SARFAESI ACT.

If you have raised objections to the notice they have to address to them and issue fresh notice.

Resp. Shashikumar Sir,

Thanks a lot for the guidence.  Can u be more specific - i.e. when to raise an objection? At present they are not taking any action. So the does it mean that the objections are to be raised as & when they take action.

Regards,

Bank has to issue fresh notice for further action,you ask all the papers signed by the bank in loan matter,its your right.

Mr Patil is throwing advice with no relevance of law.

Mr Manoj better late than never , raise objection whatever you can but withing parameters of law and than go the DRT with heavy counter claim. Further you have to go to DART  HC and even SC. 

If you are consistant relief will be there.

Once provisions of SARFAESI Act was initiated by the Bank / FI, by issue of Demand Notice under Sec.13(2) of the Act, within the limitation period ( within 12 years from date of mortgage), any further limitation period is not prescribed under the Act.  Hence after 60 days from the date of receipt of the Demand Notice, the bank can any time proceed for taking possession by issue of Possession Notice u/S.13(4) and also issue Sale Notice for sale of secured assets after 30 days from date of receipt of sale notice. 

Better you send your objection/representation letter to the bank, which bank has to answer within 7days or they have to issue fresh Demand Notice.

Till Possession Notice u/S13(4) is issued, you can not go to DRT or DRAT.

In this case if the bank has issued notice to its NPA account then bank has to provide 60 days mendatory notice to its customer and after 60 days also if the service is not complete to its borrowers then again bank has to move for fresh notice along with publication in two leading newspapers & pasting also.

I beleive if the notice has been issued in 2007 and if the account has gone out of NPA as per the books of the accounts then Company might move for symbolic posssession along with Sec 14 application for taking physical possession.

And if any payment has been made by the booroower in between and if that had been adjusted towards his EMI then most obviuoulsy it will move out of NPA account and bank shall not start the proceedings for taking possession.

In this case if the bank has issued notice to its NPA account then bank has to provide 60 days mendatory notice to its customer and after 60 days also if the service is not complete to its borrowers then again bank has to move for fresh notice along with publication in two leading newspapers & pasting also.

I beleive if the notice has been issued in 2007 and if the account has gone out of NPA as per the books of the accounts then Company might move for symbolic posssession along with Sec 14 application for taking physical possession.

And if any payment has been made by the booroower in between and if that had been adjusted towards his EMI then most obviuoulsy it will move out of NPA account and bank shall not start the proceedings for taking possession.

I think Bank/FI is bound to reply if  the representation made by borrower within the expiree of 13(2), there is no limitation for 13(4) provided in Act. Once 13(2) issued after classification of a/c as NPA, NOTICE WILL STAND TILL THE A/C GET FULLY CLOSED

Dear Mr.Vinod,

Thanks for your opinion. Suppose if there are some credits in the account subsequently and the outstanding amount is reduced & is different from that mentioned in the 13(2) Notice. Will the Banker needs to issue a fresh Notice before going ahead with 13(4) measures?

Unless you obtain a record in writing, from the Bank/FI, stating that the loan account is out of NPA ( because of subsequent remittances), the earlier Demand Notice u/Sec.13(2) could be further proceeded by the bank, by issue of Possession Notice u/S13(4), followed by Sale Notice, of the secured assets.  The discretion  to re-classify the account into non-NPA, is vested with the bank; hence, further remittance in part may not stop SARFAESI proceedings.  After regularising the dues, the borrower may request the banker to re-classify the account as 'out of NPA'.  In short, SARFAESI proceedings can be initiated only if the account is NPA.

Dear Manoj,

the concept of SARFASI Act is very clear that once provisions of  Act was initiated by the Bank, by issue of Demand Notice under Sec.13(2) of the Act, ( the only limitation is the proceedings initiated by bank under the act must be done with in  12 years from date of mortgage i.e notice and  possession both ), any no other limitation / obligation upon the bank is prescribed under the Act.  Hence after 60 days from the date of receipt of the Demand Notice, the bank can any time proceed for taking possession by issue of Possession Notice u/S.13(4). 

It is advisable that  you send your objection / representation letter to the bank, if any, which bank has to answer within 7days as per section 13 (3) A of the act or they have to issue fresh Demand Notice.

the proceeding u/s 17 can only be draw if the Possession Notice u/S13(4) is issued.

thanks

ajay varshney

advocate

Bank Gives 60 days notice to pay full amout.

U/s Sec 31 of the Act bank can not take action if:

• 75% or more has been paid
• amount is less that INR 100,000/-
• Security Intt in Agricultr land
• Hire purchase/ Leasehold
• Pledge of moveable properties

for more detail read:

https://www.lawyersclubindia.com/articles/SARFAESI-Act-2002-Boon-For-Banks-Curse-for-Borrower-3592.asp