J C Gerorge (Business) 02 September 2016

Sarfaesi act

Once a loan became NPA after that I cleared all dues in installments. Again the same loan becamee three installment pending. Bank can move any safaesi proceedings without sending 60 days demand notice ?

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4 Replies

P. Venu (Advocate) 02 September 2016

It is not understood whether the the Bank initiated the proceddings earlier or any notice had been sent.

Ajit Singh Cheema (practising Advocate) 02 September 2016

The Bank cannot move sarfaesi proceedings without sending 60 days demand notice under section 13(2) of sarfaesi act.

SIVARAMAPRASAD KAPPAGANTU (Retired Manager) 03 September 2016

I agree with Shri Ajit Singh Cheema. Bank can take action under sarfaesi act but they cannot take action without complying with the procedure prescribed therein.