lender will be permitted to buy such assets and they can resale it .
Advocate. Arunagiri
(Expert) 24 December 2011
Once you take the property of first company in auction, no attachment can be made.
For the default of the second company, having common directions, the first company's property can not be attached.
praveen
(Querist) 24 December 2011
if it a closely held company among directors and their relatives what will be the outcome?
Guest
(Expert) 25 December 2011
I endorse the opinion of Shri Arunagiri.
Advocate. Arunagiri
(Expert) 25 December 2011
Mr.Praveen,
Even if it is the situation, there is no change in my opinion.
praveen
(Querist) 26 December 2011
Thank You To All & Wish U All A very Happy New Year 2012
Devajyoti Barman
(Expert) 28 December 2011
Yes I agree too and best wishes to all..
RAJU O.F.,
(Expert) 30 December 2011
The liability of the auction purchaser under SARFAESI Act, is not well defined; whereas the auction purchaser under DRT Act is liabile only for such with effect from the date of sale. In the instant case, the liabilities of the other company will not affect the purchaser of first company. Other dues of the defaulter company, may be ascertained and take a decision on the amount of purchase.
