Sarfeasi Act 2002

Querist : Anonymous (Querist) 08 November 2009 This query is : Resolved
My company (here is called borrower )have taken Term loan from Riico ( Financial Institution)and working capital facilities from Nationalise bank's branch . Riico have first charge on immovable assets of the borrower,and Nationalise bank have 2nd charge on immovable assets of the borrower and Nationalise bank have also 1st charge on current assets of the borrower.

Besides above one pvt. limited company give corporate gurantee in favor of borrower to Nationalise bank against working capital facilities provided by the Nationalise bank to the borrower.

pvt. limited company also mortagaged his immovable assets to Nationalise bank,where as pvt ltd company have not taken any loan from the Nationalise bank .

Is nationalised bank can take possession of the immovable property of a private limited company under sarfeasi Act 2002. who have not taken loan but mortaged his immovable property.

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Raj Kumar Makkad (Expert) 08 November 2009
Yes. Guarantor is equally responsible for the repayment of the loan amount and if the guarantor has mortgaged his immovable property with the bank as a guarantor of another party, certainly its mortgaged property can be taken into possession by such bank under the provisions of aforesaid act.

Kiran Kumar (Expert) 09 November 2009
bank has every right to proceed against the guarantor.

after guarantor is to idemnify the bank in case of default by the lonee.

and nowadays most of the gurantees are continuing in nature which would subsist for future loans also.

Sachin Bhatia (Expert) 09 November 2009
Guarantor is equally responsible for the repayment of the loan amount. Yes bank can take possession of the immovable property.

Querist : Anonymous (Querist) 09 November 2009
In the above case pvt limited company give the immovable property( Shpops) on rental basis to third party called as tenant . and tenant kept many assets and documents in these shops but nationalise bank taken possession without consent of the tenant.

where as tenants all business working heldup due to taken possession of shops alongwith his important documents and assets.

Tenants also requested to nationalise bank to realese documents and the possession of shops but no responce has been given by the bank.

in these case is there any remedy to tenant or the owner of the shops to take possession back.

Anoop Deshpande (Expert) 11 November 2009
I endorse the opinion given above. SEcuritisation Act is meant to take possession of secured assets. If guarantor gives his property as security towards loan by way of mortgage or otherwise, then the Bank take action against such property.

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