what is the time limit for taking possession of property by bank aftr the order is passed by district magistrate unde securtisation act?

within how much time bank should auction the posssessed property from the borrower?

can borrower stop bank to auction the mortgaged property below govt valuation or the valuation taken by bank by bank valuer at the time of lending the loan?
can bank recover interest on NPA? at what rate? from which date?

what is symbolic possession by bank and do bank can charge interest after taking symbolic possession?

can a borrower force bank to take possession of first charge property i.e. stock in trade? can bank refuse to take possession of stck in trade in hypothecation account?

practising Advocate


Facing Sarfaesi Act

1)      For taking recourse to section 13(4), Statute has not fixed any time limit.

2)      There is no time limit fixed for auction of the property.

3)      The banks action can be stopped under the Order of the DRT, in appeal.

4)      Yes, the bank can recover total interest, till  the date of adjust ment of the loan account.

5)      Under the Sarfaesi Act , the bank is not bound to take possession of stocks . Mostly the banks take  action against the mortgaged property .

6)      Symbolic possession is de facto possession and it is not actual physical possession.

7)      If the loan account is adjusted from the sale of mortgaged property the bank may not enforce hypothecation charge.


Consultant & Legal Analyst

I endorse the views of Shri Ajit Singh Cheema.


I endorse the views of Shri Ajit Singh Cheema




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