Securitization act
Rajeev Khanna
(Querist) 05 January 2012
This query is : Resolved
A notice under Section 13(2) i.e. demand notice had been issued to one of the co-borrowers, there are two borrowers in total:- is aforesaid notice valid or notice should be send to both the borrowers to constitute a valid notice.
Plese give citations, if available
Devajyoti Barman
(Expert) 05 January 2012
The borrowers are both severally and jointly liable.
So notice to any of them is not bad in law.
Kiran Kumar
(Expert) 05 January 2012
yes the notice is valid one..
Advocate M.Bhadra
(Expert) 05 January 2012
Knowledge of Notice one of the borrower is valid notice u/sec13(2) of the SARFESAI ACT, within sixty days you can repay the default amount or send a reply for your default.
Raj Kumar Makkad
(Expert) 05 January 2012
It is the prerogative of the bank whom to issue such notice and against whom to start recovery proceeding as both borrowers are jointly and severally liable to re[ay loan amount thus notice is valid.
Deepak Nair
(Expert) 06 January 2012
Yes, the notice is valid even though addressed to one of the two co-borrowers.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 06 January 2012
Notice has to be issued to both the borrowers since there is further condition in the act that the lender has to respond within seven days about the possible objections from the borrower.
Rajeev Khanna
(Querist) 06 January 2012
I am a queriest
Thanks for your valuable comments/advice
Is there any citation available to support?
prabhakar singh
(Expert) 06 January 2012
is aforesaid notice valid??
yes! valid is the answer.
R.Ramachandran
(Expert) 06 January 2012
Dear Mr. Rajeev,
The question to be asked is - whether one is a borrower or a guarantor or not.
If one is either a borrower (even a co-borrower), or a guarantor and if a notice is issued by the bank under section 13(2), it is valid.
It is not for the borrower or the guarantor to question whether other borrower or other guarantor has been issued with a notice or not.
If any action is proposed by the bank against such borrower or guarantor who have not been served with any notice, then such borrower or guarantor would definitely take a plea that they did not get any notice. Then it would be for the bank to provide proof of service of notice on such borrower/guarantor.
Therefore, whether a notice is valid or not would not depend whether the bank has issued notice to all concerned or not, but whether the person who received the notice is a borrower or a guarantor or not.
NO CITATION IS REQUIRED FOR THIS.
Rajeev Khanna
(Querist) 08 January 2012
Thanks for your valuable advice
Respected Sir,Mr.R. Ramachandran had correctly interpreted the query here in. question here is,Whether notice issued to one of the Co-borrower is valid against the other co-borrower or not i.e. without issuance of notice u/s 13(2) to one of the co-borrower can bank issue a notice u/s 13(4)to the co-borrower who does not have notice u/s13(2) of the act?Humbly requests you all to please guide me on this.
Further, JSDN-Advocate Defence has also raised a valid point
RAJU O.F.,
(Expert) 12 January 2012
Demand notice u/S 13(2) of the SARFAESI Act is to be issued to all the owners of the secured properties only; and hence not essentially to all the borrowers.
