LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Rahul Borkar (Service)     22 February 2012

Can declaring bankruptcy avoid property seizure from sarfaes

Hi Legal Experts,

My brother has taken a 15 lac loan from a private bank for his business keeping our own home as mortgage. In the period of time he incurred huge loss in his business and had to shut down. He had made regular payments to the bank untill his business was crashed. later he was not at all in position to repay.

Today, Bank has issued the Sarfaesi notice and has asked us to pay the entire amount or the property will be seized. Can you guide me with alternative remedies in this case? i know we could appeal in DRT but this will not help since my brother is financially broke. If he applies for bankruptcy, is there any law which can avoid the property siezure?

Please help advice.

Thanks a lot for any advice you can provide in this matter.



Learning

 11 Replies

subodhkumar (proprietor)     22 February 2012

first private bank which bank ? regarding property in question ,is it an aquired one or it is a family property

Rahul Borkar (Service)     22 February 2012

ICICI Bank.

The property is in name of my Mother.

N.K.Assumi (Advocate)     22 February 2012

Know the meaning of Sarfaesi,it is for the bank to show their legal rights over the mortgaged property.

Rahul Borkar (Service)     22 February 2012

Hi Assumi,

I know the sarfaesi act. and court has given immense powers to the bank to execute them. I only need an advice, what can be done to avoid property seizure. Thanks for your help. 

N.K.Assumi (Advocate)     22 February 2012

That is why look to the domentations showing the rights of the banks which are  in the hands of the banks to take over your mortgaged property under the act.

subodhkumar (proprietor)     22 February 2012

if the property is in the name of mother and how many bros and sisters are there to you and is it ancestral property or acquired by mother or your father please give details further

Rahul Borkar (Service)     22 February 2012

Hi Subodh,

We are only two brothers. This property was bought by my father on my mothers name. my father is not in this world now.

Ramdas Doiphode (service)     22 February 2012

As action is under SARFESAI act,propoerty must have been mortgaged to bank. It does not matter whether it is ancestral or who are the heirs, etc. 

Bankruptcy /Insolvency willnot help you. 

Alternative remedy is go for compromise/settlement with bank.

subodhkumar (proprietor)     23 February 2012

hello mr rahul,

the point now with you is that you are two brothers and your mother who share the property so as per partition suits which shall be in the civil court for declaration of 1/3rd share for each so the bank now will have only rights on 1/3 rd share of your brothers part of property only you must see that have all of you have signed the documents also when have you got notice under section 13(2) the date of reciept you have to file also reply to the bank about the objections . also inform the purpouse of the loan taken for

subodhkumar     e mail : daxkumar_123@rediffmail.com

Rahul Borkar (Service)     23 February 2012

Hi Subodh,

Thanks for your guidance. What documents are you referreing to when you say "that have all of you have signed the documents"? and can i file for partition of property even tough the property papers are in bank?

Thanks

Rahul.

subodhkumar (proprietor)     23 February 2012

mr rahul the mortgage deed signed by how many members of your family, you can still file the partition and declaration suit even if the documents are with bank also file objection with the bank what was the purpouse of the loan mention clearly send details by email

subodhkumar


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  




Popular Discussion


view more »




Post a Suggestion for LCI Team
Post a Legal Query