Sarfaesi act

Advocate M J (Querist) 11 September 2016 This query is : Resolved
GOOD DAY HON'BLE JURY,
MY CLIENT HAD FILED A CASE IN DRT U/S 17 OF SARFAESI ACT against the financial institution challenging the demand notice as the institution has not given the statement the account as to how my client has to give the amount, the drt has not given an opportunity to my client instead passed the order to pay rs.5 lakhs and clear the balance within 2 months for which a wp was filed in the high court saying that my client wants to close the HL A/c to let him know the total amount to be paid for which several written communications were sent still no reply from the institution. the high court had sent a notice for them to appear. since 3 months the matter is pending in the high court, can they take the position of the property when the tenant is staying. kindly advice what to do? tks MJ

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Raj Kumar Makkad (Expert) 11 September 2016
If I have to confine upto the query raised by you then my reply is yes, it can be unless a stay order is obtained from high court but if I am allowed to further go with your problem then I am of the considered opinion that instead of approaching high court, you should have filed an appeal before Debts Recovery Appellate Tribunal and must have obtained stay order against further taking possession by the authorities till the finalization of appeal.

adv.bharat @ PUNE (Expert) 11 September 2016
Agreed with expert opinion.

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Advocate M.Bhadra (Expert) 11 September 2016
Yes, bank can take physical possession and sell the property if there is no stay by the high court. There is no merit in High Court in the matter under SARFEASI Act. Your client should file an appeal in appellate authority of DRT.

RAJESH KHANNA mob 09780573241 (Expert) 11 September 2016
Since high court did not given any stay order against DRT order , just issue a notice to bank , so bank have ful right to take possession of property , firstly bank file application us 14 in the DM court , then got order from DM Court for taking possession of property . So file caveat at DMCourt . Give detail of petition file at high court .

cherukuri prasad (Expert) 12 September 2016
seek the suspension of the Order in High Court. What are you waiting for. You have a very good ground.

Dr J C Vashista (Expert) 14 September 2016
You have approach the wrong forum, rather DART would have been better option as advised by expert Mr. Raj Kumar Makkad, I fully agree and appreciate his analysis of the query and legal acumen.