sarfaesi act

Dear Sir,

Humble request for Expert Opinion

We have taken loan from nationalised bank and our loan was wrongly declared NPA and we are contesting the case in DRT. Initially bank filed SA under SARFAESI Act which we contested and in the meantime bank has filed OA under RDDBI Act.

1) Can bank simultaneously follow recovery under both the Act. Both act are used for recovery of debt.

2) On scrutiny of documents submitted by bank in OA, we found the following issues.

(a) Equitable Mortgage of primary security is not correct. The letter of consent to create EM signed by us does not mention the sale deed of primary security and also the said sale deed does not show in the EM register of the bank . The original documents are with the bank.

b) Another property given as collateral security is joint property  (ie) two owners, but the EM Register say only one owner called on the bank to create EM. Does this mean "only the share of the owner mentioned in the EM  register is mortgaged  and not of the other co-owner. The Sale deed no. shown is also  wrong. This mistake is repeated in Notice Under 13(2) and possession notice.

c) In another property given as collateral the EM register says " authorised representative called on to create EM" but the owner has not issued any authorisation or PoA to any one to create EM.

d) The promissory note show wrong name of Executant . All info filled is correct expect the name of Executant.

The bank has collected all signed blank documents from us filled at their whims & fancy.

Should we contest these points in DRT or should we file application to reject the OA altogether since SA is already initiated.

We humbly request the panel of advocates to give your expert opinion. 

thank you, with kind regards, John

Property due diligence 9422773303

1)bank can use both paths of recovery.2a)you point out irregularities before DRT.but it won't help in DRT level,those will be useful in 226 227 in HC.2b)the undivided share of the mortgagor is said to be mortgaged.2c)it's illegal file criminal complaint against bank officers.if yours is pvt ltd co the charge might have been created by bank in ROC. Take the certified copies of your papers in ROC compare those with DRT papers,and file a criminal complaint.


Bank can initiate recovery proceedings under both these sections. you said bank had  declared your account as NPA wrongly, you mean to say u have paid them fully and still they are behind u for money. I do not buy the argument of filing 227 or 226 before HC, it will be counter productive. I advice you  not shield behind these technicalities,which will hold no good in court of law, Even if you prove these technicalities in the court, no court is going to say not to pay the bank. I advice you to settle the matter amicably with the bank ASAP.




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