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arpan   09 August 2015

Can bank rectify and and resend notice 13(4), sarfaeci act

 

Plz tell me whether this below process is invalid or not;

Bank send a 13(4) notice to borrower and the said notice is under subjudicie.

Court asked the borrower to pay a certain amount of money which the borrower neglected.

Meanwhile Bank rectified ( updating the recovery amount with an updated  date) and and have issued the second notice u/s 13(4), sarfaeci act.

Is this process valid/invalid?

Single liner ::can Bank resend a rectified notice under section 13(4) when the notice is under subjudicie?

 

 

 

 



Learning

 3 Replies

Ajit Singh Cheema (practising Advocate)     10 August 2015

Dear Sir ,

When simultaneous proceedings can be initiated or followed under DRT Act and Sarfaesi Act ,the question of matter being subjudice is irrelevant .The issuance of corrected / fresh notice is not barred.

It is not necessary or mandatory for financial institution to invoke Section 13 ,only after withdrawing civil suits pending in civil court .More so, the borrower or  other person having interest over secured assets required to submit their explanations,which should be considered by secured creditor mandatorilyand pass appropriate order.If section13(4)is invoked,then remedyavailable  is under section17of Sarfaesi Act.

T. Kalaiselvan, Advocate (Advocate)     16 August 2015

There is no legal infirmity in bank issuing a rejoinder or rectified notice to the borrower.

RAJU O.F., (Advocate)     25 September 2015

If the stay order is self-serving that unless the amount is paid within stipulated period, bank can proceed further, then only bank is justified for issue of further Possession Notice for higher amount or directly with sale notice. Otherwise action of the bank is wrong, could be quashed by DRT in the pending Securitisation Appliction u/S17.


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